Effects of Logistics Policies on Customer Service Performance of Tea Companies in Mombasa, Kenya

Abstract

The purpose of this study was to examine the effect of logistics policies on customer services performance of tea companies in Mombasa. As competition in the services sector is constantly increasing, the ability of companies to understand their customers and ensure their satisfaction with the services received is becoming more and more significant. The objectives of the study were to determine the effect of outsourcing of logistics activities on customer service performance, the effect of supplier relationship management on customer service performance and the effect of inventory management on customer service performance. Through the Resource Based View theory which is an approach to an organisation achieving competitive advantage and Relationship Commitment Model that provides the determinants of a relationship commitment, the research is able to identify and analyse the objectives to be covered. The sample size was to be drawn from a population of 57 shipping managers working in the various tea companies spread across Mombasa Island that handle the logistics function. In this regard, 57 questionnaires were administered to the respondents to aid in the gaining of the primary data. Secondary data was obtained from published documents such as journals, magazines and reports to supplement the primary data. The raw information was analyzed to yield qualitative and quantitative data. Quantitative data was analysed using SPSS version 20.0 and MS Excel and result presented in forms of tables. The study findings showed that outsourcing, inventory management and supplier relationship management has an effect on customer service performance of tea companies in Mombasa. Outsourcing was the most significant and had a positive relationship at 5% level of significance and 95% confidence level.