INFLUENCE OF INTERNET CONNECTIVITY ON LOGISTICAL EFFICIENCY:

CASE STUDYOF SPEDAG INTERFREIGHT IN UGANDA

ABSTRACT

The study sought to find out the effects of internet connectivity on import growth case study of spedag interfreight. The research was guided by the following objectives, to establish the benefits of internet connectivity in Spedag Interfreight Uganda Limited, to assess the various internet systems being employed in Spedag Interfreight Uganda Limited and to establish the various challenges of internet connectivity in an organisation.

The purpose of study was to establish the effects of internet connectivity on import growth.

The research design used in the study was qualitative in nature, the researcher also used sample size of 40 respondents and they were categorized as Finance, procurement, senior management and ware house. During this process and the sample size of the study was selected using purposive sampling method. A questionnaire was used as data collection instrument.

The study shows that internet connectivity has got numerous benefits to an organization such benefits include; ; standardized transportation process, simplified logistics and supply chain process, reduced product delivery time, improved distribution process, and faster information transfer. The study recommends the management of Spedag interfreight to employ recent technologies in order to be in position to realize the benefits of internet connectivity trade.

The study also further recommends the administration of Spedag interfreight to participate in adopt internet connectivity forms like; Electronic data interchange, Electronic funds transfer, Material requirement planning.

From the above analysis more studies need to be done in the following areas; Impact of technological development in supplier development, Tools and techniques used to develop suppliers and Influence of technology on the growth of firms.

                                                CHAPTER ONE

1.0 Introduction

This chapter presented the background of the study, the statement of the problem, purpose of the study, objectives of the study, research questions and the significance of the study.

1.1 Background of the study

Internet connectivity is fast becoming one of the main drivers of change, posing new organizational opportunities and impacting on its strategic challenges (Somuyiwa, 2010). The business environment today has been undergoing unprecedented change and many companies are seeking new ways to stand out from the competition by sustaining their competitive advantage. In today’s highly competitive global marketplace, the pressure on organization to find new ways of creating and delivering value to customers is growing stronger. Internetconnectivity is today being applied in many organizations in a wide range and operations areas. It has provided new ways for organizational workers like secretaries to store, process, distribute and exchange information both within an organization like with management and fellow employees   and with customers and suppliers in external organization(AngellaBessant and Oyesiku., 2010), It is now commonly accepted that technological advancement in various fields like in communication and data storage systems provide many benefits to organizations like SpedagInterfreight , to make their performance more efficient, effective and competitive (Crake Richard, Martha Noguer and Disterer, 2006).

Since then information system has progressed through personal computer era to client server era and currently to enterprise internet. Computing era of communications environment on Transmission control protocol/ Internet protocol (TCP/ IP) all aimed at information generation, information sharing and information Application (French, 2001). Information systems are changing business processes and in the management of the inventory in different organizations giving rise to new terms such as vendor managed inventory, (Sewanyama and Busier, (2007).

Logistics is defined as “handling an operation that involves providing labour and materials to be supplied as needed”.  E-logistics is defined to be “the mechanism of automating logistics processes and providing an integrated, end-to-end fulfilment and supply chain management services to the players of logistics processes. Those logistics processes that are automated by e-logistics provide supply chain visibility and can be part of existing e-Commerce or Workflow systems in an enterprise”. (Watson ResearchCenter, 2007).  In a typical E-logistics process, three components come into play: Request for Quotes (RFQ), Shipping and Tracking. The Logistics intercommunicate with the business process manager in an e-commerce server. It is the role of the business service manager to invoke the RFQ (request for Quote) process. After getting the response, the purchase order is updated, after which the shipping process is invoked by the business process manager. Once the products are shipped for the specified destination, the tracking number is then provided to the customer. This tracking number is mapped to the PO number in an e-commerce system. This facilitates easy tracking of shipments for the customers. This is the essential interaction of a business process manager and e-logistics.

The digital divide has emerged both with in countries , where the rich educated and young (often males) are most likely to use ICT  and between developed and developing countries, for example in march 2000 out of the 304 million people with internet access only 2.6 million were in Africa while 137 were located in the united states and Canada. By way of another illustration, the average OECD country has 11 times the per capita income of south Asian country but 40 times as many computers. (World Bank, 2004)

It’s widely accepted that the use of internet in logistics has promoted trade openness increased flexibility, saved organizational resources and increased competitiveness among logistics companies like spedag Interfreight, DHL and Bollore logistics, (Farrington et al., 2006), this in turn has improved on the quality of the services offered by such logistics companies inform of track and tracing, computerised usage in most of the logistics operations, minimal loss of goods during transportation in international trade above all increased customer satisfaction (Spedag Records, 2013).

