the impact of inbound and outbound logistics …

93
THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS ACTIVITIES ON THE SUPPLIER-CUSTOMER RELATIONSHIP A CASE OF COCACOLA KWANZA COMPANY (T) LTD By LATIFAH KIMARO A Dissertation Report Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Science in Procurement and Supply Chain Management (MSc-PSCM) of Mzumbe University 2020

Upload: others

Post on 16-Oct-2021

19 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

0  

THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS ACTIVITIES

ON THE SUPPLIER-CUSTOMER RELATIONSHIP

A CASE OF COCACOLA KWANZA COMPANY (T) LTD

By

LATIFAH KIMARO

A Dissertation Report Submitted in Partial Fulfillment of the Requirements for

the Degree of Master of Science in Procurement and Supply Chain Management

(MSc-PSCM) of Mzumbe University

2020

Page 2: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

i  

CERTIFICATION

We, the undersigned, certify that we have ready and here by recommending for

Acceptance by the Mzumbe University, a dissertation entitled The impact of

inbound and outbound logistics Activities on the supplier- customer relationship.

A Case of Coca Cola company Ltd, Dar Es Salaam.

In The Partial Fulfillment of the Requirement for the Award of the Degree of

Masters of Procurement and supply chain management of Mzumbe University.

______________

Major Supervisor

______________

Internal Examiner

_______________

External Examiner

Accepted for the Board of MUDCC

___________________________________________________

DEAN/DIRECTOR, FACULTY, / DIRECTORATE BOARD

Page 3: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

ii  

DECLARATION AND COPYRIGHT

I, LATIFA I. KIMARO, declare that this dissertation is my own original work and

that it Has not been presented and will not be presented to any other University for

similar or Any other degree award.

Signature .......................................

Date................................................

© 2020

This dissertation is a copyright material protected under the Berne Convention, the

Copyright Act 1999 and other international and national enactments, in that behalf,

On intellectual property. It may not be reproduced by any means in full or in part,

Except for short extracts in fair dealings, for research or private study, criticism

Scholarly review or discourse with an acknowledgement, without the directorate of

Postgraduate studies, on behalf of both the author and Mzumbe University.

Page 4: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

iii  

ACKNOWLEDGEMENT

 My sincere thanks to the almighty God for the wisdom, love, care and protection he

accorded to me which enabled me to accomplish this academic research. Also, my

heartfelt gratitude goes to my parents, Mr and Mrs Kimaro and the rest of the family

members who have been the great pillars in my life since my childhood and

throughout my academic life.

Special thanks go to my lovely husband, Mr Hamad Hilal Msongera for the moral

support and encouragement he provided to me until the end of my academic research

also Special thanks go to my Supervisor Mr.Maige Mwasimba for the timely

assistance and words of encouragement he has accorded to me all throughout the

entire process of this study. May the Lord Almighty reward you abundantly.

I am also grateful to the staff of COCACOLA COMPANY Ltd Dar Es Salaam who

vailed me the necessary information and cooperation in the process of data collection

that has made possible this research report. Similar thanks go to all who got involved

in one way or another, in my endeavor to complete this study, especially my friend

Mr ALFRED AIN SALLWA, My lecturers and all the colleges in the research team.

I also acknowledge the moral support and encouragement from my fellow students

from the same class group (Happiness Bia, Salim Mwinshashi, Geofrey Muchuruza,

Francis Mkwabi and Magnus Stephan) Who stood with me during and before this

research study. May the Almighty God reward you all immeasurably!

Page 5: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

iv  

DEDICATION

I sincerely dedicate this work to my family, my supervisor, my lecturers and my

Friends.

Page 6: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

v  

ABBREVIATIONS AND ACRONYMS

 ANOVA Analysis Of Variance

Co Company

ERP Enterprise Resource Planning

FSN Fast-moving, Slow-moving and Non moving classification

FIFO First In-First Out

JIT Just In Time

SET Social Exchange Theory

SME Small and Medium Enterprises

USA United States of America

VMI Vendor Managed Inventory

TMS Transport Mnagement System

SPSS Statistical Package For The Social Sciences

SIG Significant level

(T) Tanzania

LTD Limited

TIS Transportation Information System

VED Vital, Essential and Desirable

Page 7: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

vi  

ABSTRACT

The main objective of the study was the impact of inbound and outbound activities

on the supplier-customer relationship, where four specific objectives were formed

from the main objective and that is the impact of material handling activities,

warehousing activities, Transportation Activities and Distribution activities on the

Supplier-customer relationship.

Geographically the study based in Tanzania in Dar Es Salaam region and the data

was collected at Coca Cola Kwanza Manufacturing Company the place was chosen

because it is a place where logistics activities are well practiced (both inbound and

outbound activities).

The researcher used three theories that are directly related to the study that is

Network theory, Social exchange theory and Game theory

The study involved 80 respondents as sample size from different departments in the

Coca Cola Kwanza Compan. Primary data were collected using questionnaires that

were self-administered by the researcher and review of documents was done in the

collection of secondary data. Data were quantitatively analyzed using correlation and

regression analysis with the aid of statistical Packages for Social sciences (IBM

SPSS Statistics 20).

The result revealed that Material handling Activities, Distribution Activities and

warehousing Activities have a positive influence to the supplier-customer

relationship, hence making the hypothesis Accepted, while transportation activities

do not influence the supplier-customer relationship, hence the hypothesis was

rejected.

The researcher recommended the Manufacturing companies to take a strong look to

the inbound and outbound activities so as to strengthen the bond between the

Suppliers and Customers and also increase the organization profit, Future researchers

should go further miles discussing, studying and finding out about other aspects of

inbound and outbound Logistics in manufacturing Industry both in private and

government sectors.. This will expand knowledge of the researchers but also benefit

the companies or their case studies they are researching on, since weaknesses and

recommendations will be provided.

Page 8: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

vii  

TABLE OF CONTENTS

CERTIFICATION ...................................................................................................... i

DECLARATION AND COPYRIGHT .................................................................... ii

ACKNOWLEDGEMENT ........................................................................................ iii

DEDICATION ........................................................................................................... iv

ABSTRACT ............................................................................................................... vi

ABBREVIATIONS AND ACRONYMS .................................................................. v

CHAPTER ONE ...................................................................................................... xii

OVERVIEW OF THE STUDY ................................................................................ 1

1.3 Statement Of The Problem ..................................................................................... 3

1.4 Objectives Of The Study ........................................................................................ 4

1.4.1 General Objective ............................................................................................... 4

1.4.2 Specific Objectives.............................................................................................. 4

1.5 Main Reserch Question .......................................................................................... 5

1.5.1 Research Questions ............................................................................................. 5

1.6. Scope Of The Study .............................................................................................. 5

1.7 Significant Of The Study ....................................................................................... 5

1.8 Organization Of The Study .................................................................................... 6

1.9 Limitation Of The Study ....................................................................................... 7

1.9.1 Time Constraints ................................................................................................. 7

1.9.2 Information Confidentiality ................................................................................ 7

1.10 Delimitations Of The Study ................................................................................. 7

1.10.1 Time Constraints ............................................................................................... 7

1.10.2 Information Confidentiality .............................................................................. 7

 

CHAPTER TWO ....................................................................................................... 8

LITERATURE REVIEW .......................................................................................... 8

2. 1 Introduction ........................................................................................................... 8

2.2 Definitions Of Key Terms And Concepts Of The Study ....................................... 8

2.2.1 Supplier-Customer Relationship ......................................................................... 8

2.2.1.1 The Common Characteristics Of Customer-Supplier Relationship M ............ 9

Page 9: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

viii  

2.2.2 Inbound Logistics .............................................................................................. 10

2.2.2.1 Inbound Transportation .................................................................................. 11

2.2.2.2 Warehousing Activities .................................................................................. 12

2.2.2.3 Material Handling .......................................................................................... 13

2.2.3 Outbound Logistics ........................................................................................... 14

2.2.4 Key Challenges Of Inbound And Outbound Activities In Supplier ........ 15

2.2.5 Important Factors To Be Considered In Inbound And Outbound In Building 16

2.2.6 Best Practices For Superior Customer Services ................................................ 17

2.2.7 Solution To Optimize The Inbound And Outbound Logistics Process............ 17

2.3 Theories And Concepts Of The Study ................................................................. 18

2.3.1 Theories ............................................................................................................. 18

2.3.1.1 Game Theory ................................................................................................. 18

2.3.1.2 Network Theory ............................................................................................. 19

2.3.1.3 Social Exchange Theory (SET) ...................................................................... 20

2.3.2 Concepts Of The Study .................................................................................... 21

2.3.2.1 Relationship Between Material Handling Activities And Supplier- .............. 21

2.3.2.2 Relationship Between Warehousing Activities And Supplier-Customer ...... 22

2.3.2.4 Relationship Between Distribution Activities And The Supplier-. ................ 22

2.4 Empirical literature review ................................................................................... 22

2.4.1 Foreign Studies ................................................................................................. 22

2.4.2 Local Studies ..................................................................................................... 25

2.5 Conceptual Framework ........................................................................................ 26

2.6 Research Hypothesis ............................................................................................ 26

2.7 Research Gap ....................................................................................................... 27

 CHAPTER THREE ................................................................................................. 28

RESEARCH METHODOLOGY ........................................................................... 28

3. 1 Introduction ......................................................................................................... 28

3.2. Area Of The Study .............................................................................................. 28

3.3 Research Design ................................................................................................... 28

3.4.Target Population ................................................................................................. 29

3.5 Units Of Analysis ................................................................................................. 29

Page 10: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

ix  

3.6 Sample And Sampling Techniques ...................................................................... 29

3.6.1 Sampling Techniques ........................................................................................ 30

3.7 Sample Size .......................................................................................................... 30

3.8 Types Of Data ...................................................................................................... 31

3.9. Data Collection Methods .................................................................................... 31

3.9.1 Questionnaire .................................................................................................... 32

3.9.2 Documentary Review ........................................................................................ 32

3.10.1 Data Processing ............................................................................................... 33

3.10.2 Data Analysis .................................................................................................. 33

3.10.3 Descriptive Analysis ....................................................................................... 33

3.10.4 Pearson Correlation Coefficient Test .............................................................. 34

3.10.5 Multiple Regression Analysis ......................................................................... 34

3.11 Reliability and validity ....................................................................................... 35

3.11.1 Reliability ........................................................................................................ 35

3.11.2 Validity ............................................................................................................ 35

3.12 Measurement Of Variables ............................................................................... 36

3.13 Research Ethics .................................................................................................. 36

 CHAPTER FOUR .................................................................................................... 37

PRESENTATION OF FINDINGS AND ANALYSIS .......................................... 37

4.1 Introduction .......................................................................................................... 37

4.2 General Information For The Respondents .......................................................... 37

4.2.1 Response Rate ................................................................................................... 37

4.2.2 Age Of The Respondents .................................................................................. 37

4.2.3 Gender Of Respondents .................................................................................... 38

4.3 Descriptive Analysis ............................................................................................ 40

4.4 Pearson Correlation Analysis ............................................................................... 52

4.4.1 Material Handling And Supplier-Customer Relationship ................................. 54

4.4.2 Warehouse Management And Supplier-Customer Relationship ...................... 54

4.4.3 Transportation Management And Supplier-Customer Relationship ................. 54

4.4.4 Distribution Management And Supplier-Customer Relationship ..................... 54

4.5 Multiple Regression Analysis .............................................................................. 55

Page 11: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

x  

4.5.1 Model Summary ................................................................................................ 55

4.5.2 Analysis Of Variance (ANOVA) ..................................................................... 56

4.5.3 Coefficient Results ............................................................................................ 56

4.5.3.1 The Influence Of Material Handling Activities On The Supplier-Customer . 57

4.5.3.2 The Influence Of Warehousing Activities On The Supplier-Customer ......... 57

4.5.3.3 The Influence Of Transportation Activities On The Supplier-Customer ....... 58

4.5.3.4 The Influence Of Distribution Activities On The Supplier-Customer ........... 58

4.5.4 Summaries Of The Regression Analysis Findings............................................ 58

4.6 Hypothesis Testing ............................................................................................... 59

4.6.1: There Is The Relationship Between Material Handling Activities And) ......... 59

4.6.2: There Is The Relationship Between Warehousing Activities ......................... 60

4.6.3: There Is The Relationship Between Transportation Activities And Supplier- 60

4.6.4: There Is The Relationship Between Distribution Activities And Supplier- .... 60

 

CHAPTER FIVE ...................................................................................................... 61

DISCUSSION OF FINDINGS ................................................................................ 61

5.1 Introduction .......................................................................................................... 61

5.2 Reliability ............................................................................................................. 61

5.3. Discussion Of Demographic Information ........................................................... 61

5.3.1 Age Of Respondents ......................................................................................... 61

5.3.2 Education Levels Of The Respondents ............................................................. 61

5.3.3 Gender Of Respondents .................................................................................... 61

5.4 Discussion Of Objective-Wised Findings ............................................................ 62

5.4.1 The Influence Of Material Handling Activities On Supplier-Customer . ......... 62

5.4.2 The Influence Of Warehousing Activities On Supplier-Customer. .................. 62

5.4.3 The Influence Of Transportation Activities On Supplier-Customer. ................ 63

5.4.4 The Influence Of Distribution Activities On The Supplier-Customer. ............. 64

 CHAPTER SIX ........................................................................................................ 66

SUMMARY, CONCLUSION AND RECOMMENDATION .............................. 66

6.1 Introduction .......................................................................................................... 66

6.2 Summary Of Findings ......................................................................................... 66

Page 12: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

xi  

6.3 Conclusion Of The Study ..................................................................................... 68

6.3.1 Material Handling Activities And Supplier-Customer Relationship. ............... 68

6.3.2 Warehousing Activities And Supplier-Customer Relationship. ....................... 68

6.3.3 Transportation Activities And Supplier-Customer Relationship. ..................... 68

6.3.4 Distribution Activities And Supplier-Customer Relationship. ......................... 69

6.4 Recommendations Of The Study ........................................................................ 69

6.4.1 Recommendation On Material Handling Activities .......................................... 69

6.4.2 Recommendation On Warehousing Activities .................................................. 69

6.4.3 Recommendation On Transportation Activities ................................................ 69

6.4.4 Recommendation On Distribution Activities .................................................... 70

REFERENCE ........................................................................................................... 71

APPENDIXICES ...................................................................................................... 75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 13: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

xii  

LIST OF TABLES

Table 3.1: Correlation Coefficient Ranges................................................................. 34

Table 3.2: Reliability Statistics .................................................................................. 35

Table 4.1: Response rate of respondents (N=80) ....................................................... 37

Table 4.2: Age Distribution Of Respondents (N=80 ................................................. 38

Table 4.3: Gender Distribution of respondents (N=80) ............................................. 39

Table 4.4: Education Level Of Respondents (N=80) ................................................. 39

Table 4.5: Material Handling Logistics On Supplier-Customer Relationship ........... 40

Table 4. 6: Warehouse Activities On Supplier-Customer Relationship (N=80) ....... 43

Table 4. 7: Transportation Activities on supplier-customer relationship (N=80) ..... 45

Table 4. 8: Distribution Activities On Supplier-Customer Relationship (N=80) ..... 48

Table 4. 9: Supplier-Customer Relationship (N=80) ................................................. 50

Table 4. 10: Correlation Coefficient Ranges ............................................................. 52

Table 4. 11: Correlations ............................................................................................ 53

Table 4. 12: Model Summaryb ................................................................................... 55

Table 4. 13: ANOVAa ................................................................................................ 56

Table 4. 14: Summary Of The Tested Hypotheses .................................................... 60

 

Page 14: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

xiii  

LIST OF FIGURE

 Figure 2.1: conceptual Frame Works ......................................................................... 26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 15: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

1  

CHAPTER ONE

OVERVIEW OF THE STUDY

1.1 Introduction

The chapter is to provide the reader with the background and context of what was

searched and how the setting of the problem has guided and effect the respondents in

answering the questionnaires provided by the researcher. The study begins with this

introduction chapter that elaborates the essence of the study and rationale. This

chapter consists of the Background of the study, Statement of the problem, Research

objectives, Research questions, and significance of the study.

