Abstract: The primary concern of many organizations is the systematic utilization of logistics competence in order to sustain their lead upon competitors. Similarly, to gain competitive power, organizations use logistics capability strategically and meet customer expectations consistently. Thus, need to establish logistic capabilities among many manufacturing firms. Thus, the general objective of the study was to determine role of logistic capability on supply chain performance of manufacturing firms in Kenya. A case of Unilever Ltd. The study specific objectives were to determine effect process capability, flexibility capability, service reliability capability and information integration capability on supply chain performance of manufacturing firms. The study was informed by Dynamic Capabilities Theory, Transaction Cost Economics Theory and Resource-Based Theory of the Firm. This study adopted an explanatory research design. The study population specifically focused on 189 employees. The study applied stratified and simple random sampling to slecet 128 staffs to whom questionnaires were provided. The study used questionnaires to collect data from respondents. The reliability of the instruments was established using the Cronbach Alpha Coefficient tests. The study used descriptive and inferential statistics. In descriptive analysis, the study used percentage, frequencies, means and standard deviations. Inferential statistics was done and Pearson correlation coefficient to find out whether there is correlation between the study variables in order to generate the values of the coefficients. The findings revealed that process capability plays a critical role in influencing supply chain performance. For instance, the use of technology which has tremendously reduced the total costs incurred in the firm’s operations. Besides, through flexibility capability, firms are able to have a competitive advantage over competitors since the material flow is tailored to meet customer’s requirements. Also, technology integration is responsible for the improvement in products and processes in accordance with the changing market demands. Therefore, it is crucial for firms to incorporate a logistic development strategy that addresses the specific requirements of the target markets. Moreover, there is need for continuous innovation and improvement through the provision of different logistic services. In addition, firms need to accumulate resources and competencies which allow them to have a more developed technological capability than their competitors. Finally, firms need to simplify the logistic process and ensure that their logistic services are unique
Keywords: Process capability, Flexibility capability, Information integration capability, Service reliability capability and Supply chain performance.
Title: ROLE OF LOGISTIC CAPABILITY ON SUPPLY CHAIN PERFORMANCE OF MANUFACTURING FIRMS IN KENYA: A CASE OF UNILEVER LTD
Author: Onesmus Mutuku, Dr. Anaya W. Senelwa
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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