Logistics Management Practices and Performance of Government-Owned Sugar Companies In Kenya.

Abstract

In the recent past, the Kenyan government has not been able to ensure the provision of affordable food. Structural bottlenecks have made it difficult for food produced in the country to reach its intended recipients. This study investigated the effect of logistics management practices on performance of government owned sugar companies in Kenya. It was premised on the proposition that in order to increase competitiveness of government-owned sugar companies, it is important to have a sound understanding of their logistics management practices. Underpinned by resource-based view theory, theory of constraints, systems theory and transaction cost theory, this study provided insights into managing logistics to enhance performance within the context of government owned sugar companies in Kenya. Four specific objectives emanated from this main objective: one, to determine the extent to which inventory management affects performance, two, to assess how order management affects performance, three, to establish how transportation management affects performance, four to determine the extent to which packaging management practices affects performance. Out of these objectives, hypotheses were stated for testing. Through structured questionnaires, data was obtained from 5 government-owned sugar companies. Descriptive and inferential statistics were used to analyze the data and test hypotheses of the relationships stated earlier. The target sample population of the study was 256 supply chain personnel from five Government-owned sugar Companies in Kenya. Data analysis was done using SPSS version 29 using both descriptive and inferential analysis. The study finding revealed that inventory, order, transport, and packaging management significantly influence government-owned sugar manufacturing firms' performance in Kenya, explaining 73.9% of performance variation. ANOVA results confirmed the model's statistical significance (p < 0.05). Further analysis demonstrated positive relationships between inventory, order, transport, and packaging management practices and firm performance. The study suggests government and policymakers allocate resources for collaborative research to enhance state-owned sugar manufacturing firms' logistics management. Researchers should focus on cost reduction, quality control, and technology adoption. Sugar firms need to invest in order processing systems, equipment, and sustainable packaging. Logistics service providers should adopt advanced technologies and collaborate with sugar firms. Further studies should explore additional logistics practices and cross-industry collaborations.