INFLUENCE OF FLEET MANAGEMENT OUTSOURCING ON SERVICE DELIVERY PERFORMANCE IN NAIROBI BOTTLERS LIMITED
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Keywords:
Fleet Outsourcing, Service Delivery PerformanceAbstract
Purpose: The main aim of the study was to establish the influence of fleet management outsourcing on service delivery performance at Nairobi Bottlers Limited.
Methodology: The study used a case study research design. Bryman (2008) writes that a case study is a research design that entails comprehensive detailing and intensive analysis of a single case. Data was collected from senior managers and staff at NBL using structured close-ended questionnaires. The questionnaires were administered on a drop and collect later basis to seventy respondents (staff at NBL). Data was processed using SPSS, and multiple regression analysis was applied to establish the influence of the four independent variables of the study on service delivery performance, which is the dependent variable. The results were presented in tables.
Results: The findings obtained show that acquisition of new fleet positively impacts on operational efficiency besides boosting employee morale which has a subsequent contribution on service delivery performance. In addition, when the maintenance of fleet is outsourced, service delivery performance is enhanced through timely delivery of products.
Policy recommendation: The study recommends that a hybrid approach is a viable model to adopt. A hybrid model would involve an internal fleet management role working with an outsourced fleet management firm, so that a firm gains from the benefits associated with each of the independent models.
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References
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Waters, D. (2009). Supply Chain Management: an introduction to logistics (2nd edition). London: Palgrave Macmillian.
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Wilding, R., & Juriado, R. (2004). Customer perceptions on logistics outsourcing in the European consumer goods industry. Journal of Physical Distribution & Logistics Management, 34(8), pp. 628-624.
William, M., L. & Faramarz, P. (1999). Outsourcing: a primer. Management Decision, 37, 4, pp. 310-316.
Yang, C. (2015). The integrated model of core competence and core capability. Total Quality Management. 26: 173–189.
Becker, G.S. (1975). Human capital: A theoretical and empirical analysis, with special reference to education. (2nd ed.). National Bureau of Economic Research. New York, NY: Columbia University Press.
Besiou, M., Martinez, A. J. P. & Van Wassenhove, L. N. (2012). The effect of earmarked funding on fleet management for relief and development. INSEAD: Working Paper.
Bloomberg (2014). Global Reporting Initiative Content Index; Impact Report 2014.
Bouchard, P (2008). Training and work: Myths about human capital. In S. Scott, B. Spencer & A. Thomas (Eds.), Learning for life: Canadian readings in adult education Toronto, ON: Thompson Educational Publishing
Bryman, A. (2008) Quantity and Quality in Research. London: Unwin Hyman Limited.
Busi, N. & McIvor, G. (2008). The Contracting Organization: A Strategic Guide to Outsourcing. Oxford University Press, United Kingdom.
Cahill, G.K. (2007). What can contemporary systems thinking offer to logistics management as a management discipline, European Journal of Purchasing and Supply Management, Vol. 3, No. 2, 77-81.
Cecere, M.L (2015), Supply Chain Metrics that Matter. Journal of Business-to-Business Marketing; Volume 22, 2015-Issue 4
Cho, J. J., Ozment, J., & Sink, H. (2008). Logistics capability, logistics outsourcing, and firm performance in an e-commerce market. International Journal of Physical Distribution & Logistics Management, 38(5), pp. 336-359.
Department for Transport (UK) (2010). Preventative Maintenance for Efficient Road Freight Operations. Freight Best Practice. Department for Transport.
Drejer, A. (2002). Strategic Management and Core Competencies: Theory and Application. Westport, CT: Greenwood publishing.
Enz, C. A. (2009). Hospitality Strategic Management: Concepts and Cases (2nd Ed).New York: John Wiley & Sons.
Galetzka, M., Verhoeven, J. W. M., Pruyn, H. A. (2006). Service validity and service reliability of search, experience, and credence services: A scenario study. International Journal of Service Industry Management, 17(3), pp. 271-283.
Gitahi, M. P. & Ogollah, K. (2014). Influence of fleet management practices on service delivery performanceto refugees in United Nations High Commissioner for Refugees Kenya Programme. European Journal of Business Management, 2 (1), pp. 336-341.
Hair, J., Black, W., Babin, B., Anderson, R., & Tatham, R. (2006). Multivariate data analysis (6th ed.). Uppersaddle River, N.J.: Pearson Prentice Hall.
Huang, M., Smilowitz, K., & Balcik, B. (2012). Models for relief routing: Equity, efficiency and efficacy. Transportation Research Part E 48, 2-18.
Iacobucci, D., Ostrom, A., & Grayson, K. (1995). Distinguishing Service Quality and Customer Satisfaction: The Voice of the Consumer. Journal of Consumer Psychology, 4(3), 277-303.
Kant, G., Jacks, M. & Aantjes, C. (2008). Coca-Cola Enterprises Optimizes Vehicle Routes for Efficient Product Delivery. Interfaces 38(1), pp. 40–50. INFORMS.
Klepps, R. & Jones, W. (1999). Effectively Managing the Outsourcing Relationships. Retrieved from www.outsourcing.com/articles/itserve.
