Logistics Management Practices and Operational Performance of Commercial Banks in Kenya
Abstract
Stock and Mulki, (2009) observe that the examination of logistics management
practices has become more prominent in both the business community and academia
in recent years, spanning such diverse areas as recycling, reinventing, information
technology, warehousing, operations, and environmental sustainability among others.
The purpose of this study was to determine the relationship between logistics
management practices and operational performance of commercial banks in Kenya. In
this study, descriptive research design was used and the study involved all the 42
commercial banks licensed by CBK to operate in Kenya. Both primary and secondary
data were used. Both descriptive and regression analysis were employed in the study.
The study found commercial banks generally embrace logistics management practices
to a great extent. Such practices include information technology, inventory control
practices, transport and traffic practices as well as engineering practices. The study
found that there is no significant relationship between logistics management practices
and financial performance of commercial banks in Kenya. The study further found that
large banks embrace logistics management practices much more than small and
medium size banks in virtually all aspects of logistics management practices studied.
Publisher
University of Nairobi