LOGISTICS MANAGEMENT AND SUPPLY CHAIN PERFORMANCE AMONG FIRMS IN UGANDA: A CASE STUDY OF THE NEW VISION PRINTING AND PUBLISHING COMPANY LIMITED

BY

KATUSIIME EDGAR

14/U/10369/PLE/PE

A RESEARCH REPORT SUBMITTED TO THE DEPARTMENT OF PROCUREMENT AND MARKETING AS A REQUIREMENT

FOR THE PARTIAL FULFILLMENT OF THE AWARD OF

BACHELOR’S DEGREE OF PROCUREMENT AND

LOGISTICS MANAGEMENT OF

KYAMBOGO UNIVERSITY

OCTOBER, 2017

DECLARATION

I Katusiime Edgar declare that this research report entitled “logistics management and supply chain performance among firms in Uganda: a case study of The New Vision Printing and Publishing Company Limited” is my original work and has never been submitted for the award of either a degree or a diploma in any institution of higher learning.

Signature: ……………………………………..                     Date:……………………………

KATUSIIME EDGAR

14/U/10369/PLE/PE

APPROVAL

This is to certify that this research report “logistics management and supply chain performance among firms in Uganda: a case study of The New Vision Printing and Publishing Company Limited” has been under my supervision and is now ready for submission to the examination board.

Signature: ——————————————                     Date ———————————-

Mr. MAKUMBI GRACE

UNIVERSITY SUPERVISOR

DEDICATION

I am humbled and delighted to dedicate this report to my family members; my late father Kampugukye Stephen, mother Beneth Kampugukye, my siblings Charity, Dickson, Abia, Alvin, friends and in a special way to the almighty God for keeping me alive up to date.

ACKNOWLEDGEMENT

I owe much tribute to Almighty God for giving me ‘’life worth living’’ and thank Him for giving me strength to accomplish this work.

Special thanks go to my supervisor Mr. Makumbi Grace who sacrificed his time and provided me with professional guidance indeed his criticism and parental approach made my research a success.

I wish to extend my sincere thanks and gratitude to all the lecturers in School of Management and Entrepreneurship who have inspired me and contributed towards the completion of this research.

I appreciate the efforts, encouragement advice and assistance rendered by my family members and relatives.

I thank my friends and my course mates for the support rendered to me during my whole course.

I extend special gratitude to the authors of the literature used in this report, thank you so much for the vital information.

TABLE OF CONTENTS

DECLARATION- i 

APPROVAL- ii

DEDICATION- iii

ACKNOWLEDGEMENT- iv

TABLE OF CONTENTS- v

LIST OF TABLES- viii

LIST OF FIGURES- ix

ABSTRACT- x

CHAPTER ONE– 1

INTRODUCTION– 1

1.1 Background to the study- 1

1.2 Statement of the problem– 2

1.3 Objectives of the study- 3

1.4 Research Questions 3

1.6 Scope of the study- 4

1.7 Significance of the Study- 4

1.8 Definition of Key Terms 4

CHAPTER TWO— 6

LITERATURE REVIEW— 6

2.0 Introduction- 6

2.1 Overview of Key Concepts in the study- 6

2.2 Transport Management and Supply Chain Performance- 9

2.3 Inventory Management and Control and Supply Chain Performance- 10

2.4 Distribution Management and Supply Chain Performance- 11

2.5 Conclusion- 12

CHAPTER THREE– 13

METHODOLOGY– 13

3.0 Introduction- 13

3.1 Research design- 13

3.2 Study Area- 14

3.3 Study population- 14

3.4 Sample size- 14

3.5 Sampling method- 15

3.6 Data collection methods and instruments 16

3.7 Data collection procedure- 16

3.8 Validity and reliability of research instruments 16

3.9 Data analysis 17

3.10 Data Presentation- 18

3.10 Limitations of the Study- 18

CHAPTER FOUR– 19

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS– 19

4.0 Introduction- 19

4.1 Background information of the respondents 19

4.2 The relationship between transport management and supply chain performance at The new vision printing and publishing co. ltd- 23

4.3 Relationship between Inventory Management and Control and Supply Chain Performance- 25

4.4 Relationship Distribution Management and Supply Chain Performance- 27

CHAPTER FIVE– 30

DISCUSSION, CONCLUSION AND RECOMMENDATION– 30

5.0 Introduction- 30

5.1 Discussion of major findings 30

5.2 Conclusion- 32

5.3 Recommendations 33

5.4 Areas for further research- 33

REFERENCES- 34

APPENDICES- 38

APPENDIX I: QUESTIONNAIRES FOR MANAGEMENT AND STAFF- 38

APPENDIX II: INTERVIEW GUIDE- 41

APPENDIX III: INTRODUCTORY LETTER………………………………………………42

LIST OF TABLES

Table 3.1: Showing Sample size- 15

Table 4.1: Age bracket of Respondents 20

Table 4.2: Department of Respondents 21

Table 4.3: Position in the organization- 22

Table 4.4: Relationship between transport management and supply chain performance- 23

Table 4.5: Relationship between transport management and supply chain performance- 24

Table 4.6: Relationship between Inventory Management and Control and Supply Chain Performance- 25

Table 4.7: Relationship between inventory management and control and supply chain performance- 26

Table 4.8: Relationship Distribution Management and Supply Chain Performance- 27

Table 4.9: Relationship between Distribution management and supply chain management 28

LIST OF FIGURES

Figure 4.1: Gender of Respondents 19

Figure 4.2: Highest Level of education- 20

Figure 4.3: Period of Work- 21

ABSTRACT

The study investigated the relationship between logistics management and supply chain performance among firms in Uganda: a case study of The New Vision Printing and Publishing Company Limited. Specifically the study examined the relationship between transport management and supply chain performance, assessed the relationship between inventory management and control and supply chain performance and the relationship between distribution management and supply chain performance.

Case study design was adopted for this study where both quantitative and qualitative methods of data collection were used. The study used questionnaire method and interview guide to collect data from 52 as the sample size having management/staff and end users.

