An assessment of the impact of Outsourcing the Logistical function on firm performance: a case study of Safaricom company limited

Abstract

Many institutions and organizations are have embraced the outsourcing concept into their institutional operations. However, institutions outsource services that are not core to their institutional purpose for instance various logistical functions. The overall aim of this research study was to investigate the impact of an institution outsourcing some of its logistical functions on performance. In order to determine this, the researcher utilized Safaricom limited as a case study. The research study had the following objectives: (1) to determine the logistical functions that are outsourced by Safaricom limited, (2) to evaluate the benefits that accrue to Safaricom limited as a result of outsourcing some of its logistical functions; (3) to determine the measures that Safaricom limited implements in order to overcome the challenges that develop from the outsourcing some of its logistical functions. The study‟s target population was all the employees who worked at Safaricom‟ s logistics department. The researcher utilized the quota sampling technique to select 100 respondents who would participate as the study‟s respondents. The findings suggest that Safaricom outsourced the two of its logistical functions: transport and warehousing. The findings also suggested the following as the benefits that had accrued to Safaricom limited as a result of outsourcing: reduction in institutional costs, increase in service delivery efficiency. The findings suggest that an institution can experience service delays as a result of outsourcing some of its institutional functions.