International Peer-Reviewed JournalOpen AccessISSN 2456-8880
irejournals@gmail.com+91-7433024337

Home / Current Issue / Paper 1705864

1705864 Vol 7 · Issue 11 Download Paper

Transport Outsourcing and Supply Chain Performance of the Pharmaceutical Industry in Mombasa County

Ngumbao Happy Sidi Dr. Duncan Nyaberi

Subject area: Management and Commerce  ·  Area of research: Procurement and Logistics Management

Abstract

Studies reveal that the total logistics cost of the companies reduced from 44% to 36% as a result of outsourcing logistics services. However, as in business practices, the inefficient and ineffectiveness in logistics management systems together with the inefficient internal management would disable the organization to respond to the needs of customers with the lowest price at the shortest feasible time frame. Hence, the study sought to examine the effects of logistics outsourcing on the supply chain performance of the pharmaceutical industry in Mombasa County, Kenya. Theory of Constraints (ToC), guided the study. The study used descriptive cross-sectional research design targeting 36 pharmaceutical firms comprising 4 local pharmaceutical manufacturing, 11 importing firms, and 21 drug wholesalers and retailers in Mombasa County. From this a sample of 69 pharmaceutical firms were selected using systematic random sampling. The unit of observation were the supply chain managers. Data was collected through questionnaires and data sheets. The study conducted a pilot test on 7 respondents and established reliability and validity of the data collection tool. Both descriptive and inferential statistical methods were used to analyse the data which were then presented in tables and discussed. The study found that that transport outsourcing had a significant association with the improvement of the supply chain performance of the pharmaceutical industry in Mombasa County Kenya. The study, therefore, recommended that pharmaceutical firms need to do more outsourcing of their transport logistics to specialized firms which have better route planning and management systems.

Keywords

Pharmaceutical Firms, Transport Outsourcing

References

[1] Abdul-wahab, Sabah & Salem, Nahed & Fadlallah, Sulaiman. (2019). Students' Reluctance to Attend Office Hours: Reasons and Suggested Solutions. Journal of Educational and Psychological Studies [JEPS]. 13. 715. 10.24200/jeps.vol13iss4pp715-732.

[2] Kenya Pharmaceutical Industry (2020). Diagnostic Report 2020. Government Printer.

[3] Bolumolw, Y., Frankel, R., & Naslund, D. (2018). Developing a theoretical frameworkfor logistics outsourcing, International Journal of Operations & Productionmanagement, 46 (2), 35–54.

[4] Gachui, M. W. (2020). Effect of rail freight transportation on operational performance of logistics firms in Kenya. (Unpublished master’s thesis). University of Nairobi.

[5] Hair, Elizabeth & Moore, Kristin & Garrett, Sarah & Kinukawa, Akemi & Lippman, Laura & Michelson, Erik. (2005). The Parent-Adolescent Relationship Scale. 10.1007/0-387-23823-9_12.

[6] Ishizaka, A., Bhattacharya, A., Gunasekaran, A., Dekkers, R., & Pereira, V. (2019). Outsourcing and offshoring decision making. International Journal of Production Research, 57(13), 4187-4193.

[7] Makworo, N.J., & Kyalo, C. N. (2021). Effect of logistic management on distribution performance in footwear manufacturing firms in Kenya. International Journal of Leadership and Management, 3(1), pg. 58-71,

[8] Happonen, Ari & Minashkina, Daria. (2018). Operations automatization and digitalization – a research and innovation collaboration in physical warehousing, AS/RS and 3PL logistics context. 10.5281/zenodo.4171437.

[9] Mutangili, S. A., Owuor, E. & Cheluget, J. (2022). Moderating effect of regulatory framework in the relationship between international procurement practices and supply chain performance of energy development agencies in Kenya. 1-19.

[10] Orji, Ifeyinwa & Kusi-Sarpong, Simonov & Gupta, Himanshu & Okwu, Modestus. (2019). Evaluating challenges to implementing eco-innovation for freight logistics sustainability in Nigeria. Transportation Research Part A Policy and Practice. 129. 288-305. 10.1016/j.tra.2019.09.001.

