INFLUENCE OF THIRD-PARTY LOGISTICS PROVIDERS ON SUPPLY CHAIN PERFORMANCE IN KENYA: CASE STUDY OF EAST AFRICAN BREWERIES LTD

MARY KATANA

Abstract


The purpose of the study was to determine the influence of third-party logistics providers on supply chain performance in Kenya with reference to East African Breweries Ltd.  The target population of interest in this study was 278 staff at East African Breweries Ltd. To achieve the objectives of the study, both primary and secondary data was collected. The data was analyzed by both descriptive and inferential approaches using Statistical Package for Social Sciences software (SPSS). Data was collected through use of questionnaire instrument. The study will help among others, the manufacturers, importers, exporters, the government, Customs Services Department, port operators, logistics and supply chain organizations, clearing and forwarding agents, supply chain professionals and also further studies. The study found that the services they provided had improved supplier’s performance. Respondents were asked if freight forwarding affected supply chain performance in East Africa breweries. 87% indicated yes while 9% indicated no and 5% were not. Respondents were asked if transportation services affected supply chain performance in East Africa breweries 91% indicated yes while 9% indicated no. The study recommended that there was need to strategically analyse the needs of the company and the non-core business so as to make informed decisions of the right logistics services to outsource. It’s paramount to design appropriate logistics management practices in line with the organizations activities hence the improvement of transport efficiency could change the overall performance of the logistics system. Without the linking of transportation, a powerful logistics strategy cannot bring its capacity into full play.

Keywords: Freight Forwarding, Transportation Services, Third Party Logistics Providers, Supply Chain Performance 


Full Text:

PDF

References


Adebambo, S., & Toyin, A. (2011). Analysis of information and communication technologies (ICT) usage on logistics activities of manufacturing companies in Southwestern Nigeria. . Journal of Emerging Trends in Economics and Management Sciences (JETEMS), 2(1), 66-72.

Aguezzoul, A. (2014). Third-party logistics selection problem: A literature review on criteria and methods. . Omega vol. 49, 69-78.

Agyapong, G. K. (2011). The Effect of Service Warehousing services on Customer Satisfaction in the Utility Industry-A Case of Vodafone (Ghana). International Journal of Business and Management, 6(5), 203.

Ahmad Beygi, S., Cohn, A., Guan, Y., & Belobaba, P. (2008). Analysis of the potential for delay propagation in passenger airline networks. . Journal of Air Transport Management 14(5), 221-236.

Ajzen, I. (2011). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211.

Alan, R., Phil, C., & Peter, B. (2010). The Hand Book of Logistics & Distribution Management (4th Edition). London: Kogan Page Ltd. UK.

Arnold, J., Mathenge, J., Dihel, N., & Strychacz, N. (2011). The Role of Clearing and Forwarding Agents in Reforming the EAC Logistics Sector. African Trade Policy Notes. Note, (17).

Azadian, F., Murat, A. E., & Chinnam, R. B. (2012). Dynamic routing of time-sensitive air cargo using real-time information. Transportation Research Part E. Logistics and Transportation Review 48(1), 355-372.

Baker, P. (2007). Aligning Distribution Centre Operations to Supply Chain Strategy. International Journal of Logistics Management.Vol. 15, No. 1., 111-123.

Ballou, D. (2001). Pay for performance in public and private schools. Economics of Education Review, 20(1), 51-61.

Barry, J. (2004). Supply chain risk in an uncertain global supply chain environment. International Journal of Physical Distribution & Logistics Management, 34(9), 695-697.

Bask, A. H. (2001). Relationships among TPL providers and members of supply chains–a strategic perspective. . Journal of Business & Industrial Marketing, 16(6), 470-486.

Basu, R., & Wright, J. N. (2010). Total supply chain management. London: Routledge Publishers.

Blanchard, D. (2010). Supply chain management best practices. New York: John Wiley & Sons.

Bookbinder, J., & Matuk, T. (2009). Logistics and Transportation in Global Supply Chains: Review, Critique, and Prospects. . Informs Tutorial in Operations Research, 182-211.

Borg, R., & Gall, W. (2009). Educational Research- An Introduction. New York: Flipkart Books.

Borg, W. (2009). Research in Education: An introduction. London: Longman.

Boute, R. N., Disney, S. M., Lambrecht, M. R., & Houdt, B. V. (2007). An integrated production and inventory model to dampen upstream demand variability in the supply chain. European Journal of Operation Research (178), 121-142.

Bowen, J., & Leinbach, T. (2004). Market Concentration In The Air Freight Forwarding Industry. Tijdschrift voor Economische en Sociale Geografie 95 (2), 174-188.

