E-logistics practices and supply chain performance of fast-food outlets in Nairobi City County, Kenya

Abstract

This study investigated the influence of e-logistics practices on Supply Chain Performance (SCP) of fast-food outlets in Nairobi City County, Kenya. The study examined the utilization and effect of key components: e-warehousing, e-inventory management, e-transportation, and e-information management, that streamline operations, reduce costs, and improve service quality. In Kenya’s fast-food sector, where timely deliveries and real-time decision-making are crucial, adopting these digital solutions can optimize resource utilization, enhance responsiveness, and strengthen competitive advantage. This study focused on the influence of e-logistics practices on supply chain performance. Two objectives guided the study: to find out the extent of e-logistics utilization and to establish the influence of e-logistics practices on supply chain performance of fast-food outlets in Nairobi City County, Kenya. The resource based view and the diffusion of innovation theory were the anchoring theories. Descriptive research design was adopted and primary data collected from all the 46 fast food outlets, with a 76% response rate. Data was analyzed using descriptive statistics and regression analysis. The study found that the firms have adopted e-logistics practices from moderate to a large extent. Further, the study found that e-logistics practices had a strong positive influence on supply chain performance of the fast-food outlets. All the e-logistics practices considered were significant predictors of supply chain performance. An R-Square value of 0.874 indicates that 87.4% of the variance in supply chain performance is explained by the e-logistics variables in the model, demonstrating a strong explanatory power. The study concluded that e-logistics practices have led to improved supply chain performance. In line with the RBV, e-logistics practices presents an opportunity for investing resources to build business capabilities that can give the firm competitive advantages like efficiency and environmental excellence. E-logistics provides real-time tracking of shipments, inventory, and overall supply chain processes. By optimizing routes, reducing delays, and minimizing inventory holding costs through better forecasting, e-logistics significantly improve supply chain performance. The study recommends the intensification of e-logistics practices among fast food outlets. The study suggests future researchers should consider broadening the scope to other sectors, counties and countries for a compressive view of the influence of e-logistics practices on supply chain performance.