INFLUENCE OF LOGISTICS MANAGEMENT PRACTICES ON THE PERFORMANCE OF AGROCHEMICAL COMPANIES IN NAIROBI COUNTY, KENYA

Abstract

The general objective of this study is to establish the influence of logistics management practices on the performance of agrochemical companies in Nairobi County. Specifically, the study sought to establish the effect of warehousing practices on performance of agrochemical companies in Nairobi County and  to examine the effect of inventory management practices on performance of agrochemical companies in Nairobi County. This study employed a descriptive research design. The study targeted 177 departmental managers:59 administration managers, 59 customer service managers and 59 finance managers. The study employed a census method. Semi-structured questionnaires were used for data collection. Both descriptive and inferential results were used to achieve the study objectives. The results of the study were presented in form of tables and charts. SPSS version 21 was used to produce frequencies, descriptive and inferential statistics was used to come up with the conclusions and the summary concerning the population. Inferential analysis entailed the use of correlation and regression analysis. A multiple regression model was used. All statistical tests were conducted at 5% level of significance. The findings of correlation and regression analysis showed that there was a positive and significant association between warehousing management practices and inventory management practices and performance of agrochemical companies in Nairobi County. The study concluded that warehousing management practice through established loading practices, fully functioning labeling system in the organization, specified procedure for handling goods in the warehouse and functioning warehouse planning system leads to a significant increase in performance of agrochemical companies in Nairobi County. The study further concluded that inventory management practices such as consistent inventory stock taking system in the organization, automation of inventory management in the organization, proper inventory forecasting and the use of enterprise resource planning to manage inventories leads to significant increase in performance. The study recommends that the organization should outsource transport services during urgency. The study further recommends that the agrochemical companies in Nairobi County should establish effective order processing practices. The study also recommends the organization to automate inventory management. There is also need for a functioning warehouse planning system and functioning packaging system in the organization.