[11] Owuor, E. A., & Zaman, D. (2019). Influence of logistics outsourcing on performance of large retail firms in Nairobi City County, Kenya. American Based Research Journal, 8(10).

[12] Pharmacy and Poisons Board, (2021). The pharmaceutical industry in Kenya: Importers in Kenya. Africa Business Pages.

[13] Raue, J., & Wieland, A. (2015). The interplay of different types of governance in horizontal cooperations: A view on logistics service providers. The International Journal of Logistics Management. 26. 401-423. 10.1108/IJLM-08-2012-0083.

[14] Sekaran, U. (2003). Research Methods for Business: A Skill-Building Approach. 4th Edition, John Wiley and Sons, Hoboken.

[15] UNIDO (2012), Pharmaceutical Sector Profile Kenya, Pharmaceutical Sector Profile Kenya.

[16] World Bank (2020) Logistics Performance Index [Data-Internet]. Available at:<https://lpi.worldbank.org/about> [Accessed: June 15, 2023]

[17] Yin, R. K. (2003) Case Study Research: Design and Methods. 3rd Edition, Sage, Thousand Oaks.

[18] Zarbakhshnia, N., Govindan, K., Kannan, D., & Goh, M. (2022). Outsourcing logistics operations in circular economy towards to sustainable development goals. Business Strategy and the Environment. 32. 10.1002/bse.3122.

How to cite this paper

Ngumbao Happy Sidi, Dr. Duncan Nyaberi "Transport Outsourcing and Supply Chain Performance of the Pharmaceutical Industry in Mombasa County" Iconic Research And Engineering Journals Volume 7 Issue 11 2024 Page 605-611
Ngumbao Happy Sidi, Dr. Duncan Nyaberi "Transport Outsourcing and Supply Chain Performance of the Pharmaceutical Industry in Mombasa County" Iconic Research And Engineering Journals, vol. 7, no. 11, May. 2024
Ngumbao Happy Sidi, Dr. Duncan Nyaberi (2024). Transport Outsourcing and Supply Chain Performance of the Pharmaceutical Industry in Mombasa County. Iconic Research And Engineering Journals, 7(11).
Ngumbao Happy Sidi, Dr. Duncan Nyaberi "Transport Outsourcing and Supply Chain Performance of the Pharmaceutical Industry in Mombasa County" Iconic Research And Engineering Journals, vol. 7, no. 11, May. 2024.
@article{1705864,
      author = {Ngumbao Happy Sidi, Dr. Duncan Nyaberi},
      title = {Transport Outsourcing and Supply Chain Performance of the Pharmaceutical Industry in Mombasa County},
      journal = {Iconic Research And Engineering Journals},
      year = {2024},
      volume = {7},
      number = {11},
      pages = {605-611},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1705864.pdf},
      abstract = {Studies reveal that the total logistics cost of the companies reduced from 44% to 36% as a result of outsourcing logistics services. However, as in business practices, the inefficient and ineffectiveness in logistics management systems together with the inefficient internal management would disable the organization to respond to the needs of customers with the lowest price at the shortest feasible time frame. Hence, the study sought to examine the effects of logistics outsourcing on the supply chain performance of the pharmaceutical industry in Mombasa County, Kenya. Theory of Constraints (ToC), guided the study. The study used descriptive cross-sectional research design targeting 36 pharmaceutical firms comprising 4 local pharmaceutical manufacturing, 11 importing firms, and 21 drug wholesalers and retailers in Mombasa County. From this a sample of 69 pharmaceutical firms were selected using systematic random sampling. The unit of observation were the supply chain managers. Data was collected through questionnaires and data sheets. The study conducted a pilot test on 7 respondents and established reliability and validity of the data collection tool. Both descriptive and inferential statistical methods were used to analyse the data which were then presented in tables and discussed.  The study found that that transport outsourcing had a significant association with the improvement of the supply chain performance of the pharmaceutical industry in Mombasa County Kenya. The study, therefore, recommended that pharmaceutical firms need to do more outsourcing of their transport logistics to specialized firms which have better route planning and management systems.},
      keywords = {Pharmaceutical Firms, Transport Outsourcing},
      month = {May},
  }