Bowman, R., Lear‐Olimpe, M., Salkin, S., & Thomas, J. (1997). And now, your logistics forecast. Journal of Distribution and Management, 26-37.

Brady, M., Cronin, J., & Brand, R. (2002). Performance-only measurement of service warehousing services: a replication and extension. Journal of Business Research, 55(1), 17-31.

Brewer, P., & Speh, T. (2001). Adapting the balanced scorecard to supply chain management. . Supply Chain Management Review, March/April, 48-56.

Bruwer, J., Fong, M., & Saliba, A. (2013). Perceived risk, risk-reduction strategies (RRS) and consumption occasions: roles in the wine consumer's purchase decision. . Asia Pacific Journal of Marketing and Logistics, 25(3), 369-390.

Bryman, A. (2007). Business Research Methods, 2nd edition. New York: Oxford University Press.

Burt, D., Dobler, D., & Starling, S. (2003). World-Class Supply Management: The Key to Supply Chain Management. New York: McGraw-Hill .

Cadotte, E. R., Woodruff, R. B., & Jenkins, R. L. (1987). Expectations and norms in models of consumer satisfaction. . Journal of marketing Research, 305-314.

Calder, B. J., Phillips, L. W., & Tybout, A. M. (1981). Designing research for application. . Journal of consumer research, 8(2), 197-207.

Caruana, A. (2002). Service loyalty: The effects of service warehousing services and the mediating role of customer satisfaction. European journal of marketing, 36(7/8), 811-828. European journal of marketing, 36(7/8), 811-828.

Cavana, R. Y., Delahaye, B. L., & Sekaran, U. (2001). Applied business research: Qualitative and quantitative methods. . Australia: John Wiley & Sons .

Chang, K. (2000). The impact of perceived physical environments on customers' satisfaction and return intentions. . Journal of Professional Services Marketing, 21(2), 75-85.

Chopra, S., Reinhardt, G., & Dada, M. (2004). The effect of lead time uncertainty on safety stocks. . Decision Sciences, 35(1), 1-24.

Christopher, M., & Peck, H. (2012). Marketing logistics. Routledge.

Clifford-Defee, C., Williams, B., Randall, W. S., & Thomas, R. (2010). An inventory of theory in logistics and SCM research. . The International Journal of Logistics Management, 21(3), 404-489.

Cooper, M., Lambert, D., & Pagh, J. (1997). Supply chain management: more than a new name for logistics. International Journal of Logistics Management, Vol. 8, No. 1, 1-13.

Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. (2016). Supply chain management: a logistics perspective. Nelson Education.

Crainic, T., Gendreau, M., & Potvin, J. (2009). Intelligent freight-transportation systems: Assessment and the contribution of operations research. Transportation Research Part C. Emerging Technologies 17 (6), 541-557.

Craven, E. K. (2007). Understanding Perfomance. 3rd Edition. Boston : Boston College Press.

Craven, E. K. (2007). Understanding Performance. 3rd Edition. . Boston : Boston College Press.

Croxton, K. (2003). The order fulfillment process. The International Journal of LogisticsManagement.Vol. 14, No. 1. , 19-32.

Davis, H. (1991). Physical distribution freight forwardings. . Annual Conference Proceedings of the Council of Logistics Management, 357‐364.

Desouza, K., Chattaraj, A., & Kraft, G. (2003). Supply Chain perspectives to knowledgemanagement: research propositions. Journal of Knowledge Management, vol 7, no 3, 129-138.

Drake, M. (2012). Global supply chain management. Business Expert Press.

Ekeskar, A., & Rudberg, M. (2016). Third-party logistics in construction: the case of a large hospital project. Construction Management and Economics, 34(3), 174-191.

Forslund, H. (2012). Performance management in supply chains: logistics service providers perspective. International Journal of Physical Distribution & Logistics Management (42) , 296-311.

Forslund, H. (2015). Performance management process integration in retail supply chains. . International Journal of Retail & Distribution Management, 43(7), 652-670.

García-Arca, J., & Prado-Prado, J. C. (2008). Packaging as source of competitive advantages. . Universia Business Review, 17, , 64-79.

Garg, G., & Kothari, C. R. (2014). Research Methodology. Methods and Techniques. New Delhi: New Age International Publishers.

Goddard, W., & Melville, S. (2004). Research methodology: An introduction. . Juta and Company Ltd.

Goetschalckx, M., & Vidal, C. (2001). Modeling the effects of uncertainties in global logistics systems. . Journal of Business Logistics, 21 (1), 95‐120.

Goffnett, S. P., Cook, R. L., Williams, Z., & Gibson, B. J. (2012). Understanding satisfaction with supply chain management careers: an exploratory study. . The International Journal of Logistics Management, 23(1), 135-158.

