Factors Affecting Logistics Performance Metrics in Logistics Industry: Case of Kuehne+Nagel Logistics Company

Abstract

The purpose of this study was to determine the role of logistics metrics on logistics performance measurement in the Kenyan logistics industry; a case study of Kuehne Nagel logistic company. The specific objectives were to determine the role of logistics cost, logistics quality, logistics productivity, and logistics cycle-time on logistics performance measurement in Kuehne Nagel logistic company. The study was anchored on the SCOR model, resource-based view, theory of constraints and transactions theory. The study adopted a descriptive research design. The study target population was 72 managers comprising of top, middle and supervisory level managers. A census of all the managers was done. The study used questionnaires to collect data. A multivariate regression model was used to link the independent variables with the dependent variable. The study findings indicated that logistics cost and logistics metrics performance are negatively and significantly associated. the results further indicated that logistics quality, logistics productivity and logistics cycle-time had positive and significant association with logistics metrics performance the regression results showed that there is a negatively significant relationship between logistics cost and logistics metrics performance. Further, results indicate that there is positively significant relationship between logistics quality, logistics productivity, logistics cycle-time and logistics metrics performance. Based on the findings, the study concluded that there is negative and significant relationship between logistics cost and logistics metrics performance. Further, the study concluded that there is a positive and significant relationship between quality, productivity, cycle-time and logistics metrics performance. From the findings, the study recommended that logistic companies should find ways of reducing their logistics cost, since it affects their performance; should adopt measures towards improving the quality of their services; should invest in improving their productivity; and lastly logistic firms should adopt efficient time management systems. This will ensure maximum utilization of time as a resource.