Internationally Outsourced Logistical Services and Performance of Bamburi Cement Manufacturing Company Limited
Abstract
Outsourcing services in any organization is a vital component of the whole business
cycle. The logistics sector and Bamburi cement manufacturing company limited in
particular is not an exception to this regard. This sector offers employment both
directly and indirectly to a vast majority of residents in the entire eastern and central
African region. The increasing significance of focusing on core competencies
especially in the outsourcing of services internationally is of paramount importance to
the performance of any organization. The overall objective of the study was
to determine the internationally outsourced logistical services in relation to
performance of Bamburi Cement Manufacturing Company Limited and its associated
benefits and challenges. This study was guided by various theoretical reviews. This
was a case study research. The study used primary data which was collected using an
interview guide. Content analysis was used to analyze the qualitative data. The study
found out international expertise and operational efficiencies are among the driving
factors for internationally outsourced services at Bamburi cement manufacturing
company. The benefits of outsourcing include increased knowledge and information
exchange as among the benefits while introduction of penalty measures for lack of
performance to expectations and a counter check supplier cost viz a viz proposed rate
as among the notable challenges. The other challenges that also affect internationally
outsourced logistical services from the findings include lack of control of operations
from the internal staff, the slowness in the adaptation of new policies by outsourced
service providers and fluctuation of cost of outsourcing services as a result of foreign
exchange currency rates.In light of the findings, the study recommends that since
Bamburi cement manufacturing company limited has successfully outsourced
international logistic services and there is need to focus cultural issues as one of the
recommendations given. Culture is a way of life and people behave differently
globally. Cultural issues play an important role in influencing successful management
of international outsourcing relationships. Internationally outsourced logistic services
has enabled the organization to redesign and improve business work processes
radically but there is still need for initiatives that emphasize incremental improvement
in the whole outsourcing process and output to cope with changes in the ever
changing business environment.
Publisher
University of Nairobi
Description
MA