Benson Muriithi Kinyanjui ,

Jomo Kenyatta University of Agriculture and Technology.

ONoor Shalle, PHD

Jomo Kenyatta University of Agriculture and Technology.

CITATION: Kinyanjui B.M & Noor I. S (PhD)., (October 2017), Role of third party logistics service providers on supply chain performance in the distribution sector in kenya: a case of dhl kenya limited: International Journal of Economics and Finance (IJEF). Volume 3 (X), 117-134. ISSN 2105 6008.

ABSTRACT

The Supply Chain is a structured manufacturing process wherein raw materials are transformed into finished goods, then delivered to end customers. As a consequence of technology developments and globalization, exporters and importers are increasingly outsourcing their logistics activities to Third Party Logistics (3PL) providers whose activities efficiency and effectiveness are responsible for the success of their businesses. The use of 3PL providers can yield important benefits such as reduced logistics costs, improved order fill rates, and shortened average order-cycle lengths and cash-to-cash cycles. The general objective of the study is the role of 3PL service providers on supply chain performance in the distribution sector in Kenya; a case of DHL Kenya limited. The specific Objectives are, to determine the influence of customer service integration on the supply chain performance, to assess how information technology affects supply chain performance, to find out the influence of strategic human resourcing on the supply chain performance and to establish how strategic alliances affect supply chain performance in DHL Kenya. The study adopted a descriptive survey design. The target population of this study is (290) employees of DHL Kenya in Nairobi. The study targeted at respondents in the following departments; customer service, corporate affairs, finance department, business development, operations and credit and risk department. The sample size was 87 respondents and the stratified random sampling was used. Data was collected using structured questionnaire to ensure consistency. The response rate was 80.45%. The four independent variables that were studied, explain 84.4% of role of 3PL service providers on supply chain performance in the distribution sector in Kenya as represented by adjusted R square. The study concluded that information technology influences the supply chain performance in the distribution sector in Kenya most followed by strategic human resourcing, strategic alliance and finally customer service integration. From the summary and conclusions, the study recommends that distribution organisation should have very clear and simple customer complain and communication channels. The study also recommends that the distribution organization should invest on information technology like ERP which will help them coordinate the distribution activities. The study further recommends that the companies should focusing their efforts on their core competencies and outsourcing their logistics functions to one or more logistics providers. . View Full PDF Version