Promoting Logistics Visibility in Supply Chain and Its Influence on Performance of Manufacturing Industry: A Study on Kenya’s Food and Beverage Manufacturing Firms

Abstract

This paper sought to examine the relationship between logistics visibility and performance of large food and beverage manufacturing firms in Kenya. The study was anchored on transaction cost analysis theory. The study utilized a cross-sectional research design. The target population was 561 respondents drawn from the 187 large food and beverage manufacturing firms in Kenya. The sampling frame for the study was the human resource managers in each of the food and beverage manufacturing firms since they are the custodians of all the employees in the firms. Using a stratified random sampling, a sample of 228 respondents was selected. A structured and semi-structured questionnaire was used to collect data for the study. Using a 10% of the sample size, the questionnaire was pilot-tested to assess validity and reliability before the actual data was collected. The data was analyzed using SPSS version 27. The data was presented using tables. The findings revealed that logistics visibility significantly and positively influenced performance of food and beverage manufacturing firms. It was concluded that as a result of ineffective embrace of logistics visibility, the manufacturing firms failed to optimize their supply chain towards enhancing performance. The study recommended the essence of logistics visibility as a way of ensuring control of logistics processes among the food and beverage manufacturing firms for better performance.