The study found out that there is a strong positive relationship between transport management and supply chain performance at Pearson correlation coefficient r= 0.997. This implies that transport management affect supply chain performance by 99.7% and others factors by 0.3%.

The private companies are effective and efficient in delivering and distributing products, this efficiency includes making timely deliveries; and as a result end users are satisfied.

The study concluded that there is effective communication in the department; the organization is able to make its end users satisfied. The warehousing activities have improved efficiency; the organization has sufficient transportation units. Findings also indicated that there is a weak positive relationship between transport management and supply chain performance at Pearson correlation coefficient r= 0.335. This implied that inventory management and control affect supply chain performance by 33.5% and others factors by 66.5%. and a strong positive relationship between logistics management and supply chain performance at Pearson correlation coefficient r= 0.752 was found implying that distribution management affect supply chain performance by 75.2% and others factors by 24.8%.

The study recommended that the organization should strive to reduce the lead times between ordering and receipt. This can be enhanced through proper logistics management. The study also recommended that members of the supply chain should ensure that proper records on raw materials, work in progress and finished goods are available in real time and easily accessible.

CHAPTER ONE

INTRODUCTION

1.1 Background to the study

According to Waters (2003), logistics management is the part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverses flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer’s requirements. The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security (Misra, Kahn & Singh, 2010).

Supply Chain Performance refers to the extended supply chain’s activities in meeting end-customer requirements, including product availability, on-time delivery, and all the necessary inventory and capacity in the supply chain to deliver that performance in a responsive manner (Warren, 2004).

In today’s environment of “Survival of the fittest” more and more companies tend to examine, restructure and reposition their operations to gain competitive advantage, and in this, logistics can play a vital role in the integration and differentiation strategic designed to produce the desired competitive advantage (Jaheem, 2008).Under the strategic logistical management, choice of transportation mode is a fundamental part. Transport cost includes all costs associated with the movement of product from one location to another. The average transport cost range between five to six per cent of the recommended retail price of the product (shah, 2002).

According to (Chopra and Meindl, 2007) supply chain has become an important focus of competitive advantage for firms and to achieve an a high supply chain performance, companies need to effectively move raw materials, coordinate flows into, choices of transportation, cost of the transportation, packaging the product for shipment, storing the product, and managing the entire process. Sufian (2010) stated that the performance of supply chain was influenced by managing and integrating key element of information into their supply chain.

According to Sufian (2010) to achieve a better performance, logistic management strategy need support the business strategy. Logistics strategy includes cost reduction, capital reduction and service improvement. However, 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).

Effective logistics management is important to build and sustain competitive advantage in product and services of firms (Gunasekaran and Ngai, 2004). To compete at the supply chain level, firms must adopt an appropriate logistics management strategy. The strategy needs integrate and coordinate throughout the supply chain to generate the performance of supply chain in firms (Green Jr. et al., 2008).

Consequently, supply chain performance is an amalgamation of three important measurements specifically efficiency, effectiveness and adaptability (Wakhungu 2010). Thus, supply chain performance in most organizations in Africa is measured by way of increased productivity in the production department by employing better production techniques rewarding returns.

Ledgerwood (2000) concurred with the fact that the main objective in most organizations in the Uganda is to increase productivity. As productivity increases, logistics management needs to be handled with utmost professionalism. Thus, there is need to have accountability by following laid down procurement procedures so as to realize improved supply chain performance

The new vision printing and publishing co. 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.

1.2 Statement of the problem

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 The new vision printing and publishing co. 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 (Mugerwa, 2015). Thus, this study opted to examine the relationship between logistics management practices on supply chain performance at the new vision printing and publishing co. ltd.

1.3 Objectives of the study

1.3.1 General objective of the study

The study aimed at examining the relationship between logistics management practices on supply chain performance at the new vision printing and publishing co. ltd.

1.3.2 Research Objectives

1. To examine the relationship between transport management and supply chain performance at the new vision printing and publishing co. ltd.
2. To assess the relationship between inventory management and control and supply chain performance at the new vision printing and publishing co. ltd.

• To analyze the relationship between distribution management and supply chain performance at the new vision printing and publishing co. ltd.

1.4 Research Questions

1. What is the relationship between transport management and supply chain performance at the new vision printing and publishing co. ltd?
2. What is the relationship between inventory management and control and supply chain performance at the new vision printing and publishing co. ltd?

• What is the relationship between distribution management and supply chain performance at the new vision printing and publishing co. ltd?

1.6 Scope of the study

1.6.1 Content Scope

The study aimed at examining the relationship between logistics management practices on supply chain performance at the new vision printing and publishing co. ltd. Specific emphasis was put on the relationship between transport management, inventory management, distribution management and supply chain performance.

1.6.2 Geographical scope

The study was carried out at the new vision printing and publishing co. ltd. The firm is located in Kampala, Uganda. The selection of the study area was because of the easy accessibility.

1.6.3 Time scope

The study was carried out for a period from February to October, 2017. The study based on 2000-2016 as the period for the knowledge of related studies.

1.7 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.

1.8 Definition of Key Terms

1.8.1 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.

1.8.2 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.

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter reviews the existing literature put forward by different scholars and personalities on the effects of e-procurement on operational efficiency as well as critically analyzing the deviations in the explanations to find out the research gap in the study variables; to examine the relationship between transport management and supply chain performance; to assess the relationship between inventory management and control and supply chain performance and to analyze the relationship between distribution management and supply chain performance based on secondary sources like text books, internet, newspaper, report at the company, and journals.

2.1 Overview of Key Concepts in the study

2.1 Logistics management

According to CSCMP (2007), logistics management is that part which implements, and controls the efficient, effective forward and reverses 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.

Kilasi et al. (2013) highlights that in today‘s highly competitive environment, many companies are striving to gain a share of the global market and to take advantage of higher production and sourcing efficiency and The new vision printing and publishing co. ltd.