Spedag Logistics Company is a private limited company dealing in a wide range of logistics competencies. Spedag Logistics Company is located in Nakawa Industrial Area Plot No.M284. Basically the organization has advanced systems in  its supply chain above all it participates in international trade however despite of its efforts to adopt internet systems in its daily business the organization still faces high costs in international trade, this study therefore intends to investigate into, effects of internet connectivity on import growth.

1.2 STATEMENT OF THE PROBLEM

According to Spedag Interfreight Records, (2010), most of the goods in transit were damaged along the ways, some got lost and there was generally high customer complaints.

1.3 PURPOSE OF THE STUDY

The study aimed at establishing the effects of internet connectivity on import growth.

1.4 SPECIFIC OBJECTIVES OF THE STUDY

The overall objectives of this research were;

1. To establish the benefits of internet connectivity in Spedag Interfreight Uganda Limited.
2. To assess the various internet systems being employed in Spedag Interfreight Uganda Limited.

• To establish the relationship between internet connectivity and logistics performance in spedag interfreigt Uganda limited.

1.5 RESEARCH QUESTIONS

The following research questions guided the study;

1. What are the benefits of internet connectivity in Spedag Interfreight Uganda Limited?
2. What are the various internet systems being employed in Spedag Interfreight Uganda Limited?

• What is the relationship between internet connectivity and logistics efficiency in Spedag Interfreight Ltd?

 1.6 SCOPE OF THE STUDY

The scope of this study was divided into subject, geographical and time scope.

1.6.1 SUBJECT SCOPE

The study specifically looked at the influence of internet connectivity on logistical efficiency.

1.6.2 GEOGRAPHICAL SCOPE

The study was carried out in Spedag Interfreight Uganda Ltd which is localted at Plot M284 Nakawa Industrial Area.

1.6.3 TIME SCOPE

The study covered a period of time from March to August of 2015.

1.7 SIGNIFICANCE OF THE STUDY

The findings of the study provided the management of Spedag Interfreight Uganda limited.

It helped logisticians to predict the future prospects of internet connectivity

It also helped future learners who will be carrying out research in related areas with reference.

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter discusses what various scholars have written about the effects of internet connectivity on import growth. It mainly covered the concepts of the benefits of internet connectivity, various internet systems being employed, and various challenges of internet connectivity in an organization.

2.1 Benefits of internet connectivity

Standardized transportation process, including improved quality control, shorter delivery time, and greater efficiency through the use of internets enables tracking and tracing of the goods in transit, during shipment as well as giving up to date information to the buyers about the goods. This according to (Kotler 2000) enables the trading parties to minimize inefficiencies such as pilferage, theft among others during the logistics of the goods hence improving logistics efficiency and effectiveness.

Simplified logistics and supply chain process. The introduction of internet has not only simplified the logistics process but has also improved on the whole supply chain process including control over suppliers, improved process cycle time, close cooperation relationships, improved supply chain efficiency, raw materials on time for suppliers. According to (Kenneth Lysons 2000), simplified logistics and supply chain process has brought about shorter lead times and has enabled the materials to be available as and when they are required by the buyers for production purposes.

Process Automation With the use of internet components such as bar coding, Satellite, internets and Image processing among others in the process of managing logistics efficiency, there has been reduction on paper work thereby leading to a substantial reduction of errors, as well as increased capability to obtaining and exchanging real time information. This is possible through the use of information technology systems such as Bar code and scanners which represents a series of alphanumerical characters, bar code readers to interpret bar code symbology, and bar code printers to reliably and accurately print bar codes on labels, cartons, and/or picking /shipping documents. This review is included here because bar code systems are the foundation for many paperless warehousing systems, but the review is meant only as a brief introduction to bar code system. In logistics, bar coding is useful in receiving inbound materials. This helps in quick and accurate data entry, faster checking and clearing of shipments, automatic tracking of the shipments throughout the logistics. (Trent and Monczka 2000)

Improved Logistics process. Logistics management is the process of managing the efficient, costs effective way of transporting goods, supplies and related information from the point of origin to the point of consumption Kenneth Lysons (2000). The introduction of internet has brought in tremendous improvements in the flow of materials from the point of origin to the point of consumption including reduced arrangement costs and handling times, shortened response time for purchasing, improved order process speed and reduced labor costs.

Improved warehousing facilities. Warehousing is the primary link between the producers and the consumers; it is used for storing products (raw materials, in process inventory and finished goods) before they are finally worked upon or delivered to the ultimate consumers. Through the implementation of internet, ware house efficiency and effectiveness has improved greatly through using opportunities such as e- warehousing, e- receipts and e- issuing. These have brought about accurate operations in the warehouse hence complementing logistics management efficiency (R.J Carter, 1990)

Reduce product delivery time. Through the implementation of internet in organizations like SpedagInterfreight Company the organizations’ processes of making payments to their suppliers have improved greatly including faster payment systems like using ATMS, credit cards among others. This reduces among others interest rate, credit risk among others (Aberdeen group 2005).

