Abstract: The main current focus of supply chain management (SCM) world-wide is the creation of long-term, mutually beneficial relationships between a company and other participants in the supply chain. Strategic partnerships are a key factor in the effectiveness of the business of a company as a whole. The study intended to determine the influence of third party and fourth party logistic outsourcing on the performance of sugar manufacturing firms in western region. The study used both primary and secondary data collection instruments. Primary instruments included the use of structured and unstructured questionnaires. Secondary instruments involved acquiring information from the already existing records from the sugar manufacturing firms and any other public available information that is already documented. Descriptive and inferential statistics were used in data analysis using SPSS version 20 software. Karl Pearson’s zero order coefficient of correlation (Pearson Product Moment Correlation or simple correlation) was used to determine the direction and strength of the relationship between logistic outsourcing and performance of sugar manufacturing firms in western region. Simple regression analysis was used to model the relationship between logistic outsourcing and performance of sugar manufacturing firms. The relationship between logistic outsourcing and the performance of sugar manufacturing firms follow a regression model of the nature P= α + β1 LOS + e. The findings were presented using tables and crossbar tabulations. The outcome was positive correlation between logistic outsourcing and performance of sugar manufacturing firms. The findings are of importance to the Government of Kenya, shareholders, employees and customers of sugar manufacturing firms. Further, the findings form a basis of future research by interested parties in future.
Keywords: Logistics, Outsourcing, Performance.
Title: Effect of Logistic Outsourcing on the Performance of Sugar Companies in Western region
Author: Fredrick N. Kiongera, Mogere K. Machuki
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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