Also Tseng et al (2005) argued that a key determinant of business performance nowadays is the role of logistics management functions in ensuring the smooth flow of materials, products and information throughout the company‘s supply chain.

Also Buyukozkan, et al. (2008) argued that as a result of the trend of nationalization and globalization in recent decades, the importance of logistics management has been growing in various areas. He further argued that for firms, logistics management helps to optimize the existing production and distribution processes based on the same resources through management techniques for promoting the efficiency and competitiveness of enterprises.

In the study carried by Tilokavichai & Sophatsathit (2011), the study concludes that effective logistics management provides the right product in the right place at the right time that is why it has received much attention over the past decade from practitioners and government. While Liu & Lyons (2011) argued that realizing the importance of sustainability in logistics management it is critical for competitive advantage because operational performance has a positive impact on company‘s financial performance.

However, for logistics management to be considered contributing to a firm‘s performance, logistics performance needed to be measured (Keebler & Plank, 2009). In their study Fugate, at el., (2010) confirmed that, due to increasing awareness of logistics management implications in firm performance and growing awareness of the benefits of leveraging logistics to increase customer value, measuring of performance of logistics had become a high priority.

In this study, the new vision printing and publishing co. ltd the total cost of logistics ranges from 7% to 12% of sales and is growing due to increasing supply chain complexities. Thus, there is an increased focus from corporate management on controlling and managing this cost.

At the new vision printing and publishing co. ltd, logistics costs typically follow economic cycles. During times of growth, the available capacity becomes constrained, and rates rise. When recession hits, rates fall due to competition among service providers to utilize the surplus capacity. Managing capacity and utilization is often a tightrope walk for most service providers and proves to be a differentiating factor for the company.

2.1.2 Supply chain performance

Supply chain performance is defined as the ability of the supply chain to deliver the right product to the correct location at the appropriate time at the lowest cost of logistics (Zhang, Okoroafo, 2015). This definition takes into account the time of delivery, cost, and value for the end consumer.

Supply chain performance is the ability (of the entire supply chain) to meet end-customer needs, associated with ensuring the availability of product, deliver it on time in the right way and ensure appropriate inventory levels. It also exceeds the functional boundaries of organizations, i.e. production, distribution, marketing and sales, research and development. The functioning of the supply chains should be constantly improved. Therefore, measures to support the improvement of the performance of the global supply chain should be used, not only those that relate to the individual companies and their functions (Hausman 2004).

Morgan (2004) offers nine preconditions necessary for effective and dynamic performance measurement within supply chain. These preconditions are cheap and reliable identification of units in transition, standard protocols, communication systems that are capable of handling the volume of data, hardware and software, multi-layered control systems, system handshake protocols, routing and re-routing protocols that allow supply chain cost control, speed and flexibility of delivery response, high velocity electronic cash transfers instigated automatically; and robust systems with inbuilt automatic recovery abilities.

The measurement concept in the form of the SCOR model (Supply Chain Operations Reference Model), proposed by the American Supply Chain Council Association is also often used (Shepherd, Günter 2012; Gunasekaran et al. 2004; Chae 2009). This model is designed for the management of business processes extending beyond the limits of one a single company. In this model indicators relate to the following aspects: planning, sourcing, manufacturing, delivery and returns. It also takes into account five performance attributes: reliability, responsiveness, flexibility, cost and asset management efficiency (Ganga, Carpinetti 2011). This study will concentrate on cost, reliability and responsiveness as the supply chain performance attributes.

In supply chain, reliability involves whether the correct product is delivered to the correct place, in the correct quantity, at the correct time, with the correct documentation and to the right customer Gunasekaran et al. (2004). Cost involves all the costs related to the operation of a supply chain. Also responsiveness, the speed at which a supply chain provides the products to customers and flexibility, the agility of a supply chain to respond to market changes in demand in order to gain or maintain its competitive advantage. Asset management efficiency which is the efficiency of an organization in managing its resources to meet demand (Ganga, Carpinetti 2011).

In this study, supply chain management practices are defined as several of management activities that purposed to improve the supply chain performance. At the new vision printing and publishing co. ltd, supply chain management practices encompasses set of approaches and practices that effectively integrate with suppliers, manufactures, distributors, and customers to improve the long-term business performance and their supply chain.

2.2 Transport Management and Supply Chain Performance

Kenyon & Meixell (2011) defined transportation as the activities involved in shipping any goods or finished products from suppliers to a facility or to warehouses and sales locations. Laird (2012) included because it was a major part of the supply chain due to its power to add value to some goods by moving them from their current location to a more advantageous location.

According to Bowersoxet el. (2010), argued that from the logistical system point of view, three factors were fundamental to transportation performance: cost, speed, and consistency. The cost of transport is the payment for shipment between two geographical locations and the expenses related to maintaining on-transit inventory.

Research carried out by Atos, 2012; Kenyon 2011; Xiande, 2008; Hausman, 2005; Gunasekaran, 2003, transportation had been found to be a major factor in logistics processes as it was the one which joined the separated activities. While Tsen, Yue& Taylor (2005) advanced that transportation was the most important economic activity among the components of business logistics systems.

At the new vision printing and publishing co. ltd, transportation occupies one-third to two thirds of the amount in the logistics costs hence transport management influenced the performance of logistics system immensely.

Bowersox, et al. (2010) elaborated that transporting is required in the whole production procedures, from manufacturing to delivery to the final consumers and returns. This is so because a good transport management in logistics activities could provide better logistics efficiency, reduce operation cost, and promote service quality on firms.

In designing a logistical system for any organization, a delicate balance had to be maintained between transportation cost and service quality. In some circumstances low-cost, slow transportation was satisfactory. In other situations, faster service was essential to achieving operating goals. Finding and managing the desired transportation mix across the supply chain was a primary responsibility of logistics management.

Transport management efficiency at the new vision printing and publishing co. ltd therefore is dependent on how much value a firm was able to gain based on how much they were able or willing to spend on transportation. Lastly it was transport management that made firm goods and products move with lower cost, speed and consistency and provided timely and effective delivery of firm products.