Improved distribution process. According to Donald W Dobler and David Burt (2001)Withimproved tracking and tracing as a result of using internet, satellites among others, the company that is to say the distributing company is assured of efficiency and effectiveness in the distribution process as their trucks are properly tracked and traced so that in case the deliveries are made to a different location, the mistake can easily be rectified. This has therefore, improved Logistics efficiency in organizations and this has all been because of the introduction of information and communication technology. Other benefits include; delivering on time, reduced delivery enquiring time and improved distribution management.

Proper monitoring. The introduction of internet ininternational trade has brought about efficient and effective monitoring of the materials during transit to their various destinations. This is done through use of technologies that allows communication across a very wide geographical area. Satellite communication provides a fast and high volume channel for information movements. Satellite technology facilitates real time interaction which provides up to date information about location and delivery information about the products in transit. The satellite devices can also be used in tracking and tracing the materials in transit. Tracking is specifically achieved through the use of internet and others, this therefore enables both the delivering organization or the supplier and the buyer to know where specifically the goods in transit is and also in case of any problem encountered say by the truck being used for the transportation purposes, it can easily be recognized by the parties concerned (Kenneth Lysons 2003)

Better communication and connection links. According to Nair N.K (2006), the internet communication between the buyers and the suppliers has been eased. Logistics is an old age industry that has been one of the greatest holdouts against the waves of computerization that has swept the world. Until recently, most organizations were still using traditional systems like fax and letter writing among others as a means of communication. However with the introduction of information and communication technologies such as telephones, internets and satellites among others, communication has not only been eased but also made efficient and effective.

Faster information transfer. Internet enables a speedy transfer of information between the supplier and the buyer. Therefore, all the necessary information that the supplier needs to give to the buyer regarding how the goods in transit should be handled, stored and packed are given to the buyer prior to delivery so that special attention is taken by the buyer where necessary( Van Horne 1994)

Reduce inventory levels. According to (Thomson and Singh 2001) internet helps the buying organisation to order the needed items at the right time and once the need arises then an order will be placed. This helps the organisation to do away with bulk stock levels hence solving the problem of inventory costs like obsolescence and dampness leading to losses this leads to efficiency and effectiveness in the logistics operations.

Globalization, According to Marasco (1992), Internet has not only brought the world closer together, but it will allow the world’s economy to become a single interdependent system. This means that we will not only share information quickly and efficiently, but we will also bring down barriers of linguistic and geographic boundaries. The world will developed into a global village due to the help of information and communication technology, allowing countries like Chile and Japan who are not only separated by distance but also by language to share ideas and information with each other.

Communication, Chaffey (2007) asserts that with the help of internet, communication becomes cheaper, quicker, and more efficient. We can now communicate with anyone around the globe by simply text messaging them, or sending them an email, for an almost instantaneous response. The internet has also opened up face-to-face direct communication from different parts of the world, thanks to the help of video-conferencing.

Cost effectiveness

According to Crake Richard (1998), internet helps to computerize the business process, thus streamlining businesses to make them extremely cost effective money-making machines. This, in turn, increases productivity, which ultimately gives rise to profits; that means better pay and less strenuous working conditions.

Bridging the cultural gap

Cortesao L., Martins F., Rosa A., Carvallio P. (2005) argues that internet helps to bridge the cultural gap by helping people from different cultures to communicate with one another, and allow for the exchange of views and ideas, thus increasing awareness and reducing prejudice.

More time

Internet makes it possible for businesses to be open 24 x7 all over the globe. This means that a business will be open anytime, anywhere, making purchases from different countries easier and more convenient. It also means that you will have your goods delivered right to your doorstep without having to move a single muscle (Kennedy A, 2001).

Creation of new jobs

Kennedy A, (2001) argues that probably, the best advantage of internet is the creation of new and interesting jobs. Computer programmers, Systems analyzers, Hardware and Software developers and Web designers are just some of the many new employment opportunities created with the help of Internet.

2.2 INTERNET SYSTEMS BEING EMPLOYED

Electronic Data Interchange (EDI)

EDI is a technique based on agreed standards, which enables computers in different organizations to successfully send business information of transaction from one to another. They emphasize that EDI reduces on the lead-time simply because transactions are faster and more accurate (Lysons and Farrington, 2006).

According to Chaffey (2007), EDI involves business transactions like, placing orders, invoices, delivery and payment transactions. EDI works according to standards implying that the organizations using it have to agree on the systems and the soft ware that they are to use (Chaffey, 2007).

Chaffey (2007) identifies that EDI approach is associated with Electronic Point of Sale (EPOS) he cites an example in a supermarkets, when a product is purchased the check out operator scans the bar code on the label and automatically registers the price on the cash. In the same way in case of stock replenishment, the machine can order automatically as the stock reaches the re order level.

