Logistical Packaging and Operational Performance: a Case of Coca Cola Bottling Company, Nairobi County, Kenya

Abstract

Coca-Cola bottling company has adopted logistical planning in its attempt to streamline its operations and stay competitive in the highly competitive industry. The purpose of this study was to determine how logistical packing affects the operational performance of the Coca-Cola bottling company in the County of Nairobi, Kenya. Specifically, it sought to establish the effect of packaging design on the operational performance; determine the effect of intralogistics on the operational performance; establish the effect of packaging systems on the operational performance; and determine the effect of transport volume on the operational performance of the Coca-Cola bottling company. The study adopted resource-based view and the systems theory. The study's research design was crosssectional in nature. Participants were Kenyan Coca-Cola bottling company employees. The study targeted senior employees: general management, procurement and logistics, distribution and stores, marketing and operation. Two employees were targeted from each department. The sample population, therefore, was ten employees in the five departments. A questionnaire was used to gather the information. The gathered information was evaluated using descriptive and inferential statistics, multiple regressions was used. For data analysis, SPSS Version 25 was used in generation of statistics. From the findings on packaging design, the respondents agreed that their organization adopted well structure and quality packaging of different shapes for their products which was appealing to the customers. On intralogistics, the study found that the respondents agreed that their organization information and conveyor systems in place. There was team coordination and management support in logistical packaging within the organization. For packaging systems, the respondents agreed that their organization had effective operational packaging systems. For transport volume, the respondents agreed that their organization transported large volumes of products through a defined route of high frequency. The respondents agreed that the operational costs were high in their organization. They also indicated that the operational performance was poor. From the model summary, R-value (correlation coefficient) was 0.868 with R-squared value of 0.754. The coefficient for packaging design was 0.251; intralogistics was 1.090; packaging systems was 0.827; while transport volume had coefficient of -0.497. The study concludes that packaging design, intralogistics and packaging systems has positive effect on operational performance of the Coca-Cola bottling company, Kenya. However, transport volume has a negative effect on operational performance of the Coca-Cola bottling company, Kenya. This study recommends improved packaging design, intralogistics and packaging systems within Coca-Cola bottling company, Kenya. The study also recommends the reduction of the transport volume of the Coca-Cola bottling company, Kenya. Further research is recommended on other influencers of operational performance, different measure of variables and other companies other than Coca-Cola bottling company, Kenya.