1.2 Background Of The Study

The history of logistics worldwide is traced from the early 1900s through its

implication is said to start beyond that period (Houe & Murphy, 2016). Different

scholars explained the birth of logistics that it resulted from the heavy military

activities among the giant nations by then (Houe & Murphy, 2016). The start World

War 1 in the 1914 accelerated the emerging of logistics concepts from material

handling and physical distribution management and later World War 2 strengthened

it even more (Christopher, 2011).

Logistics was by then referred as the branch of war that relates most to the

movement, supply and management of armies (Langat, 2013) the evolution of

logistics brought about necessary changes in the functions and activities executed,

from the military view to the business function that is inevitable to most enterprises

today (Mae and Ohno, 2012) in the 1950s, the evolution of logistics was adopted by

manufactures who managed to distribute the manufactured goods to the respective

markets (Mallik, 2010). The physical distribution was fragmented as the related

distribution functions had no relation to each other. In the 1960’s up to the 1970’s,

physical distribution evolution resulted in the recognition of other physical functions

in moving the manufactured goods, which are transportation, storage, material

handling and packaging. Many manufacturing companies shaped their organizational

structure to enable an effective execution of the emerged logistics functions (Shyam,

2012). In the 1980’s onwards, the activities were well defined and managed as to

Page 16: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

2  

enable an integration of the functions as a whole since the centralization of logistics

in some enterprises had taken part. Another crucial mark in this era was the emerging

of warehousing activities that facilitated the entire business and enabled companies

meet the market demand in due time.

Currently, the logistics activities are categorized in the categories of inbound and

outbound logistics depending much on their functions and impact on the

organizational activities at large (Sumit,2015). The inbound logistics cover all the

functions and activities involved in the movement of materials received from outside

ones’ organization such as the material handling, warehousing and storage (Mallik,

2010). While the outbound logistics cover all activities and functions involved in

moving the goods from the manufacturing point to the customers such as

transportation, distribution and packaging.

In Tanzania and Africa at large, the emerging of logistics has passed through almost

the same evolutionary stage explained above, despite the time difference. Africa

adopted the development of logistics late compared to developed countries who

mostly were directly involved in the first and second world wars like Great Britain,

France, Russia, Japan, United States of America (USA), Germany and China. In the

early 1990’s, different logistics activities such as physical distribution were first

performed in Africa by the colonial regimes to serve their colonial motives. Most of

the items moved to African countries during the time were guns, gunpowder and

armies enable them to conquer the nations, while from Africa minerals such as gold,

copper and salt was transported overseas. In the 1920’s the emerging of the slave

trade made a significant turn of logistics activities as material handling was given

much attention. In a business perspective, logistics activities raised after

independence, as the Tanzanian Business men had to import a lot to serve the

internal market that was in high demand (Mwangi, 2013). From 1990’s to the

beginning of the 21st century, logistics activities are used much to strengthen and

influence the supplier- customer relationship. Talib (2011) in his study on the

importance of logistics activities revealed that, one of the major significances of

logistics activities is on influencing supplier-customer relationship. Traders and

Page 17: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

3  

manufacturing companies need to customize their logistics functions and activities to

enable the safeguarding and strengthening of their relationship with their respective

potential customers for the aim of competing in the industry (Mishra, 2011). Most of

the empirical evidences show that the logistics activities, both inbound and outbound

logistics have an impact on the supplier-customer relationship and if the activities are

conducted well enough the respective organizations will benefit much. Up to date,

the literature of logistics and Supply Chain Management is insufficient in showing

the impact of the inbound and outbound logistics on the supplier-customer

relationship, and there rise questions like, is it a positive or negative impact, is there

a strong / moderate or weak relationship between inbound and outbound logistics

with the supplier-customer relationship; and are the logistics activities important

towards supplier-customer relationship? The motivation for conducting this study,

therefore, came from the fact that there is a need to understand the impact of inbound

and outbound logistics on the supplier-customer relationship.

1.3 Statement Of The Problem

Both inbound and outbound logistics activities are designed and executed to ensure

smooth flow of materials, equipment and personnel involved in moving the materials

and products, within and outside the organization. These logistics activities and

functions all together foster supplier-customer relationship to effect the business

performance at large. The supplier-customer relationship is vital in the success of

the business and of the customer (Choughri & Abdallah, 2016). This relationship

benefits the supplier as it promises a potential market, both present and in the future

(Lucia & Benedict 2015), while in the side of the customer, this relationship ensures

customer satisfaction through timely delivery, cost effectiveness and better quality

(Zhang, 2011).

Empirical evidence in the field of logistics and supply chain suggests that there are

many factors and activities that influence the supplier-customer relationship such as

trust, commitment, information sharing, supplier development and joint product

development. Since logistics activities are also part of the organization function, it

could be inferred that inbound and outbound logistics may also impact the supplier-

Page 18: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

4  

customer relationship (Ghoumrassi & Tigu, 2017). But we are lacking scientific

proven knowledge regarding the impact of inbound and outbound logistics on the

supplier-customer relationship.

Over the years, different studies have revealed factors influencing the supplier-

custom,er relationship including customer services, shortage lead time, and good

delivery terms (Sumit,2015).Most of these researchers recommended that the

logistics activities have to be customized to enable a strong and beneficial supplier-

customer relationship.Contrary other studies revealed that, inbound logistics such as

material handling and warehousing activities and the outbound logistics such as

transportation and distribution are related to supplier-customer relationship

(Saleh,2013).Unfortunately, the studies ended by agreeing to the presence of the

relationship between the stated variable without considering the impact level.

What is still missing in the supply chain literature is the impact of logistics activities

(both inbound and outbound) toward the supplier-customer relationship. This

motivated the researcher to conduct the study and cover the missing literature gap on

the impact of inbound and outbound logistics activities towards improving the

supplier-customer relationship.

1.4 Objectives Of The Study

This study is guided by two sets of objectives, the general objective and the specific

objectives:

1.4.1 General Objective

The main objective of the study is to analyze the impact of inbound logistics and

outbound logistics activities on the supplier-customer relationship, a case of COCA

COLA KWANZA Co (T) Ltd

1.4.2 Specific Objectives

Specific objectives that guided the study are

i. To examine the impact of material handling activities of the supplier-

customer relationship at Coca Cola Kwanza Co (T) Ltd.

Page 19: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

5  

ii. To determine the impact of warehousing activities on the supplier-customer

relationship at Coca Cola Kwanza Co (T) Ltd.

iii. To identify the impact of transportation activities on the supplier-customer

relationship at Coca Cola Kwanza Co (T) Ltd.

iv. To describe the impact of distribution activities on the supplier-customer

relationship at Coca Cola Kwanza Co (T) Ltd.

1.5 Main Reserch Question

What is the impact of Inbound and Outbound logistics activities to the Supplier-

Customer relationship?

1.5.1 Research Questions

i. To what extent does material handling activities impacts Supplier-Customer

relationship?

ii. To what extent does warehousing activities effects Supplier-Customer

relationship?

iii. What is the impact of Transportation activities on the Supplier-Customer

relationship?

iv. How does distribution activities impacts Supplier-Customer relationship?

1.6. Scope Of The Study

Geographically, the company is located at Mikocheni, Sam Nujuma Street, Dar Es

Salaam, that is 11km from where the researcher lives.The study was based in Coca

Cola Kwanza Company, as it is among the manufacturing companies that mostly

deal with logistics activities both inbound and outbound logistics. So the researcher

carefully selected the departments and issue them with questionnaires.

1.7 Significant Of The Study

For the researcher, the study is a partial fulfillment for an award of Masters of

Science in Procurement and Supply Chain Management, the study has improved the

research skills and understanding and it has added knowledge to the existing body of

knowledge in logistics activities (inbound and outbound activities) in relation to the

Page 20: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

6  

supplier-customer relationship.The study has merged the theories and practices of

logistics, hence has helped the logistics manager and actors in making better

decisions regarding innovativenes and building supplier-customer relationship.

For both logistics companies and others which perform logistics activities, the study

has provided a better understanding on the factors promoting supplier-customer

relationships in inbound and outbound. To researchers and scholars, this study has

revealed useful information and references on logistics activities with respect to its

effect on building supplier-customer relationship in the context of Tanzania.

1.8 Organization Of The Study

The research report has been arranged and organized in the form of six chapters, as

shown below:

The first Chapter is an overview of the study, which introduces the study by

presenting the background of the study, the statement of the problem, objective of the

study, the research questions, the scope of the study, the significance of the study and

the limitations and delimitations of the study.

The second chapter that is the literature review presents the theoretical review,

starting with key terms, definitions and followed by relevant theories and models,

empirical review of previous studies, the research gap and the conceptual framework.

The third chapter is the research methodology, the chapter deeply explains the

methods that are used in our study. This chapter consists of the research design, area

of the study, the study population, sample size, sampling technique, data collection

methods, data analysis method, validity and reliability and ethical consideration.

The fourth chapter that is presentation and findings, presents the data obtained and

collected from the field and the secondary data. The presentation starts with

demographic characteristics of the respondents and is arranged in respect of the

specific objectives.

The fifth chapter presents the discussion of the findings in relation to other previous

relevant studies to the topic. The discussion is arranged in respect of the study

Page 21: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

7  

objectives and is organized in a way to give a clear picture on the attainability of the

research objectives.

Lastly, the study ends with chapter six. This chapter presents a summary, conclusion

of the study in relation to the study objectives and findings, the implications of the

study of policies and practice and areas for further studies.

1.9 Limitation Of The Study

These are the traits that the researcher has met with them on data collection, which

have a direct influence on the interpretation of finding in the whole research

1.9.1 Time Constraints

Due to late response by the respondents, and some of the respondents have been so

busy so they were not considering the questionnaire as more important to them,

1.9.2 Information Confidentiality

Now days most of the organizations are usually reluctant to provide the information

needed by the person outside the organization, hence all the documents in the files

are considered as company secrets and not to be released to the person who is not

directly related to the organization.

1.10 Delimitations Of The Study

Shows the way researcher tried to solve the challenges.

1.10.1 Time Constraints

The researcher used more time to push up the process by daily reminding and

physical follow up to make sure the questionnaires are answered within the given

time.

1.10.2 Information Confidentiality

Also about the limitation of accessing information, the research has provided them

with a letter from the college, which gave them confidence in responding to the

questionnaires provided.

Page 22: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

8  

CHAPTER TWO

LITERATURE REVIEW

2. 1 Introduction

This chapter attempts to define various concepts of the subject matter, reviewing

both theoretical and empirical studies conducted by other researchers within similar

context. The Conceptual framework of this study and the research gaps are also

given hereunder.

2.2 Definitions Of Key Terms And Concepts Of The Study

This study seeks to examine the impact of inbound and outbound logistics activities

on the Supplier -Customer relationship, from the main objective of this study there

are three (3) key terminologies that are well defined and explained deeply so as they

can be understood comprehensively. These terminologies are Supplier-Customer

relationship, Inbound logistics activities and Outbound logistics activities.

2.2.1 Supplier-Customer Relationship

Customer Supplier Relationship is the business relation between the customers and

the suppliers in terms of product quality, services, complaint handling,

deliveries, Customers and Suppliers are the important partners in business. Both have

the same goal- to satisfy end consumers. Hence, having a healthy Customer- Supplier

relationship is vital for any business (Stefan Koch,2015)

The Customer-Supplier relationship is seen as a business/transaction relationship that

usually emerge between the buyer and the seller, where the relationship is usually

affected by mutual trust, good communication, interdependence, proper cooperation

and true commitment. The supplier-customer relationship consists of three types of

relationships which are transactional relationship, collaborative relationship and

alliance relationship (Starling,2016).

Transaction relationship is the short term relation where it ends after every part has

fulfilled his/her obligation that neither customer or supplier have concerns of the well

being of the other party, hence most of the companies have this kind of relationship

Page 23: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

9  

and the collaborative one, among them only few practice the strategic kind of

relationship,

The issue is that most of the organizations place their orders in small size, hence

unable to create a strategic relationship with the suppliers as they lack negotiation

power.

2.2.1.1 The Common Characteristics Of Customer-Supplier Relationship

Models Of Rahiim Et Al. 2008

The modal explained the types of relationship that does exist between the suppliers

and customers when transacting or dealing with commercial issues, and each type of

the relationship he tried to mention the characteristics also, where the relationship is

Transactional, leverage, bottleneck and strategic as explained below.

Transactional, Non critical, market exchange

a. The relationship is always short

b. Only few resources are allocated to the supplier

c. The relationship between the buy - sell is usually simple

d. Customer can easily change supplier

e. Mostly the local suppliers are used

f. Standard commodities

g. Absence of innovation

h. Demand is usually stable

Friendly, leverage, captive supplier

a. The customer has more power than suppliers, hence suppliers

mostly depend on buyers.

b. Customer find suppliers for every product

c. Existence of strong competition between the suppliers

d. High ranked engineering experiences.

Business partnership, bottleneck, captive buyer

a. The suppliers have more power, hence customers depend much

on suppliers.

b. The competition power between suppliers is increased.

c. The buying level is usually high.

Page 24: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

10  

d. Suppliers are mostly creative

e. Suppliers owns the technology

f. High bargaining power of the suppliers

g. High product variety from the suppliers.

Familiar, strategic, strategic partnership

a. Long term relationship between customer and supplier.

b. Customer invests more on suppliers innovation

c. The joint venture between customer and supplier is more

powerful

d. The Customer develops supplier technical skills.

e. Buying level is usually high.

f. The use of international suppliers

g. Research and development to the suppliers

h. Production of complex commodity

i. High power competition between suppliers

j. Switching cost of suppliers is usually high

k. Product development planning

l. Fewer numbers of suppliers.

2.2.2 Inbound Logistics

Defined as the activities which are related to sourcing, acquiring, storing and

delivering of raw materials and parts to the product or service department. It is part

and parcel of the operations, for a firm involved in the manufacturing business, in

simple terms, inbound logistics are the fundamental activity, which focuses on

buying and scheduling the inflow of materials, tools and final goods, from suppliers

to the production unit, warehouse or retail store (Madison, 2019).

Inbound logistics include all those activities, which are substantial to make the goods

available for operational processes when they are needed. It encompasses materials

handling, stock control, inspection and transport to facilitate the production or market

distribution Madison( 2019). Inbound logistics deals with the flow of raw materials

or finished goods from the source for the purchasing organization, through inbound

logistics the daily business operation is well supported and creates efficiency and

Page 25: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

11  

effectiveness through the delivery of necessary materials that are crucial to the

organization (Shyam, 2012).

Baker and Rushton (2008) added that, inbound activities concerned with the

collection and transportation of inbound shipments, warehousing and management of

inventories, where throughout the activities, the supply chain cost is minimized,

inventory is kept at optimum levels and good enough it improves the customer

services.

2.2.2.1 Inbound Transportation

Coyle (2011) explained that, the inbound transportation simplifies business

organization and makes the transfer of product ownership easily as many

organizations enjoy utilities of places and time through the movement of product or

materials from the source to the place needed. Firms in different organizations are

free to opt either one or combines several modes of transportation so as to effectively

make the materials reach the targeted destination safely for the scheduled production,

where if transportation is well done, it will make the supply chain efficient and the

goods to be delivered to the customer in an economical and secure way (Branch,

2009).

More important is that the inbound transportation should plan for delivery time, so as

the product to reach to the final customer as specified., hence for the great

performance, firms must make the material flow in a right order, quantity, quality

and time Bowersox (2010). Shipment can make a consolidation of many orders to

form a large quantity per shipment a thing that will make the attainment of

economies of scale and less transportation cost per unit, (Ulku, 2009). As there are

different procedures at a country’s entry point relating to customs compliance, which

automatically increases the transaction cost, hence there should be a proper

documentation by the firm so as to enable faster clearance and make the impact of

global sourcing lead time reduced. Zamora-Toires (2013). Explained that, the firm

should positively run with the technology by submitting all the necessary information

and documents electronically so as to cut down necessary delays/bureaucratic cost

Hanoiz et al (2014), the use of tracking and tracing shipment tools by collecting and

Page 26: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

12  

managing the information about the product location that Is on transit across he

supply chain, this will assist on detection and deduction of transportation losses an

interruption. Helo (2011) and Dukare (2015) believes that, real time tracking will

ensure Goods traceability and delivery visibility.

