Strategic Inbound Transportation Management Practices And Performance Of Large-scale Manufacturing Firms In Kenya

Abstract

Streamlining and controlling inbound transportation is a cost cutting measure and maintaining competitiveness in pricing and targeted profitability. Inbound transportation is very essential for business competitiveness and more particularly to the globalised or internationalised businesses. Firms that have adopted strategic inbound transportation practices have succeed while others have failed. The objectives of this study were to determine the strategic inbound transportation practices used by large scale manufacturing firms in Kenya and to establish the relationship between strategic inbound transportation management practices and transportation performance of large scale manufacturing firms. To achieve the objective of this study, the researcher used a descriptive research design. The population for this study involved the sampled 46 manufacturing firms that were concentrated within Nairobi County. The study used both primary and secondary data sources that were collected using semi-structured questionnaires. Data analysis was done using a descriptive statistics and a regression model. The researcher managed to collect 40 questionnaires out of the 46 that were distributed to the respondents. This represents a response rate of 87% which was considered sufficient for making generalization on all the large scale manufacturing firms in Nairobi County. The study concluded that the most widely used strategic inbound transportation practices by large scale manufacturing firms were carriers and forwarders selection management practices and freight consolidation and optimization management practices. Strategic partnership practices, preparation and execution shipment, technology integration management practices and monitoring and evaluation practices were least used by large scale manufacturing firms. The regression results concluded that strategic inbound transportation practices was positively related to transportation performance of large scale manufacturing firms in Nairobi County. Further, the regression model was found to be statistically significant in explaining the relationship between strategic inbound transportation practices and transportation performance of manufacturing firms in Nairobi County. The study recommends that Kenya Association of Manufacturers should set policies that encourage and promote manufacturing firms to effectively adopt and implement strategic inbound practices to achieve reduced transportation costs, reduced defects, improved efficiency and reduced lead time. The limitations of this study are that the researcher faced significant cost and time constraints. The study was limited to a sample of 46 large scale manufacturing firms that are concentrated within Nairobi County. The findings obtained herein might not be conclusive. It would have been appropriate if future researchers consider expanding the scope of this study to include all the large scale manufacturing firms in Kenya. Then, findings obtained can be compared upon which more reliable conclusion can be drawn. The study suggests that a comparative study should be conducted on strategic inbound transportation management practices should be investigated in another sector other than manufacturing sector that are similar in terms of size and areas of intervention, findings can be compared upon which reliable conclusion can be drawn based on concrete facts.