Goffnett, S. P., Cook, R. L., Williams, Z., & Gibson, B. J. (2012). Understanding satisfaction with supply chain management careers: an exploratory study. . The International Journal of Logistics Management, 23(1), 135-158.

Gol, H., & Catay, B. (2007). Third-party logistics provider selection: insights from a Turkish automotive company. . Supply Chain Management: An International Journal, 12(6), 379-384.

Goldratt, E. M., & Goldratt, R. (2004). TOC insight sinto finance and measurements. New York: Goldratt’s Marketing Group.

Green, K., Whitten, D., & Inman, A. (2008). The impact of logistics performance on organizational performance in a supply chain context. Supply Chain Management 13 (4), 317-327.

Harrison, A., & Van Hoek, R. I. (2008). Logistics management and strategy: competing through the supply chain. . Pearson Education.

Heydari, J., Kazemzadeh, R. B., & Chaharsooghi, S. K. (2009). A study of lead time variation impact on supply chain performance. International Journal of Advanced Manufutering Technology (40), 1206–1215.

Heydari, J., Kazemzadeh, R. B., & Chaharsooghi, S. K. (2009). A study of lead time variation impact on supply chain performance. International Journal of Advanced Manufutering Technology (40), 1206–1215.

Hofer, A. R., Knemeyer, A. M., & Murphy, P. R. (2015). Achieving and exceeding logistics outsourcing expectations in Brazil: a replication study. Transportation Journal, 54(3), 339-367.

Krumwiede, D., & Sheu, C. (2002). A model for reverse logistics entry by third-party providers. Science Direct, Vol. 30, 325-333.

Kuglin, F. A. (1998). Customer-centered supply chain management: a link-by-link guide . New York, NY: Amacom.

Lacity, M., Willcocks, L., & Rottman, J. (2008). Global outsourcing of back office services: lessons, trends, and enduring challenges Outsourcing. An International Journal, Vol. 1No. 1., 13-34.

Lacity, M., Willcocks, L., & Rottman, J. (2008). Global outsourcing of back office services: lessons, trends, and enduring challenges Outsourcing. . An International Journal, Vol. 1No. 1., 13-34.

Larson, P., & Gammelgaard, B. (2001). The logistics triad: survey and case study results . . Transportation Journal, (41 ) 2/3, 71-83.

Lewis, S. (2005). Who was…Ludwig von Bertalanffy?. Biologist, vol 52, no 3, 174-175.

Maghanga, F. M. (2011). Logistics outsourcing practices among tea processing firms in Kericho County, Kenya (Doctoral dissertation, University of Nairobi). University of Nairobi: Unpublished.

Manuj, I., & Mentzer, J. (2008). Global Supply Chain Risk Management. Journal of Business Logistics 29 (1), 133-155.

McGue, M., Osler, M., & Christensen, K. (2010). Causal inference and observational research: . The utility of twins. Perspectives on Psychological Science, 5(5), 546-556.

McGue, M., Osler, M., & Christensen, K. (2010). Causal inference and observational research: The utility of twins. Perspectives on Psychological Science, 5(5), 546-556.

Mitnick, B. M. (2015). Agency theory : Wiley Encyclopedia of Management. New York: Willey.

Mortensen, O., & Lemoine, O. W. (2008). Integration between manufacturers and third party logistics providers? International Journal of Operations & Production Management, 28(4), 331-359.

Mose, J. M., Njihia, J. M., & Peterson, O. M. (2013). The critical success factors and challenges in e-procurement adoption among large scale manufacturing firms in Nairobi, Kenya. European Scientific Journal, 9(13).

Muckstadt, J., Murray, D., Rappold, J., & Collins, D. (2001). Guidelines for collaborative supply chain system design and operation. Information Systems Frontiers, Vol. 4, 427-453.

Muhindo, A., Zhou, J., & Mzuza, M. K. (2014). Impact of logistics outsourcing strategy in oil and gas industry in Uganda. . International Journal of Business and Management, 9(6), 187.

Nadarajah, G. S. (2015). Factors Influencing Third Party Logistics Performance in Malaysia: The Role of Trust as a Mediator. International Journal of Supply Chain Management, 4(4).

Nemoto, T., & Koichiro, T. (2007). Advantage of Third Party Logistics in Supply Chain Management. . Journal of Physical Distribution and Logistics Management, Vol. 30 No. 2, 112-127.

Nemoto, T., & Tezuka, K. (2002). Advantage of Third Party Logistics in Supply Chain Management. Working paper, No. 72, 1-14.

O'Connor, K., Derudder, B., & Witlox, F. (2015). Logistics services: Global functions and global cities. . Growth and Change.