Electronic Fund Transfer (EFT)

According to Lysons and Farrington (2006), EFT is based non-electronic transmission of receipts and payments between banks and their customers or the purchasers and suppliers. It enables paperless payments to be made to suppliers “here money travels not paper”.  EFT involves automated digital transmission of money between organizations and banks. Lysons and Farrington (2006) state that the buying organization will make payment to the supplier using EFT, in a more convenient and accurate way.

Electronic Mail (e-mail)

E-mail is a process by which letters, orders or other documents are sent by a computer along telecommunication lines to appear on the Visual Display Unit (VDU) at their destination. They emphasize that incase buyers use this technique in the process of buying, sending and receiving of messages can take minutes instead of days. (leaders et-al, 1998)

According to Chaffey (2007), e-mail will be based on sending and receiving of electronic messages, he states that e-mail will be available in the internet for over 20 years.

Chaffey (2007) emphasizes that the recent innovation is the use of websites, which provide free         e-mail facilities, and does not require any software other than the web browser.

Smart Cards.

Smart cards are integrated circuit chips used to store customer specific information including electronic money. They have ability to provide intelligence and store significant amount of information of up to 20 pages of text.  Smart cards will be used to purchase goods or services, store information, and above all, they can be availed to all potential users.  (Lysons 2006)

Electronic Hubs (E-hubs)

This device connects several networks together. As used in e-business it means a central repository exchange such as the star network. In the network, a server is a control computer that holds database and programs and programs for many computers (Herper and Thompson 2005).

According to Herper and Thompson (2005), the buyers PCs will be connected together with the suppliers PCs and information regarding business transactions will be conducted, since all the information is kept in the server computer.

E-Market place

Lysons (2006) asserts that, e-market is a web site that enables procurement officers to select the best suppliers in the market electronically. In this situation, a procurer is in control especially in open market places. This enables procurer to evaluate all potential suppliers for a particular product or service and make informed buying decisions regarding what and where to buy.  This brings efficiency in procurement since the best-evaluated bidders will be given contracts to supply.

According to Chaffey (2007), e-market is applicable where; the market is large enough, product specification and information are subject to rapid changes, suppliers have difficulties in comparing similar products from different vendors, the cost of locating, appraising and evaluating suppliers is high.

Electronic- catalogs

E-catalogs are web pages that provide information on products and services offered and sold by the vendors. (Lysons 2006)

According to Lysons (2006), e-catalogs mainly include; sell side catalogs; buy side catalogs and third party catalogs, E-catalogs support online transactions especially ordering and payment capabilities.

The advantages of e-catalogs includes; facilitation of real time communication between buyers and sellers; Allows room for the development of closer buyer-supplier relationship due to improved vendor services. Enables suppliers, respond quickly to market conditions by adjusting   repackaging (Lysons, 2006).

Material Requirement Planning (MRP)

MRP systems are primarily used to determine when to place orders for standard materials, so that they will arrive exactly when needed this helps in reducing the level of inventory held and theft in inventory (Sollish, et-al 2007)

According to Sollish, et-al (2007), MRP processes involve forecasting demand for individual parts so that they will be ordered in advance of receiving actual customer orders. This complex process is generally handled by computer software program through decision support models, using calculated algorithms to predict future requirements

2.3 VARIOUS CHALLENGES OF INTERNET CONNECTIVITY

Unemployment

Crake Richard, (1998) emphasized that while internet may have streamlined the business process, it will also create job redundancies, downsizing and outsourcing. This means that many lower and middle level jobs will be done away with, causing more people to become unemployed.

Privacy

Simon Harper & Lora Thompson (2007) assert that though internet may make communication quicker, easier and more convenient, it will also bring along privacy issues. From cell phone signal interceptions to e-mail hacking, people are now worried about their once private information becoming public knowledge.

Lack of job security

Industry experts believe that the internet will make job security a big issue, since technology keeps on changing with each day. This means that one has to be in a constant learning mode, if he or she wishes for their job to be secure (Crake Richard, 1998).

Dominant culture

While internet may make the world a global village, it will also contribute to one culture dominating another weaker one. For example, it is now argued that US influences how most young teenagers all over the world now act, dress and behave. Languages too have become overshadowed, with English becoming the primary mode of communication for business and everything else, (Lysons, 2006).

CHAPTER THREE

METHODOLOGY

3.0Introduction

This chapter presents the methodology which consists of the research design, area of study, study population, sample population and selection, sampling technique, data collection method, data quality control, data collection procedures and limitations of the study.

3.1 Research design

The study used cross-sectional research design which involved both Qualitative and quantitative approaches; The researcher used the above methods because many aspects were covered in the study concerning the influence of internet connectivity on logistical efficiency given the complex nature of spedag Interfreight, Qualitative research method was used because it collects information within a short time while quantitative was through interview to cross check what has been given.