In this study, transportation plays a key role in the supply chain at The new vision printing and publishing co. ltd, because without the efficient movement of finished goods and raw materials the entire system would not be able to work at its full potential.

At the new vision printing and publishing co. ltd, transportation costs generally depend upon the distance between the source and the destination, the means of transportation chosen, and the size and quantity of the product to be shipped.

In many cases in the organization, there are several sources and many destinations for the same product, which adds a significant level of complexity to the problem of minimizing transportation costs which improves supply chain performance.

2.3 Inventory Management and Control and Supply Chain Performance

Stevenson (2009) defined an inventory as a stock or store of goods. He further referred to inventories as a vital part of business, as they are necessary for operations and also contribute to customer satisfaction. For Mangarulkar et al. (2012) stated that stocks must be well managed in order to maximize profits and many small businesses could not absorb the types of losses arising from poor inventory management therefore, clearly inventory management is important to business and vital to logistics success.

In their book on supply chain logistics management by Kenyon (2011), he stated that the objective of an inventory management was to achieve desired customer service with the minimum inventory commitment. Excessive inventories would compensate for deficiencies in basic design of a logistics system but ultimately resulted in higher-than-necessary total logistics cost.

Logistical strategies are designed to achieve customer service goals while maintaining the lowest possible financial investment in inventory and a sound inventory management strategy is therefore based on a combination of five aspects: core customer segmentation; product profitability; transportation integration; time-based performance; and competitive performance (Mangarulkar et al., 2012).

The new vision printing and publishing co. ltd is typically more desirable to do business with the competitors if it can promise and perform rapid and consistent delivery. Therefore, it is necessary to position inventory in a specific warehouse to gain competitive advantage even if such commitment increased total cost.

Bowersox et al. (2010), argues that selective inventory deployment policies is essential to gain a customer service advantage or to neutralize a competitor. Material and component inventories existed in a logistical system for different reasons than finished products. Each type of inventory and the level of commitment must have been viewed from a total cost perspective. Understanding the interrelationship between order processing, inventory, transportation, and facility network decisions was fundamental to integrated logistics which provided an open field for firm performance.

The new vision printing and publishing co. ltd is increasingly looking at inventory management for improving customer experience and for differentiation. Meeting service level agreements is a basic requirement for moving from customer satisfaction to customer delight.

Demanding customers of the new vision printing and publishing co. ltd require not just fulfillment of requirements, but also cooperation and alignment with their service partners for mutual benefit and revenue growth.

2.4 Distribution Management and Supply Chain Performance

Physical distribution is a whole process that concern also materials and finished product, a physical (spacial) movement of goods from the manufacturers to intermediaries and finally to the ultimate consumer(Muhscina, 2008).

There are various routes that products or services use after their production until they are purchased and used by end users. These channels are referred to as distribution channels or marketing channels. Therefore, distribution channels are all those organizations that a product has to go through between its production and consumption (Kotler et al, 2006). Distribution channel management is very critical for the firms when they decide to enter one or more markets.

In accordance with Gattorna and Walters (1996), distribution channel management follows a structured approach, using criteria which help to evaluate optional channel structures during which alignments, trade-offs and channel relationships are considered. There are 3 degrees of intensity of distribution namely; selective, intensive and exclusive distributions with their application relying on the nature of the product and market type (Etzel et al, 2004).

In this study, logistics management in the new vision printing and publishing co. ltd helps to optimize the existing production and distribution processes based on the same resources through management techniques for promoting the efficiency and competitiveness of enterprises thus, improving the supply chain performance in the organization.

2.5 Conclusion

Logistics management creates value through customer service elements such as product availability, timeliness and consistency of delivery, and ease of placing orders and this can be achieved through logistics information systems. The above brief review of literature has resulted into the formulation of presumed relationships between transport management, inventory management and control, distribution management and supply chain performance.

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter presents the research methodology which include; Research design, study population, study area, instruments of data collection, data processing, Study  instruments, sources of data and data  analysis.

3.1 Research design

Thornhill et. al (2003) defined a research design as a general plan on how the researcher plans to answer the research question. Specifically, the case study was used. A case study is an empirical enquiry that investigates a contemporary phenomenon within its real-life context, especially when the boundaries between phenomenon and context are not clearly evident and it relies on multiples sources of evidence (Yin, 1994). Case study research investigates pre-defined phenomena but does not involve explicit control or manipulation of variables: the focus is on in-depth understanding of a phenomenon and its context (Miles & Huberman, 1994). Case studies typically combine data collection techniques such as interviews, observations, questionnaires, and document and text analysis. Eisenhardt (1989) posits that Case study strategy focuses on understanding the dynamics present within a single settings. A case study research design, combined with both quantitative and qualitative methods was used for this study. According to Baron (2011), qualitative research design helps to capture qualitative data, based on qualitative aspects that may not be quantified. It aids in discovering the motives and desires or what people think and how they feel about a given subject or situation. This method involves an unstructured approach to inquiry and allows flexibility in all aspects of the research process. It is more appropriate to explore the nature of a problem, issue or phenomenon without quantifying it. While quantitative research is the systematic empirical investigation of observable phenomena via statistical, mathematical or computational techniques (Mugenda & Mugenda, 2003). According to Silverrman (2001), quantification gives greater confidence in the accuracy of conclusions derived from qualitative data; and it gives the reader a chance to think through the data on their own to cap on the researcher’s findings. The research used this method because it produces information only on the particular cases studied.

3.2 Study Area

The study was carried out at the new vision printing and publishing co. ltd. The selection of the study area was because of the easy accessibility.

