Logistics Management Practices and Performance of Agricultural Processing Firms in Laikipia County, Kenya

Abstract

The general objective of this project was to establish the effect of logistic practices and performance of agricultural processing firms. The study was guided by the following specific objectives; material handling, inventory management, transport management, and logistics communication.The study adopted resource based view theory, game theory, firm theory and the theory of constraints. The study used descriptive design because it enhances systematic description that is as accurate, valid, and reliable as possible regarding the responses. The study was limited to agricultural processing firms in Laikipia County, Kenya. The researcher used questionnaires and secondary data as the research instrument to gather the relevant information needed relating to the study. The study involved the use of professionals and experts to test the validity of the questionnaire by trying to assess what concept the instrument was trying to measure and the accuracy of the representation of the concept under research. The quantitative data was analysed using descriptive statistics. Inaddition; the study used multiple regression analysis to analyse the data. This study provided evidence that material handling significantly and positively influences the performance of agricultural processing firms in Laikipia County, Kenya. Concerning inventory management; the study established a significant positive relationship between inventory management and firm performance. This study also provided evidence that transport management significantly and positively influences the performance of agricultural processing firms in Laikipia County, Kenya.Finally, information flow management was found to have a positive significant influence on the performance of agricultural processing firms in Laikipia County, Kenya. The study recommends that agricultural processing firms must have adequate storage facilities with modern materials handling equipment. The study also recommends the inclusion of inventory management in the strategic plans of the agricultural processing firms in Laikipia County, Kenya. The study further recommends the inclusion of inventory management in the strategic plans of the agricultural processing firms in Laikipia County, Kenya.Finally,the study recommends that internal structures and systems that allow a free and timely flow of information between individuals and departments should be put in place. This will allow real-time flow of information between the organization and key stakeholders.