3.2 Area of the study

The study was carried out in Spedag Interfreight Uganda limited. Located at Nakawa Industrial Area Plot No.M284.

3.2Study population

The study targeted spedag Interfreight (administration), the procurement staffs, accounting officers of the organization, pre-qualified service providers.

3.3 Sample size

The sample comprised of 30 respondents that were selected using purposive sampling technique were; 3 respondents were from the procurement department, 10 from administration, 10 from prequalified suppliers and 7 respondents who are suppliers.

Table 1 below shows the summary of the sample size of the respondents and the sampling techniques that will be used in the study.

Table 1: Sample size of respondents

3.3 Sampling techniques

According to (Amin, 2005) sampling involves selecting a sample of the population in such a way that samples of the same size have equal chances of being selected. While carrying out research, Purposive sampling technique was applied, Purposive sampling, also referred to as judgment, selective or subjective sampling is a non-probability sampling method that is characterised by a deliberate effort to gain representative samples by including groups or typical areas in a sample, (Amin, 2003), this method will be used because it is cheap and the population is small.

3.4 Data sources

Source of data was from both primary and secondary sources.

3.4.1 Primary data

Primary data was obtained from the questionnaires administered on the target respondents to gain opinions and practices on effects of internet connectivity on logistical efficiency.

3.4.2 Secondary Data

Secondary data is data which has been collected by individuals or agencies for purposes other than those of a particular research study. It is data developed for some purpose other than for helping to solve the research problem at hand (Bell, 1997). This comprised of literature related to effects of internet connectivity on logistical efficiency in relation to the case study. Secondary data was sourced because it yields more accurate information than obtained through primary data, and it is also cheaper.

3.5 Data Collection Instruments

The instruments for data collection was questionnaires, Surveys were just one part of a complete data collection and evaluation strategy. The questionnaire provided respondents with ample time to comprehend the questions raised and hence, they were able to answer factually.

3.5.1 Questionnaires

The questionnaire were used to collect quantitative data. The researcher administered the questionnaires to respondents in different departments including, procurement, administration, accounting, which was designed basing on study objectives and questions. Respondents read and wrote the questionnaires themselves. The questionnaires were close ended and were considered convenient because they were administered to the literate and its anonymous nature fetched unhindered responses.

3.5.2 Interviews

Qualitative data was collected from the informants using interviews. The interview guide was structured. The interviews were held with administration and suppliers, and took approximately thirty to sixty minutes. This was used since it’s the best tool for getting first-hand information /views, perceptions, feelings and attitudes of respondents. Both formal and informal interviews were used to get maximum information from the different respondents to participate in the research.

3.6 Data collection procedures

Upon receiving the University permission to carry out research, the area of study was visited for purposes of familiarization.  The researcher sought permission from staff and once allowed to proceed with research, questionnaires were issued and interviews were carried out with the selected staff.

3.7 Quality control of data instruments

The instrument was taken to the supervisor to check its correctness there after pilot study was carried out to find out if it measures what it is meant to for.

3.8 Data processing and analysis

The raw data was coded, edited, and arranged ready for analyzing only completed raw data was be analyzed using statistical tables and graphs.

3.9 Limitations of the study

The researcher faced the following challenges in the course of the study;

• The researcher didn’t get enough time to interview all the respondents, but this was solved by budgeting for the time appropriately.
• The researcher also faced challenges in language as other respondents felt comfortable expressing themselves in local languages like luganda.

Other respondents asked for money from the researcher, this didn’t affect the study as the respondents were persuaded that the research is meant for academic purposes.

CHAPTER FOUR

PRESENTATION, ANALYSIS, INTERPRETATION

OF FINDINGS

4.0. Introduction

This chapter presents the results in reference to objectives in chapter one. Gender of respondents, Age of respondents, education level of respondents, Number of years of respondents, To establish the benefits of internet connectivity in Spedag Interfreight Uganda Limited, To assess the various internet systems being employed in Spedag Interfreight Uganda Limited and To establish the various challenges of internet connectivity in an organisation.

4.1 FINDINGS ON GENERAL INFORMATION

4.1.1 Findings on gender of the respondents

Table 2: Shows the findings on the gender of respondents

Source: Primary Data

Table 4.1 above shows that 60% of respondents were male and 40% were female. That means that the biggest percentage of respondents and employees in the organization were male and apart from that it also shows that male gender dominate the work force of Spedag interfreight.

4.1.2 FINDINGS ON THE AGE OF RESPONDENTS.

Table 3 Shows findings on the age of the respondents

Source: primary data

PIE CHART SHOWING AGE CATEGORY OF RESPONDENTS

Figure 1 Shows age category of the respondents

Figure 2: Pie chart showing Age category of the respodents

Source: primary data

The table above shows that 33.33% of the respondents are in the ages of 18-29 while 50% of the respondents are in the ages of 30-39 while the remaining respondents are in the ages of above 40 years.

