Outsourcing of outbound logistics in the tea industry:

Abstract

Outsourcing entails shifting of traditional corporate activities to parties outside of the firm with an aim of gaining access to world class capabilities. Under the relentless pressure to compete, companies globally are striving to increase the quality of all their goods and services and at the same time reduce their costs. Professional logistics management can help with both of these objectives hence the significance of outsourcing. This study focussed on three major objectives. First it sought to identify the challenges facing outsourcing of outbound logistics in Tea Division of Unilever Kenya Limited. Secondly, it sought to establish the strategies the Tea Division of Unilever Kenya Limited has adopted to cope with the challenges of outsourcing and thirdly, it sought to determine the impact of outsourcing on the level of customer service. This study was conducted through a case study to establish the responses. Data was collected from primary source through personal interview with respondents who were managers at Unilever Kenya Limited Tea Division in Mombasa. The data obtained was then analysed and interpreted using content analysis technique.