3.3 Study population

Study population is a complete set of individuals, cases or objects with some common observable characteristics. The sample population consists of 60 employees of The new vision printing and publishing co. ltd. The population included the sales representative, procurement department, and transportation department, and other employees holding familiar and unfamiliar titles but were deemed to be suitable stakeholders for generating relevant data to the problem which was under investigation

3.4 Sample size

The sample size consisted of 52 respondents from the study area. It is determine based on the Krejcie and Morgan’s sample size calculation which same as using the Krejcie and Morgan’s sample size determination table. The sample size determination Table 3.1 is derivative from the sample size calculation which expressed as below equation (Krejcie and Morgan, 1970). The Krejcie and Morgan’s sample size calculation was based on p = 0.05 where the probability of committing type I error is less than 5 % orp <0.05.

S=

Where,

s = required sample size.

X²=the table value of chi-square for 1 degree of freedom at the desired confidence level (0.05 = 3.841).

N = the population size.

P = the population proportion (assumed to be 0.50 since this would provide the maximum sample size.

d = the degree of accuracy expressed as proportion (0.05).

Table 3.1: Showing Sample size

Adapted from Krejcie, R.V & Morgan, D.W (1970)

The study used a sample size selected 52 respondents because it was enough for the study to obtain reliable information. In addition, it helped the researcher to finish his study in time.

3.5 Sampling method

According to Baron (2011), this is a definite plan determined before data collection for obtaining a sample from a given population. It involves three decisions: who to be sampled, how many people to sample, and how to obtain the sample.

Simple stratified random sampling was then used to select samples from the population strata. It’s a method in which the population is divided into a number of divisions and a sample is drawn from division and such sample makes us the final sample. This technique was employed since it eases the making of proportionate samples, and therefore meaningful, comparisons between homogeneous sub-groups (Zikmund, 2003).

The study also employed purposive sampling technique. Silverrman (2001), purposive sampling involves deliberate selection of particular units of the population for constituting a representative sample. It involves convenience and judgemental sampling. Under judgemental sampling, the researcher chose the sample based on who he thought was appropriate for the study while convenience sampling rose where the population elements were selected for inclusion in the sample based on the ease of access. The researcher used purposive sampling because it saves time, money and effort. It is flexible and meets multiple needs and interests. It enables researchers to select a sample based on the purpose of the study and knowledge of a population.

3.6 Data collection methods and instruments

3.6.1 Questionnaire method

The researcher used the questioning method whereby he drafted to respondents structured questions. This method was used because some respondents had no time to sit down and answer during interviews.

A questionnaire was used and this was in form of close ended in nature and this allowed the study respondents to fill the questionnaire in the study field. The questionnaire method of data collection was used because of being cheap and that the method collects responses with minimum errors and high level of confidentiality.

3.6.2 Interview method

An interview is a conversation where questions are asked and answers are given. Interview refers to a one-on-one conversation with one person acting in the role of the interviewer and the other in the role of the interviewee.

An interview guide was drafted with a set of questions that the researcher asked during an interview and this was structured (close ended) in nature. Interview guide was used by the study since the methods helps in the collection of more data as it allows the interaction of both the researcher and the respondents.

3.7 Data collection procedure

The study observed all procedures followed in research. Using the letter of introduction obtained from the Research Coordinator, School of management and Entrepreneurship, the researcher was introduced to every respondent reached at, fully explaining the purpose of research. After getting their consent, he set a program with the respondents on when the questionnaires were administered and date for the interview sessions was set. The researcher also built the confidence of the respondents by assuring them that their views were confidential and was used only for academic purposes.

3.8 Validity and reliability of research instruments

There are no scientific principles which would guarantee a valid and reliable research instrument, but there are ways in which this can be pursued. First, the items in the research instruments were based on prior research whenever possible. Due to this, in this study most of the questions were based on prior research. Secondly, the questionnaire were pre-tested (Malhotra & Birks 2007).

3.8.1 Validity

Validity can be defined as the degree to which a test measures what it is supposed to measure. There are three basic approaches to the validity of tests and measures as shown by Mason and Bramble (1989). Law & Kelton (1991) suggests that if a questionnaire model is “valid”, then the decision made with the questionnaire model should be similar to those that would be made by physically experiencing with the system. In order to ensure validity the questionnaire was made clear and understandable, the questionnaire was first discussed by the researcher with the supervisor; this included careful choice of words, order and structure of questions. After receiving the questionnaires, manual editing was done, followed by coding. Frequency count of different provisions was done and this gave the number of occurrences and percentages out of total occurrences for different responses. And lastly simple conclusions were drawn from the given percentages and numbers.

3.8.2 Reliability

According to Mugenda et al. (2003), reliability is the degree to which a measure is consistent in producing the same reading or results when measuring the same thing at different times. Reliability is influenced by random error, that is, as random error increases, reliability decreases. The random error is the deviation from the true measurement due to the factors that have not effectively been addressed by the researcher. Mugenda study indicated that the questionnaire was well structured to achieve the purpose of the research thereby meeting the test of reliability. The reliability of the research instruments was tested through a pre-test. The results were subjected to the Cronbach’s Alpha reliability test to measure the internal consistency of responses.

3.9 Data analysis

3.9.1 Qualitative Data

Data processing involved editing raw data to detect errors and omissions, classifying data according to common features, and tabulation to summarize and organize it. Data analysis involved the qualitative approach of identifying the major themes arising respondents’ answers; assigning of codes to the themes: classification of the themes under the main theme; and integrating the responses into the report in a more descriptive and analytical manner.

3.9.2 Quantitative Data

Manual editing of questionnaires was done to eliminate errors. After coding, tabulation was done to clearly present various responses and the interpretation. Frequencies and percentages were used to portray statistics used to analyze and interpret the findings of the study. Data analysis was done using; correlation analysis to establish the relationships that exist between the variables. For ease of analysis, procedures within Statistical Package for Social Sciences (SPSS) were used.

3.10 Data Presentation

Presentation of data involved use of tables, pie-charts and graphs that was generated from the questions relevant to the study variables. Interpretation and discussion of the results was done as the researcher explained the strength of the study variables basing on the frequencies and percentages, charts and graphs.

