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