Orodho, J. A. (2008). Techniques of writing research project& reports in educational and social science. Maseno.

Oshri, I., Kotlarsky, J., & Willcocks, L. P. (2015). The Handbook of Global Outsourcing and Offshoring 3rd edition. Springer.

Potrol, S. (2003). Inner freight transport and city logistics. Potrol transport teaching material. European Journal of Purchasing and Supply Management, Vol. 3 No. 2, 77-81.

Ryu, S., & Lee, K. K. (2003). A stochastic inventory model of dual sourced supply chain with lead-time reduction. International Journal Production Economics 81 (82), 513–524.

Smith, M., & Dikolli, S. (1995). Customer profitability analysis: an activity‐based freight forwardinging approach. . Managerial Auditing Journal, 3-8.

Sodhi, M. S., Son, B. G., & Tang, C. S. (2012). Researchers' perspectives on supply chain risk management. Production and operations management, 21(1), 1-13.

Sohal, A. S., & Rahman, S. (2013). Use of third party logistics services: an Asia-Pacific perspective. In Handbook of Global Logistics (pp. 45-67). . New York: Springer .

Tekin, V. N., Senol, L., & Akman, G. (2012). Practicing Theory of Constraints’ Thinking Processes To Develop Distance Education System. Energy Educatıon Scıence And Technology Part B-Socıal And Educatıonal Studıes, special issue, 933-938.

Thompson, R., & Taniguchi, E. (2001). City logistics and freight transport. European Journal of Operational Research, Vol. 94, 68-74.

Treville, S. D., Shapiro, R., & Hameri, A. (2004). From supply chain to demand chain: the role of lead time reduction in improving demand chain performance. . Journal of Opererations Management (21), 613–627.

Tse, D. K., & Wilton, P. C. (1988). Models of consumer satisfaction formation: An extension. Journal of marketing research, 204-212.

Turban, E., King, D., Lee, J., & Viehland, D. (2002). Electronic commerce: A managerial perspective 2002. London: Prentice Hall.

Upagade, V., & Shende, A. (2012). Research Methodology. New Delhi, India.: S. Chand and Company Ltd.

Verghese, K., Lewis, H., Lockrey, S., & Williams, H. (2015). Packaging’s role in minimizing food loss and waste across the supply chain. Packaging Technology and Science, 28(7), 603-620.

Walliman, N. (2005). Your research project: a step-by-step guide for the first-time researcher. Sage publishers.

Wang, P., & Gong, M. (2014). How Third Party Logistics providers manage relationship with customers - A multiple case study.

Williams, H., Wikström, F., & Löfgren, M. (2008). A life cycle perspective on environmental effects of customer focused packaging development. Journal of Cleaner Production, 16(7), 853-859.

Yi, Y. (1990). A critical review of consumer satisfaction. Review of marketing, 4(1), 68-123.

Zeithaml, V. A. (1988). Consumer perceptions of price, warehousing services, and value: a means-end model and synthesis of evidence. . The Journal of marketing, 2-22.

Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1988). Communication and control processes in the delivery of service warehousing services. The Journal of Marketing, 35-48.




DOI: http://dx.doi.org/10.61426/sjbcm.v4i4.558

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

PAST ISSUES:
20242023202220212020201920182017201620152014
Vol 11, No 2 [2024]Vol 10, No 4 [2023]Vol 9, No 4 [2022]Vol 8, No 4 [2021]Vol 7, No 4 [2020]Vol 6, No 4 [2019]Vol 5, No 4 [2018]Vol 4, No 4 [2017]Vol 3, No 4 [2016]Vol 2, No 2 [2015]Vol 1, No 2 [2014]
 Vol 11, No 1 [2024] Vol 10, No 3 [2023] Vol 9, No 3 [2022]Vol 8, No 3 [2021]Vol 7, No 3 [2020]Vol 6, No 3 [2019]Vol 5, No 3 [2019]Vol 4, No 3 [2017]Vol 3, No 3 [2016]Vol 2, No 1 [2015]Vol 1, No 1 [2014]
  Vol 10, No 2 [2023] Vol 9, No 2 [2022]Vol 8, No 2 [2021]Vol 7, No 2 [2020]Vol 6, No 2 [2019]Vol 5, No 2 [2018]Vol 4, No 2 [2017]Vol 3, No 2 [2016]  
  Vol 10, No 1 [2023] Vol 9, No 1 [2022]  Vol 8, No 1 [2021]Vol 7, No 1 [2020]Vol 6, No 1 [2019]Vol 5, No 1 [2018]Vol 4, No 1 [2017]Vol 3, No 1 [2016]   


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.