Logistics Outsourcing and Service Delivery in Service Firms: a Survey of Telecommunications Firms in Nairobi

Abstract

The aim of this study was to establish the impact of Logistics outsourcing and service delivery in Telecommunications firms in Nairobi, and the need to gain insight into the key success factors to outsourcing. The study surveyed outsourcing practices employed by telecommunications firms by gathering primary data using questionnaires. In order to acquire such data, a study was carried out at various telecommunications firms in Nairobi. Data was collected by use of structured questionnaires. The data was analyzed by means of descriptive statistics and regression. Tables and charts were used to present the data. The study established that most of the outsourced services by Telecommunications forms in Nairobi are transportation management, inventory handling and control, warehousing management, and distribution management. These outsourced services in turn resulted in increased productivity, increased profitability, better efficiency in service delivery, customer satisfaction, as well as higher/ better cost efficiency. Therefore, outsourcing of such services was found out to be a major driver of a firm’s competitive advantage as well as helping in streamlining its operations on a day to day basis. Outsourcing was also found out to be enhancing the reduction of a firm’s operating costs, timely delivery to consumers, and reduction in lead time, as well as a rapid response to consumer demands in time. It was therefore notable that service delivery in a firm is largely influenced by the outsourcing practices adopted by the firm. The major limitation of this study was that it was solely based on telecommunication firms in Nairobi. Key words: logistics outsourcing, service delivery, telecommunication firms