Logistics outsourcing and the supply chain performance of mobile phone service providers in Kenya

Abstract

The study sought to determine logistics outsourcing and the supply chain performance of mobile phone service providers in Kenya. The study looked into logistics outsourcing and the performance of the supply chain by collecting primary data through the use of an interview guide. It is evident that there is a relationship between logistics outsourcing and supply chain performance in the mobile phone service providers. All the four mobile phone companies surveyed have outsourced most of their logistics functions. It has also been noted that the use of performance measures by the four mobile phone companies is prevalent in addition to having robust contracts that spell out the service level agreements. The study concludes that the future of logistics outsourcing is bright in the mobile phone service providers and there is a drive towards the use of logistics outsourcing as a strategy in order to aggregate costs, reduce risks, pursue core business activities and hence gain a competitive advantage in the cut throat business of mobile telephony The advantages of logistics outsourcing cannot be gainsaid and its impact on the performance of the supply chain far more supersedes the challenges faced in the implementation of the same. There were limitations to the study such as respondents busy schedule hence limited time to conduct the interviews. Also the respondents were unwilling to share the financial data for their respective organizations. They deemed it too sensitive to share with outsiders. Finally, further research is needed on the quantitative aspects of logistics outsourcing and supply chain performance.