Firms should also increase the use of freight and forwarders/transport intermediaries

as they improve operational efficiency and customer service levels as they have

enough industry knowledge and skills, most of them offer the related services such as

multimodal transport arrangement, warehousing, less-than-truck loaded transport and

express parcel services (Asian Development Bank, 2012).

2.2.2.2 Warehousing Activities

According to Karaduman and Udeli (2015), warehousing flows primarily in two

ways, the first is through the inbound flow where goods are received and well sorted

from the supplier and the other flow is an outbound flow where the goods are

retrieved and moved to the targeted customer, supply chain management ensures that

the inventory that are kept in the warehouses are at optimum level and meets the

customer orders.

Inbound warehouse includes the activities such as inspection, receiving and storage,

hence through the said activities, it facilitates the receipt of goods into the

organization and also supports the inventory management by holding stock for

business operations. Gibson (2013) added that, the inventory in the warehouse can be

well managed through the use of information system integration. As a vendor-

managed inventory (VMI) ensures the sufficient supplies as the suppliers are mostly

responsible for order replenishment based on the inventory that are available in the

warehouse.

A firm will engage itself in inventory management so as to ensure goods are

available in right quantity, quality and at specified times, hence this will make them

deliver at optimal service level and at controlled cost. Reid and Sanders (2007).

Receiving of goods usually begin very shortly after the goods have been delivered to

Page 27: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

13  

the warehouse and the activities that involves are usually unloading, inspection of

whether they are of the right quantity, sufficient quality, and the written inspection

records are always updated as per new order delivered. (Koster et al, 2006).

Cross docking can be practiced as well, as the incoming goods can directly be sorted

to outbound transportation vehicle ready for distribution top the customers, the

system helps the organization to save itself from the stock holding cost (Stephan and

Boysen, 2011).

2.2.2.3 Material Handling

According to Saxena (2003) Material handling system is the one of the important

factors needed to be considered during the organization’s operations. Because it

involves the moving, packaging Storing of substance in any form. Various types of

materials are stored in the warehouse. Each material has its own characteristics.

According to Burton (1999), stock tracking and recording is among the essential

issues under effectiveness of material handling. Impartial of doing so will cause a

huge and unimaginable loss to the organization. In the book of effective warehouse

the misuse of equipment were instead to be prevented skill in operation and to fall

rules existed.

Principles Of Material Handling

According to Gopalakrishman (1990) in handling of materials there are some

principles to be considered as follows; Orientation principle,Planning principle,

Systems principle, Unit load principle, Space utilization principle,Standardization

principle, Ergonomic principle,Energy principle,Ecology principle,Mechanization

principle,Flexibility principle,Simplification principle, Gravity principle,Safety

principle, Computerizationprinciple,System flow principle,Layout principle, Cost

principle, Maintenanceprinciple Obsolesce principle, hence when the principles will

well be kept into consideration materials in the warehouse will be safe and the

organization.

Page 28: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

14  

2.2.3 Outbound Logistics

Outbound logistics, is the collection, storage and distribution of the final goods and

related information flows, from the manufacturing plant to the end user. It covers all

those activities (Selecting, Organizing and transporting) which are involved in the

outflow of merchandise from the seller to the buyer (J-Matthew and Tan- Miller,

2015).

Outbound logistics, in the case of a tangible item, can be warehousing, material

handling, inspection and transport, etc., but for intangible ones like services, it is

associated with setting for bringing customers to the service location. Hence inbound

logistics include all the activities that are concerned with order placement to the

suppliers. On the other hand, outbound logistics cover all those activities that involve

dealing or trading in products produced by the company (Madison (2019).

Outbound logistics is defined by the council of supply chain management

professional as the movement and storage of goods/product from the end of the

production line to the final user, and it is very vital in customer supplier relationship,

retailers tend to choose or stick on the supplirs that do timely delivery on them, as on

failure it may impact on financial penalities and even eliminate of suppliers product

from the retailers active portfolio, so thus the outbound logistics affects much the

decision on retailer on either or not to stock the supplier’s product and also stands as

a the important determinats of supplier’s supply chain and business success (Tan -

Miller and Matt- liberature,2015).

According to Tilanus (2017), outbound logistics is the movement of goods outward

from the end of the assembly line/warehouse to the customer, where most of the

literatures argue that, outbound logistics is customer oriented operation management.

If outbound logistics are effectively and efficiently operated it creates a positive

influence not only on the performance of the business, but also on the customer

perception of the quality product and services provided by the firm. In case of any

uncertainty in outbound flow, it will create the dissatisfaction to the firm’s customer

base, when used properly, it is a strategically important bridge in achieving

Page 29: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

15  

competitive advantage Bowersox et al (2010). Hence logistics providers should

properly align with customer’s choice and focus on service quality priorities

(Manikas and Leromonachou, 2016)

It is very important for the organization to pick the right distribution channel/network

and maintain a sensible inventory stocking system and optimize delivery options so

as to make the outbound logistics run effectively and efficiently.

According to Madison (2019), outbound logistics goes through different steps as te

sales department first receives order from the customer, after then the department

checks the availability of the ordered goods so as they can fulfil the order, the order

is now sent to the warehouse department for picking and packing, then the order is

shipped to the customer destination and warehouse cleark proper updates inventory

level, lastly the business bills is collected and cash is received by the client from the

ordered goods.

In contemporary Era,logistics plays an important part in supply chain

management,most of the organization have become more and more competitive,

hence in order for them to reduce the total company cost, they have engaged

themselves in cost reduction strategies, so in understanding the role that is played by

logistics activities (inbound and outbound) on the supplier-customer relationship,the

organizations will then be able to understand various factors, challeges, and

understand various solutions that are involved in managing the relationship between

the parties.

2.2.4 Key Challenges Of Inbound And Outbound Activities In Supplier-

Customer Relationship

Finding the reliable supplier with stable and competitive price that will make the

relationship between them last with no disputes inlongrun is a challenge, Very

difficult to estimate the work that an organization is able to accomplish within a

given time so as the customer could receive the ordered package on time, The

manufacturing and logistics departments being well aligned as per the requirements

of the customers., To properly manage the company transportation from all the

Page 30: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

16  

suppliers so as to make sure there are no delays in production line due to lack of raw

materials, To receive the materials from the suppliers on time and maintain the best

storage and ensure proper quality control so as to make the customer receive quality

finished products, To process the customer orders and prepare cargo for the

distribution activities that includes packaging, addressing and the hiring of the most

appropriate transportation solution to deliver it properly, Issuing of all necessary

transportation documents, Searching for the most reliable and affordable transport

partners that will provide door-door delivery service to the destination point of the

customer, The reverse logistics strategy to be used by the customer if the product did

not satisfy his/her need or in case of any damage and Keeping track of the cargo

throughout the entire freight process so as to ensure timely delivery of the finished

goods/products to the customers.

2.2.5 Important Factors To Be Considered In Inbound And Outbound In

Building Customer-Supplier Relationship

Technology improvement, mostly on inbound programs as it helps supplier to track

the delivery of final products to their customers, Continuous measuring of the key

performance indicators of a company as it helps in the cost reduction, on time

pickups and delivery, a thing that automatically strengthens the relationship,

Keeping stocks at optimum level, cutting total overhead cost and developing a cost-

effectiveness and efficiency, The bonds between the suppliers and customers will be

strengthened by keeping optimal products in stocks, timely delivery and efficient

moving products through the warehouse so as to avoid losing sales,By hiring drivers

with good interaction skills a thing that will ensure positive business relationships

between the company and the client as the transportation of goods is one of the last

interaction a retailer has with suppliers, so it’s important to focus on relationship,

The use of transportation information system (T.I.S), and as companies increase

supply chain visibility and easy to identify the weakness in inbound freight and any

inefficiency in logistics.

Page 31: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

17  

2.2.6 Best Practices For Superior Customer Services

As providing customer service being more important than low product costs,

logistics plays a very great part on that, hence companies should struggle on their

level best to provide their customers with high quality services that will add value to

them.

Most of the companies focus more on outbound logistics and put a little effort on

inbound logistics, however, in order to attract customers, the company should take

into consideration all the two parts because they all have an impact on the customer

satisfaction, in order for the company to improve its performance in providing

services, it should work on solving different problems from customers and make

them more delighted.

Reverse logistics should also be taken into consideration by the company, where the

reverse logistics strategies will reduce storage and distribution cost, improves brand

reputation, satisfy customer demand and reduces waste to the environment, but

unfortunately many companies do not pay attention to this kind of logistics.

The company also should invest in the use of Transport Management System (TMS)

as is a software which will give a detailed report on shipping record for inbound,

outbound and reverse logistics and reduce the overall transportation cost.

Importance Of Transportation Management System

i. Increase the usage of preferred carriers

ii. Ensures better routing

iii. Lower cost mode selection

iv.

2.2.7 Solution To Optimize The Inbound And Outbound Logistics Process

As most of the experts consider the inbound activities/process as a final frontier, so

there is a great need of the company to invest in effective transportation and making

sure that the transportation cost is reduced.managing transportation is not as easy as

many people think but companies should keep more effort in managing their supply

chain and warehousing operations.in order for the company to build a strategic

relationship between the supplier and the customers should use transportation

Page 32: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

18  

System Management which will help the company in tracking the goods that are in

transit and also reduce the transportation cost.

On the other hand, the outbound logistics is more concerned with getting your

products to the customers, hence here the company deals more with warehousing

activities, the Warehouse Management System should be employed to improve the

outbound logistics activities. The inventories in the warehouse can be controlled

through,

i. ABC Classification

ii. FSN Classification

iii. VED Classification

And also the use of cross docking for warehouse operations.

2.3 Theories And Concepts Of The Study

Here under are different theories and Concepts that explain supplier- customer

relationship as related to the topic, the theories under have tried to explain the

relationship between the concepts,the theories have been explained critically and the

way they link to the study.

2.3.1 Theories

2.3.1.1 Game Theory

The theory was introduced by John Von Newman and Oskar Morgenstern in the

1940s, the theory was only planned to be used in numerical form or mathematical

approach, the theory believes that, the success of any decision making usually

depend on the interaction and involvement of both parties, hence everybody in the

chain should be aware of any strategic decision with the correct information and at

the right time (Rosental, 2015).

The theory also explains that, there will be no information obstacle if agents in the

chain can freely express their opinions or satisfactions toward different decisions for

the well being of the organization that will help in achieving the company goal

(Camerer 2013). The theory believes that, the relationship between supplier and

Page 33: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

19  

customer will be productive if there will be a proper information flow and

understanding between the parties (Tadelis, 2013).

The theory has tried to show how the parties that is customer and supplier will

cooperate so as to reduce risk, obtaining insight regarding the competitors and also to

improve internal decision making process so as to make the final user delighted with

the service offered, the theory also has tried to show the resercher some of the

important factors that suppliers and customers should consider so as to strenghen

their relationship.

2.3.1.2 Network Theory

Is the grand theory for supply chain management that was introduced in 1970s, the

theory was targeted to describe the relationship between players in the supply chain,

suppliers, customers and end users. The theory had a focus more on the relationship

between the customer and supplier as they play a very big role in the supply chain

that is without suppliers, nothing will be produced and without customers nothing

will be generated as a profit in the company hence the collapse of supply chain, the

theory also has explained on how the strategic alliance will be made upon the two

parties (Harland,2015). The theory also suggested that, the resources can well be

developed when there is a continuous relationship between the players in the chain,

hence the resources of the two parties will easily be be combined so as to meet the

organization’s goal (Hollardson, 2007).

The theory assumes that, when knowledge and information could well be shared

within the network, this could build competitive advantage within the chain and the

relationship could be stronger if it was built with trustworthy (Smarajit Ghosh,

2015).

Hence, through the theory the researcher has been able to know on how the inbound

and outbound activities are coordinated with the players so as to create a strong bond

relationship is built in terms of trustworthy, value adding, long term relationship and

the transfer of knowledge so as to have the best performance and the competitive

Page 34: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

20  

advantage, as the main goal of many supply chain networks is to maximize their

revenues, hence if there will be a strong bond between the suppliers and the

customers it will make the supply chain achieve its goal.

2.3.1.3 Social Exchange Theory (SET)

The theory can well be applied in the context of supply chain management and act

as a very good weapon in analyzing the customer- supplier relationship (Holtharsen,

2013) the theory was drawn from the field of social-psychology to explain social

exchange and stability as a process of negotiated exchange between the two parties

(Emmerson 2017).The SET is not only a theory, but rather the reference point from

which so many others can talk to one another, the theory believes that human

relationships are formed by the use of subjective cost-benefit analyses and the

comparison of the alternatives (Emmerson, 2016).

The founder of SET theory Homans (1958), summarized the system of social

exchange into three propositions (Cropanzano &Mitchell, 2005):

i. The success proposition – When a person is rewarded for his or her actions, he

or she tends to repeat the action.

ii. The stimulus proposition – The more often a particular stimulus has resulted in

a reward in the past, the more likely it is that person will respond to it

iii. Deprivation – The more often in the recent past a person has received a

particular reward, the less valuable any further unit of reward becomes.

In principle, SET talks about human behavior, that it is characterized by rational

calculations designed to maximize individual profit. Humans value things that bring

them advantage; therefore they find it rewarding to be in a relationship with an entity

that enhances social status. This is what Humans, one of the pioneers of the theory,

classified as rewards (Cropanzano & Mitchell, 2005). Apart from rewards, there are

also costs. These costs exist when there is a negative value or advantage for an

individual in the exchange. For example the relationship that costs person, money,

time and efforts to coordinate with the other party (Cropanzano & Mitchell, 2005).

Page 35: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

21  

The SET deals with interactions or communications that eventually creates a feeling

of obligation between the parties involved in the exchange process (Cropanzano and

Mitchell, 2005). These interactions are usually determined by the people in the

exchange activity. The authors go further to explain that the exchange process

between a buyer and a seller, for example, has the potential to generate high quality

relationships. On the other hand, a series of interdependent transactions can result to

interpersonal attachment, and this is a very important notion to SET (Cropanzano and

Mitchell, 2005). There are two types of relationships formed, interpersonal

attachments and transactional relationships. According to the SET notations,

customers usually do considering some social norms like trust. Through a

trustworthy exchange relationship there is a great chance that the buyer-seller

relationship to last long and leads to increased business performance (Holthausen,

2013).

Through the SET theory the researcher has been able to see how the parties in the

supply chain interact,how do they exchange and share their costs and benefits, the

inter depence they have in each other when performing the logistics activities and

even the kind of the relationship that the key players have if it is the long term kind

of relationship or the shor term.

2.3.2 Concepts Of The Study

2.3.2.1 Relationship Between Material Handling Activities And Supplier-

Customer Relationship.

Kosonaim&Chikanha (2012) disscused that, Material handling has an effect on every

operation, that is from forecasting to production and even after sales services a thing

that effects production and organization profitability, material handling activities

uses the variety of mechanized and manual material handling equipments and

systems, hence if well operated they do improve the customer services, lower

production cost, creating optimum inventory and shortens the lead time, and vice

versa if poorly operated, so the organization should be very carefully in planning for

material handling activities as it has an effects in supplier-customer relationship.

Page 36: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

22  

2.3.2.2 Relationship Between Warehousing Activities And Supplier-Customer

Relationship.

As warehousing process improvements focus on the information, process, material

flow and warehouse layout, by the practice of industrial engineering methods, tools,

techniques and the application of modern software, it leads to the improvement of

material flow, reduced inventory, reduced lead time, improves the organizational

service level and creates an efficiency and effectiveness in the warehouse operations

a thing that has an impact in the supplier-customer relationship. (Karaduman and

Udeli, 2015).

2.3.2.3 Relationship Between Transportation Activities And The Supplier-

Customer Relationship.

By choosing the right transportation mode that will allow the achievement of goods

and services at the right time with the customers, transportation departments working

in an effective and efficient way, meeting the customer service level by the

transportation departments have an impact in the supplier-customer

relationship.(Branch,2009).