4.1.3 FINDINGS ON EDUCATIONAL LEVEL OF RESPODENTS

Table 4: Showing educational level of respondents

Source: primary data

Table above shows that the majority of staff are degree holders and their percentage is 66.7%, masters 16.67%, while 10% of the respondents are diploma and the rest have other qualification.

BAR GRAPH SHOWING THE FINDINGS ON EDUCATION LEVEL OF RESPONDENTS:

Figure 3: Showing findings on educational level of respondents

Source: primary data

The table above shows that the majority of the respondents are degree holders this also shows that the majority of the respondents were well vast with the subject context

4.1.4 FINDINGS NUMBER OF YEARS OF WORKING

Table 5: Showing findings on number of years respondents have worked

Source: primary data

The table shows that majority of the respondents have worked for the time period of 10 years and above with percentage of, 50%, while 23.33% have worked for 7-9 years, 16.67% have worked 3-6 years while 10% have worked for less than two years.

Graph showing numbers of years the respondents have worked at Spedag interfreight.

Figure 5: Graph showing number of years respondents have worked

Source: primary data

The findings indicate that majority of the respondents have worked for more than three years, while the second largest percentage of the respondents have worked for 2-3 years this findings further illustrate that majority of the respondents have enough skills on the subject this therefore illustrates that most of the respondents were in position to answer the questions asked with good knowledge and skills.

4.2 BENEFITS OF INTERNET CONNECTIVITY

Table 6: Showing benefits of internet connectivity

Source: primary data

The results in the study indicates that most of the respondents assert that, 70% of the respondents assert that internet connectivity helps in ensuring Standardised transportation process in the importation of goods and services, 20% agreed and the remaining percentage were not sure this findings also further indicates that internet is of great importance to an organization in the importation process.

The results in the study also further indicates that majority of the respondents strongly agreed that internet connectivity helps in Simplifying logistics $ supply chain process  80%  strongly agreed , and 20% agreed while none of the respondents were not sure, or disagreed.

The results further indicate that most of the respondents assert that internet connectivity helps in Improving ware housing facilities of an organization like spedag interfreight due to majority of the respondents strongly agreeing.

The table indicates that most of the respondents assert that internet connectivity enables an organization to be in position to have a reduced product delivery time, this enables an organization to have efficiency in customer satisfaction and reduced costs.

According to the findings in the study majority of the respondents assert that

Improved distribution process in an organization is achievable if an organization has efficient internet systems in its importation process, this was supported by majority 70% who strongly agreed while 20% agreed and none of the respondents strongly disagreed.

According to the findings in the table most of the respondents (80%) of the respondents assert that proper monitoring process of goods in the importation is achieved when an organization adopts internet connectivity in its importation process.

According to the results in the study Better communication and connection links can be achieved if an organization is involved into internet connections, this was supported by

75% of the respondents,

According to the findings in the study most of the respondents assert that faster information transfer links is essential in ensuring efficiency in importation, this was supported by 50% of the respondents strongly agreeing 40% agreeing.

The results in the study shows that 65% of the respondents assert that reduced inventory levels in an organization can be achieved if an organization engages in internet connectivity in import trade.

The findings in the study shows that most of the respondents assert that internet connectivity helps an organization to achieve globalization in the international trade, this was supported by 60%  of the respondents strongly agreeing and 25% of the respondents agreed and none of the respondents agreed.

The findings in the study indicates that most of the respondents assert that internet connectivity helps in efficiency in communication in the transportation process, this was supported by the fact that 70% of the respondents strongly agreed and only 15% were not sure and none of the respondents strongly agreed.

4.3 VARIOUS INTERNET SYSTEMS USED IN SPEDAG INTERFREIGHT

TABLE 7: VARIOUS INTERNET SYSTEMS USED IN SPEDAG INTERFREIGHT

Source: primary data

The findings in the study indicates that most of the respondents  strongly agreed that electronic data interchange is used at Spedag interfreight this is indicated with a strong percentage of 60% strongly agreeing , 20% agreeing, 5%  not sure, and the rest of the respondents were not sure,  this further shows that electronic data interchange is used in spedag interfreight.

The results in the study also indicates that most of the respondents strongly agreed that Electronic funds transfer assert that is a form of technology used at Spedag interfreight this is evidenced by a strong percentage of  50% strongly agreeing , 25% agreeing  while 10% were not sure while the remaining percentage of the respondents disagreed.

The results in the study also indicates that most of the respondents 80% agreed that Electronic mail is used at Spedag interfreight while remaining percentage agreed none of the respondents was not sure, disagreed or strongly disagreed.

