The effect of logistics management on organisational performance among manufacturing firms

Abstract

Logistics management entails activities such as materials management, transportation and packaging which influence organizations in achieving the collaboration and communication capabilities while maintaining the flexibility and responsiveness capabilities of market- oriented governance structures. Leading organizations like Nile Breweries Limited are simplified and consolidate the entire logistics management process by improving the responsiveness of their logistics management systems. Efficient logistics management in the organization is under considerable pressure to deliver performance improvements and to achieve quality of service through more efficient and coordinated service delivery. The major objective of the study was to investigate the effect of logistics management and organizational performance in manufacturing firms focusing on Nile Breweries Limited. The specific objectives of the study were to assess the effect of materials management on organizational performance, to establish the effect of transportation on organizational performance and lastly to examine how packaging affects organizational performance. The research design that was used for this study was case study since the unit of analysis is one organization. Simple random sampling technique was used to select the sample size of 56 respondents. Primary data was collected using a questionnaire. The collected data was summarized, coded and tabulated using SPPS. The study established that the company used efficient logistics management practices that were followed when making company purchasing decisions. Findings revealed that NBL incorporated logistics management in its organization since it all leads to timeliness in delivery, high quality products and enhances customer loyalty. The study established that the company focused on performance through logistics management to achieve timeliness in delivery, quality of service, cost effectiveness and customer loyalty. Logistics management basically focuses on transportation, packaging and materials management in NBL. The study concludes that Logistics management is followed when making company purchasing decisions, building supplier relationships, team- based approaches to procurement and proper use of technology. The study recommends that management in NBL should ensure that there is an appropriate focus on proper logistics management. On delivering products management must address the issue of logistics management as this has accrued benefits directly to the bottom line of organizations.