Logistics outsourcing and supply chain performance: a survey of universities in Nairobi county

Abstract

The study sought to determine logistics outsourcing practices among universities in Nairobi in County. The study surveyed the logistics outsourcing practices being used by the universities by collecting primary data through self administered questionnaire. In order to acquire such information a study was undertaken from among universities in Nairobi County. Data was analyzed using descriptive statistics and regression analysis. Although the study found house transport being the most common, it was evident that logistics outsourcing improves supply chain performance. All the universities that were surveyed outsourced some of their logistics functions though at varying degrees. The study concludes that there exists a drive towards the use of logistics outsourcing as a strategy to reduce costs, to pursue core business activities, reduce risks and gain competitive advantage. The advantages of logistics outsourcing cannot be gainsaid and its effects on the supply chain is tremendous.The survey also established some of the challenges faced by universities as they moved to outsource their business activities; these included loss of control of the activities, students non cooperation, industrial unrests, switching costs, loss of information to competitors and resistance to change by the stakeholders