The effect of logistics management on organizational performance in the private sector:

Abstract

Logistics is becoming a critical element of the competitiveness and economic performance Improved logistics can yield tremendous cost savings to both the company and its customers. The study therefore investigates the effect of logistics management on organizational performance in the private sector with a case study of Ntake group of companies The main objective of the study was to examine the effect of logistics management on organizational performance. Logistics management was varied in terms of packaging, materials handling and transportation where as organizational performance in terms of costs, asset turnover and market share. The researcher used a case study research design using a quantitative and qualitative approach and a simple random sampling technique where samples were randomly selected from a population of 40 employees from the packaging, materials handling and transportation departments from which a sample size of 36 was used. The data collection method used was questionnaires and interviews. The collected data was analyzed using SPSS version 16.0 to affirm the effect of logistics management on organizational performance. The findings of the study indicated that packaging, material handling and transportation have an effect on the performance of organizations in the private sector. The study recommends that organizations should pay more attention to all the different process in the logistics process and ensure each stage is completed with utmost efficiency and effectiveness. Organizations should effectively link transportation to enable logistics to reach its full capacity. There should be clear guidelines to support logistics management in the organization. The efforts to improve logistics management should be formalized to enhance high quality logistics. Governments need to adequately invest in transport infrastructure and provide an enabling environment for private sector to provide more efficient transport and logistics services