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, benefits of logistics service providers, challenges faced by logistics service providers and the solution to logistics service providers.

4.1 FINDINGS ON GENERAL INFORMATION

Table 4.1.1: shows the findings on the gender of the respondents’

Source: primary data

Table 4.1 above shows that 63.33% of respondents were male and 36.67% 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 spedage interfreight.

Due to a large percentage of the respondents being male it is therefore evident that the researcher didn’t have much difficulty understanding the way of approaching them and therefore it was easy to get information and response from them.

4.1.2 Findings on the age category of the respondents

Table 4.2: Shows findings on age of the respondents

Source: primary data

The table above shows that 30% of the respondents are in the ages of 18-29 while 36.67% of the respondents are in the ages of 30-39 while the remaining respondents are in the ages of above 40 years.

From the above findings it is therefore evident that majority of the respondents are in age bracket of 30-39 this is supported by a large percentage of more than  36%, this findings also shows that majority of the respondents were able to give accurate answers regarding spedag interfreight ltd the findings further shows that the second largest majority of the respondents are regarding the subject content , it also shows that few respondents are in the ages of 18-29 years.

Since from the findings majority of the respondents are in mature ages of 30-39 and 40 years and above it further fully clarifies that the researcher was able to gather information from well experienced and highly knowledgeable individuals and therefore they were in position to give correct information regarding the subject scope.

4.1.3 Findings on the educational level of the respondents

Table 4.3: shows findings on education level of respondents

Source: primary data

Table above shows that the majority of staff is degree holders and their percentage is 50%, masters 26.67%, while 20% of the respondents are diploma holders and the rest of the respondents have other qualification.

4.1.4 FINDINGS NUMBER OF YEARS OF WORKING

Table 4.4 showing the number of years respondents have worked at spedag interfreight

The table shows that majority of the respondents have worked for the time period of 6-10 years, and their percentage stands at 50% of, 20% of the respondents have worked for 3-5 years, while 16.67% of the respondents have worked for and respondents who have worked for above 10 years have percentage of 13.33%.

4.2 Benefits of logistics service providers

Standardized procurement process

From the above findings it is evident that 83% of the respondents strongly agreed that , while 10% agreed and only 7% of the respondents disagreed this results therefore demonstrates that logistics service providers help organization in having standardized logistics service providers.

Simplified logistics and supply chain process

Findings from table shows that 66% of the respondents hold the view that logistics service provider help in simplifying the logistics and supply chain process while only 7% disagreed.

Process Automation

Findings from table shows that 60% of the respondents assert that logistics service providers help in making the supply chain process automated this findings therefore indicates that it is essential in reduction of costs by automating the supply chain process.

Improved logistics process

From the above findings it is evident that 83% of the respondents strongly agreed that logistics service providers provide improved logistics process, while 10% agreed and only 7% of the respondents disagreed this results therefore show that logistics service providers help in improving the logistics process of an organization.

Improved ware housing facilities

Findings from table shows that 63% of the respondents hold the view that logistics service provider help in improved the ware housing facilities so that materials are safe especially these item which are perishable meeting customers’ needs timely efficiently.

Reduced product delivery time

Findings from table shows that 60% of the respondents assert that logistics service providers help in reducing the product delivery time of an organization therefore responding t customers order timely and efficiently.

Improved Distribution process

From the above findings it is evident that57% of the respondents strongly agreed that logistics service providers provide improved distribution process, while 30% agreed and only 13% of the respondents disagreed this results therefore show that logistics service providers help in improving the distribution process of an organization.

Reduced product delivery time

Findings from table shows that 70% of the respondents assert that logistics service providers help in reducing product delivery time in the supply chain process  while 20% agreed and the remaining 10% strongly disagreed this findings therefore indicates that logistics service provider help in reducing the product delivery time.

Faster information transfer

From the above findings it is evident that 83% of the respondents strongly agreed that logistics service providers help in faster information transfer, while 10% agreed and only 7% of the respondents disagreed this results therefore show that logistics service providers help in faster information transfer.

4.3 Challenges faced by logistics service providers

High costs in transport services

From the above findings it is evident that 83% of the respondents strongly agreed that logistics service providers are normally faced with high transport service in most parts of the world, while 10% agreed and only 7% of the respondents disagreed.

Increasing costs in forwarding services

Findings from table shows that 70% of the respondents assert that increasing costs in forwarding services have greatly affected the logistics service providers while 20% agreed and the remaining 10% strongly disagreed this findings therefore indicates that logistics service provider help face increasing costs in forwarding services.

