Abstract: Manufacturing companies in Kenya have been experiencing problems in the performance of their production and operations management. One strategy of improving their performance is resorting to logistics outsourcing. Outsourcing of non-core activities to Third Party Logistics providers (3PL) is one of the ways of ensuring efficient and effective performance of companies. This study therefore, sought to establish the influence of lead-time on the performance of food and beverages manufacturing companies in Kenya. The study adopted cross-sectional survey design using both quantitative and qualitative approaches. The target population of this study was 197 registered food and beverages manufacturing companies in Kenya as per Kenya Association of Manufacturers (KAM) Directory 2015. Data was collected using a questionnaire. Descriptive statistics was used aided by Statistical Packages for Social Sciences (SPSS) version 24 to compute percentages of respondents’ answers. Inferential statistics using linear regression and correlation analysis was applied in examining relationship between the research variables. The study found out that lead-time was significant predictors in the performance of food and beverages manufacturing companies in Kenya. The study found out that order processing rate, high order fulfilment rate, inventory replenishment, delivery speed, delivery to location and delivery planning improved the performance of food and beverages manufacturing companies in Kenya.
Keywords: Third Party Logistics providers, lead-time, manufacturing companies.
Title: Lead-Time as a Determinant of Outsourcing Third-Party Logistics Providers on the Performance of Food and Beverages Manufacturing Companies in Kenya
Author: Julius Wambua, Elegwa Mukulu, Esther Waiganjo, Wycliffe Arani
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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