LOGISTICS OPTIMIZATION AND PERFORMANCE OF PHARMACEUTICAL FIRMS IN NAIROBI CITY COUNTY, KENYA

Damaris Wawira Njiru, Dr. Kennedy Kirima Nteere

Abstract


The general objective of the study was to examine logistics optimization and performance of pharmaceutical firms in Nairobi City County, Kenya. The specific objectives included effect of transport planning and effect of inventory management on the performance of pharmaceutical firms in Nairobi City County. The study was guided by the following theories: The Systems Theory and the logistic Theory. The target population consisted of 100 procurement officers from 80 pharmaceutical firms in Nairobi City County, Kenya; hence, the sample was derived from the populations by use of Neyman allocation sample formulae thus obtaining a sample size of 680 respondents. The study involved collection of data using both primary and secondary data collection method. The primary data was collected through the use of a questionnaire which was self-administered. Qualitative method of data analysis was used in exploring, examining and providing findings regarding the optimization of logistics and performance of pharmaceutical firms in Nairobi City County, Kenya. Analyzed data was presented through use of frequency tabulation table’s graphs, bar chart and inferential statistics for easy interpretation of findings. The study revealed that all strategies significantly positively affect firm performance, with inventory management showing the strongest influence (β = 0.370, p = 0.000), followed by transport planning (β = 0.315, p = 0.001). These findings indicate that effective logistics practices, particularly in inventory management, are crucial for enhancing operational efficiency, customer satisfaction, and overall firm performance. The study concludes that integrating advanced technologies, continuous staff training, and regular reviews of logistics processes are essential to maintain competitive advantage. It is recommended that pharmaceutical firms invest in technology-driven logistics solutions, optimize warehouse layouts, and enhance interdepartmental communication to further improve logistics efficiency and firm performance.

Key Words: Logistics Optimization, Transport Planning, Inventory Management, Performance of Pharmaceutical Firms 


Full Text:

PDF

References


Acquah, S. K. (2024). The role of effective inventory management practices on organizational performance: A case of Tarkwa municipal hospital, western region, Ghana. World Journal of Advanced Research and Reviews, 21(2), 1628–1638.

Adebayo, B., Kazeem, O., & Adenike, A. (2020). Logistics infrastructure and pharmaceutical distribution efficiency in West Africa. International Journal of Logistics Research and Applications, 23(4), 289–306.

Ahmed, H., Al Bashar, M., Taher, M. A., & Rahman, M. A. (2024). Innovative approaches to sustainable supply chain management in the manufacturing industry: A systematic literature review. Global Mainstream Journal of Innovation, Engineering & Emerging Technology, 3(2), 1–13.

Ajayi, E. O., Olutokunbo, T., Obafemi, F., & Araoye, E. (2021). Effective inventory management practice and firms performance: Evidence from Nigerian consumable goods firms. American International Journal of Business Management, 4(5), 14–20.

Akrofi, T., Ansah, E., Nuertey, E. H., & Tufour, A. K. (2017). Impact of multimodal choice on any organisation’s sustainable supply chain strategies. International Journal of Business Management & Research, 7(6), 11–20.

Ayeka, A. C., & Walter, K. (2021). Effect of reverse logistics process on performance of pharmaceutical firms in Nairobi City County, Kenya.

Biederman, S. (2018). Procurement and supply chain management in state corporations. Journal of Procurement and Supply Chain, 3(6), 109–115.

Chan, S. W., Tasmin, R., Aziati, A. N., Rasi, R. Z., Ismail, F. B., & Yaw, L. P. (2024). Factors influencing the effectiveness of inventory management in manufacturing SMEs. In IOP Conference Series: Materials Science and Engineering (Vol. 226, No. 1, p. 012024). IOP Publishing.

Council of Logistics Management. (2019). Definition of logistics. Retrieved from https://www.cargoz.com

Dey, B., Lahiri, A., & Sinha, A. (2020). Analysis of service quality and customer satisfaction of logistics companies. International Journal of Logistics Systems and Management, 37(1), 51–73.

Dubey, R., Gunasekaran, A., Childe, S. J., Blome, C., Papadopoulos, T., & Roubaud, D. (2019). Big data and predictive analytics and manufacturing performance: Integrating institutional theory, resource-based view and Big Data Culture. British Journal of Management, 30(2), 341–361.

