Research writer

LOGISTICS MANAGEMENT AND SUPPLY CHAIN PERFORMANCE AMONG MANUFACTURING FIRMS IN UGANDA

A CASE STUDY OF BRITANNIA ALLIED INDUSTRIES LIMITED

INTRODUCTION

Background to the study

Council of Logistics Management (1991) defined logistics as part of the supply chain process that plans, implements, and controls the efficient,  effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements. Logistics system is made up of logistics services, information systems and infrastructure/resources. Logistics services is made up of activities such as warehousing and transportation that support the movement of materials and products from point of origin to point of consumption, and vice versa (BTRE, 2001).

Globally, logistics is viewed as a classical function, which involves adversarial relationships among suppliers, customers and transportation providers, is emerging as a key source of competitive advantage and a leading reason for strategic alliance relationship between companies and their logistics providers (Hai & Yirong, 2002). A logistical system is made up of a large number of stakeholders. They include the suppliers, manufacturers, wholesalers or distributors and retailers who have to be managed strategically in order to deliver final products in the right quantities at the desired time and quality at the right place and at a reasonable cost to the final consumers (Hai & Yirong, 2002).

Logistics strategy has three main objectives; cost reduction, capital reduction and service improvement. In the last two decades, product flow has been greatly improved due to better technology in communication and transportation. Increased variety of goods, globalization of marketing and seasonal variations are among the major challenges of logistics system which leads to the necessity of developing effective logistics strategies in the agricultural sector (Gebresenbet & Bosona, 2012).

A supply chain encompasses the organizations, activities and processes associated with the flows of products, services, information and capital, from their origin to the ultimate consumer (Butilca, et al., 2011). According to the Council of Supply Chain Management Professionals, the management of a supply chain (SCM) refers to planning and management of all activities associated with procurement, production, distribution and coordination among supply chain members.

Over time the SCM has suffered transformations concerning activities, processes and the actors involved. Kumar and Nambirajan (2013) show that focus shifted gradually from integration at organizational level to integration of activities and business process at the supply chain level. Butilca, et al. (2011) defined risks in supply chains as a “variation in the distribution of possible supply chain outcomes, their likelihood, and their subjective value.” Accordingly, supply chain risks might result not only in negative outcomes but only on positive ones Butilca, et al. (2011).

Supply chains maximize the benefits for all the participants through either a strategy of operational excellence or collaborative closeness (Stank, Keller and Closs, 2002). Lu (2011) shows that supply chain is by definition the extended enterprise where business engagement is based not only on cost-driven considerations but also on incentives, rewards, knowledge exchange and commitment.

Britannia allied industries ltd is increasingly looking at logistics for improving customer experience and for differentiation. Meeting service level agreements is a basic requirement for moving from customer satisfaction to customer delight. Today’s demanding customers require not just fulfillment of requirements, but also cooperation and alignment with their service partners for mutual benefit and revenue growth.

Problem statement

Managing transportation, inventory and distribution has been a critical focus area for manufacturers, distributors and third-party logistics players in their pursuit of developing a lean, agile and efficient customer oriented supply chain. To achieve better customer service at reduced costs, organizations are increasingly adopting the two levers of process improvement and technological breakthroughs in track-and-trace, improved control systems and IT innovations such as cloud platforms. To fully realize the benefits from these initiatives and move toward an era of continuous improvement in their operations, organizations will also need to realign their logistics performance measurement strategies (Anand, 2010).

Despite these innovations Britannia allied industries ltd has been experiencing low output and decreased profits, increased customer complaints, frequent breakdown of vehicles, late deliveries and low consumption rate portraying poor supply chain performance. Thus, this study opts to examine the relationship between logistics management practices on supply chain performance at Britannia Allied Industries Ltd.

Purpose of the study

The study will aim at examining the relationship between logistics management practices on supply chain performance at Britannia Allied Industries Ltd.

Research Objectives

1. To examine the relationship between transport management and supply chain performance at Britania Allied Industries Ltd.
2. To assess the relationship between inventory management and control and supply chain performance at Britania Allied Industries Ltd.

• To analyze the relationship between distribution management and supply chain performance at Btitania Allied Industries Ltd.

Research Questions

1. What is the relationship between transport management and supply chain performance at Britania Allied Industries Ltd?
2. What is the relationship between inventory management and control and supply chain performance at Britania Allied Industries Ltd?

• What is the relationship between distribution management and supply chain performance at Britania Allied Industries Ltd?

Scope of the study

Content Scope

The study will aim at examining the relationship between logistics management practices on supply chain performance at Britannia Allied Industries Ltd. Specific emphasis will be put on the relationship between transport management, inventory management, distribution management and supply chain performance.

Geographical scope

The study will be carried out at Britannia allied industries. The firm is located in Kampala, Uganda. It’s working in manufacturing, farming, agriculture business activities. The selection of the study area is because of the easy accessibility.

Time scope

The study will be carried out for a period of four months from February to May, 2017. The study will base on 2000-2016 as the period for the knowledge of related studies.

Significance of the Study

The recommendations of this study would enhance competiveness in the industry in order to transform it into a leaner low cost industry as improve operational efficiency hence contribute to increased profitability in the industry.

The findings and recommendations of this study will be useful to the procurement professionals and operations managers in understanding logistics management practices and their contribution in operational efficiency which improves logistics management decisions.

Definition of Key Terms

Logistics

Council of Logistics Management (1991) defined logistics as part of the supply chain process that plans, implements, and controls the efficient,  effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.

Supply chain performance

According to the Council of Supply Chain Management Professionals, the management of a supply chain (SCM) refers to planning and management of all activities associated with procurement, production, distribution and coordination among supply chain members. The concept of supply chain is not unanimously accepted.