The findings in the study also indicates that majority of the respondents assert that Electronic market place is a form of technology used at Spedag interfreight

The findings further illustrate that the internet that 70% of the respondents strongly agreed that the Electronic catalogue used at Spedag interfreight while 20% agreed and 10% of the respondents were not sure.

The results in the study also further illustrates that most of the respondents assert that the Material requirement planning is a widely used form of technology at Spedag interfreight with a large percentage of the respondents strongly agreeing and other agreeing while none of the respondents strongly disagreed.

4.4 Relationship between internet connectivity and logistics performance

Table 9: Relationship between Internete connectivity and logistical performance

Source: primary data

From table 4.6 above, findings revealed that, 50% of respondents strongly agreed that internet connectivity leads to unemployment, 33.33% agreed while 16.67% were Neutral this therefore shows that majority of respondents agree that with the fact that internet connectivity increases the level of unemployment.

According to the table 60% of the respondents strongly agreed that internet connectivity has made organization to loose privacy of their important information, this was supported by 60% of the respondents strongly agreeing, while 40% agreed, none of the respondents was neutral or disagreed.

The results in the study indicate that most of the respondents assert that 73.3% of the respondents assert that internet connectivity increases the level of job insecurity for an organization.

The findings in the study shows that majority of the respondents assert that internet connectivity has led to some cultures being referred to as superior and dominant than other.

CHAPTER FIVE

DISCUSSION OF FINDINGS, SUMMARY OF FINDINGS, CONCLUSION, RECOMMENDATION AND AREAS OF FURTHER STUDY

5.0       INTRODUCTION

The study aimed at establishing Benefits of internet connectivity, various internet systems and various challenges of internet connectivity in an organisation

5.1 DISCUSSION OF FINDINGS

5.1.1 Different form of internet connectivity

The results show that most of the respondents agreed that electronic data interchange is used at Spedag interfreight and the responds further assert that electronic data interchange is also used in an organization this is also in line with moneczak, (2006) who asserts that Electronic data interchange is essential in enabling an organization solve most of the challenges in international trade.

The results in the study also shows that Electronic funds transfer is important in the importation process of goods, this is also in line with  Lysons and Farrington (2006), who assert that EFT is based non-electronic transmission of receipts and payments between banks and their customers or the purchasers and suppliers. It enables paperless payments to be made to suppliers “here money travels not paper”.

The findings in the study shows that electronic mail is used at Spedag interfreight in international trade , this is also in line with Chaffey (2007), who points out that e-mail will be based on sending and receiving of electronic messages, he states that e-mail will be available in the internet for over 20 years.

The findings in the study also indicates that majority of the respondents assert that Electronic market place is a form of technology used at Spedag interfreight, this is also in line with Lysons (2006) asserts that, e-market is a web site that enables procurement officers to select the best suppliers in the market electronically. In this situation, a procurer is in control especially in open market places. This enables procurer to evaluate all potential suppliers for a particular product or service and make informed buying decisions regarding what and where to buy.

The findings further illustrate that Electronic catalogue is essential in ensuring efficiency of the importation process of an organization this was also in line with (Lysons, 2006) who states that The advantages of E-Catalogs includes; facilitation of real time communication between buyers and sellers; Allows room for the development of closer buyer-supplier relationship due to improved vendor services. Enables suppliers, respond quickly to market conditions by adjusting   repackaging.

5.1.2 Benefits of internet connectivity

The results in the study indicates that most of the respondents assert that, 70% of the respondents assert that internet connectivity helps in ensuring Standardised transportation process in the importation of goods and services this is also in line with Kotler, (2000) enables the trading parties to minimise inefficiencies such as pilferage, theft among others during the logistics of the goods hence improving logistics efficiency and effectiveness.

According to the results in the study internet connectivity helps in Simplifying logistics $ supply chain process   this is also supported by Kenneth Lysons, ( 2000), who states that simplified logistics and supply chain process has brought about shorter lead times and has enabled the materials to be available as and when they are required by the buyers for production purposes.

According to the study internet connectivity helps in Improving ware housing facilities of an organization, this is also in line with (R.J Carter, 1990), Through the implementation of internet, ware house efficiency and effectiveness has improved greatly through using opportunities such as e- warehousing, e- receipts and e- issuing. These have brought about accurate operations in the warehouse hence complementing logistics management efficiency.

The internet connectivity enables an organization to be in position to have a reduced product delivery time; this is also in line with (Aberdeen group 2005), Through the implementation of internet in organizations like Spedag Interfreight Company the organizations’ processes of making payments to their suppliers have improved greatly including faster payment systems like using ATMS, credit cards among others. This reduces among others interest rate, credit risk among others.

According to the findings in the study majority of the respondents assert that Improved distribution process in an organization is achievable if an organization has efficient internet systems in its importation process this is also in line with  Dobler and David Burt (2001) With improved tracking and tracing as a result of using internet, satellites among others, the company that is to say the distributing company is assured of efficiency and effectiveness in the distribution process as their trucks are properly tracked and traced so that in case the deliveries are made to a different location, the mistake can easily be rectified.