2.3.2.4 Relationship Between Distribution Activities And The Supplier-

Customer Relationship.

Madison (2019) wrote that, When the organization picks the right distribution

channel or network, and improve the delivery options to make the outbound logistics

run effectively and efficiently it will improve the bond between the supplier and the

customer.

2.4 Empirical literature review

2.4.1 Foreign Studies

A study by Ohno and Mae (2012) that was conducted in Swiden, that was titled by

“The impact of altering lead time on the performance of inbound logistics in an

international supply chain the case study of Volvo Powertrain Corporation.The study

found that, Total cost of the organization was directly dependent on purchasing and

logistics activities and not leadtime reduction, Also any changes in delivery lead time

Page 37: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

23  

will affect the cost of ownership and flexibility in delivering of services and if the

lead time is reduced it will positively affect the company progress.

The shortcoming of the study is that, it failed to address the relationship between

inbound logistics activities in supplier-Customer relationship as it only based on how

lead time affects the inbound logistics performance.

Also a study of Kosonaim and Chaikanha (2012) that was conducted in Ghana, that

was titled by Inbound logistics Models for Thai Sugar industry, The study revealed

that, different firms/organization practicing similar inbound logistics chain will have

different efficiency levels as it depends to their management in the organization,

Also inbound logistics activities automatically impacts the management system that

deals with inbound operations.

The shortcomings of the study is that, it only focused on processing firms, and the

study based on Thai firm only and it did not show the connection between inbound

logistics activities and supplier-customer relationship.

The study by Langat (2013) that was titled by the Application of inbound logistics

management on performance of procurement at public bodies in Kenya, the study

revealed that, the models of transport like sea, air, road and rail have much impact on

delivery leadtime where delivery of goods in any organization depends on the modes

efficiency, Also the inbound transport services should have regular checkup and

consistent evaluation, and, when the organization does not employ morden

technology in practicing inventory,it will affect the customer services negatively and

automatically will increase the inventory cost.

The shortcoming of the study is that, it only focused on public institutions and it did

not address how the inbound activities affect Customer-Supplier relationship.

A study by Mwangi and Waweru (2013) conducted in Kenya, that was titled by role

of transport in supply management a case study of Safaricom, the study revealed that,

transport is an integral part in the supply chain, also Transportation cost has a great

Page 38: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

24  

impact mostly on large scale industries and the delays in transportation affects the

cost of goods and services.

The shortcoming of the study is that, it only focused on transportation as an inbound

activity, and also it only focused on a single firm so it does not reflect the status of

other firms and it did not show the connection between the transportation and

customer-supplier relationship.

Also a study by Mamorena Lucia Matsoso and Olumide Henrie Benedict (2014), that

is titled by The customer-Supplier relationship in supply chain Management a case

study of Small manufacturing enterprise (SME) perspective South Africa that

involved exploratory study and purposefully selected.. The study revealed that,

i. A Good relationship between the supplier and the customer in the supply

chain it improves performance and enhance speed delivery of goods and

services to the targeted final destination and it has an impact on JUST IN

TIME (JIT).

ii. For a manufacturing firm to be in a competitive position, its customers must

take priority in service delivery at a level that it will aim at a shorter lead

time. (Spring, 2007:658)

iii. If both parties maintain flexibility communication regarding matters that

affects the value chain, it will have an influence in the attainment of JIT, And

there other crucial measures to take place before the implementation of JIT

production system and that is,identification of prominent supplier to work

with,long term relationship with supplier, quality performance that focuses on

supplier, reliable and trustworthy suppliers in which there products are sold at

more economical cost,So JIT alone is not a solution toward succesfull Supply

chain entities.(Talib et al,2011:282).

iv. Even with only few suppliers it will enable a firm to cut costs while

maintaining competitive environment, so the suppliers have to be early

involved in the design and development a thing that will improve more

relationship between supplier and buyer (Mishra -RK, 2011).

Page 39: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

25  

v. Long term relationship with few suppliers that is well and strategically

managed has a positive impact on the financial performance of a firm (Carr

and Pearson, 1999:497)

vi. A reduced number of suppliers will lower the level of mistrust between

buyers and suppliers because when few partners are involved in the chain it is

easy to enhance ways of communication that is improved as a result of fewer

people. (Koh et al, 2007:109)

vii. Most buyers do not have negotiation power with their suppliers due to the

small order they place for them.

2.4.2 Local Studies

They were no records of people who conducted the same research, but here below

are the ones that somehow relate.

A study by (Saleh, 2013) about the effect of trust in Buyer-Supplier relationship, A

case of Iringa Food And Bevarages, the study revealed that, when the relationship is

well managed automatically it will lead to supplier Competency, interpersonal

relationship and positive outcome, also investing in advanced technology that could

make the produced output to be of high quality, timely delivery, proper scheduling of

transportation routes and keeping the inventories at minimum in the warehouse has a

great chance in strengthening the relationship between the suppliers and the

customers.

A study by Mwakibinga (2007) at the University of Dar Es Salaam under the

heading of “the impact of material handling systems and equipments in the

organization” the study revealed that, poor storage methods applied by the

government stores department is one of the major causes of the losses in the

organization. The study concluded that there is a great relationship between the

storage and material handling activities and the organization performance, the

recommendation of this study was that, material handling activities should be

performed with the advanced systems and equipments so as to foster production and

inturn produce high profit to the company.

Page 40: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

26  

2.5 Conceptual Framework

After passing through the theoretical and empirical studies that have tried to explain

the theories behind inbound and outbound logistics and their impact on the supplier-

Customer relationship, the researcher has come up with the conceptual framework

which will help in understanding the connection between variables in simple terms.

Independent variable

Material Handling Activities, Transportation activities, Warehouse activities,

Distribution activities.

Figure 2.1: conceptual Frame Works

Independent variable

Dependent Variable

Source: Field data (2020)

2.6 Research Hypothesis

H01: There is the relationship between Material Handling Activities and Supplier-

Customer Relationship

H02:There is the relationship between Warehousing Activities and Supplier-

Customer Relationship

H03:There is the relationship between Transportation Activities and Supplier-

Customer Relationship

H04:There is the relationship between Warehousing Activities and Supplier-

Customer Relationship.

Material Handling Activities

• Material handling system

Warehousing Activities

• Order picking and packing

Transportation Activiteies

• Quick Response

Distribution Activities

• Distribution channel

Supplier-Customer Relationship

• Ontime payment • Trust • Risk sharing • Need are well anticipated • Open communication 

Page 41: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

27  

2.7 Research Gap

The study has focused on the impact of inbound logistics activities and outbound

logistics activities on Supplier-Customer relationship a thing that is different from

other studies that researcher have passed through which they have only focused on

inbound logistics (Mae and Ohno (2012), Langat (2013), Mwangi and Waweru

(2013)) and the other ones on the supplier-customer relationship (Mamorena &

Olumide (2014), forgetting about outbound logistics.

Also the studies, especially of Matsoso and Benedict (2014) had only talked about

how JIT has an impact on the supplier-Customer relationship and explaining the way

to implement JIT so as to strengthen the relationship between the parties, so the

changes will be done by the researcher by showing how the inbound logistics and

outbound logistics will impact the customer-supplier relationship and the way to

implement the logistics activities so as to strengthen the relationship.

The study has been conducted in Tanzania a thing that is different as most of the

studies conducted outside Tanzania that is Kenya and South Africa so very hard to

reflect the findings with the home country.

Most of the studies have employed the qualitative study and only a few have mixed

both qualitative and quantitative a thing which has been different from this study as

it will only base on quantitative studies to show the differences.

As most of the studies have only focused on single activities from inbound and

outbound logistics and that is Transportation, a thing that is different from this study

as it has explained about more than three activities that is Transportation,

Warehouse, Distribution and material handling. As most of the studies do not focus

on manufacturing industries and if they did, they only focused on single firm hence

the research has focused on the manufacturing firm in general and not only one firm.

Page 42: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

28  

CHAPTER THREE

RESEARCH METHODOLOGY

3. 1 Introduction

This chapter deeply explains the methods that were used in our study from the initial

stages until the final stages. This chapter consists of the research design, area of the

study, the study population, sample size, sampling technique, data collection

methods, data analysis method, validity and reliability and ethical consideration.

3.2. Area Of The Study

The company is located at Mikocheni, Sam Nujuma Street, Dar Es Salaam, that is

11km from where the researcher lives. Coca Cacola Kwanza is among the

manufacturing companies that mostly deal with logistics activities both inbound and

outbound logistics, so it has been easy for the respondents to respond to issues about

logistics activities and the effect on supplier-customer relationship, also the area has

been easily accessible by the researcher as it takes only the maximum of 24 minutes

for the researcher to reach the company place from where the researcher lives, so it

enabled on saving time and cost, hence the research kept more focus on the

department that mostly deals with logistics.

3.3 Research Design

According to Chikoko & Mloy (2015) research design is a plan, it reflects the steps

which are to be used to achieve the research objective, where the design comprises of

data collection procedures, analysis and presentation, on the other side, it can be said

that the research design provides full details on the type of data collection and

techniques to be employed in the field, it’s a blueprint for collection, measurements

and data analysis (Kothari, 2004).

The researcher employed case study design that allows cross sectional data collection

in order to examine the impact of logistics activities towards the supplier-customer

relationship. The quantitative approach has been used to guide the study in showing

the impact of the independent variables towards the dependent variable. The

Page 43: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

29  

approach enabled the use of relationship analysis techniques such as regression

analysis. (Hussey and Hussey, 1997).

3.4. Target Population

Population is a large group of people, individuals and item in a particular area from

which samples are drawn for measurements (Kothari, 1990). Population as the group

of people or person who mostly share the same characteristics (Kombo,2003). The

target population of the study was 400 where it included procurement department,

warehousing and storage department, Transportation and distribution department,

Nearby Customers of Cocacola who are their official Agents who are found near

Cocacola about 4-5km, the suppliers of Cocacola who supplies them with the raw

material such as Silafrica who supplies Crates, Kioo who supplies Bottles, Juzer

supplier who supplies Spare parts, and other supplier such as Superdol, Cfao,

Copycat and Kanji Lalji. Hence, from the above population the researcher was able

to draw the sample size.

3.5 Units Of Analysis

The unit of analysis is the major entity that the study is analyzed to, where the unit of

analysis may consist of individuals, groups, artifacts (books, photos, newspapers),

geographical units (town, census tract and state) and social interactions, (William,

2020). The unit of analysis of this study was the departments that deal with logistics

activities at Coca Cola Company.

3.6 Sample And Sampling Techniques

According to SapFord (1991), it is likely a research to determine their sample using

the geographical location where respondents can easily be collected in the field.

The researcher has opted to use sampling due to Coca Cola having a big number of

population it has been difficult to reach them on time, and also through sample there

is more accuracy of data, and the cost is low in sampling compared to the use of

entire populations, Hence the sample that were drawn from the target population as a

subset have represented the whole population, the sample population was 80

respondents from procurement department, warehousing and storage department,

Page 44: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

30  

Transportation and distribution department, Nearby Customers of Cocacola who are

their official Agents who are found near Cocacola about 4-5km, the suppliers of

Cocacola who supplies them with the raw material such as Silafrica who supplies

Crates, Kioo who supplies Bottles, Juzer supplier who supplies Spare parts, and other

supplier such as Superdol, Cfao, Copycat and Kanji Lalj

3.6.1 Sampling Techniques

A sample is a small portion that represents a total population in the process of data

collection, the sample has been identified and drawn from the large population, and

also the researcher has shown how the process has been used to select the sample,

and the description of sampling procedures and the sample size of the study

(Dawson, 2002).

Procurement department, warehousing and storage department, Transportation and

distribution department, Nearby Customers of Cocacola who are their official

Agents, the suppliers of Cocacola who supplies them with the raw material such as

Silafrica who supplies Crates, Kioo who supplies Bottles, Juzer supplier who

supplies Spare parts, and other supplier such as Superdol,Cfao, Copycat and Kanji

Lalji were selected by using random sampling, the above departments were prefered

because the researcher believed on getting the reliable information from them as

they are directly involved in inbound and outbound activities.

3.7 Sample Size

A sample is a small number of people or group that is drawn from the entire

population, hence when carrying up a research study the sample should be taken

from the population and whose the results or findings are going to be generalized

(Saunders, 2000). The researcher drew a sample of 80 respondents where were from

Procurement department, Transportation and distribution department, warehousing

and stores department, Suppliers and Customers. In order for the research study to be

more accurate the sample size must be at least 5% or 10% of the entire population

and this is what exactly the researcher applied. (Kothari, 2009) also the formula was

even applied in obtaining the accurate sample size of the study area.

Page 45: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

31  

NF = N____

1+ N(e) 2

Where: NF =the desired sample size where the population is less than 1000

N =the estimated of the population size (400)

e=Estimated sample error

Therefore;

NF = 400

1+ 400(0.1)2

80 Respondents.

Therefore the sample size of the study was 80 respondents.

3.8 Types Of Data

The researcher used the two types of data in this study, the primary and secondary

where the primary data are those that are directly collected from the field and are

fresh and collected by the researcher himself. (Kothari, 2009). For this type of data

the researcher used questionnaires and observation method.

The other type used is secondary data, this is a kind of data that was already collected

by other person, so the researcher uses them as a reference to be reviewed and mostly

they do match with the research topic or study (Hodges &Video, 2005).Under this

data type, the researcher reviewed various literatures from professional journals

concerning logistics activities and supplier-customer relationships, different

publications of the same topics and the conference papers, the advantages the

researcher got from this type of data is that, it is less expensive and time saving

(Hodges & Video, 2005).

3.9. Data Collection Methods

This includes both methods and the procedures that the researcher used in collecting

data from the study, the following are the types of data collection methods that were

used.

Page 46: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

32  

3.9.1 Questionnaire

Questionnaires were designed in such a manner that it was easy for the researcher to

get the right information from the respondents, and also being easy for the

respondents to answer the asked questions without any misunderstandings or errors.

The questionnaire method is widely used by the researcher to obtain enough data

from the large sample, so the data collection method is adopted by both private

individuals, research workers, private and public organization and the government at

large. (Kothari, 2004).

The method of data collection where the researcher structures questions then submits

them to the respondents to fill the needed information, the researcher should

structure/prepare questions that are answered, and they can be in terms of open and

closed ended questions (Kaufman, 2005).The close ended questions are the ones that

do not give a respondent the wide field to express their opinions (precise and

definite), unlike the open ended questions where there is a room to express

opinions.Hence the researcher employed the use of closed ended questionnaires to

get the information needed, the questionnaires were prepared in a written form and

were all submitted to the 80 respondents, and the respondents were required to circle

the appropriate answer, english language was used in drafting questions and the

respondents were asked to return on the appropriate time. The method was used as it

is more reliable and flexible.

3.9.2 Documentary Review

This is the most recommended secondary source of data collection where the

information is collected through the published and unpublished sources that is within

and outside the organization, on this method the researcher reads various documents

relating to the matter under the study so as to obtain the relevant information

(Kothari, 2004). The researcher has used the company website, professional journals

concerning Logistics activities and the supplier-customer relationship, guiding

books and other reports that are related to the topic of the study such as companies

transportation and warehousing Journals and Company material requisition

templates.

Page 47: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

33  

3.10.1 Data Processing

Data processing is the process of preparing all the data ready for making

comparisons between the expected and analysis (Hair et al, 2009), Where the process

involves analysis (editing, coding, classifications and tabulation of raw data for

making analysis). Editing was done with a very careful review of the whole

questionnaire to find whether the data are correct, and reliable with other facts

gathered, and if the respondents effectively followed the instructions given to them.

Tabulation involved orderly presentation of findings in terms of tables, to reduce

explanatory, descriptive statement and facilitate comparison.

3.10.2 Data Analysis

According to Megahed (2005), identified the term data analysis as examining what

has been collected in the survey and experiment in making deductions and

inferences.

