Effects Of Logistics Strategies On Supply Chain performance of Beverage Manufacturing Companies: A Case Of Coca Cola East Africa, Nairobi

Abstract

Logistics in procurement has recently gained a lot of dominance due to its significance that has not only made management of organizations easier but also more efficient in a competitive global village. With massive changes occurring in the operation models and marketing strategies of public sector organizations, procurement certainly plays a key role and influences how an organization achieves its objectives. Logistics strategies is an umbrella term that incorporates the entire array of activities that in one way or another are involved in obtaining resources and managing their inflow into an organization towards the end user. The purpose of the study was to examine the effects of logistics strategies on supply chain performance of beverage manufacturing companies: A case of coca cola East Africa, Nairobi. The following specific goals served as the study's compass: to find out how inventory management strategies, order fulfillment strategies, transportation strategies, and warehousing management strategies affect supply chain performance. The study was confined at Coca-Cola company head office in Nairobi. The study was guided by four theories that included; Inventory control theory, social exchange theory, lean theory, and Just-In-Time. The study had a focus on all staffs at procurement and supplies department of the company. Out of a target population of 260 employees, a stratified sampling technique was employed in sampling 78 employees that participated in the research. Descriptive survey research design was used by the researcher since it included all measurement techniques that entail asking respondents questions. Data was gathered using questionnaires. Of the 78 questionnaires, fully answered questionnaires that were received back were 68 and which were used in data analysis. In order to determine whether the instruments responded well to the study questions, content validity was used. Measures of the study instruments' internal consistency was made using Cronbach's Alpha Coefficient. Data collected using questionnaires was administered by dropping and then picking them later. Descriptive statistics was analyzed using the Statistical Package for Social Sciences (SPSS) version 24.0 and the findings were presented in form of frequencies and percentages usin tables. Both correlation coefficient and regressions were carried out. From the findings, the result indicated a positive statistical relationship between logistic strategies and supply chain performance. It was conncluded from the findings that transportation strategies were significant in explaining supply chain performance among beverage manufacturing companies, inventory management strategies were significant in explaining supply chain performance among beverage manufacturing companies, order fulfillment strategies were significant in explaining supply chain performance among beverage manufacturing companies, and warehousing management strategies were significant in explaining supply chain performance among beverage manufacturing companies.