Influence of Logistics Outsourcing on Performance of Large Retail Firms in Nairobi City County, Kenya

Abstract

The current study sought to establish the influence of logistics outsourcing on the performance of large retail companies in Nairobi County, Kenya. The study adopted a descriptive research design and the targeted 32 large retail companies in Nairobi Central Business, Nairobi County, Kenya. The unit of observation comprised of procurement personnel in the firms. A census was used whereby all the 32 companies were included in the study. A structured questionnaire was used to collect data for the study which was analysed through mixed-method, where both qualitative and quantitative data were incorporated. The findings were presented in form of figures and tables. The study findings established that transport outsourcing and financial services positively and significantly influence performance of large retail firms in Nairobi County. The study recommended that the management of large retail firms should focus on enhancing transport outsourcing practices since the practice bears a positive and significant influence on performance of the firms. The management can achieve this by having transport outsourcing practices that transfer the risks of transportation operations to the logistics provider, that protects the organization from penalties, a Transport Management Software technology provides the custom data you desire, that increases operational control and that makes sure transportation operations never fall victim to the constantly changing supply chain environment. The study also recommends that the management of large retail firms should capitalize on outsourcing financial services since the practice bears positive and significant influence on performance of the firms.