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ROLE OF FOURTH PARTY LOGISTICS SERVICE PROVIDERS ON SUPPLY CHAIN PERFORMANCE IN DISTRIBUTION FIRMS IN KENYA: A CASE OF ACCELERS GLOBAL LIMITED

 

Augustine Abade

Jomo Kenyatta University of Agriculture and Technology (JKUAT), Kenya

 

Dr. Noor Shale

Jomo Kenyatta University of Agriculture and Technology (JKUAT), Kenya

 

CITATION: Abade A. & Shale N. (2018). Role Of Fourth Party Logistics Service Providers On Supply Chain Performance In Distribution Firms In Kenya: A Case Of Accelers Global Limited. International Journal of Human Resources and Procurement. Vol. 7 (10) pp 1 – 22.

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ABSTRACT

 

Over the last decades, logistics has tremendously evolved from a simple activity that moves goods from the shipper to a consignee to include the process of planning, implementing and controlling procedures for the efficient and effective transportation and storage of goods and the related information from the point of origin to the point of consumption. This evolution led to creation Fourth Party Logistics (4PL) providers. The general objective of the study was to examine the role of fourth party logistics service providers on supply chain performance in distribution sector in Kenya with special focus on Accelers Global Limited. Specifically, the study sought to analyze 4PL service providers transport management role, 4PL service providers inventory management role, 4PL service providers order processing role and 4PL service providers information flow management role in supply chain performance in distribution sector in Kenya. The study adopted descriptive research design. The study population was 102 senior staff at the managerial level. A census method involving all the 102 senior staffs at Acceler Global Ltd was considered. A semi-structured questionnaire was employed for collecting primary data. The collected data was quantitative in nature and was analyzed by descriptive analysis method. The findings of the analysis indicated that attaining the best balance between logistic efficiency and reduced operation cost in transport management is important for superior supply chain performance. Besides, sound inventory management and order processing have been found to lead to improved supply chain performance. As well, the flow of accurate and real time information influences supply chain performance. The study recommends firms to strike a balanced between better logistic efficiency, reduced cost and service quality in their transport management system. Also, it is crucial for firms to always ensure that there is availability of stock tailored to customers’ needs and to deliver the right quality of products at first order. Finally, firms in the distribution sector need to embrace the use of information technology so as to have flow of accurate and real time information that are crucial in facilitating supply chain performance. 

 

Key Words: Fourth Party Logistics, Supply Chain, Distribution firms, Inventory management, order processing, Transport management

 

 

 

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