Effects of Logistics Management on the Organisation Performance of Shipping Firms in Mombasa County

In today’s highly competitive business environment, organizations are striving to achieve effectiveness, cost efficiencies and economies of scale. Most of these organizations perform various logistical operations so as to meet their customers’ needs. However, managing these operations in order to achieve their objectives has posed a great challenge to the firms. Many firms have not yet established how much to invest in logistics and the right balance between responsiveness and efficiency. The study sought to address the following general objective; to establish the effect of logistics management on the organisation performance of shipping firms in Mombasa. Specifically, the study established the effect of warehousing, inventory management and transportation management on organizational performance. The study employed a descriptive survey design and targeted all the shipping lines in Mombasa town. Data was collected from all the sixteen (16) shipping lines that were operational in Mombasa County. The data was gathered using structured questionnaires and analysed using both descriptive and inferential statistics, with the help of Statistical Package for Social Sciences (SPSS). The validity and reliability of the research instrument was tested using a pilot study and the Chronbach’s alpha coefficient of reliability respectively. Means, percentages and Frequencies was used in data analysis and the chi-square test was used to test the hypothesis developed for the study. The Analysed data was presented using frequency distribution tables. Key terms: Inventory Management, Logistics Management, Supply Chain, Supply Chain Management, Transportation, Warehousing, Reverse logistics