INFLUENCE OF LOGISTICS RISK MANAGEMENT PRACTICES ON FIRM PERFORMANCE A CASE STUDY OF THE NEW KCC KENYA

Procurement and Logistics

Logistics plays an important role in today´s business as it can provide competitive advantage to the companies especially in cost and time which belong to the most important factors for competitiveness. Due to turbulences in global markets each company faces uncertainties and unexpected changes that bring about risks that can strongly influence the success of their business. It is especially valid for the industrial enterprises that cover wide spectrum of activities beginning from material procurement to the servicing of supplied products. Successful risk management helps to gain decisive advantages over the competitors. Therefore it is important to understand the principles of risk and risk management and to implement it also into standard procedures in logistic. This study investigated the influence of logistics risk management practices on the performance the New KCC. It was suitable to examine and describe the logistics risk management practices and their effect on operational performance of the New KCC. The research design involved a case study. Data was collected using questionnaire through drop and pick later method. Tables were used to analyze all the four objectives and finally the findings was presented in tables, charts and graphs. The open ended questions in the questionnaire were analyzed qualitatively. The logistics risk management practices studied included; vehicle tracking, use of multiple carriers, Information sharing and route planning. Conclusion and recommendations were made in based on data finding.

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