The results in the study indicates that Better communication and connection links can be achieved if an organization is involved into internet connections, this is also supported by Nair N.K (2006) who asserts that, the internet communication between the buyers and the suppliers has been eased. Logistics is an old age industry that has been one of the greatest holdouts against the waves of computerization that has swept the world.

The results in the study indicates that faster information transfer links is essential in ensuring efficiency in importation, this was supported by ( Van Horne 1994) who asserts that Internet enables a speedy transfer of information between the supplier and the buyer. Therefore, all the necessary information that the supplier needs to give to the buyer regarding how the goods in transit should be handled, stored and packed are given to the buyer prior to delivery so that special attention is taken by the buyer where necessary.

5.1.3 Relationship between internet connectivity and logistical performance

Findings revealed that most of respondents hold the view that internet connectivity leads to unemployment this view is also shared by Crake Richard, (1998) who emphasized that while internet may have streamlined the business process, it will also create job redundancies, downsizing and outsourcing.

According to the study internet connectivity has made organization to loose privacy of their important information, this is also in line with Simon Harper & Lora Thompson (2007) who assert that though internet may make communication quicker, easier and more convenient, it will also bring along privacy issues. From cell phone signal interceptions to e-mail hacking, people are now worried about their once private information becoming public knowledge.

The results in the study indicates that internet connectivity increases the level of job insecurity for an organization this is also in line with , Crake Richard, (1998) who asserts that Industry experts believe that the internet will make job security a big issue, since technology keeps on changing with each day. This means that one has to be in a constant learning mode, if he or she wishes for their job to be secure.

The findings in the study shows that majority of the respondents assert that internet connectivity has led to some cultures being referred to as superior and dominant than other, this conforms to the findings of (Lysons, 2006) who points out that While internet may make the world a global village, it will also contribute to one culture dominating another weaker one. For example, it is now argued that US influences how most young teenagers all over the world now act, dress and behave. Languages too have become overshadowed, with English becoming the primary mode of communication for business and everything else.

5.3 Summary of Findings.

According to the results in the study the various forms of internet connectivity include; Electronic data interchange, Electronic funds transfer, Material requirement planning.

The study further indicates that the Benefits of internet connectivity include; standardized transportation process, simplified logistics and supply chain process, reduced product delivery time, improved distribution process, and faster information transfer.

The findings in the study further shows that the challenges faced by internet connectivity include; unemployment, limited privacy, lack of job security and Dominant culture.

5.4 Conclusion.

The study shows that internet connectivity has got numerous benefits to an organization such benefits include; ; standardized transportation process, simplified logistics and supply chain process, reduced product delivery time, improved distribution process, and faster information transfer.

5.5 Recommendations

The study recommends the management of Spedag interfreight to employ recent technologies in order to be in position to realize the benefits of internet connectivity trade.

The study also further recommends the administration of Spedag interfreight to participate in adopt internet connectivity forms like; Electronic data interchange, Electronic funds transfer, Material requirement planning.

5.6 Areas for further research

From the above analysis more studies need to be done in the following areas.

• Impact of technological development in supplier development.
• Tools and techniques used to develop suppliers.
• Influence of technology on the growth of firms.

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APPENDIX I: QUESTIONNAIRE

TOPIC: EFFECTS OF INTERNET CONNECTIVITY ON IMPORT GROWTH

A CASE STUDY: Spedag Interfreight

Dear respondent

I am Komushana Andrew a student of Makerere University Business School, am carrying out a study on the above stated topic. You are one of the respondents randomly selected to participate in the study. The information given shall be treated with at most confidentiality and shall only be used strictly for academic purpose.

SECTION A:     GENERAL DATA

1. Which department do you belong to in this organization?

Warehouse                        procurement                         Finance

Senior management

• Sex: Male           female

• Age a) 18 -29 b) 30 – 39 c)  40 and above

• Educational level

Certificate                                    Diploma                      Degree             Others

5. For how long have you been working with Spedag interfreight?

Less than two years                                       3-6 years

7-9 years                                                        above 10 years

Please tick one appropriate.

SECTION B: FORMS OF TECHNOLOGY.

Key:SA=Strongly agree,A=agree,N=neutral,D=disagree,SD=strongly disagree

Please tick one appropriate.

SECTION C:  Benefits of internet connectivity

Key:SA=strongly agree,A=agree,N=neutral,D=disagree,SD=strongly disagree

Please tick one appropriate.

SECTION D: VARIOUS CHALLENGES OF INTERNETE CONNECTIVITY

Key:SA=strongly agree,A=agree,N=neutral,D=disagree,SD=strongly disagree

THANKS FOR YOUR COOPERATION