In order to analyze the data which was collected in the field, the researcher

employed the use of quantitative data analysis tool such as Questionnaires due to the

quantitative nature of the study, and the program used was SPSS version 21 as it

involved direct analysis of numerical data and place them in a meaningful statement

which enabled the researcher to employ descriptive statistics to analyze and draw

conclusion and recommendations. Descriptive analysis was used to examine the

ordinal Likert scale data and indicate to what extent does inbound and outbound

logistics activities affect customer -supplier relationship, (the scales that were used

are strongly disagree, disagree, neutral, agree and strongly agree.

Data entry, coding and data cleaning was the initial steps before the researcher

jumped for analysis, where of analytical process the nature of the study and type of

data was the major aspects to be considered (Hair et al, 2009).

3.10.3 Descriptive Analysis

Descriptive statistics are a group of statistical methods used to summarize, describe

or display quantitative data (Collis &Hussey, 2009). Data that were collected from

the sample was analyzed by means of descriptive statistical methods. The standard

Page 48: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

34  

deviation and the mean were tested from the questions related to inbound logistics

and outbound logistics. This was done to analyze the distribution of the answers

around the mean to understand the similarity of the responses.

3.10.4 Pearson Correlation Coefficient Test

The Pearson correlation coefficient test was used to measure the strength of the linear

relationship between two variables where it showed up direction, strength and

significant relationship among variables, from 0.00 to 1.00 where, when the were

0.00, it means there is no correlation between the variables, while when the value

were 1.00 means there is a perfect correlation, hence we rejected Ho when P value is

less than 0.01 and Accept when P value is higher than 0.01.

Table 3.1: Correlation Coefficient Ranges Correlation coefficient range Strength of association 0.0 - ± 0.19 Very slight, almost negligible ± 0.2 - ± 0.39 Slight but definite relationship ± 0.4 - ± 0.59 Moderate relationship ± 0.6 - ± 0.79 Strong relationship ± 0.8 - ± 1.000 Very strong relationship

Source: Hair et al. 2009

3.10.5 Multiple Regression Analysis

The technique was used to analyze the data for the objective number one to four,

whereby the model showed the influence of each independent (Material Handling,

Warehousing, Transportation and Distribution) variable to the dependent variable

(Supplier-Customer relationship)

The regression model for the study was as follows

Y=β0+β1X1+β2X2+ β3X3 + β4X4 + ε

Y= Dependent Variable (Supplier-Customer Relationship)

Where: Beta (β0) is the constants

(β1, β2, β3, β4) are regression coefficients

X1 =Material Handling Activities

X2 =Warehousing Activities

X3 =Transportation Activities

Page 49: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

35  

X4 =Distribution Activities

ԑ = error term

3.11 Reliability and validity

3.11.1 Reliability

Kothari (2004) defines reliability as the extent to which data collection methods

yield consistent results, hence the research will be reliable if it is free from

measurement errors since the more the errors the less the reliability of the tested

information (Newman, 2003). The researcher ensured the reliability by comparing

the answers provided from different data collection methods and reviewing

information from the reliable sources on the same topic under study. Hence the

researcher found the repeats from the measures.

Reliability was tested using the Cronbachs Alpha that is a measure of internal

consistency of an instrument to determine if all the areas within the subscales were

related, the alpha coefficient ranges from 0-1 (the closer the scale is to 1, the greater

the reliability of the instrument, the study was more reliable as the overall study

attained an Alpha Coefficient of 0.871 that is 87.1% when converted into percentage

as shown in the below table.

Table 3.2: Reliability Statistics

Cronbach's Alpha N of Items .871 41

3.11.2 Validity

Validity is defined as the extent to which an instrument measure what is supposed to

measure (Aeker, et al, 2002). Content validity was used as the questions asked in the

questionnaires were relevant to the content being measured, also the information was

collected from the right personnel who were directly related to the topic in hand. The

questionnaires were also reviewed by the supervisor to check its validity and

crosscheck was made in the different collection methods.

Page 50: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

36  

3.12 Measurement Of Variables

To operationalize the research variables, the study first determined the parameters of

each independent variable and then employs an ordinal scale which was the Likert

scale, to measure the independent variables. Non–parametric method involves

nominal and ordinal, where in this study, the researcher use non–parametric method

in which this approach nominal and ordinal data were used to express information.

As shown on the table below.

3.13 Research Ethics

According to Sillivan (2001), argues that, research is bonded to ethical consideration

during the process of conducting their study, hence, the researcher has observed all

the rights of the respondents, including their safety, information given out by

respondents has been kept confidential and secretive to avoid any harming to

respondents, thus the researcher has respected the confidentiality of the respondents

so as to make them provide more information and try to avoid them hide the

information.

Page 51: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

37  

CHAPTER FOUR

PRESENTATION OF FINDINGS AND ANALYSIS

4.1 Introduction

The chapter presents the findings and data that were collected both primary and

secondary as per the research objectives, the chapter starts to present the

demographic information from the study that is age, gender and education, from the

respondents then after the analysis of other variables will be presented.

4.2 General Information For The Respondents

The section has been included by the researcher to show the demographic

information from the respondents as per their age, gender and education so as to

ensure the reliability of the collected information.

4.2.1 Response Rate

The study had a total number of 80 respondents who fully participated in making the

filling of questionnaires done, lucky enough, all the questionnaires were well filled

and returned to the researcher for the analysis to take place, all this is due to the

efforts the researcher made on keeping more emphasize to the respondents to answer

the provided questionnaires on specified time.

Table 4.1: Response rate of respondents (N=80) Department No of

questionnaires provided

No of questionnaires returned

%

Procurement officers 10 10 12.5 Stores and warehousing officers 25 25 31.25 Transportation and distribution 25 25 31.25 Customers 10 10 12.5 Suppliers 10 10 12.5 Total 80 80 100

Source: Field data (2020)

4.2.2 Age Of The Respondents

The first variable that was to be filled by the respondents was age, as the researcher

was much aware of most of the respondents being reluctant to expose their actual

Page 52: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

38  

ages, so the researcher decided to combine them in groups and the respondents were

to tick only one group of their range where their ages belong.

Table 4.2: Age Distribution Of Respondents (N=80

Source: Field data (2020)

Table 4.2 shows that, , majority of the respondents were aged from 26-30 Years who

make a total of 28(35%), then followed with the group of 21-25 who were

18(22.5%) and 31-35 18(22.5%) Years who both make a total of 45%, the third

group is a group of 36-40 Years who make a total of 10(12.5%), then followed by a

group of 41-45 years who make a total of 3.8%, then a group of 18-20 years who

make a total of two (2.5%) and the last group 45 years and above who only made a

total of 1.3% out of 100%. Hence all the respondents had 18 years and above, that is

they are all matured to understand and answer the given questions and only fewer

respondents that (1.3%) were above 45 Years and this is mostly due to the reason as

most of the private and reputable companies like COCACOLA prefer to hire young

and energetic people who can fit to the current competitive market.

4.2.3 Gender Of Respondents

The second variable that was to be filled by the respondents was gender, where from

a total of 80 respondents, 39 respondents were female, who made a total of 48.8%

and the remaining 41 respondents were Male, who made a total of 51.2% out of

100%, hence the researcher has observed the gender balance on getting the

information about the title on the study as shown from the table below.

Age category (years) f % 18-20 2 2.5 21-25 18 22.5 26-30 28 35.0 31-35 18 22.5 36-40 10 12.5 41-45 3 3.8 Above 45 1 1.3 Total 80 100

Page 53: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

39  

Table 4.3: Gender Distribution of respondents (N=80)

Source: Field data (2020)

4.2.4 Education Level Of The Respondents

The education category variable was so necessary for the researcher and the study in

general, as the researcher needed the respondents who has enough knowledge and

understandings about inbound and outbound logistics thing that could enable the

researcher analyze and conclude well the study.

Table 4.4: Education Level Of Respondents (N=80)

Source: Field data (2020)

Findings in Table 4.4 indicate that 36(45%) respondents were Bachelor degree

holders, while 20(25%) respondents were Diploma holders. On the other hand,

12(15%) respondents were holders of Master degree, whereas nine (11.2%) were

Certificate holders and three (3.8%) were holders of an Advanced level of secondary

education.

All the respondents that have been involved in answering the questionnaire have

enough academic qualification that is needed by the researcher as most of them hold

the Advanced level of education and above, hence the literacy rate of the respondents

were good and convincing.

Gender f % Female 39 48.8 Male 41 51.2 Total 80 100

Education level f % A-level 3 3.8 Certificate 9 11.2 Diploma 20 25 Bachelor 36 45 Masters 12 15 Total 80 100

Page 54: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

40  

After presenting the general information data, the researcher now presents the

findings from each Objective as per the respondents answers, the findings will first

be presented in a descriptive form where the researcher has focus on the mean and

the standard deviation to see if the questions on each objective was agreed or not,

then the researcher will present Pearson correlation to show the strength of the

relationship on which each independent variable has to the dependent variable, then

after Multiple regression will also be presented to see on what extent does the

independent variable contributes or influences the dependent variable, the last step

with this chapter, the researcher will Test the hypothesis that were previous

formulated in chapter 3 to see if they are accepted or rejected, here under are the

presentation of descriptive statistics

Table 4.5: Material Handling Logistics On Supplier-Customer Relationship

(N=80)

Source: Field data (2020)

Variable SD D N A SA Mean Std dev. f % f % f % f % f %

Shorter operating circle impacts the supplier - customer relationship

2

2.4

4

4.8

18

21.7

43

51.8

13

15.7

3.76

.875

Proper material handling reduces the handling cost

0

0

5

6

7

8.4

39

47

29

34.9

4.15

.828

Better customer care impacts the supplier - customer relationship

2

2.4

4

4

17

20.5

36

43.4

21

25.3

3.88

.946

Material handling facilitate better quality

2

2.4

1

1.2

11

13.3

32

38.6

34

41

4.19

.901

Material handling facilitates timely production

0

0

3

3.6

11

13.3

36

43.4

30

36.1

4.16

.803

Proper packaging of material and products

0

0

2

2.4

17

20.5

36

43.4

25

30.1

4.05

.794

Proper inspection of material

1

1.2

4

4.8

6

7.2

31

37.3

38

45.8

4.26

.896

Page 55: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

41  

4.3 Descriptive Analysis

From 4.4 above material handling activities had a total of seven(7) sub objectives

questions, the first question that was about “Shorter operating circle impacts the

supplier-customer relationship” it had a mean of 3.76 and the standard deviation of

0.875 where (13) 15.7% Strongly Agreed, 43 (51.8%) agreed, (18) 21.7% remained

Neutral, while (4)4.8% Disagree and the remaining(2) 2.4% strongly Disagree, hence

this shows most of the respondents agreed.

The second sub-question was” Proper material handling reduces the handling cost”

where it had a mean of 4.15 which implies that most of the respondents have Agreed

as the mean is above Average and the standard deviation of 0.828, (29)34.9%

Strongly Agreed, (39)47%Agreed, (7)8.4% remained Neutral while (5)6% Disagreed

and none of them Strongly disagreed hence this implies that most of of the

respondents agreed.

The third subquestion was”Better customer care impacts the supplier - customer

relationship” the question had a mean of 3.88 which implies that most of the

respondents have Agreed as the mean is above Average and the standard deviation

of 0.946 of which 25.3% Strongly Agreed, 43.4% agreed, 20.5% remained Neutral

while 4% Disagreed and the remaining 2.4% strongly disagreed, hence this implies

that most of the respondents agreed.

The fourth subquestion was” Material handling facilitate better quality” which had a

mean of 4.19 which implies that most of the respondents have Agreed as the mean is

above Average and the standard deviation of 0.901 in which 41% Strongly agreed,

38.6% Agreed, 13.3% remained Neutral, while1. 2% Disagreed and the remaining

2.4% Strongly Disagreed, this shows that most of the respondents Agreed that

material handling facilitate better quality hence impacts the supplier - customer

relationship.

The fifth question was” Material handling facilitates timely production” where it had

a mean of 4.16 which implies that most of the respondents have Agreed as the mean

Page 56: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

42  

is above Average and the standard deviation of 0.803 were 36.1% Strongly Agreed,

43.4% Agreed, 13.3% remained Neutral while 3.6% Disagree and none of the

respondents Strongly Disagree hence implies that it was mostly agreed.

The sixth Question was” Proper packaging of material and products” it had a mean

of 4.05 which implies that most of the respondents have Agreed as the mean is above

Average and the standard deviation of 0.794 were 30.1% Strongly Agreed, 43.4%

agreed, 20.5% remained Neutral while 2.4% Disagree and none of them Strongly

disagree.

The seventh question was” Proper inspection of material impacts the supplier-

customer relationship” the question had a mean of 4.26 which implies that most of

the respondents have Agreed as the mean is above Average and the standard

deviation of 0.896 were 45.8% Strongly Agreed, 37.3% Agreed, 7.2%remained

Neutral while 4.8 Disagreed and the remaining 1.2 strongly disagreed.

 

 

 

 

 

 

 

 

 

Page 57: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

43  

Table 4. 6: Warehouse Activities On Supplier-Customer Relationship (N=80)

Source: Field data (2020)

From table 4.5 above, it shows the impact of warehousing activities on the supplier-

customer relationship, where the objective had a total of seven (7) questions as

displayed from the table.

The first subquestion was “Warehouse personnel serve our customers at reasonable

times”where it had a mean of 4.23 which implies that most of the respondents have

Agreed as the mean is above Average and the standard deviation of 0.900, where

42.5% Strongly Agreed, 46.3% Agreed, 5.0% remained Neutral while 3.8 Disagreed

and the remaining 2.5% Strongly Disagreed.

The second question was” Cargo available to customers on time after they have

arrived in the warehouse” it had a mean of 4.08 which implies that most of the

Variable SD D N A SA Mean Std dev. f % f % f % f % f %

Warehouse personnel serve our customers at reasonable times

2

2.5

3

3.8

4

5.0

37

46.3

34

42.5

4.23

.900

Cargo available to customer after arrival

2

2.5

2

2.5

13

16.3

34

42.5

29

36.1

4.08

.925

Proper warehouse management minimizes total carrying cost

2

2.5

4

5

8

10

42

53

24

30

4.03

.914

Proper warehouse management minimizes product damage

0

0

2

2.5

9

11.3

35

43.8

34

42.5

4.26

.759

SOP in warehouse helps in providing security

1

1.3

4

5.0

17

21.3

30

37.5

28

35.0

4.00

.941

Proper location reduces customer waiting time

1

1.3

2

2.5

14

17.5

43

53.8

20

25.0

3.99

.941

Items on lines picked accurately as per customer orders

0

0

2

2.5

9

11.3

38

47.5

31

38.8

4.23

.746

Page 58: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

44  

respondents have Agreed as the mean is above Average and the standard deviation

of 0.925 were 36.1% Strongly Agreed, 42.5% Agreed, 16.3% remained Neutral

while 2.5% Disagreed and the remaining 2.5% Strongly disagreed.

The third question was” Proper warehouse management minimizes total carrying

cost” the question had a mean of 4.03 which implies that most of the respondents

have Agreed as the mean is above Average and the standard deviation of 0.914 were

30% Strongly Agreed, 53% Agreed, 10% remained Neutral while 5% Disagreed and

the remaining 2.5% Strongly Disagreed.

The forth question was” Proper warehouse management minimizes product damage”

the question had a mean of 4.26 which implies that most of the respondents have

Agreed as the mean is above Average and the standard deviation of 0.759 were

42.5% Strongly Agreed, 43.8% Agreed, 11.3% remained Neutral while 2.5%

Disagreed.

The fifth question was” SOP in warehouse helps in providing security” the question

had a mean of 4.00 which implies that most of the respondents have Agreed as the

mean is above Average and the standard deviation of 0.941 were35.0% Strongly

Agreed, 37.5% Agreed, 21.3 remained Neutral while 5.0% Disagreed and the

remaining 1.3% Strongly Disagreed.

The Sixth Question was” Proper location reduces customer waiting time” where it

had a mean of 3.99 which implies that most of the respondents have Agreed as the

mean is above Average and the standard deviation of 0.941, were 25% Strongly

Agreed, 53.8% Agreed, 17.5% Remained Neutral, while 2.5% Disagreed and the

remaining 1.3% Strongly Disagreed.

