International Logistics Networks and Supply Chain Value Creation of Airlines in Kenya

Abstract

Attributed to the expanding globalization of economic operations and fast advancement of ICT, organizations are looking to create and sort out vital, proficient and overall worldwide networks. This study sought to explore the development of the international logistics networks and supply chain value creation in Kenyan airline firms. The study adopted a descriptive cross sectional survey and included all the 44 airlines in the study hence a census. The study used primary data collected using a questionnaire. The researcher conducted a multiple regression analysis so as to determine the extent to which logistics network development practices affect supply chain value performance. The study found out that the firms had integrated its processes with suppliers, synchronized activities seamlessly, different departments are seamlessly connected to suppliers, actively coordinates with other, had standards that create similarity and homogeneity in its procurement, had a strong control instruments and regulations for global procurement, had flexibility in responding to changing demand requirements, had an effective customer relationship management system for suppliers and maintains a network of suppliers from all over the world. The results established various international logistics networks used by Airline firms in Kenya which included integrated processes with suppliers, synchronized activities, Linkages and customer relationship management system for suppliers and the international logistics networks adopted by the airline firms will in the long run determine their survival as they would have enhanced operations. The study recommends that the firms should adopt those networks that would guarantee them value creation in the competitive environment and at the same time they network with organizations that will provide high quality services which will enable the firms achieve the desired objectives.