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INFLUENCE OF LOGISTICS MANAGEMENT ON DISTRIBUTION PERFORMANCE IN KENYA: CASE OF KENYA FARMERS ASSOCIATION

Lilian Adhiambo Onyango

Student, Jomo Kenyatta University of Agriculture and Technology, Kenya

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Patrick Mwangangi

Jomo Kenyatta University of Agriculture and Technology, Kenya

 

CITATION: Onyango. L . A & Mwangangi. P, (2015). Influence of Logistics Management on Distribution performance in Kenya: Case of Kenya farmers Association. International Journal of Human Resource and Procurement. 4 (4), 26-40.


ABSTRACT

The agricultural sector in Kenya is an important economic activity in terms of income generation, employment creation, foreign exchange earnings and tax revenue. Over the years, the economic performance of agriculture has had repercussions on all spheres of life, both upstream affecting farm input suppliers and downstream the transport sector; on savings and investment intermediation; consumption of goods; and households’ ability to pay for education, health and other services. This makes logistics management on distribution performance critical to this sector as they strive to continuously improve their services to meet farmers’ expectation. The overall objective of this study was to examine the influence of logistics management on distribution performance citingKenya farmers Association. A descriptive research design was used in this study. The study targeted farmers association in Kenya. Primary data was collected using questionnaires from the farmers inKenya. From the findings the study concludes that transport management influences the distribution performance for it is largest component of the cost in business` logistics. Information flow helpsorganization to synchronize its distribution operations. Inventory Management reduces carrying costs of inventory, proper asset management, increased inventory forecasting, inventory valuation and inventory visibility. Further, the study concludes that order processingenhances effectiveinventory management and provides the desired service level to farmers. As the study suggested, it is recommended that top management should remain committed to logistic management and also management systems should be put in place.

Key Words: Logistics management, Distribution performance, Order processing, Information flow, Transport management, Inventory management.


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