| dc.description.abstract | Logistics services outsourcing has become a popular practice among the shipping
companies all in the need to take advantage of the various advantages associated with
outsourcing. The objective of the study was to determine logistics outsourcing effect
on operational performance of shipping industries in Kenya. Contracting out
provision of logistics services to a firm with competitive advantages in terms of
reliability, quality and cost was found out to be the main driver of outsourcing.
However the various studies covered have not extensively delved into logistics
outsourcing in relation to the performance of shipping companies in Kenya. The
population of the study in this research was 42 shipping companies’ operating in
Kenya as per the KSAA, 2015 and the study was a census survey since the population
was pretty small. The study used primary data which was collected through a
structured questionnaire from Logistics and operations managers or their equivalents
which was administered by ‘drop and pick’ method. The response rate was 76.2%. The
data was analyzed using descriptive statistics with the main analysis tools being
frequencies, mean and standard deviation and multivariate linear regression by
utilizing the Statistical Package for Social Sciences (SPSS). The results established
that the firms opted to outsource their services due to its advantages and its possible
influence on operational performance, as it enables the firms to focus on its core
competencies. The logistics outsourcing practices adopted by the shipping firms will
in the long run determine their survival as they would seek to reduce operating costs,
improved customer satisfaction and timely delivery of services to clients which in turn
increase productivity and reduce lead time and improved profits. The study confined
itself to shipping firms in Kenya and the findings may not be applicable in other
sectors as a result of uniqueness of the shipping firms. It is therefore recommended
that the study is replicated in other service sectors to establish their logistics
outsourcing services and performance. | en_US |