The seventh question was” Items on lines picked accurately as per customer orders”

the question had a mean of 4.23 which implies that most of the respondents have

Agreed as the mean is above Average and the standard deviation of 0.746 were 38.8

Strongly Agreed, 47.5 Agreed, 11.3 remained Neutral while 2.5% disagreed.

Page 59: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

45  

Table 4. 7: Transportation Activities on supplier-customer relationship (N=80)

Variable SD D N A SA Mean Std dev. f % f % f % f % f %

Transportation system provides efficiency in logistics

1

1.3

2

2.5

8

10.0

32

40

37

46.3

4.28

.842

Transportation system helps the company reach its economies of scale

1

1.3

2

2.5

7

8.8

36

45

34

42.5

4.25 .819

The overall quality of companies is very high

1

1.3

2

2.5

6

7.5

32

40

39

48.8

4.33

.823

The company transportation service is cost efficient

1

1.3

0

0

9

11.3

42

52.5

28

35.0

4.20

.736

Transportation service of the company is flexible

0

0

4

5.0

12

15

46

57.5

18

22.5

3.98

.763

Transportation service of the company provides quick response

0

0

0

0

12

15

48

60

20

25.0

4.10 .628

Transportation cost is very competitive compared to market

1

1.3

2

2.5

13

16.3

35

43.8

29

36.3

4.11 .857

Transportation system ensures safety and timely delivery

1 1.3 0 0 13 16.3 40 50 26 32.5 4.13 .769

Employee performance, inadequate training, lack of understanding

2 2.5 2 2.5 4 5 37 46.3 35 43.8 4.26 .868

Lack of adequate modern equipment, infrastructure problem

1 1.3 2 2.5 4 5 38 47.5 35 43.8 4.3 .789

Source: Field data (2020)

From table 4.6 above displays the subquestions from the objective number 3 that is

the impact of transportation activities on the supplier-customer relationship. The

objective had a total number of ten questions (10) as follows

The first question was” Transportation system provides efficiency in logistics” where

it had a mean of 4.28 which implies that most of the respondents have Agreed as the

mean is above Average and the standard deviation of 0.842, were 46.3% Strongly

Agreed, 40% Agreed, 10% remained Neutral while 2.5% Disagreed and the

remaining 1.3% Strongly Disagreed.

The second question was” Transportation system helps the company reach its

economies of scale” it had a mean of 4.25 which implies that most of the respondents

Page 60: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

46  

have Agreed as the mean is above Average and the standard deviation of 0.819,

were 42.5% Strongly Agreed, 45% Agreed, 8.8% remained Neutral while 2.5%

Disagreed and the remaining 1.3% Strongly Disagreed.

The third question was” The overall quality of companies is very high, hence impacts

the supplier-customer relationship”the question had a mean of 4.33 which implies

that most of the respondents have Agreed as the mean is above Average and the

standard deviation of 0.823 where 48.8% Strongly Agreed, 40% Agreed, 7.5%

remained Neutral while 2.5% Disagreed and the remaining 1.3% Strongly Disagreed.

The fourth question was” The company transportation service is cost efficient”the

question had a mean of 4.2 which implies that most of the respondents have Agreed

as the mean is above Average and the standard deviation of 0.736 where 35%

Strongly Agreed, 52.5% Agreed, 11.3% remained Neutral while 1.3% Strongly

Disagreed.

The fifth question was “Transportation service of the company is flexible”the

question had a mean of 3.98 which implies that most of the respondents have Agreed

as the mean is above Average and the standard deviation of 0.763, were 22.5%

Strongly Agreed, 57.5% Agreed, 15% remained Neutral while 5% Agreed.

The sixth question was” Transportation service of the company provides quick

response” the question had a mean of 4.10 which implies that most of the

respondents have Agreed as the mean is above Average and the standard deviation

of 0.628 were 25% Strongly Agreed, 60% Agreed, while the remaining 12%

remained Neutral.

The seventh question was” Transportation cost is very competitive compared to

market”the question had a mean of 4.11 which implies that most of the respondents

have Agreed as the mean is above Average and the standard deviation of 0.857

where 36.3% Strongly Agreed, 43.8% Agreed, 16.3% remained Neutral while 1.3%

Strongly Disagreed.

The Eighth question was” Transportation system ensures safety and timely delivery”

the question had a mean of 4.13 which implies that most of the respondents have

Page 61: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

47  

Agreed as the mean is above Average and the standard deviation of 0.769,

where32.5% Strongly Agreed, 50% Agreed, 16.3% remained Neutral, while 1.3%

Strongly Disagreed.

The Ninth Question was” Employee performance, inadequate training, lack of

understanding are the major challenges in transportation activities, hence impacts the

supplier-customer relationship.” The question had a mean of 4.26 which implies that

most of the respondents have Agreed as the mean is above Average and the standard

deviation of 0.868, where 43.8% Strongly Agreed, 46.3% Agreed, 5% remained

Neutral while 2.5% Disagreed and the remaining 2.5% Strongly Disagreed.

The last question of the objective was” Lack of adequate modern equipment,

infrastructure problem are the non-human challenges that affect transportation

operation” the question had a mean of 4.3 which implies that most of the respondents

have Agreed as the mean is above Average and the standard deviation of 0.789,

where 43.8 Strongly Agreed, 47.5 Agreed, 5% remained Neutral, while 2.5%

Disagreed and the remaining 1.3% Strongly Disagreed.

Page 62: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

48  

Table 4. 8: Distribution Activities On Supplier-Customer Relationship (N=80) Variable SD D N A SA

f % f % f % f % f % Units ordered by customers are fully distributed

2

2.5

3

3.8

7

8.8

37

46.3

31

38.8

Orders are consistently distributed to the right customers

2

2.5

0

0

7

8.8

40

50

31

38.8

Goods distributed to the customers at the right time

0

0

4

5

5

6.3

39

48.8

32

40

The distribution sector order policies are flexible enough to permit timely response to the market demand

1 1.3 3 3.8 12 15 39 48 25 31.3

The Distribution team responds timely to special request and needs of customers

0 0 1 1.3 10 12.5 40 50.0 29 36.3

The units distributed to the customers are correct and exactly as specified

0

0

2 2.5 5 6.3 38 47.5 35 43.8

The average delivery time is reliable, this impacts the supplier-customer relationship

0 0 2 2.5 8 10 45 56.3 25 31.3

The Products are always distributed as promised, hence impacts the supplier-customer relationship

0 0 5 6.3 7 8.8 43 53.8 25 31.3

The damage in transit is minimum hence the

2 2.5 3 3.8 8 10.0 36 45 31 38.8

Goods are well inspected before distribution, hence impacts the supplier-customer relationship.

1 1.3 2 2.5 4 5.0 38 47.5 35 43.8

Source: Field data(2020)

Table 4.7 above displays the findings of objective number four”the impact of

distribution activities on the supplier-Customer relationship, the objective had a total

of 10 questions as explained below.

The first question was” Units ordered by customers are fully distributed” the

question had a mean of 4.3 and the standard deviation of 0.786 where 38.8%

Strongly Agreed, 46.3% Agreed, 8.8% remained Neutral while 3.8% Disagreed and

the remaining 2.5% Strongly Disagreed.

Page 63: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

49  

The Second question was” Orders are consistently distributed to the right customers”

the question had a mean of 4.33 and the standard deviation of 0.708 where 38.8%

Strongly Agreed, 50% Agreed, 8.8% remained Neutral while the remaining 2.5%

Strongly Disagreed.

The third question was” Goods distributed to the customers at the right time”the

question had a mean of 4.23 and the standard deviation of 0.811 where 40% Strongly

Agreed, 48.8 Agreed, 6.3% remained Neutral while 5% Disagreed.

The fourth question was” Average delivery time is reliable”the question had a mean

of 4.10 and standard deviation of 0.805 where 31.3% Strongly Agreed, 56.3%

Agreed, 10% remained Neutral while 2.5% Disagreed.

The fifth question was” The Products are always distributed as promised”the

question had a mean of 4.16 and the standard deviation of 0.702 where 31.3%

Strongly Agreed, 53.8% Agreed, 8.8% remained Neutral while 6.3% Disagreed.

The Sixth question was” Damage in transit is minimum hence the quality of goods

are well maintained” the question had a mean of 4.24 and the standard deviation of

0.783 where 38.8% Strongly Agreed, 45% Agreed, 10% remained Neutral while

3.8% Disagreed and 2.5% Strongly Disagreed.

The Seventh question was” The units distributed to the customers are correct and

exactly as specified hence impacts the supplier-customer relationship” the question

had a mean of 4.14 and the standard deviation of 0.924 where 43.8% Strongly

Agreed, 47.5% Agreed, 6.3% remained Neutral while 2.5% Disagreed.

The Eighth question was “The Distribution team responds timely to special request

and needs of customers, hence has an impact on the supplier-customer

relationship”where 36.3% Strongly agree, 50% Agreed 12.5% remained Neutral

while 1.3% Disagreed.

The Ninth Question was” The distribution sector order policies are flexible enough to

permit timely response to the market demand, hence impacts the supplier-customer

Page 64: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

50  

relationship”. Where 31.3% Strongly Agreed, 48% Agreed, 15% remained Neutral,

while 3.8 Disagreed and the remaining 1.3% Strongly Disagreed.

The Tenth question was” Goods are well inspected before distribution, hence impacts

the supplier-customer relationship”on this 43.8 Strongly agreed, 47.5 Agreed, 5%

remained Neutral while 2.5% Disagreed and the remaining 1.3% Strongly Disagreed.

Table 4. 9: Supplier-Customer Relationship (N=80)

Variable SD D N A SA Mean Std dev. f % f % f % f % f %

The roles and responsibilities between the supplier and customers are well defined

7

8.8

10

12.5

3

3.8

31

38.8

29

36.3

4.11

.886

The trust and open communication exists between the suppliers and the customers

7

8.8

8

10.0

2

2.5

23

28.8

40

50 4.08 .911

There is a continuous improvements between the suppliers and customers toward the agreed targets

7

8.8

10

12.5

9

11.3

18

22.5

36

45.0

4.06

.946

Customers focus more on The common vision and the agreed targets

0

0

2

2.5

9

11.3

35

43.8

34

42.5

4.26 .759

The needs are well anticipated and creative solutions provided

3

3.8

7

8.8

2

2.5

30

37.5

38

47.5

4.11

.886

On time delivery and payments are done

6

7.5

6

7.5

5

6.3

33

41.3

30

37.5

4.11

.886

Business risk is equally shared 2

2.5

4

5.0

7

8.8

23

2.88

44

55

4.23

.746

Source: Field data (2020)

The above table 4.8 Displays the important factors that affects the Supplier-Customer

relationship, the objective had a total of seven questions (7) as explained below.

The first question was” The roles and responsibilities between the supplier and

customers are well defined” where the question had a mean of 4.11 which implies

that most of the respondents have Agreed as the mean is above Average and the

Standard deviation of 0.886 where 36.3% Strongly Agreed, 38.8% Agreed, 3.8%

remained Neutral while 12.5% Disagreed and the remaining 8.8% Strongly

Disagreed.

Page 65: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

51  

The second question was” The trust and open communication exists between the

suppliers and the customers”where the question had a mean of 4.08 which implies

that most of the respondents have Agreed as the mean is above Average and the

standard deviation of 0.911 where 50% Strongly Agreed, 28.8 Agreed, 2.5%

remained Neutral while 10% Disagreed and the remaining 8.8% Strongly Disagreed.

The third question was “There is a continuous improvements between the suppliers

and customers toward the agreed targets” the question had a mean of 4.06 which

implies that most of the respondents have Agreed as the mean is above Average and

the standard deviation of 0.946 where 45% Strongly Agreed, 22.5% Agreed, 11.3%

remained Neutral while 12.5% Disagreed and the remaining 8.8% Strongly

Disagreed.

The fourth question was”Customers focus more on The common vision and the

agreed targets”the question had a mean of 4.26 which implies that most of the

respondents have Agreed as the mean is above Average and the standard deviation

of 0.759 where 42.5% Strongly Agreed, 43.8% Agreed, 11.3% remained Neutral

while 2.5% Disagreed.

The Fifth question was” The needs are well anticipated and creative solutions

provided”the question had a mean of 4.11 which implies that most of the respondents

have Agreed as the mean is above Average and the standard deviation of 0.886

where 47.5% Strongly Agreed, 37.5% Agreed, 2.5% remained Neutral while 8.8%

Disagreed and the remaining 3.8% Strongly Disagreed.

The Sixth question was” On time delivery and payments are done”the question had a

mean of 4.11 which implies that most of the respondents have Agreed as the mean is

above Average and the standard deviation of 0.886 where 37.5% Strongly Agreed,

41.3% Agreed, 6.3% remained Neutral while 7.5% Disagreed and the remaining

7.5% Strongly Disagreed.

The last seventh question was” Business risk is equally shared”the question had a

mean of 4.23 which implies that most of the respondents have Agreed as the mean is

above Average and the standard deviation of 0.746 where 55% Strongly Agreed,

Page 66: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

52  

2.88% Agreed, 8.8% remained Neutral while 5% Disagreed and the remaining 2.5%

Strongly Disagreed.

4.4 Pearson Correlation Analysis

The analysis is defined as a measure of linear association between the independent

and the dependent variables, the analysis is used to show the strength, significance

and the direction of the relationship that is whether it is negative, positive or no

correlation at all, through Pearson correlation analysis we usually assume that , the

variable data should normally be distributed and the variables should be continuous

that is the scale of measurement should be intervals and the ratios example time,

height, age and the other alike (Hairs et al 2009).

In determining the kind of the relation the independent and dependent variable has,

we look at the p-value, and on determining the strength and the direction of the

relationship we observe the correlation coefficient value. P-value that is less than the

alpha value 0.05 implies a significant relationship between the variables and the p-

value that is greater than 0.05 implies the absence of relationship (Hairs et al 2009).

Explaining about the correlation coefficient is, the values usually lie between 0.00

and 1.00, where the closer the value is to 1.00 the more variables seem to have a

strong relationship, and if the values are closer to 0.00 we subject the relationship

between the variables to be weak.

On below table 4.9 the researcher has shown the correlation coefficient ranges and

their interpretations and the strength of associations and table 4.10 we shall see

correlation coefficient from the analysis.

Table 4. 10: Correlation Coefficient Ranges Correlation coefficient range Strength of association 0.0 - ± 0.19 Very slight, almost negligible± 0.2 - ± 0.39 Slight but definite relationship ± 0.4 - ± 0.59 Moderate relationship ± 0.6 - ± 0.79 Strong relationship ± 0.8 - ± 1.000 Very strong relationship

Source: Hair et al. 2009

Page 67: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

53  

Table 4. 11: Correlations

Handling_

Materials

Warehous

e_Manage

ment

Transportatio

n_Manageme

nt

Distribution

_Managem

ent

Supplier_

Customer

Handling_Mate

rials

Pearson

Correlation

1

Sig. (2-tailed)

N 80

Warehouse_Ma

nagement

Pearson

Correlation

.376** 1

Sig. (2-tailed) .001

N 80 80

Transportation_

Management

Pearson

Correlation

-.024 .252* 1

Sig. (2-tailed) .831 .024

N 80 80 80

Distribution_M

anagement

Pearson

Correlation

.507** .354** .068 1

Sig. (2-tailed) .000 .001 .551

N 80 80 80 80

Supplier_Custo

mer

Pearson

Correlation

.551** .244* -.006 .936** 1

Sig. (2-tailed) .000 .029 .955 .000

N 80 80 80 80 80

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (1-tailed).

Source: Field data (2020)

The above table shows correlation coefficient between the independent and the

dependent variables that is material handling, warehousing, transportation and

Page 68: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

54  

distribution activities and the dependent variable being the supplier-customer

relationship.

4.4.1 Material Handling And Supplier-Customer Relationship

Table 4.10 shows,that there is a significant relationship between material handling

and the supplier-customer relationship by observing on the p-value 0.000 that is less

than the alpha value 0.05, on deciding the strength of of relationship between

material handling and the supplier-customer,the correlation presents that there is a

moderate relationship between the variables that lies between ± 0.4 - ± 0.59 from the

correlation coefficient ranges table 4.9 and the researcher analysis presents 0.551 as

shown in table 4.10 above.

