Effects of Electronic Logistics on the Logistical Performance of Logistics Firms in Kenya: A Case Study of Maersk Kenya Limited

Abstract

Changes in management of supply chain happen with development of clients' needs and technological possibilities of cooperating partners. The integration of IT with logistics management is becoming a prerequisite for good logistic management hence the development of e-logistics. Although e-logistics is increasing in importance, there are indications that firms in developing countries may not reap the full potential benefits of this technology. The purpose of this study was to determine the effects e-logistics has on logistics performance in order to encourage taking up this technology. The use of e-logistics has been supported by the Network theory, Transactional cost theory and Resource based theory among other theories. Empirical literature on e-logistics revealed several benefits to the supply chain such as decreased costs, increased visibility and improved overall responsiveness of the supply chain. The independent variables that affected logistics performance for this study included e-logistics cost related management, e-logistics responsiveness, e-logistics data management and e-logistics flexibility. The study employed stratified random sampling and purposive random sampling procedures to select a sample of 75 individuals from a population of 107 employees. Primary data was collected using a predesigned and tested questionnaire that was self-administered by the respondents. After the fieldwork, the data was coded and tabulated by use of tables. Data analysis was done using Statistical Package for Social Sciences computer software (SPSS version 20.0) for windows. The results of the study revealed that e-logistics has a positive influence on the performance of the organisation and logistic firms are therefore encouraged to invest and adopt it in order to be more competitive in the market. It is therefore recommended that the study is replicated in other logistic sectors such clearing and forwarding, warehousing, manufacturing companies in order to establish whether e-logistics will have the effect on logistical performance.