3.10 Limitations of the Study

The study was faced with a problem of not finding all respondents in the study area. The researcher however arranged with them to fix for him an appropriate time in order to collect reliable and valid information from them for the study.

The study also was expensive in terms of stationary. However the researcher mobilized funds from his friends and family members for the study to be completed successfully in time with the help of his supervisor.

The researcher further faced a problem of some respondents not providing information for the study as information relating to the study variables, however to this, researcher explained to them that the information was only for the academic purpose while making them to understand the study variables.

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS

4.0 Introduction

The study looked at the logistic management and supply chain performance. The findings from the study were presented and analyzed orderly based on the formulated study objectives. This was made possible with help of computer packages MS word, SPSS and Excel where by tables, graphs and pie-charts were generated.

The chapter begins by presenting the biographic characteristics of respondents in terms of gender; age, education levels, department, position and period of work. The study there after discusses findings as per the formulated objectives of the study.

4.1 Background information of the respondents

Under the gender distribution of respondents, the study was delighted with both male and female respondents as shown in the table below;

Figure 4.1: Gender of Respondents

Source: Primary Data

According to figure 4.1 above, 63% majority of respondents were male while 37% were women. This implies that the organization is gender sensitive since all categories of people were employed by the organization.

Table 4.1: Age bracket of Respondents

Source: Primary Data

From the table above, (48%) were 41 and above, (38.5%) of the study respondents were between 31-40years while (13.5%) were in the age bracket of 18-30years. From the study majority of the respondents were 41 and above. This can be explained to the fact that it’s mainly the adults in this bracket that are married.

Figure 4.2: Highest Level of education

Source: Primary Data

From figure 4.2 above, majority of respondents constituting 42% were degree holders, 37% of them acquired diploma and 21% of the respondents had acquired secondary level. This justifies that the organization recruits, maintains and retains high qualified human resource to fill the positions of the organization who are capable of sustaining logistic management which implies that the selected sample had the capacity to avail the researcher with reliable and appropriate information on the topic under study.

Figure 4.3: Period of Work

Source: Primary Data

According to the figure 4.3 above, majority of the respondents 33(63.5%) had been in the organization for less than 2years while 19.2% of them had been in the organization from 2-5years and 17.3% of the respondents have stayed in the organization for 6-10years. This shows that the working experience for the categories of workers was enough to get conclusive results, since its assumed that by virtue of their positions, they know about the variables under study.

Table 4.2: Department of Respondents

Source: Primary Data

Table 4.1 shows that majority of the respondents (19.2%) are from stores department, human resource and marketing department, (17.3%) were from other departments, (15.5%) were from procurement department, 9.6% of the respondents were from transportation Department. This implies that the study got information from the stores, human resource and marketing departments was sufficient in regards to the topic under study since these departments deal directly on logistic management.

Table 4.3: Position in the organization

Source: primary Data

According to the table above, majority of the respondents (36.5%) were from the lower management, 30.8% of them were non managerial staff, 25% of the respondents were in middle management and only 7.7% of them were in top management. It is important to note that these respondents’ positions in the organization as it would highlight the information given depending on their positions.

4.2 The relationship between transport management and supply chain performance at The new vision printing and publishing co. ltd

The study sought to examine the relationship between transport management and supply chain performance at The new vision printing and publishing co. ltd. Results were obtained and are presented below;

Table 4.4: Relationship between transport management and supply chain performance

Source: Primary Data

According to table above, majority of the study respondents 30 (57.7%) agreed that Transport Management ensures delivery of raw materials and spares on time while 22 (42.3%) of them strongly agreed, no respondents were not sure, disagreed or strongly disagreed. Since the majority of the respondents 52 (100%) were positive implies that Transport Management in The new vision printing and publishing co. ltd has ensured delivery of raw materials and spares on time.

Majority of respondents 37(71.2%) strongly agreed that Transport Management has helped reduce stock-outs, 15(28.8%) of them agreed, no respondents disagree, strongly disagree and were not sure. However, most of the responses agreed implying that Transport Management has helped reduce stock-outs in The new vision printing and publishing co. ltd.

The table above also indicates that most respondents 19(36.5%) strongly agreed that Transport Management has helped reduce total landed cost of raw materials and spares, 19(36.5%) of the respondents agreed, 11(21.2%) of the respondents disagreed while only 03(5.8%) of the study respondents were not sure and no respondents strongly disagreed. This implies that since the majority agreed, Transport Management has helped reduce total landed cost of raw materials and spares in The new vision printing and publishing co. ltd.

Also majority of respondents 22(42.3%) strongly agreed that Transport Management has helped reduce losses in transit and 13(25%) agreed as compared to 8(15.4%) of the respondents who disagreed while only 9(17.3%) of the respondents were not sure and no respondents strongly disagreed. Majority agreed implying that Transport Management in The new vision printing and publishing co. ltd has helped reduce losses in transit

Furthermore, findings in table above indicate that most respondents 25(48.1%) strongly agreed that Transport Management has facilitated economies of scale and 17(32.7%) of them agreed as compared to 10(19.2%) of the respondents were not sure, none of the study respondents strongly disagreed or disagreed. This implies that at The new vision printing and publishing co. ltd, Transport Management has facilitated economies of scale since majority agreed.

Finally, most respondents 42(80.8 %) strongly agreed that Transport Management has aided in reducing risks in delivery of goods and 10(19.2%) of the respondents agreed however, no respondents disagreed, strongly disagreed or were not sure. Since majority agreed implies that in most cases, Transport Management has aided in reducing risks in delivery of goods in The new vision printing and publishing co. ltd.

The researcher went ahead to examine the strength of the relationship using Pearson’s correlation coefficient.

Table 4.5: Relationship between transport management and supply chain performance

From the table above, findings indicated that there is a strong positive relationship between transport management and supply chain performance at Pearson correlation coefficient r= 0.997. This implies that transport management affect supply chain performance by 99.7% and others factors by 0.3%.

