Internationally Outsourced Logistical Services and Performance of Bamburi Cement Manufacturing Company Limited

Abstract

Outsourcing services in any organization is a vital component of the whole business cycle. The logistics sector and Bamburi cement manufacturing company limited in particular is not an exception to this regard. This sector offers employment both directly and indirectly to a vast majority of residents in the entire eastern and central African region. The increasing significance of focusing on core competencies especially in the outsourcing of services internationally is of paramount importance to the performance of any organization. The overall objective of the study was to determine the internationally outsourced logistical services in relation to performance of Bamburi Cement Manufacturing Company Limited and its associated benefits and challenges. This study was guided by various theoretical reviews. This was a case study research. The study used primary data which was collected using an interview guide. Content analysis was used to analyze the qualitative data. The study found out international expertise and operational efficiencies are among the driving factors for internationally outsourced services at Bamburi cement manufacturing company. The benefits of outsourcing include increased knowledge and information exchange as among the benefits while introduction of penalty measures for lack of performance to expectations and a counter check supplier cost viz a viz proposed rate as among the notable challenges. The other challenges that also affect internationally outsourced logistical services from the findings include lack of control of operations from the internal staff, the slowness in the adaptation of new policies by outsourced service providers and fluctuation of cost of outsourcing services as a result of foreign exchange currency rates.In light of the findings, the study recommends that since Bamburi cement manufacturing company limited has successfully outsourced international logistic services and there is need to focus cultural issues as one of the recommendations given. Culture is a way of life and people behave differently globally. Cultural issues play an important role in influencing successful management of international outsourcing relationships. Internationally outsourced logistic services has enabled the organization to redesign and improve business work processes radically but there is still need for initiatives that emphasize incremental improvement in the whole outsourcing process and output to cope with changes in the ever changing business environment.