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Transport Outsourcing and Supply Chain Performance of the Pharmaceutical Industry in Mombasa County
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
How to cite this paper
@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},
}