Green logistics management practices and supply chain performance among logistics services providers in Nairobi - Kenya

Abstract

The supply chain and logistics sector of the Kenyan economy is faced by a lot of challenges. Logistics firms are investing heavily in research and lean methods of service delivery in order to cut costs and deliver their services effectively and efficiently. In today’s global economy, competition is becoming fierce by the day. Firms have an urgent need to invent and invest in modern methods of service delivery in order to remain relevant against a back drop of dwindling profits, global awareness of climatic concerns and need to retain customers. The dynamism of the global market today has called into question the competitive advantage of a firm investing in green logistics, and whether it is worthy for logistics firms to invest in green logistics. This study had a two-pronged approach; to determine the benefits and challenges facing green logistics management and implementation among logistics service providers in Nairobi, Kenya and to determine the relationship between implementation of green logistics management and supply chain performance among logistics services providers in Nairobi, Kenya. A sample of major logistics service providers was selected out of the target population and a questionnaire administered. The study used primary data which was collected using self-administered questionnaires. The data was analyzed using the Statistical Package for Social Sciences (SPSS) software, with the main analysis tools being frequencies, mean and standard deviation.. Descriptive statistics in form of tables and percentages were used to interpret and present the data. The findings showed that most logistics service providers have adopted green logistics in their operations. The main green logistics practices that have been adopted by the firms include waste management, reverse logistics, eco design and packaging, route planning and scheduling, and recycling practices. There was a general positive relationship between green logistics practice and supply chain performance. There is need therefore for firms to invest more in green logistics with an aim of conserving the environment, remaining competitive and retaining customer loyalty. The management of the firms need to enlighten the staff on the benefits of adopting green logistics. Government bodies also need to increase awareness and sensitization to logistics service providers in order to fully achieve the benefits of green logistics across the industry