WAREHOUSE CONSOLIDATION PRACTICES AND PERFORMANCE OF HORTICULTURAL EXPORTING FIRMS IN NAKURU COUNTY, KENYA

Benard Karimi, Dr. Anthony Osoro

Abstract


Horticultural exporting firms, which specialize in the production and export of fruits, vegetables, flowers, and other horticultural products, play a crucial role in the global agricultural trade. Warehouse facilities offer a range of value added services to complement warehousing, distribution and fulfillment needs. Despite their importance, horticultural exporting firms in Kenya face numerous challenges that affect their performance. These challenges include high operational costs, inefficiencies in supply chain management, and logistical issues. The general  objective of this study was to determine the effect of warehouse consolidation practices on performance of Horticultural Exporting Firms in Nakuru County, Kenya. The specific objectives were to; examine the effect of cross-docking on performance of Horticultural Exporting Firms in Nakuru County, Kenya and to establish the influence of space utilization  on performance of Horticultural Exporting Firms in Nakuru County, Kenya. The study was  guided by The Theory of Constraints, and Just in Time theory. The study adopted descriptive research design. The study targeted 50 registered Horticultural Exporting Firms in Nakuru County. The unit of observation was  200 management staff. Census was used hence all the  management staff were sampled. Data was collected using questionnaires. A pilot was conducted with 20 management staff.   The study used  content and construct validity. Reliability analysis was conducted using Cronbach’s Alpha Coefficient. The content of the questionnaire was approved by the research  supervisor and warehousing  experts to check. The professionals approved that the content of the questionnaire matched the purpose of the study and would help to achieve study objectives. The researcher collected questionnaires, coded them, and entered them into the Statistical Package for Social Sciences (SPSS version 28) for analysis. The results were  displayed using frequency distribution tables. The regression analysis revealed that warehouse consolidation practices significantly influence the performance of horticultural exporting firms, with cross-docking (β = 0.364, p = 0.000) having the strongest impact, followed by space utilization (β = 0.321, p = 0.000). The study concludes that firms optimizing warehouse layouts, inventory control, and logistics coordination experience improved competitiveness. It is recommended that firms invest in automated inventory tracking, flexible storage solutions, and structured order-picking systems to enhance warehouse efficiency. Future research should explore the role of automation and AI in warehouse consolidation for further optimization.

Key Words: Warehouse Consolidation Practices, Cross-Docking, Space Utilization, Performance, Horticultural Exporting Firms 


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