Durach, C. F., Blesik, T., von Düring, M., & Bick, M. (2021). Blockchain applications in supply chain transactions. Journal of Business Logistics, 42(1), 7–24.

Fugate, B. S., Mentzer, J. T., & Stank, T. (2019). Logistics performance: Efficiency, effectiveness, and differentiation. Journal of Business Logistics, 31(1), 43–63.

Harrison, A., & Van Hoek, R. (2018). Logistics management and strategy (5th ed.). Pearson Education.

Inegbedion, H., Eze, S. C., Asaleye, A. J., & Lawal, A. I. (2019). Inventory management and organisational efficiency. The Journal of Social Sciences Research, 5(3), 756–763.

Ireton, G. (2018). Supply chain trends and the evolution of transport strategy. Journal of Logistics and Transportation Management, 9(2), 78–90.

Ivanov, D., & Dolgui, A. (2020). A digital supply chain twin for managing the disruption risks and resilience in the era of Industry 4.0. Production Planning & Control, 32(9), 775–788.

Karanja, P. M. (2022). The impact of regulatory compliance on logistics optimization in African pharmaceutical firms. African Journal of Business and Management, 14(3), 56–68.

Kimunya, A. M., & Thogori, M. (2023). Supplier selection and performance of pharmaceutical companies in Kenya. International Journal of Social Sciences Management and Entrepreneurship, 7(2).

Kithuka, J. M. (2023). Logistics outsourcing risks and performance of manufacturing firms in Kenya (Doctoral dissertation, JKUAT).

Marlow, P. B., & Casaca, A. C. (2018). Measuring lean port performance. International Journal of Transport Economics, 45(1), 91–111.

Mentzer, J. T. (2019). Defining supply chain management. Journal of Business Logistics, 22(2), 1–25.

Mohamed, A. E. (2024). Inventory management: Key principles and best practices. Journal of Operations and Supply Chain Innovations, 6(1), 45–59.

Muoki, R. K., & Moronge, M. (2021). Influence of logistics optimization on performance of freight forwarding companies in Kenya. International Journal of Supply Chain and Logistics, 5(1), 46–66.

Noshad, K., & Awasthi, A. (2018). Investigating critical criteria for supplier quality development. International Journal of Management Science and Engineering Management, 13(3), 215–224.

Nyaga, G. N., Whipple, J. M., & Lynch, D. F. (2020). Logistics optimization and firm performance in developing economies: Evidence from the Kenyan pharmaceutical industry. Journal of Business Logistics, 41(2), 139–154.

Ogero, L. N. A., & Ochiri, G. (2018). Factors influencing implementation of logistics services outsourcing among manufacturing firms in Kenya: A case of EABL. Journal of International Business, Innovation and Strategic Management, 2(1), 62–84.

Phatak, S., & Sople, V. V. (2018). Drivers and barriers of sustainable supply chain: A literature review on Indian perspective. International Journal of Business Insights and Transformation, 12(1), 17–25.

Queiroz, M. M., Telles, R., & Bonilla, S. H. (2021). Blockchain and supply chain management integration: A systematic review of the literature. Supply Chain Management: An International Journal, 26(5), 573–590.

Springinklee, F., & Wallenburg, C. M. (2018). The impact of logistics service provider’s capabilities on customer satisfaction. International Journal of Physical Distribution & Logistics Management, 48(2), 185–203.

Tannoury, M., & Attieh, Z. (2017). The influence of emerging markets on the pharmaceutical industry. Current Therapeutic Research, 86, 19–22.

Tseng, Y. Y., Islam, D. M. Z., & Karia, N. (2019). Supply chain management: An international logistics perspective. International Journal of Logistics Research and Applications, 22(4), 349–372.

Tumusiime, P., & Karamagi, H. (2021). Leveraging technology for logistics optimization in Uganda's pharmaceutical sector. Journal of African Health Sciences, 18(2), 98–107.

Wang, Y. (2022). Regulatory compliance and logistics optimization in Asia's pharmaceutical industry. Journal of Asian Business Studies, 18(1), 45–58.

Zhang, C., & Murty, R. (2017). Storage space allocation in container terminals. Transportation Research Part E: Logistics and Transportation Review, 31(4), 437–447.

Zhang, L., & Li, J. (2021). Integrated logistics management systems and firm performance in China's pharmaceutical industry. Chinese Journal of Logistics Research, 20(4), 234–252


Refbacks

  • There are currently no refbacks.