Lauria, P. (2002). Fleet management functions that should never be outsourced. The Car and Truck Fleet and Leasing Management Magazine. Online Edition. Retrieved from http://www.automotive-fleet.com/channel/operations/article/story/2002/09/fleet-management-functions-that-should-never-be-outsourced.aspx.
Lauria, P. and Owen, R. (2001). 6 Ways Fleets Can Succeed in Managed Competition. Government Fleet – Feature. Retrieved from http://www.government-fleet.com/article/story/2005/05/6-ways-fleets-can-succeed-in-managed-competition.aspx.
Lester, M. (2013). Blue Collar Fleet Management. Raleigh: Lulu press.
MacCallum, P.(2011). ‘A d ynamic proc ess model of service quality: from expectations to be havioral intentions’, Journal of Marketing Research, Vol. 30, pp.7–27.
Meltz, N.M. (2003). Human capital and infrastructure. (Working Papers QPIR 1993-14). Kingston, ON: Queen’s University at Kingston, School of Industrial Relations
Nashrika, M. (2006). Linking Product and Process Innovations and Modes of International Sourcing In Global Competition: A Case of Foreign Multinational Firms. Journal of International Business Studies, 3(1), 383-408
Njoroge, M & Kabare, G. (2016). “The Logistics of Industrial Location Decisions in East and Central Africa : An Application of the Analytic Hierarchy Process Methodology”, International Journal of Logistics: Research and Applications, Vol. 3, No. 3, pp 273-289
Nübler, I. (2007). Human resources development and utilization in demobilization and reintegration programs. (BICC Paper 7). Bonn: Bonn International Center for Conversion.
Oxford Economics (2011). The Economic Impact of Express Carriers in Europe.
Parasuraman, A., Zeithaml, V. A., Berry, L. L. (1985). SERVQUAL: a conceptual model of service quality and its implications for future research. Journal of Marketing, 49(1), pp. 41-50.
Prahalad, C. K. & Hamel, G. (1990). The Core Competence of the Corporation. Harvard Business Review, (May–June). Retrieved from https://hbr.org/1990/05/the-core-competence-of-the-corporation.
Quinn, B. J. (2000). Outsourcing Innovation: The New Engine of Growth. Sloan Management Review, 41(14), pp. 13-23.
Rust, R. T. & Anthony J. Z. (1993), Customer Satisfaction, Customer Retention, and Market Share. Journal of Retailing, 69 (2), Summer, pp. 193-215.
Saunders M., Lewis P., & Thornhill, A. (2016). Research methods for business students. 6th Ed. Pearson professional Limited
Savvides, A. & Stengos, T. (2009). Human Capital and Economic Growth. Stanford, CA: Stanford University Press.
Schniederjans, J., M., Schniederjans, A.M. and Schniederjans, G. D. (2005). Outsourcing and insourcing in an international context. Sharpe Inc :New York.
Sharpe, M. (2007). Outsourcing, Organizational Competitiveness, and Work. Journal of Labor Research, 18 (4), pp. 535-549.
Smith, L. K., Smith, D., and Stringer, C. (2000). Managing the outsourcing relationship. Sydney: ACMAD.
Stockmayer, R., K. (2010).Fleet and Distribution Outsourcing: Should a water Quality Company consider distribution or fleet outsourcing?Water Quality Products April 2000. Also available at http://www.wwdmag.com/Fleet-and-Distribution-Outsourcing-article1647
Struebing, L. (1996). Outsourcing is the answer or is it? Quality Progress, 29(3), p. 20.
UK’s Transport Department (2010). Supply Chain Management Under the Threat of Intemational Terrorism. International Journal of Logistics Management, 12 (2), pp. 1-11.
Van Raaij and Pruyn in Galetzka et al. (2006), “Customer control and evaluation of service validity and reliability”, Psychology & Marketing, Vol. 15, pp. 811-32.
Waters, D. (2009). Supply Chain Management: an introduction to logistics (2nd edition). London: Palgrave Macmillian.
Wiegmann, D.Jand Tao, C. B (2011). "A Human Error Approach to Aviation Accident Analysis: The Human Factors Analysis and Classification System", Aldershot, England: Ashgate,A, 2003
Wilding, R., & Juriado, R. (2004). Customer perceptions on logistics outsourcing in the European consumer goods industry. Journal of Physical Distribution & Logistics Management, 34(8), pp. 628-624.
William, M., L. & Faramarz, P. (1999). Outsourcing: a primer. Management Decision, 37, 4, pp. 310-316.
Yang, C. (2015). The integrated model of core competence and core capability. Total Quality Management. 26: 173–189.
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Published
2018-05-08
How to Cite
Imbuga, A., & Guyo, D. W. (2018). INFLUENCE OF FLEET MANAGEMENT OUTSOURCING ON SERVICE DELIVERY PERFORMANCE IN NAIROBI BOTTLERS LIMITED. International Journal of Supply Chain Management, 3(1), 46 – 59. Retrieved from https://www.iprjb.org/journals/index.php/IJSCM/article/view/625
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