Analysis of Factors Affecting Performance of Distribution Logistics Among Manufacturing Firms in Kenya: A Case Study of Kibos Sugar Company Limited and Allied Industries

Abstract

This study analyzed factors affecting performance of distribution logistics among production firms in Kenya: a case of Kibos Sugar Company limited and allied industries. The study applied descriptive approach through survey design. The target population comprised 122 employees. The sample size of the study was 24 respondents arrived at using the method of proportional allocation. Data analysis was done by descriptive statistics. The study realized that accuracy of data collected, size of data base and ability of management information system to predict future decisions are significant elements of information systems that has got vast influence on the performance of distribution logistics. This fills the gap in the study by Stank and Keller (2001), they did not find any relationship between information systems and distribution performance while the present study finds that indeed there exist a relationship between information systems and logistics performance at Kibos sugar Company and Allied Industries. The study therefore concludes that management information system coupled with various information technology are key in managing every distribution aspect for sure performance. The study also realized that distribution structure is a Senables customers to easily reach the products limiting stock outs which in the long run translates to positive distribution performance. Besides, route-planning if considered, enables timely deliveries of products, cost reduction in regard to time, fuel and vehicle maintenance. The present study fill the gap in the study by Knemeyer and Murphy, (2004) and in the study by Parthanadee and Logendran (2006) in USA, where he noticed that in logistics system, distribution cost is typically the highest single expense. That is, through implementing proper distribution structure, nearly all the avoidable costs will be limited. It is concluded that distribution structure used by a manufacturing firm have an impact on the ability of its Distribution Logistics to perform. The study recommends need of embracing modern and current technology which can help various users of organization information to collect, analyze, interpret and come up with various useful decisions affecting the organization. Further study needs to be done on the same topic but in other smaller institutions especially nationally so as to spur development in the country Kenya and in Africa at large.