EFFECT OF LEAD TIME VARIABILITY ON INBOUND LOGISTICS PERFORMANCE IN SAFARICOM LIMITED
Sarah Owano Ndubi - Master of Science in Procurement and Logistics, Jomo Kenyatta University of Agriculture, Kenya
Dr. Mike Iravo - Jomo Kenyatta University of Agriculture, Kenya
Dr. George Ochiri - Jomo Kenyatta University of Agriculture, Kenya
ABSTRACT
Time is a great issue in the telecommunication industry as technology is dynamic. Lead time carries huge importance when delivering products. Lead time (LT) is a core parameter that varies and affects all supply chain (SC) partners hence varying lead times could therefore have an effect on the supply chains. Because logistics supports time and place commitments in the supply chain, it can be argued that the lead-time frontier accounts for at least half of logistics success. The main purpose of this study was to determine the contributors of lead time variability and the effects of lead time variability on the inbound logistics performance. This study was based on Safaricom Limited a major player of mobile telecommunication industry in Kenya. Various studies have been done on lead time management and its effects on overall organizational performance. The study sought to further the knowledge gap in lead time variability to enable organizations gain competitive advantage. Chapter two covers the Literature Review which begin by discussing the theoretical review of theories relevant to the study, conceptual framework, review of independent and dependent variables, critique of existing literature and summary of the research gaps based on the literature. Discussions on some key terms which have helped to structure the thinking about the wider perspective of strategic sourcing in supply chain management were explored. This study looked at the Supply Chain Operations Reference Theory, Queuing Theory, Theory of Constraints and the Principal-Agency Theory to systematically interrelated concepts, definitions and propositions that are advanced to explain or predict phenomena. The third chapter covers the research methodology, the study used the descriptive design and the questionnaires as a data collection instrument within the same organization. The target population was employees in Safaricom Limited who deal with the inbound logistics services and the sample frame was a register from Human resource department. The technique adopted in this research was Stratified sampling with a desired sample size of 70 respondents hence distributed along the stratum which will represent about 60% of the stratum population of 120 employees. A pilot study was carried out on 10% cases drawn outside of the target population outside of the intended study. Data collection was both quantitative and qualitative, questionnaires were used to collect data and analysis by use of linear regression model was used to establish the relationship between the independent and dependent variables. The study found that production lead time, shipping lead time, customs brokerage TAT time and Receipt and Inspection of goods velocity have a high impact on inbound logistics performance of the organization. The study concludes that lead time variability elements in production lead time; shipping lead time; customs brokerage turnaround time; receipt and inspection velocity have a significant effect on time delivery, cost and quality as a measure of inbound logistics performance. The study recommends that the organization needs to find ways of reducing lead time variability so that lead time to improve inbound logistics performance.