4.4.2 Warehouse Management And Supplier-Customer Relationship

Table 4.10 shows shows that,there is a significant relationship between warehouse

management and the supplier-customer relationship by observing on the p-value of

0.029 that is less than the alpha value 0.05, on deciding the strength of of relationship

between warehousing management and the supplier-customer,the correlation

presents that there is a Slight but definite relationship between the variables that lies

between ± 0.2 - ± 0.39 from the correlation coefficient ranges Table 4.9 and the

researcher analysis presents 0.244 as shown in table 4.10 above.

4.4.3 Transportation Management And Supplier-Customer Relationship

Table 4.10 shows that, there is an absence of significant relationship between

Transportation management and the supplier-customer relationship by observing on

the p-value of 0.955 that is greater than the alpha value 0.05, on deciding the strength

of the relationship between warehousing management and the supplier-customer, the

correlation presents that there is a negative relationship between the variables of -006

correlation coefficient ranges.

4.4.4 Distribution Management And Supplier-Customer Relationship

Table 4.10 shows shows that, there is a significant relationship between Distribution

management and the supplier-customer relationship by observing on the p-value of

Page 69: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

55  

0.000 that is less than the alpha value 0.05, on deciding the strength of relationship

between Transportation management and the supplier-customer, the correlation

presents that there is a very Strong relationship between the variables that lies

between ± 0.8 - ± 1.000 from the correlation coefficient ranges Table 4.9 and the

researcher analysis presents 0.936 as shown in table 4.10 above.

4.5 Multiple Regression Analysis

The analysis is the extension of simple linear analysis, where is is used when the

researcher wants to predict more than two variables (Hairs et al 2009).In the study

researcher has used the standard Multiple regression analysis as all the independent

variables were combined together to show how they influence the dependent variable

.

4.5.1 Model Summary

The model summary shows the extent to which the dependent variable (Supplier-

Customer relationship) is well or less explained by the independent variable (material

handling, warehousing, transportation and distribution)

In the table below the R square is 0.899 which implies that all the independent

variables explains of the dependent variable by 89.9%, only 10.1% remain

unexplained, hence the researcher concluded that the model that was used in

determining the relationship between the independent and dependent variable is very

good.

Table 4. 12: Model Summaryb

Model R R Square Adjusted R Square

Std. Error of the Estimate

Durbin-Watson

1 .948a .899 .893 2.01146 1.691

A. PREDICTORS: (CONSTANT), DISTRIBUTION_MANAGEMENT,

TRANSPORTATION_MANAGEMENT,

WAREHOUSE_MANAGEMENT, HANDLING_MATERIALS

B. DEPENDENT VARIABLE: SUPPLIER_CUSTOMER-

RELATIONSHIP

Source: Field data (2020)

Page 70: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

56  

4.5.2 Analysis Of Variance (ANOVA)

The analysis of variance (ANOVA) summary table shows the statistical adequacy of

the used model. From table 4.12 below, the p-value / significance level is 0.000

which is less than 0.05 and the F-test result is 166.693. These results show that the

model explains well the dependent variable and model can be generalized in the

entire manufacturing companies in Tanzania

.

Table 4. 13: ANOVAa

Model Sum of Squares df Mean Square F Sig.

Residual 303.448 75 4.046

Total 3001.187 79

A. DEPENDENT VARIABLE: SUPPLIER_CUSTOMER

B. PREDICTORS: (CONSTANT), DISTRIBUTION_MANAGEMENT,

TRANSPORTATION_MANAGEMENT, WAREHOUSE_MANAGEMENT,

HANDLING_MATERIALS

Source: Field data (2020)

4.5.3 Coefficient Results

The table below (coefficient result) explains by how much each independent

variable(material handling, warehousing, Transportation and Distribution) predict

the depend variable(Supplier-Customer relationship), being standardized and

unstandardiized coefficient, the researcher will the significant(p-value) will also be

used to determine the relationship.

Page 71: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

57  

Table 4.13 Coefficientsa

Model Unstandardized Coefficients Standardized Coefficients

t Sig.

B Std. Error Beta

1

(Constant) -7.309 3.220 -2.270 .026 Material Handling .264 .088 .132 2.989 .004 Warehouse activities -.261 .091 -.121 -2.880 .005 Transportation activities -.053 .058 -.035 -.904 .369 Distribution activities .919 .044 .914 20.990 .000

a. DEPENDENT VARIABLE: SUPPLIER_CUSTOMER

b. INDEPENDENT VARIABLE: MATERIAL HANDLING, WAREHOUSE

MANAGEMENT, TRANSPORTATION MANAGEMENT AND

DISTRIBUTION.

Source: Field data (2020)

4.5.3.1 The Influence Of Material Handling Activities On The Supplier-

Customer Relationship

From table 4.13 above, it shows that material handling has a positive contribution to

the supplier- customer relationship as the significant 0.004 is less than 0.05, also

material handling activities explains better the supplier-Customer relationship since it

has a positive beta coefficient of 0.264, this means that if the material handling

activities are well improved, it will lead to an increase in Supplier-Customer

relationship by 0.264.

4.5.3.2 The Influence Of Warehousing Activities On The Supplier-Customer

Relationship

From table 4.13 above, it shows that warehousing activities have a positive

contribution to the supplier- customer relationship as the significant 0.005 is less than

0.05, warehousing activities has a beta of -0.261, this means that although the

warehousing activities improve in any how it will lead to the decrease of Supplier-

Customer relationship by 0.261

Page 72: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

58  

4.5.3.3 The Influence Of Transportation Activities On The Supplier-Customer

Relationship

From table 4.13 above, it shows that transportation activities have a negative

contribution to the supplier- customer relationship as the significant 0.369 is greater

than 0.05, transportation activities has a beta of -0.053, this means that no matter the

improvement of Transportation activities it will lead to the decrease of Supplier-

Customer relationship by 0.053.

4.5.3.4 The Influence Of Distribution Activities On The Supplier-Customer

Relationship

 

From table 4.13 above, it shows that distribution activities have a positive

contribution to the supplier- customer relationship as the significant 0.000 is less than

0.05, also distribution activities explains better the supplier-Customer relationship

since it has a positive beta coefficient of 0.919, this means that if the distribution

activities are well improved, it will lead to an increase in Supplier-Customer

relationship by 0.919.

4.5.4 Summaries Of The Regression Analysis Findings

As all the other factors remaining constant, among four objectives, two objectives

that are material handling and distribution activities have a positive contribution to

the dependent variable (Supplier-Customer relationship) while the remaining two

objectives (warehousing activities and transportation) have a negative contribution to

the dependent variable.

Figure 4. 1: New Regression Equation Independent Variables

The above findings can be simplified and projected to the regression equation as

follows

Y= -7.309 + (0.264X1) + (-0.261X2) + (-0.053X3) + (0.919X4)

Y= Dependent Variable (Supplier-Customer Relationship)

Where: Beta (β0) is the constant

(β1, β2, β3, β4) are regression coefficients

X1 =Material Handling Activities

Page 73: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

59  

X2 =Warehousing Activities

X3 =Transportation Activities

X4 =Distribution Activities

4.6 Hypothesis Testing

The hypothesis that were prepared and talked about in chapter two (2), they are now

being tested using the regression output presented in table 4.13 above, the hypothesis

that were prepared were,

H1: There is a relationship between Material Handling Activities and Supplier-

Customer Relationship

H2:There is a relationship between Warehousing Activities and Supplier-Customer

Relationship

H3:There is a relationship between Transportation Activities and Supplier-Customer

Relationship

H4:There is a relationship between Warehousing Activities and Supplier-Customer

Relationship.

In testing the hypothesis the researcher concentrated mainly on the significant value

(p-value) and the unstandardized beta coefficient to find out if the hypothesis is to be

Accepted or Rejected and also the direction of the relationship between the variables.

The researcher will accept the hypothesis if it is less than 0.05 and if the coefficient

will produce the same results as what the researcher predicted in hypothesis, unless

otherwise they will be rejected.

4.6.1: There Is The Relationship Between Material Handling Activities And

Supplier-Customer Relationship (H1)

From table 4.13 above, it shows that material handling has a positive relationship to

the supplier- customer relationship as the significant 0.004 is less than 0.05, also

material handling activities explains better the supplier-Customer relationship since it

has a positive beta coefficient of 0.264, hence H01 is accepted.

Page 74: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

60  

4.6.2: There Is The Relationship Between Warehousing Activities And Supplier-

Customer Relationship (H2)

From table 4.13 above, it shows that warehousing activities have a positive

relationship to the supplier- customer relationship as the significant 0.005 is less than

0.05. Warehousing activities has a beta of -0.261 which means warehousing

activities has a negative influence to supplier-customer relationship, this means that

the hypothesis (H02) has been accepted.

4.6.3: There Is The Relationship Between Transportation Activities And

Supplier-Customer Relationship (H3)

From table 4.13 above, it shows that transportation activities have no significant

relationship to the supplier- customer relationship as the p-value 0.369 which is

greater than 0.05. The variable (transportation) activities has a beta of -0.053 and this

means that the hypothesis three (H03) have been rejected.

4.6.4: There Is The Relationship Between Distribution Activities And Supplier-

Customer Relationship (H4)

From table 4.13 above, it shows that distribution activities have a positive

relationship to the supplier- customer relationship as the significant 0.000 is less than

0.05, also distribution activities explains better the supplier-Customer relationship

since it has a positive beta coefficient of 0.919, hence H04 has been accepted.

Table 4. 14: Summary Of The Tested Hypotheses Hypothesis Independent

variable Dependent variable Sig value Status

H1 Material handling Supplier-Customer relationship

0.004 Accepted

H2 Warehousing activities

Supplier-Customer relationship

0.005 Accepted

H3 Transportation activities

Supplier-Customer relationship

0.369 Rejected

H4 Distribution Activities

Supplier-Customer relationship

0.000 Accepted

Source: Field data (2020)

Page 75: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

61  

CHAPTER FIVE

DISCUSSION OF FINDINGS

5.1 Introduction

This chapter presents the discussion of findings that were made in the previous

chapter, the discussion are according to the objective (specific and general objective),

the researcher has first collected the analysis findings from each objective, the

second is making a comparison with similar findings from different studies and then

discussing the implication of each result.

5.2 Reliability

According to Collins &Hussey (2009), a measuring instrument is subjected to be

more reliable when the end results of the same research yield the same or are

homogeneous, normally the Alpha coefficient ranges from 0-1 and the closer the

scale is to 1 the greater the reliability, hence most of the studies recommends that the

reliability should not be below 0.7, the overall realibility of this study achieved an

alpha coefficient of 0.87, hence this signifies that there is a strong reliability within

the 41 asked questions as shown in table 3.2 above

.

5.3. Discussion Of Demographic Information

5.3.1 Age Of Respondents

Most of the respondents were aged between 21 to 35 and no one among the

respondents was under 18 years old hence they all had a capacity to understand and

effectively playing their roles in affecting supplier-customer relationship.

5.3.2 Education Levels Of The Respondents

Most of the respondents were educated enough to understand the importance of

creating a strong relationship between the suppliers and the customers.

5.3.3 Gender Of Respondents

Gender was equally balanced as there were 39 female and 41 male.

Page 76: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

62  

5.4 Discussion Of Objective-Wised Findings

5.4.1 The Influence Of Material Handling Activities On Supplier-Customer

Relationship.

From the findings presented in chapter four, material handling activities is positively

correlated to the supplier-customer relationship as it has a Pearson correlation of

0.000 significant level and 0.551 (moderate relationship), the multiple regression

analysis also revealed that material handling activities had an influence/predicts

supplier-customer relationship with p-value of 0.004 that is below 0.05 and a Beta

coefficient of 0.264 hence positively related.

This supports the study of Kosonaim and Chikanha (2012), which revealed that if

the inbound activities are well done, especially material handling they will positively

improve the organization efficient level and automatically lead to high organization

profit.

Also the findings were also supported by Stefan Koch (2005) who wrote that,

supplier-customer relationship management will be strengthened if the daily

operational activities like material handling are well improved.

This implies that, if material handling activities are well improved, they will lead to

a shorter operating circle, reduce handling cost, facilitate better customer care a thing

that will automatically improve the supplier-customer relationship.

5.4.2 The Influence Of Warehousing Activities On Supplier-Customer

Relationship.

From the findings presented in chapter four, warehousing activities is positively

correlated to the supplier-customer relationship as it has a Pearson correlation of 0.29

significant level (below 0.05 and 0.244 (slight but definite relationship), the multiple

regression analysis revealed that warehousing activities negatively influence/predicts

supplier-customer relationship with p-value of 0.005 that is below 0.05 and a Beta

coefficient of -0.261 hence negatively related.

Page 77: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

63  

The study findings were very different from Karaduman and Udeli (2015) who wrote

that if all the warehousing activities are well done such as receiving, unloading,

inspection, record keeping and storage they will lead to organizational operational

improvement and lead to a strong relationship between the supplier and customers.

Also the study of Reid and Sanders, (2007) wrote that, Supplier- Customer

relationship is strengthened if most of the firms will seriously engage themselves in

proper inventory management in order to ensure that all the goods are made available

at the right quality, quantity and at a specified time a thing that will also lead to the

organization optimal service level.

Implication from this study is that although all the warehousing activities are well

done and daily operation is improved, they will only make the organization meet its

objectives different from strengthening the supplier-customer relationship, hence

there are other factors to strengthen the supplier-customer relationship more than

warehousing activities.

5.4.3 The Influence Of Transportation Activities On Supplier-Customer

Relationship.

From the findings presented in chapter four, transportation activities is negatively

correlated to the supplier-customer relationship as it has a Pearson correlation of

0.955 significant level (above 0.05 and -0.006 (negative relationship), the multiple

regression analysis revealed that transportation activities negatively

influence/predicts supplier-customer relationship with p-value of 0.369 that is above

0.05 and a Beta coefficient of -0.053 hence negatively related.

The findings are inversely to Bowersox (2010) who wrote that if the inbound

transportation is well planned for its delivery time and make the products reach the

customer is a specified time, it will lead to organizational great performance and all

the materials will flow on there right way. A thing that will strengthen the supplier-

customer relationship.

Page 78: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

64  

The findings from Branch, (2009) explained that, if transportation activities are

practiced well, it will make the supply chain efficiency and the goods to be delivered

to the customers in economical and very secure way as the study termed Inbound

transportation as the backbone of every manufacturing industry, so if well practiced

the supplier-customer relationship will be in a very good position.

The implication from this study is that, Transportation Activities are not considered

to be among the factors that strengthen the supplier-customer relationship, that’s

why, although the there is any improvement in the transportation activities, the

supplier-Customer relationship decreases by 0.035 hence not influenced.

5.4.4 The Influence Of Distribution Activities On The Supplier-Customer

Relationship.

From the findings presented in chapter four, Distribution activities is positively

correlated to the supplier-customer relationship as it has a Pearson correlation of

0.000 significant level and 0.914 (Very strong relationship), the multiple regression

analysis also revealed that Distribution activities had an influence/predicts supplier-

customer relationship with p-value of 0.000 that is below 0.05 and a Beta coefficient

of 0.919 hence positively influenced.

The study is positively supported by Madison (2019), where he wrote that if the

organization will pick the right distribution channel or network, and improve the

delivery options to make the outbound logistics run effectively and efficiently it will

improve the bond between the supplier and the customer.

The findings also were supported by (Bowersox et al, 2010). If outbound logistics

are effectively and efficiently operated it creates a positive influence not only on the

performance of the business, but also on the customer perception of the quality

product and services provided by the firm. In case of any uncertainty in outbound

flow, it will create the dissatisfaction to the firm’s customer base, when used

properly, it is a strategically important bridge in achieving competitive advantage

and strengthen the supplier-customer relationship.

Page 79: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

65  

(Manikas 2016) added that, the bond between the suppliers and customers will be

strong if distribution channels properly align with customer’s choice and focus on

service quality priorities.

The implication from the study is that, distribution activities positively influence the

supplier -customer relationship so they should be improved so as to make the bond

forever exist.

