Automated Transport Management Systems and Logistic Optimization Among Third Party Service Providers in Kenya

Abstract

Logistics has been shown to add value to the output of a firm, which arises from the ability to cut costs and provide delivery solutions as per the customers’ needs. Logistics innovations such as automated transport management systems are said to be of benefit to economies and consumers. Whereas the opportunity to create value through logistics has motivated the researchers to consider different factors resulting in higher logistics optimization levels, the broader concept of automation has not been addressed in great detail. The study sought to establish the effect of automated transport management system (route planning and optimization, yard management and order visibility and load optimization, freight audit and payment) on the logistics optimization on of third party logistic service providers in Kenya. Primary data was collected from the operational staffs (top, middle and low level managers) that are well conversant with the operations of third party logistic service providers in Kenya. Descriptive statistics such as means and standard deviations were used to analyse the data. The study results were presented using figures and frequency tables. The correlation between automated transport management system and logistics optimization was tested using regression analysis. The study concluded that third party logistic service providers in Kenya have implemented Route Planning and Optimization Systems, Freight Audit and Payment Systems,Order Visibility Systems and , Load Optimization Systems to a very great extent while Yard Management Systems has been implemented to a great extent and this has greatly improved their logistical optimization. The study also concluded that there was strong association between automated transport management system and logistical optimization with automated transport management accounting for 62.8% of the total changes in logistical optimization of third party logistic service providers in Kenya. Route planning and optimization, freight audit and payment, load optimization; order visibility and yard management were found to have a positive and significant impact on logistical optimization of third party logistic service providers in Kenya. This study therefore recommends that third party logistic service providers in Kenya that have not yet adopted automated transport management system should do so as this greatly improve their logistical optimization