Complication in logistics services

Findings from table shows that 77% of the respondents hold the view that logistics service provider s face challenges in the complicated logistics service in the modern era, most of the complication affects logistics service providers in ways like clearance and payments among many others.

Imperfection in procurement contracts

Findings from table shows that 60% of the respondents assert that logistics service providers face imperfection in procurement contracts which tends to affect their service greatly , from the above findings it is therefore that organization need to address the information inflow to to solve the challenges in the logistics process.

Corruption

Findings from table shows that 66% of the respondents hold the view that logistics service providers face challenges in corruption which tends to hinder their activities in the supply chain , none of the respondents was not sure, 7% disagreed and none strongly disagreed.

Procurement Policies

Findings from table shows that 70% of the respondents assert that procurement policies affect the effectiveness of an organization involved in the logistics process while 20% agreed and the remaining 10% strongly disagreed this findings therefore indicates that procurement policies affect logistics service provider.

Communication costs

Findings from table shows that 67% of the respondents assert that communication costs have greatly affected the logistics service providers while 20% agreed and the remaining 10% strongly disagreed this findings therefore indicates that communication costs affect the performance of logistics service providers.

4.4 Solutions to the challenges

Recruitment of better employees

From the above findings it is evident that 83% of the respondents strongly agreed that recruitment of better employees is essential in solving logistics challenges faced by logistics service providers, while 10% agreed and only 7% of the respondents disagreed this results therefore show that recruitment of better employees is essential for logistics service providers.

Compensation of employees to ensure better performance

Findings from table shows that 60% of the respondents assert that logistics service providers should ensure better compensation to employees to ensure better performance while 20% agreed and the remaining 10% strongly disagreed this findings therefore indicates that it is essential in proper compensation of employees.

Proper record keeping

Findings from table shows that 70% of the respondents assert that proper record keeping is essential in ensuring that organizations involved in logistics service develop and provide professional services while 20% agreed and the remaining 10% strongly disagreed this findings therefore indicates that logistics service provider should have proper record keeping to their clients.

Developing clear organizational strategy

Findings from table shows that 66% of the respondents hold the view that logistics service providers should develop clear organizational strategy in order t minimize on the level of challenges they face while only 7% disagreed

Enforcing employee codes of conduct

From the above findings it is evident that 83% of the respondents strongly agreed that enforcing employee codes of conduct is essential in solving logistics challenges faced by logistics service providers, while 10% agreed and only 7% of the respondents disagreed.

CHAPTER FIVE

DISCUSSION, SUMMARY, CONCLUSION AND RECOMMENDATION OF FINDINGS

5.0 Introduction

The study aimed at the challenges logistics service providers’ face in dealing with government bodies. The study was guided by research objectives and the researcher summarized the findings in consistence to the research objectives. The study has been completed and objectives have all been met and the following conclusion has been drawn;

5.1 Discussions of findings

5.1.1 Benefits of logistics service providers

According to the results in the study logistics service providers help organization in having standardized logistics service providers this is also in line with Kotler, (2000) who asserts that standardized logistics process leads to improved quality control , shorter delivery time, greater efficiency through use of information and communication components like internet and  satellite.

The Findings in the states that that logistics service provider helps in simplifying the logistics and supply chain process this is also in line with Lysons, (2000) who asserts that logistics service providers solve the most complicated part of the logistics industry therefore enabling the organization in better performance.

Findings revealed that logistics service providers help in making the supply chain process automated this is also in line with (Ford et al, 2006) who states that With the use of technologically components such as Bar coding, Satellite, internets and Image processing among others in the process of managing accounting 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.

Logistics service providers provide improved logistics process this is also in line with Lysons and Farrington (2006) who assert that logistics process process involves management of an organizations logistic record with a view of minimizing organizational information in a cost effective way.

Reducing the product delivery time of an organization this is also in line with Aberdeen group (2005) who assert that  Through the implementation of technological system in organizations like Crown beverages ltd 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.

Logistics service providers help in improving the distribution process of an organization this is also in line with Dobler and Burt (2001) who asserts that 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. This has therefore, improved Logistics efficiency in organizations and this has all been because of the introduction of information and communication technology.

5.1.2 Challenges faced by logistics service providers

Logistics service providers are normally faced with high transport service in most parts of the world; this was further highlighted by lysons, (2006) who states that logistics service providers assert that expensive transport costs has greatly affected most logist5cs companies across the globe.

