Influence of Sustainable Logistics on Operational Performance of Timber Processing Firms in Nakuru County

Caroline Mundia

doi:10.11648/j.ijefm.20160405.14

Abstract

This study was informed by the literature gap on the relationship between sustainable logistics and operational performance, especially among processing firms in Kenya. It aimed at establishing the influence of sustainable logistics on operational performance of timber processing firms in Nakuru County. Data for the study was collected from Comply Company. This was a cross sectional survey where data was collected at single point in time for the purpose of the study. The study involved employees in procurement, finance and marketing departments of Comply Company as respondents. Data for the study were collected by aid of structured questionnaires that were checked for validity and reliability before actual data collection. Collected data were coded, cleared and analysis through statistical packages for social sciences (SPSS). Regression analysis with one tailed t-test ware used to establish the relationship between Sustainable Inbound Logistics, Sustainable Outbound Logistics and Operational Performance. The findings revealed that there is significant positive influence of Sustainable Inbound Logistics and Sustainable Outbound Logistics on Operational Performance. The study recommends that manufacturing and processing organizations should consider sustainable logistics activities in their operations if they are to achieve improved operational performance. The study further suggests that study be conducted to explore on sustainable logistics activities that would be used to achieve operations improvement in service industry.

Highlights

Sustainability is gaining popularity in literally all aspects of business
R-square measures the explanatory power of sustainable inbound logistics and sustainable outbound logistics on operational performance
R-square= 0.339 from table 3 implies that sustainable inbound logistics and sustainable outbound logistics explain up to 33.9 % the changes in operational performance in timber processing firms in Nakuru County

Summary

Introduction

Sustainability is gaining popularity in literally all aspects of business. In supply chain and logistics, sustainable logistics has emerged as one of the strategies of enhancing sustainability in supply chain operations. Kafa et al (2013) conceptualised sustainable logistics through the triple logistics management; economic, social and environmental. Economic sustainability is generally concerned with reduced cost and increased profitability (Green et al, 2012). It is focused on elimination or reductions of costs related to the environment like cost of acquiring materials and energy. According to Ninlawan et al (2010), an economically performing organization is an organization that is able to achieve decreased cost for materials purchasing, decreased cost for energy consumption, decreased costs for waste treatment, decreased cost for waste discharge and decreased costs associated with environmental accidents in their operations. He appreciates that improved operations leads to increase in the amount of goods delivered on time, decrease in inventory levels, decrease in scrap rate, increase in product quality, increase in product line, improved capacity utilization

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