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THE IMPACT OF OUTSOURCING OF LOGISTICS ON THE COMPETITIVE ADVANTAGE STRATEGY OF EAST AFRICAN BREWERIES LTD


Burnett Lavusa Kilasi

Jomo Kenyatta University of Agriculture and Technology

Dennis Juma

Jomo Kenyatta University of Agriculture and Technology

Dr. Petronilla M. Mathooko

Jomo Kenyatta University of Agriculture and Technology


ABSTRACT

Outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees. Often the tasks that are outsourced could be performed by the company itself, but in many cases there are financial advantages that come from outsourcing. Many organizations are switching to the outsourcing of logistics as a way of remodelling their distribution and transport management resulting into competitive advantages .In this era of intense competition firms are focusing on logistics outsourcing to contribute significantly to their presence and performance in the market. The study sought to determine the impact of the outsourcing of logistics on the competitive advantage strategy of East African Breweries limited. The study considered case study as the suitable research method to be used since data could be gathered from a single source. The target population for this study was employees working with East Africa Breweries at their Head office in Nairobi. EABL employs about 1000 employees at its head office with a total of 580 employees in Procurement, Manufacturing, Warehousing, Transportation, Distribution, Sales and Finance from which a sample was be drawn. Purposive sampling was applied in carrying out the study. Data was collected using document reviews, check lists, interviews and questionnaires. Analysis was done using Microsoft’s Excel program and illustrated further in tables, graphs and charts.


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