EFFECTS OF PHYSICAL DISTRIBUTION ON PERFORMANCE OF GRAIN MILLING FIRMS IN KENYA. A CASE STUDY OF ALPHA GRAIN MILLERS NAIROBI

Abstract

The general objective of this study was to establish Effects of physical distribution on performance of grain milling firms in Kenya, a case study of alpha grain millers Nairobi companies Specific Objectives; to find out the effects of inventory management on the performance of alpha grain millers Nairobi. To determine the effects of customer service on the performance of alpha grain millers Nairobi. To establish the effects of packaging on the performance of alpha grain millers Nairobi. Significance of the Study was to Management of Alpha Grain Millers Nairobi, policy makers, other flour milling companies and future researchers. Theoretical Literature Review was on three theories namely System Theory by Easton (1965), Diffusion of Innovation Theory by Gabriel Tarde in 1903, and Scientific Management Theory and Quality management theory in procurement. The Research design for the study was a descriptive study. The target population of the study mainly derived from the staff of Alpha grain millers Nairobi. The research used target population of 111 persons. From the target population of 111 individuals 40% yield a sample size of 45 respondents. A sample is a proportion of the target population that is representative of the whole population from which it is drawn in order to generalize the research findings. The study will use primary data which was collected with the help a structured questionnaire. The use of the primary data was to establish the Effects of physical distribution on performance of grain milling firms in Kenya. The questionnaire was administered to 6 respondents not in the study sample so as to establish whether the questionnaire measures what it purports to measure. Primary data collected was coded and analyzed with the help of the Statistical Package for Social Sciences (SPSS). The analysis used descriptive statistics such as mean scores and standard deviations. The results were presented using tables, graphs and charts for ease of understanding. From the analysis 79% accepted that Inventory management affects physical distribution on performance of grain milling firms while the remaining being the minority of 21% stated that inventory management does not affect the physical distribution on performance of grain milling firms in Kenya. 94% of the respondents said that customer service has an effect on physical distribution on performance of grain milling firms in Kenya. While 6% had a different opinion saying that staff customer service has insignificant effects on Physical distribution on performance of grain milling firms in Kenya. The findings indicate that 71% of the respondents agreed that packaging affect the physical distribution on performance of grain milling firms whereas 29% of the respondents disagreed. The study suggestions are in accordance with the varied results of the research. Notably, all the independent factors substantially impact the performance of Flour Milling Companies in Nairobi, Kenya. The advice of the research is that management should increase the information sharing system of the firms. Based on the study results, the research proposes that, Management of manufacturing enterprises should regularly expose its workers to training in order to develop their abilities on inventory management. Training staff helps workers to comprehend the existing inventory systems which when employed will assist the firm decrease on expenses connected with maintaining inventory. Alpha grain millers Nairobi could consider adoption of a vendor controlled inventory to lessen instances of stock-out situations, boost the levels of customer services and save costs owing to an increase in inventory turns.