E-logistics implementation among logistics service providers in Kenya

Abstract

New business technologies have been in use for a number of years now with nearly every sector involved in selling or products and services implementing technology as part of their processes where customers are able to interact with sellers online. Technology has been used as competitive tool to again competitive edge against competition and in most instances redesigning the sales process. With these developments, efficiency in service delivery has been key in pushing many organisations towards implementation of computer systems. Elogistics where logistics service providers implement various logistics systems is one of the technologies implemented towards improving service delivery. In Kenya, there has been slow uptake of e-logistics by logistics companies particularly on the side of customer business interaction. In most instances, this interaction is manual with payment and customers have to visit or contact these companies by phone or email to get services. The purpose if this research was to understand factors affecting implementation of e-logistics by logistics service providers in Kenya. This research was guided by TOE model in identifying factors determining e-logistics implementation by logistics companies. Our research design was cross functional survey on logistics firms in Kenya with an aim of identifying the factors that may influence or inhibit implementation of e-logistics systems by logistics companies and also come up with a working logistics system prototype. The study samples 23 logistics companies active in business in Nairobi. The results revealed that very few logistics firms have implemented logistics systems. On the side of customer interactions, existing systems lacked payment modules on service request. A working logistics system prototype was developed complete with a payment module which can be implemented by any logistics company. This research concludes a need for logistics companies to further understand the importance of e-logistics and how it can shape their operations towards improving service delivery. Important areas to note are need for staff training on new technologies.