INFLUENCE OF LOGISTICS OPTIMIZATION ON PERFORMANCE OF AGRICULTURAL FIRMS IN MURANG’A COUNTY, KENYA

Logistics

The goal of this study was to determine the impact of logistics optimization on agricultural firm performance in Kenya's Murang'a County. The study's particular aims were to investigate the impact of transportation, inventory, information, as well as packaging management on agricultural firm performance in Kenya's Murang'a County. The findings of the study are intended to be useful to Kenyan policymakers, agricultural enterprises, and researchers and scholars. The study was conducted in Murang'a County, with a focus on agricultural businesses. The focus was on logistics optimization facets which include transport management, inventory management, information management as well as packaging management which will all form the independent variables. The guiding theories included agency theory, resource-based view theory, game theory and transaction cost theory. Descriptive research design was employed with a target population of 142 agricultural firms in Murang’a County. Purposive sampling technique was utilized in drawing the study sample. Primary data was collected directly from the respondents using self-administered questionnaire which encompassed both closed and open-ended items. Prior to the actual study, pilot study was undertaken involving 14 logistics managers from fourteen agricultural firms in Murang’a County. Research tool reliability was established using Cronbach Alpha analysis though the use of SPSS Version 26. Descriptive statistics were used in description of the actual study findings and presentations done in form of tables. According to the findings, transportation management, inventory management, information management, and packaging management all have a substantial impact on agricultural company performance in Murang'a County. This study concludes that firms in Murang'a County should fully embrace the usage of fleet management systems, according to the report. This study recommends that agricultural firms in Muranga County should also maximize on the use of inventory management techniques such as Economic Order Quantity and ensure sustainability principles are observed by practicing green packaging of the inventory.

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