LOGISTICS MANAGEMENT PRACTICES AND OPERATIONAL PERFORMANCE OF DISTRIBUTION FIRMS IN NAIROBI CITY COUNTY, KENYA

Abstract

Recent changes in business dynamics necessitate organizations to recognize the importance of strategically re-looking at their business processes. This has seen entrepreneurs and managers constantly coming up with effective management practices aimed at minimizing operational costs and at the same time boosting returns on their investments. Understanding this is very important in growing organizations as every part of the supply chain is essential for the profitability of the entire organization. The main purpose of this study was to examine the contribution of logistics management practices and Operational Performance of Distribution Firms in Nairobi County, Kenya. The specific objectives of the study were to determine the contribution of information flow on the Operational Performance of Distribution Firms in Nairobi County, and finally to establish the contribution of material handling and Operational Performance of Distribution Firms in Nairobi County. The metrics for measuring the organization’s Operational Performance was: Order-to-delivery lead time, Quality & Customer Satisfaction, and Flexibility & Responsiveness This study adopts the descriptive research design to obtain information about the study topic. The study’s population comprises employees in the management, Procurement, Marketing, Warehouse, Distribution, Human Resources, and Transport logistics departments involved with logistics management practices and was selected using a stratified random sampling approach. The data was collected using a questionnaire and analyzed using descriptive analysis.  Data analysis was done using multiple regression analysis to establish the relationship between the variables.

Key Words: Logistics Management Practices, Information Flow, Material Handling, Operational Performance, Distribution Firms, Nairobi County, Kenya