4.3 Relationship between Inventory Management and Control and Supply Chain Performance

The study sought to examine the relationship between inventory management and control and supply chain performance at The new vision printing and publishing co. ltd. Results were obtained and are presented below;

Table 4.6: Relationship between Inventory Management and Control and Supply Chain Performance

Source: Primary Data

From Table above, findings show that most respondents 31(59.6%) strongly agreed that Inventory management and control has helped reduce stock-outs, 20(38.5%) of them agreed however, no respondents strongly disagreed and, disagree or were not sure. Majority agreed implying that inventory management and control has helped reduce stock-outs in The new vision printing and publishing co. ltd thus, it has improved supply chain performance.

Majority 32(61.5%) of the respondents strongly agreed with inventory management and control practices have helped in meeting customer demand requirements, 19(36.5%) of them agreed while no respondents disagreed, strongly disagreed and only 1(1.9%) were not sure. Since majority agreed implies that in most cases, Inventory management and control practices have helped in meeting customer demand requirements in The new vision printing and publishing co. ltd.

From results, 43(82.7%) strongly agreed that inventory management and control practices have helped reduce the total cost of production and 7(13.5%) agreed. However, no respondents disagreed, 1(1.9%) of them strongly disagreed and only 3(5.8%) of the respondents were not sure. Most responses were positive implies that in The new vision printing and publishing co. ltd, inventory management and control practices have helped reduce the total cost of production.

Fewer respondents 3(5.8%) strongly disagreed with inventory management and control practices have helped reduce deterioration of inventory and costs and 26(50%) of them disagreed compared to those who concurred 3(5.8%) strongly agreed and no respondents agreed or were not sure implying that inventory management and control practices have helped reduce deterioration of inventory and costs in The new vision printing and publishing co. ltd as majority agreed.

Finally from the table 4.6 above, majority 47(90.4%) of the respondents strongly agreed that inventory management and control practices have facilitated increases in sales and only 05(9.6%) of the study respondents agreed. However, no respondent strongly disagreed, disagreed or were not sure implying that in The new vision printing and publishing co. ltd, inventory management and control practices have facilitated increases in sales as 52(100%) agreed.

The study also examined the strength of the relationship between inventory management and control and supply chain management using Pearson’s correlation coefficient.

Table 4.7: Relationship between inventory management and control and supply chain performance

From the table above, findings indicated that there is a weak positive relationship between transport management and supply chain performance at Pearson correlation coefficient r= 0.335. This implies that inventory management and control affect supply chain performance by 33.5% and others factors by 66.5%.

4.4 Relationship Distribution Management and Supply Chain Performance

The study sought to establish the relationship Distribution Management and Supply Chain Performance. Results were obtained and are presented below;

Table 4.8: Relationship Distribution Management and Supply Chain Performance

Source: Primary Data

According to table above, majority of the study respondents 33(63.5%) agreed that Distribution management has helped fully meet customer demand and 19(36.5%) strongly agreed, no respondents strongly disagreed, disagreed. This implies that distribution management has helped fully meet customer demand in The new vision printing and publishing co. ltd as agreed upon by most respondents.

Majority of respondents 30(57.7%) agreed that the current distribution channels reduce lead time, followed by 20(38.5%) of the respondents who strongly agreed, no respondents disagreed or strongly disagreed and only 2(3.8%) of the respondents were not sure implying that the current distribution channels have reduced lead time in The new vision printing and publishing co. ltd.

Most respondents 30(57.6%) agreed that channel relationships improve reliability followed by 14(26.9%) who strongly agreed and a significant percentage 8(21.2%) were not sure. However, no respondents opposed implying that channel relationships have improved reliability in The new vision printing and publishing co. ltd thus, improving supply chain performance in the process.

Furthermore, findings in table above indicate that most respondents 45(86.5%) strongly agreed Planned distribution channels are cost effective, 7(13.5%) agreed and no respondents disagreed, strongly disagreed or were not sure. This implies that at The new vision printing and publishing co. ltd, planned distribution channels have been cost effective.

Finally, majority of respondents 37(71.2%) of the respondents strongly agreed Discovering new channels ensures responsiveness and 15(28.8%) of them agreed. However, no respondents disagreed, strongly disagreed or were not sure. Since the majority were positive implies that discovering new channels has ensured responsiveness The new vision printing and publishing co. ltd.

The researcher went on to determine the strength of the relationship between logistic management and supply chain management using Pearson’s correlation coefficient.

Table 4.9: Relationship between Distribution management and supply chain management

From the table above, findings indicated that there is a strong positive relationship between logistics management and supply chain performance at Pearson correlation coefficient r= 0.752. This implies that distribution management affect supply chain performance by 75.2% and others factors by 24.8%.

CHAPTER FIVE

DISCUSSION, CONCLUSION AND RECOMMENDATION

5.0 Introduction

This chapter presents the discussion, conclusion and recommendation of the findings presented in the previous chapter. The discussion is followed by the conclusion which is also based on the findings of the study and the finally the recommendation

5.1 Discussion of major findings

5.1.1 Relationship between transport management and supply chain performance

Study findings indicated that transport management ensures delivery of raw materials and spares on time with 100% of the study respondents. Findings as indicated in chapter four revealed that The new vision printing and publishing co. ltd uses private companies to distribute its products on time and as soon as the orders are received. And as a result, the organization makes deliveries on time as a required by the end user thus, increase supply chain performance. The private companies are effective and efficient in delivering and distributing products, this efficiency includes making timely deliveries; and as a result end users are satisfied. These findings are in line with Kotler et al (2006) who argued that transportation plays a connective role among the several steps that result in the conversion of resources into useful goods in the name of the ultimate consumer. It is the planning of all these functions and sub-functions into a system of goods movement in order to minimize cost maximize service to the customers that constitutes the concept of business logistics. The system, once put in place is effectively managed. The study found a strong positive relationship between transport management and supply chain performance at Pearson correlation coefficient r= 0.997.

