CLEARING AND FORWARDING MANAGEMENT SYSTEMS ON SUPPLY CHAIN PERFORMANCE OF FMCG MANUFACTURERS IN KENYA
DOI:
https://doi.org/10.47941/jbsm.555Abstract
Purpose: The purpose of this study was to determine the influence of clearing and forwarding management systems on supply chain performance of FMCG manufacturers in Kenya
Methodology: The study adopted descriptive research design. The unit of observation was the operations manager of the 51 FMCG manufacturers located in Nairobi. The sampling frame of the current study consisted of operations managers in the manufacturers of the FMCGs in Nairobi. The study used the census method to select 51 manufacturers of the FMCGs in Nairobi, thus the sample of the study was 51 respondents. Primary data was used in the study. The study used questionnaires to collect data. Mixed methods technique of analyzing data was used where both descriptive and inferential analysis were used. The data collected from the field was analyzed using SPSS 23 program. The questionnaires were referenced and the items in them coded for easier data entry. The presentation of the findings was done using tables.
Results: The study found that inventory management systems positively and significantly influences Supply chain performance of FMCG in Kenya. The study also established that there are challenges faced by use of clearing and forwarding in logistics management systems. There is the challenge of cost forwarding; the most common currency used is US dollar which changes at any particular time and therefore affecting the freight cost. This also affects the price of customer goods and the charges by the bank. Another challenge is with service charges and fees.
Unique contribution to theory, practice and policy: The study recommended that the government to adjust regulations and create a business environment that allows the process of clearing and forwarding to be efficient, straight forward and quick. here is also need for the government to develop systems and software that allows transparency and ease in submission of documents and therefore reduce the clearing time. It is also important for the government to ensure that there are clear regulations by custom department and ensure that the employees in this department are well knowledgeable of their task and are well organized and motivated to conduct their duties.
Downloads
References
Atnafu, D. & Balda, A. (2018). The impact of inventory management practice on firms competitiveness and organizational performance: Empirical evidence from micro and small enterprises in Ethiopia. Cogent Business & Management, Taylor & Francis Journals, 5(1).
Cox, A. (2010). Managing with power: Strategies for Improving Value Appropriation from Supply Relationships. Journal of Supply Chain Management, 37 (1), 1-9
Euromonitor. (2015). Kenya's fats and oils. Retrieved from
http://www.euromonitor.com/oils-and-fats-in-kenya/report.
Kandie, K. (2014). Sustained Investments In Electricity Needed To Power The Economy. Economic Review.
Kenyan Association of Manufacturers (KAM)(2017). Ten policy priorities for transforming manufacturing and creating jobs in Kenya. Retrieved from, http://www.kam.co.ke/Docs/
Mandrinos, S. (2014). International practices of FMCG products: research on PDO products: Greece's feta cheese.
Mentzer, J., Min, S. & Michelle Bobbitt, L. (2004). Toward a unified theory of logistics", International Journal of Physical Distribution & Logistics Management, 34(8), 606-627.
Miheso, S. C. (2013). Adoption of Integrated Financial Management Information System (ifmis) By The National Government In Kenya. Doctoral dissertation, University of Nairobi.
Miller, R. (2010). Inventors Control: Theory and Practice. New Jersey: Prentice Hall
Mitullah, W. & Odek , P.(2010). Employment Creation in Agriculture & Agro"Processing Sector in Kenya in the Context of Inclusive Growth: Political Economy & Settlement Analysis. Partnership for African Social and Governance Research Working Paper No. 020, Nairobi, Kenya.
Mwangi, A.G. (2013). Inventory Management and Supply Chain Performance of Non-Governmental Organizations in the Agricultural Sector, Kenya. (Master's Thesis). University of Nairobi, Kenya.
Njambi, E., &Katuse, P. (2013). 3PL in efficiency of delivery for competitive advantage of Kenya's FMCG organizations.
International Journal of Social Sciences and Entrepreneurship, 1(8), 15-27.
Nyaga, J. (2014). Aspects that affect the distribution of FMCG in Kenya: EEA. Journal of Social Sciences and
Entrepreneurship, 1(12), 290-302.
Ogbo, A. I & Onekanma I.V. (2014). The Impact of Effective Inventory Control Management on Organizational Performance: Mediterranean Journal of Social Sciences, 5(10).
Osei-Mensah, E. (2016). Does Financial Liberalization Reduce Financing Constrains? Financial Management Association 31 (4): 5-34.
Republic of Kenya, (2014). Economic Survey 2014. Nairobi, Kenya: Kenya National Bureau of Statistics.
Samli, A.C., Pohlen, T.L. & Jacobs, L. (2005). Developments in retail logistics: Towards generating more consumer value. Journal of Marketing Channels, 13(20, 81-98.
Sandström, S., Edvardsson, B., Kristensson, P. & Magnusson, P. (2008). Value-in-use Through Service Experience. Managing Service Quality, 18 (2), 112-126.
Wacuka, K. (2015). Association between management of inventory and performance of SC of FMCG. Masters Dissertation, University of Nairobi.
Wambui, K. (2015). Relationship between lean management practices and supply chain performance of FMCG. Masters Dissertation, University of Nairobi.
Wasamba, I. O. (2008). Strategies applied by manufactures dealing FMCG in motivating their members: Kenya's supermarkets.
Thesis, University of Nairobi, Nairobi.
Wasonga, P. (2012). Factors that affect perception of consumers of manufacture's dealing with FMCG in EAC; Laundries detergent products.
Wisner, J. D, Tan, K-C., & Leong, G. K. (2012). Principles of supply chain management: a balanced approach (3rd edition). Mason, Ohio: South-Western Cengage Learning.
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
