Supply Chain Configuration and Performance of Third Party Logistics Firms in Nairobi, Kenya

Abstract

Supply chain configuration practices among third party logistics firms in Kenya and the relationship between supply chain configuration and performance of third party logistic firms in Kenya were central themes in this study. The study embraced descriptive survey research design targeting 1198 third party logistics firms in Nairobi Kenya. Systematic random sampling was adopted to select 300 respondents from these firms as the sample size. Information in its primary form was gathered with aid of a questionnaire and the analysis was conducted through SPSS. It was noted that the highly adopted supply chain configuration practice among third party logistics firms in Kenya was network structures (M=3.82) followed by network relationships (M=3.79), unit operations (M=3.79) and lastly value structures (M=3.72) respectively. Besides, value structures (β=0.715, p<0.05 & t>1.96) had the greatest positive and significant effect on performance of third party logistics firms in Kenya then followed by unit operations (β=0.328, p<0.05 & t>1.96), network structures (β=0.254, p<0.05 & t>1.96) and lastly network relationships (β=0.037, p<0.05 & t>1.96) respectively. The study concluded that supply chain configuration and performance at firm level are significant with each other. The study recommended that supply chain managers working among although third party logistics firms in Kenya should enhance and strengthen value structures through adoption of lean practices. Supply chain managers working among third party logistics firms in Kenya should enhance on their unit operations by embracing agility in daily operations. Policy makers working among third party logistics firms in Kenya should consider formulation of relevant and sound policies on supply chain configuration so as to enhance on performance of their firms. The inquiry was limited to information that was obtained in primary sources aided by questionnaire. It was further limited to performance and SCC as dependent and independent variables and Only 3PL were covered in this inquiry. In addition to performance at firm level as dependent, emphasis of inquiries in future should be on other variables like competitive advantage. Aside from 3PL, focus of further investigation should be on other entities like those involved in manufacturing. Merging of information from first hand and auxiliary sources should be key in future inquiries.