INFLUENCE OF LOGISTICS OPTIMIZATION ON PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING FIRMS IN NAIROBI CITY COUNTY KENYA

Innocent Nguyai Kelvin, Dr. Ndeto Charles

Abstract


The purpose of the study was to assess the influence of logistics optimization on performance of food and beverage manufacturing firms guided by the four specific objectives; to assess the influence of logistics information system, freight management, on performance of manufacturing firms in Nairobi City County, Kenya. The study reviewed both theoretical and empirical literature and then proposed the research methodology that addressed the gaps identified in literature as well as to validate the research questions. Descriptive research design was adopted. The study preferred this method because it allowed an in-depth study of the subject. The geographical scope of the study was firms in Nairobi, Kenya. Data was collected from       respondents who comprised of 101 heads of transport and logistics department. The study was confined to 101 food and beverages manufacturing companies in Nairobi, Kenya who are registered members of KAM according to 2019 directory. Questionnaires were used to collect data. The questionnaires were tested for validity and reliability using 10% of the total sample respondents. Data was analyzed through descriptive statistical methods such as means, standard deviation, frequencies and percentage. Inferential analyses were used in relation to correlation analysis and regression analysis to test the relationship between the four explanatory variables and the explained variable. Multiple regression models were used to show the relationship between the predicted variable and the predictor variables. The data generated was keyed in and analyzed by use of Statistical Package of Social Sciences (SPSS) version 21 to generate information which was presented using charts, frequencies and percentages. The response rate of the study was 95%. The findings of the study indicated that logistics information system, freight management, have a positive relationship with performance of food and beverage manufacturing firms in Nairobi City County, Kenya. Finally, the study recommended that manufacturing firms should embrace logistics optimization aspects so as to improve performance and further researches should to be carried out in other firms to find out if the same results can be obtained.

Key Words: Logistics Information System, Freight Management, Performance, Logistics Optimization


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