The role of logistics outsourcing in leveraging operational competitiveness among Blue Chip Companies in Kenya
The concept of logistics outsourcing is not new since it has been applied in businesses for over thirty decades. It emerged as a result of the need for companies to concentrate on their core business activities and leave non-core activities to other companies to run. Logistics management being lifeline of supply chain management, it emerged that managing it efficiently would ultimately be reflected on the positive results from supply chain management as a whole. This study therefore attempted to delve into the depths of logistics outsourcing and how it can result into operational competitiveness of a company. The researcher used the blue chip companies that trade in Kenya's bourse market, Nairobi Securities Exchange (NSE), to determine the validity of this hypothesis. The literatures reviewed demonstrate how outsourcing logistics functions can achieve operational competitiveness. Researchers contend that efficacy IS obtainable with logistics outsourcing hence the realization of operational competitiveness. Scholars articulate such theories in a more understandable pattern that brings out their cost reduction potentials. These theories, for instance, are transaction cost economics (TCE), resource-based theory (RBT), and network theory (NT). Moreover, a number of logistics engagements are outlined as out-tasking, core-managed services, managed services, and full outsourcing. The researcher then used a descriptive survey design to study these variables; SPSS-enabled factor analysis and Chi Square Tests revealed that logistics outsourcing and dependent variables outlined in the conceptual framework. However, the Chi Square Test affirmed the null hypothesis. Nevertheless, some companies did confirm that logistics outsourcing helps them leverage on their operational competitiveness. II was recommended that companies in all industries should strive to embrace logistics outsourcing while managing their supply chain systems due to its efficacy. The benefits that come with employing this process have the potential to turn around businesses that are detouring from their core business activities. Lastly, it was suggested that research be done on companies that are not listed as blue chips at the NSE to compare the findings.