The findings are also in line with Kotler et al (2006), who stated that the role that transportation plays in logistics system is more complex than carrying goods for the proprietors. Its complexity can take effect only through highly quality management. By means of well-handled transport system, goods could be sent to the right place at right time in order to satisfy customers’ demands. It brings efficacy, and also it builds a bridge between producers and consumers. Therefore, transportation is the base of efficiency and economy in business logistics and expands other functions of logistics system. In addition, a good transport system performing in logistics activities brings benefits not only to service quality but also to company competitiveness.

5.1.2 Relationship between Inventory Management and Control and Supply Chain Performance

Study findings in chapter four revealed that inventory management and control practices have helped reduce the total cost of production with 100% of the respondents. The main focus of company is to satisfy the end user which has an impact on the competitiveness of an enterprise. End users’ expectations are largely dependent on the flexibility of the supply chain partners. Effective end user delivery influences end user satisfaction and service quality. End users are said to be more satisfied if their suppliers are able to meet and fulfill their orders within the required time.

According to the findings the organization identifies end user satisfaction in terms of on-time delivery as well as meeting end user specification needs. There are variables such as end user needs (having the products immediately and on hand to satisfy the end user’s needs), vendor partnerships (sharing of information regarding sales, sales forecasts as well as amount of inventory). Firms must respond to the changing end users’ needs in the increasing competitive environment.

These study findings are in line with Kenyon (2011), he stated that the objective of an inventory management was to achieve desired customer service with the minimum inventory commitment. Excessive inventories would compensate for deficiencies in basic design of a logistics system but ultimately resulted in higher-than-necessary total logistics cost.

5.1.3 Relationship between distribution management and end user satisfaction

Findings as indicated in revealed that there planned distribution channels are cost effective with 100%. The warehousing activities have improved efficiency, the organization frequently communicates with its suppliers, meets customer demand since the lead time has reduced. This implies that the organization employs several of distribution management practices to ensure that its employees are satisfied. The organization has sufficient transportation units, thus, it is able to meet its end user demands in time thus, improves on their satisfaction and end user relationship creates loyalty. Thus, the organization always ensures that its relationship with the end users is good; this is done through frequent advertising, quality products produced timely delivery of their products. However, the majority of the warehouse activities are not automated.

The findings are in agreement with Caceres & Paparoidamis (2007) who noted that both logistics service quality and end user satisfaction is especially important in the current business environment, as the relationship between the service provider and the client is usually long-term (or at least it is attempted to keep them as such). One of the most significant elements in service markets is the support and development of relationship with the end user. For the relationship to be long term, a logistics service provider has to provide a service in line with the end users’ expectations, leading to the appropriate level of end user satisfaction. Also, Genchev et al. (2011) revealed that manufacturing companies which supply to other companies, with no direct relationships with consumers, are affected by similar principles and for them the down streaming of customer satisfaction to production and logistics processes is also important. For instance, on-time delivery is fundamental for customers and it requires suppliers to reengineer both internal and external logistics processes, including their supply-chain management. Furthermore, other requirements that are sometimes not considered to be as important as the product, such as packaging and transportation, can affect end user satisfaction.

This research identified that some logistics issues are important for supply chain performance. In particular, the ability to understand end users’ business situations, the effectiveness and ease of use of product ordering procedures, the availability and accuracy of order information, the ability of suppliers to handle order discrepancies, the availability of products in suppliers’ inventories to fulfil orders, the timeliness of product delivery and the condition of products ordered (that is to say in terms of damage).

5.2 Conclusion

The new vision printing and publishing co. ltd transporting means include trucks from both the organization itself and other private means. The private companies are effective and efficient in delivering and distributing products, this efficiency includes making timely deliveries.

There is effective communication in the department, the organization is able to make its end users satisfied. The warehousing activities have improved efficiency, the organization frequently communicates with its suppliers.

Study findings found that there is a positive relationship between logistics management and end user satisfaction with r= 0.752.

5.3 Recommendations

Members of the supply chain should ensure that proper records on raw materials, work in progress and finished goods are available in real time and easily accessible. This will prevent reduction in inventory levels which often results to stocks and consequently stock out costs such as idle machine and idle labor.

Lack of enough stocks mean that companies are not able to match supply and demand and this greatly affects end user satisfaction and the organizations bottom line.

The organization should also strive to reduce the lead times between ordering and receipt. This can be enhanced through proper logistics management.

5.4 Areas for further research

• To examine the effect of logistics management on operational efficiency.
• To assess the metrics/measures of customer satisfaction in firms.

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APPENDICES

APPENDIX I: QUESTIONNAIRES FOR MANAGEMENT AND STAFF

Dear respondent,

My name is Katusiime Edgar and as partial requirement of the award of Bachelor degree of science in Procurement and Logistics Management. I am carrying out a study on “Logistics Management and Supply Chain Performance among Firms in Uganda, a Case Study of The new vision printing and publishing company limited”.  You have been selected to provide vital information that will facilitate the study. Your response will be treated with utmost confidentiality. Thank you very much for your valuable time.

Section A: Background information about the respondent

Section B: The relationship between transport management and supply chain performance at The new vision printing and publishing co. ltd

6. What is the relationship between transport management and supply chain performance? In this section, tick the best option by using strongly Agree (SA), agree (A), Not Sure (NS), Disagree (D), Strongly Disagree (SD).

Section B:Relationship between inventory management and control and supply chain performance at The new vision printing and publishing co. ltd.

7. In this section, tick the best option by using strongly Agree (SA), agree (A), Not Sure (NS), Disagree (D), Strongly Disagree (SD).

Section D: Relationship between distribution management and supply chain performance at The new vision printing and publishing co. ltd.

8. In this section, tick the best option by using strongly Agree (SA), agree (A), Not Sure (NS), Disagree (D), Strongly Disagree (SD).

THANK YOU FOR YOUR TIME

APPENDIX II: INTERVIEW GUIDE

THANK YOU FOR YOUR COOPERATION

APPENDIX III: INTRODUCTORY LETTER