Increasing costs in forwarding services have greatly affected the logistics service providers this is also in line with (Bailey et al,204) who states that increasing costs in forwarding services, which, in its fundamental form consist in organization of the transport processes, insurance, preparation of necessary documentation and customs services, More advanced shipping services, which bring great cost benefits in case of general cargo or pallet cargo (as opposed to full truck load), include services provided by the consolidated shippers on the basis of  the network of several or more than ten terminals, which consists in consolidation or deconsolidation of a particular cargo, custom packaging, with warehousing option and in more modern version of cross docking and thus in transition of cargo through terminal (without warehousing) and stopping their movement only for the time necessary for order picking, changes in cargo shape and changes in means of transport.

Logistics service provider s face challenges in the complicated logistics service in the modern era this is also in line with (Basheka, 2006) who states that Logistics services, which, apart from transport and forwarding activities, encompasses terminal services, starting from cross-docking, through warehousing to order picking  (including picking and packaging) and additional activities: labeling, re-packing, foil  packing, minor repairs, creation of promotional sets etc. (sometimes referred to as co packing).

Logistics service providers face imperfection in procurement contracts which tends to affect their service greatly this is also in line with PPDA ACT and regulations (2003) which states that Imperfection in information flow; Procurement staffs decide on the contracts to take on, the tenders to award preparation of bids, advertisement of bids and also proposing appropriate procurement methods.

Logistics service providers face challenges in corruption which tends to hinder their activities in the supply chain this is also in line with basheka, (2009) who assert that Corruption has been placed high on the international agenda. Corruption has taken an alarming dimension in recent years at the same time spreading in geographical and growing in intensity.

Procurement policies affect the effectiveness of an organization involved in the logistics process this is also in line with Erridge, (2001) who states that Procurement policies; if policies are ineffective, employees lack comprehension and it is difficult to explain to end users the why of the policies. Policies are only good if everyone understands them and can explain and defend them.

Communications costs have greatly affected the logistics service providers this is also in line with, Nicol, (2003) who asserts that In order to supplier what is needed all correspondence and communications with the vendor regarding problems, proposed changes, or the implementation of the procurement decision should be effective.

5.1.3 Solutions to the challenges

Recruitment of better employees is essential in solving logistics challenges faced by logistics service providers; this is also in line with Pattanayak, (2003) who asserts  Recruitment of better employees this is concerned with the Obtaining of the proper kind and number of personnel necessary to accomplish organization goals.,.

Logistics service providers should ensure better compensation to employees to ensure better performance this is also in line with Forster et al, (2004) who states that Compensation means determination of adequate and equitable remuneration of personnel for their, contribution to the organization objectives to the monetary compensation for various jobs is one of the most difficult and important function of the personnel management.

Proper record keeping is essential in ensuring that organizations involved in logistics service develop and provide professional services this is also in line with, Pattanayak, (2001), who states that In record-keeping the personnel manager collects and maintains information concerned with the staff of the organization. It is essential for every organization because it assists the management in decision making such as in promotions. This record mainly includes employee’s academic records, performance records, disciplinary records and also salary earnings in an organization and many others however an organization with poor record keeping is on the verge of collapse.

Logistics service providers should develop clear organizational strategy in order to minimize on the level of challenges they face this is also in line with Ashridge, (2008) who asserts that Human resource management helps to develop organizational strategy my adhering to the vision, mission, values of the organization, the human resource in its mandate ensures that all the employees adhere to the organizational goals.

Enforcing employee codes of conduct is essential in solving logistics challenges faced by logistics service providers this is also in line with Handfield et al, (2006) who states that Employee codes of conduct, Codes of conduct are the ways how an organization operates and income showing the rules and regulations governing a particular organization which has prepared to fail, most of the Global companies like Toyota, Nissan and Honda have clear codes of conduct to help establish peace and Harmony between the how level managers and the top management this helps employees to know what is specifically expected of hem and how they can do it.

5.2 Conclusion

The study indicates that benefits of inventory management in an organization include; standardised procurement process, simplified logistics process, process automation, improved logistics process, improved distribution process and reduced product delivery time.

The challenges faced by logistics service provider in an organization include; High cost in transport services, increasing costs in forwarding services, complication in logistics services, imperfection in the procurement contracts, corruption, and communication.

The results in the study also indicates that solution to the challenges include; recruitment of better employees, compensation of employees to ensure better performance , proper record keeping, developing clear organizational strategy and enforcing employee codes of conduct.

5.3 Recommendation

The study recommends that crown beverages management to adopt policies like recruitment of better employees, compensation of employees to ensure better performance , proper record keeping, developing clear organizational strategy and enforcing employee codes of conduct to ensure that the logistics process is improved.

5.4 Areas of further studies

The researcher recommends the following areas of further researcher;

Challenges in logistics process

Techniques used to improve logistics process

Benefits of ICT in logistics process