 

Page 80: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

66  

CHAPTER SIX

SUMMARY, CONCLUSION AND RECOMMENDATION

6.1 Introduction

This chapter will give enough summary about the study, including the study

objectives, other reviewed literatures, methodology used, the findings of the study,

conclusion and recommendations.

6.2 Summary Of Findings

The main objective of the study was the impact of inbound and outbound activities

on the supplier-customer relationship, where four specific objectives were formed

from the main objective and that is the impact of material handling activities,

warehousing activities, Transportation Activities and Distribution activities on the

Supplier-customer relationship.

Geographically the study based in Tanzania in Dar Es Salaam region and the data

were collected at Cocacola kwanza Manufacturing Compan the place was chosen

because it is a place where logistics activities are well practiced (both inbound and

outbound activities) so it has been easy for them to respond to issues about logistics

activities and the effect on customer supplier relationship and also the area has been

easily accessible by the researcher so it enabled on saving time and cost, hence the

research kept more focus on the department that mostly deals with logistics.

The theory that was used to support the study was Social Exchange Theory, Network

Theory and Game theory. Also, different literatures of the same study and those

which are relatively related were reviewed to make the researcher understand deeply

the chosen topic and the relationship between variables and the selection of proper

methodology to be used and the formulation of hypothesis to find out what objective

could be accepted or rejected after the findings.

The researcher employed the use of case study design that allows cross sectional data

collection in order to examine the impact of logistics activities towards the supplier-

customer relationship. The quantitative approach has also been used to guide the

Page 81: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

67  

study in showing the impact of the independent variables towards the dependent

variable. Also the researcher employed the use of random samples to pick the

requires a number of samples after dividing the targeted sample into groups so as to

get the proportionate from each strata in the entire population. Both primary and

secondary data collection methods were used, where questionnaires were used as a

primary data collection method and documentary reviews were used as a secondary

data method, questionnaires were prepared and distributed to 80 respondents then

later collected back for analysis.

The analysis techniques that were used was Pearson correlation analysis (helped the

researcher to know the significance level, direction and strength of the relationship

between the variables) and also multiple regression was used to know the extent in

which the independent variables influence the dependent variables. The used analysis

techniques were made possible with the help of IBM SPSS STATISTICS 20

Findings from the analysis, In testing the hypothesis the researcher concentrated

mainly on the significant value (p-value) and the unstandardized beta coefficient to

find out if the hypothesis will be Accepted or rejected and also the direction of the

relationship between the variables. The researcher accepted the hypothesis if it is

less than 0.05 and if the coefficient will produce the same results as what the

researcher predicted in hypothesis, unless otherwise they were rejected. From the

findings three objectives were Accepted that is material handling which had a

significant level of (0.004) and Beta coefficient of (0.264) also Distribution

Activities which had a significant level of (0.000) and Beta coefficient of (0.919)

and Warehousing Activities which had a significant level of (0.005) and beta

coefficient of (-0.261).the other one remaining objective was rejected that is

Transportation activities that had a significant level of (0.369)and Beta coefficient of

(-0.053).

In explaining the findings, is that, among four objectives, two objectives supports the

findings from other studies (material handling and Distribution) while the remaining

do not support the empirical literatures that is Warehousing and Transportation, this

Page 82: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

68  

might be due to different in method of analysis as most of the studies used qualitative

which is different from this study which used quantitative, even different in

geographical areas, as most of the study has been conducted abroad while a thing that

is different to this study.

6.3 Conclusion Of The Study

6.3.1 Material Handling Activities And Supplier-Customer Relationship.

Material handling activities yied the same results in Pearson correlation and multiple

regression as both of them showed that material handling positively impacts the

supplier-customer relationship where the significant level in Pearson correlation

Was 0.000 and the p-value was 0.551, which implies there is a moderate relationship

between the variables, coming to the multiple regression the significant level was

0.004 and the Beta coefficient was 0.261, hence material handling positively

influences supplier-customer relationship.

6.3.2 Warehousing Activities And Supplier-Customer Relationship.

Warehousing activities did not produce the same results in Pearson correlation and

multiple regression, where the significant level level in Pearson correlation was

0.029 and the p-value was 0.244 which implies a slight but definite relationship,

coming to the multiple regression the variable completely showed to have a negative

relationship as it had a Beta coefficient of -0.261 hence does not influence the

supplier-customer relationship.

6.3.3 Transportation Activities And Supplier-Customer Relationship.

Transportation activities produced the same results in Pearson correlation and

multiple regression, where the significant level level in Pearson correlation was

0.955 and the p-value was -0.006 which implies the absence of relationship, coming

to the multiple regression the variable completely showed to have a negative

relationship as it had a Beta coefficient of -0.053 hence does not influence the

supplier-customer relationship.

Page 83: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

69  

6.3.4 Distribution Activities And Supplier-Customer Relationship.

Distribution activities yied the same results in Pearson correlation and multiple

regression as both of them showed that distribution activities positively impacts the

supplier-customer relationship where the significant level in Pearson correlation was

0.000 and the p-value was 0.936 which implies there is a very strong relationship

between the variables, coming to the multiple regression the significancy level was

0.000 and the Beta coefficient was 0.919, hence Distribution activities positively

influences supplier-customer relationship.

6.4 Recommendations Of The Study

6.4.1 Recommendation On Material Handling Activities

The study recommends that material handling should be overlooked and given much

consideration on their implementations as they have a very strong influence on

supplier-customer relationship, hence the activities such as proper use of advanced

equipments, material handling systems, employment of well skilled personel to deal

with material handling activities is mostly emphasized for the good results to a

company.

6.4.2 Recommendation On Warehousing Activities

Warehousing activities also relates to supplier-customer relationship, so the study

recommends that all the warehousing ativities such as physical verification of

inventories, issuing and dispatch, receiving and inspection, proper storage of

inventories to retain their original quality, proper location of items so as to minimize

customer waiting time, coding and standardization should all be done with greater

care and with proper personel as they have a very great influence in supplier-

customer relationship and also in creating organization profit.

6.4.3 Recommendation On Transportation Activities

The study has revealed the absence of relationship between transportation activities

and the supplier- customer relationship, the researcher recommends that,

transportation activities should be overlooked because through transportation is

where the rawmaterial from suppliers get into to the organization for production,

Page 84: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

70  

hence although it does not influence the supplier-customer relationship, but it has its

important role in another angles.

6.4.4 Recommendation On Distribution Activities

Distribution activities such as distribution of proper items, inspection of items before

distribution, avoidance of transit damage, well organized distribution channel, on

time delivery should all be overlooked as they have a strong influence to the

supplier-customer relationship.

Generally: The study recommends the manufacturing Companies to take overlook on

the logistics activities both inbound and outbound so as to improve the organizational

performance and acquire high profit a thing that will strengthen the organizational

reputation and also improve the bond between the suppliers and customers.

Future researchers should go further miles discussing, studying and finding out about

other aspects of inbound and outbound Logistics in manufacturing Industry both in

private and government sectors.. This has expanded knowledge of the researchers but

also benefit the companies or their case studies they are researching on, since

weaknesses and recommendations will be provided.

Page 85: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

71  

REFERENCE

Alan Rushton, P.C and Baker P. (2010). The Handbook Of Logistics And

Distribution Mnagement 3rd edition. London: Kogan Page Limited.

Bank, A. D. (2012). Transport efficiency through logistics

development.Mandaluyong. Asian Development Bank.

Bowersox. (2010). Supply Chain Logistics Management 3rd edition. New York:

McGraw-Hill.

Bowersox D.J, closs D.J and Cooper M.B. (2010). Supply Chain Logistics

Management 3rd edition. New York: Mc Graw-Hill.

Branch. (2009). Global Supply Chain Management And International Logistics. New

York Routledge.

Burton, JA. (1999). Effectiveness warehousing 2nd edition. United kingdom:

Mackmillan publishing.

C.R, K. (2004). Research Methodology;Methods and techniques (2nd Ed) . New

Delhi India: New Age International (P) Ltd.

Christopher. (2011). Logistic and supply chain managment. New York: Pearso.

Coyle. (2003). The Management of Business Logistics: ASupply Chain Perspective

7th edition. Ohio: South-Western.

Cropanzano. (2005). Social Exchange Theory. An Interdisciplinary Review. Journal

Of Management 31 (6).

Dr Saxena, J. P. (2003). Warehouse management and inventory control. Noida,

India: McGraw-Hill.

Gopalakrishman, P. (1990). Purchasing and material management 1st edition. New

Delhi, India: McGraw-Hill.

Page 86: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

72  

Haley, B. (2000). The ARF copy research validity project. Journal of Advertising

Research 40 (6), 114-135.

Helo. (2011). International Conference on Industrial Engineering and Operations

Management Kuala Lumpur. Real time Tracking and Tracing System:

Potentials for the Logistics Network, 242-250.

Hollardson. (2007). Complementary Theories to supply Chain Mnagement. An

international Journal 2(4), 284-296.

Holthausen. (2013). Scientific review of Social exchange theory and its contribution

to solving purchases decision making issues. A paper presented at the 1st

IBA Bachelor thesis Conference. Enschede. The Nertherlands.

Koh SCL, Demirbag M, Tatoglu E, Zaim, S. (2007). The impact of supply chain

management practices on performance of small medium entreprises.

Industrial management and data system, Vol 7 (1), 103-124.

Koster. (2006). Design and control of warehouse order picking. European Journal Of

Operational Research, 481-501.

Kothari. (2004). Research Methodology; Methods and techniques (2nd edition). New

Delhi India: New Age International (P) Ltd.

Kusoncum, C, Chaikanha, N, Tongsokhowong, A, Chetchotsak D and Sethanan K.

(2012). Inbound Logistics Models for Thai Sugar Industrial in

Preparation For The AEC Framework. Proceedings of the Asia Pacific

Industrial Engineering and Management Systems Conference.

Langat, K. E. (2013). An implimentation of inbound logistics management on public

procurement performance at public institution in Kenya. International

journal of human resource, 1-11.

Mae , M & Ohno, R. (2012). The impact of changing lead time on inbound .

Chalmers university of technology.

Page 87: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

73  

Manikas, I & Ieromonachou, P. (2016). Do the services priorities of companies

outsourcing to 3PL providers vary by industry. International journal of

applied logistics, Vol 6 (1), 64 -69.

Margareta Drzeniek Hanouz, Thierry Geiger and Sean Doherty. (2014). The Global

Enabling Trade Report. World Economic Forum.

Mikkola JH, Skjoett-Larsen T. (2003 ). Early supplier involvement . Global journal

of flexible systems management, Vol 4 (4), 31 - 41.

Mishra RK. (2011). Buyer supplier relationship in SMEs. The IUP journal of supply

chain management, Vol 8 (3), 26 -41.

Mwangi, W. N & Waweru, L. (2013). Role of transport in supply managment a case

study of safaricom Limited. International journal of human resource and

procurement, Vol. 1 6-8.

Shyam. (2012). Heuristic Modeling Approach For Inbound and Outbound Logistics

System of Automobile Supply Chain Network. International Journal Of

Social Science and humanities, 1-7.

Stephan. (2011). Cross-docking. Jornal of management Control, 129-137.

Sumit. (2015). Vehicle Tracking, Monitoring and Alerting System. A review

International Journal Of Computer Applications, 39-42.

Talib F, Rahman Z, Qureshi MN. (2011). A study of total quality management and

supply chain management practices. International journal of productivity

and performance management, Vol 60 (3), 268 - 288.

Tilanus. (1997). Information systems in logistics and transportation. New York:

Pergamon.

Waithaka, P.M and Waiganjo, E. (2015). Role of Buyer Supplier Relationship on

Supply Chain Performance in Kenya’s State Corporations: A Case Study

Page 88: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

74  

of Kenya Tea Development Agency. International Journal of Academic

Research in Business and Social Sciences, Vol. 5, No. 4

Yamane, T. (1967). Statistics: An Introductory Analysis. 2ndED., New York,

Harper and Rao 886.

Zhang, C., Viswanathan, S., John W. and Henke (Jr), J.W. 2011. The boundary

spanning capabilities of purchasing agents inbuyer-supplier trust

development. Journal of Operations Management, 29(4): 318-328.

Zineldin, M. and Jonsson, P. (2000). An examination of the main factors affecting

Trust/commitment in supplier-dealer reltionships: An empirical study of

the Swedish wood industry. The TQM Magazine 12 (4). 245-265.

Page 89: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

75  

APPENDIXICES

APPENDIX 1

MASTER OF SCIENCE IN PROCUREMENT AND SUPPLY CHAIN

MANAGEMENT

Dear respondents,

I am a student from Mzumbe university Dar Es Salaam campus who is pursuing a

master's of science in procurement and supply chain management under business

department. Currently, I am conducting a research entitled the impact of logistics

activities in supplier-customer relationship a case of COCA COLA Kwanza

Company as a partial requirement for the award of masters of procurement and

supply chain management

The main purpose of this questionnaire is to gather data for the proposed study, and

hence your kindly requested to assist the succefully completion of the study by

providing the necessary information.your participation is entirely voluntary and the

questionnaire is completely anonymous.i assure you that the information you share

will stay confidential and only used for the mentioned academic purpose, thus not

affects you in any way rather it will help you in improving the performance of your

company.so your genuine, frank and timely response is very vital for the success of

the study,i want to thank you in advance for your kind cooperation and dedication of

your precious time to fill this questionnaire.

Note:

1. No need of writing your name.

2. If you need further explanation please do not hesitate to contact me through

my personal phone

0738 902757 or 0655 505620

Best regards,

Latifah Kimaro

Page 90: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

76  

PART ONE: PROFILE OF THE RESPONDENTS.

Please circle the appropriate answer:

A1: Your age (in years): (a) 18-20, (b) 21-25, (c) 26-30, (d) 31-35, (e) 36-40, (f) 41-

45, (g) 45+

A2: Your gender: (a) Male (b) Female

A3: Your Level of Education: (a) A-Level, (b) Certificate, (c) Diploma, (d),

Bachelor, (e) Masters, (f) PHD

Page 91: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

77  

PART TWO

THE IMPACT OF LOGISTICS ACTIVITIES ON THE SUPLIER-

CUSTOMER RELATIONSHIP.

The following statements relate to the impact of logistics activities on the supplier-

customer relationship (logistics activities include material handling, warehousing,

transportation and distribution.)

Rate your agreement with each of the statement by using the scale provided in the

Table below. Circle “O” the number you choose.

Rank: 1=SD; Strongly Disagree, 2= D; Disagree, 3= N; Neutral 4=A; Agree

5=SA; Strongly Agree

STATEMENT S D

D N A S A

MATERIAL HANDLING

1 Shorter operating circle that is created by material handling has an impact on the supplier - customer relationship

1 2 3 4 5

2 Proper material handling reduces the handling cost, hence impacts the supplier - customer relationship

1 2 3 4 5

3 Better customer care that is facilitated by material handling has an impact on the supplier - customer relationship

1 2 3 4 5

4 Material handling facilitates better quality of products, hence has a great impact on the supplier - customer relationship

1 2 3 4 5

5 As the material handling facilitates timely production, hence this has an impact on the supplier - customer relationship

1 2 3 4 5

6 Proper packaging of materials and products looks more modern in the eyes of customers, hence this impacts the relationship between supplier-customer

1 2 3 4 5

7 Inspection of materials on their delivery ensures the production of quality goods, hence this impacts the relationship between supplier-customer

1 2 3 4 5

WAREHOUSING

1 Warehouse personnel serve our customers at the reasonable time, hence impacts the supplier-customer relationship

1 2 3 4 5

2 Cargo are available to the customers just after arrival, hence impacts the supplier-customer relationship

1 2 3 4 5

Page 92: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

78  

3 Proper warehouse management minimizes total carrying costs and lowers the final price, hence impacts the supplier-customer relationship

1 2 3 4 5

4 As proper warehouse minimizes total product damage in the warehouse, hence maintains the customers product quality and has an impact on the supplier-customer relationship

1 2 3 4 5

5 The guidelines or standard operating procedures (SOP) in the warehouse, helps to secure and maintain the customers products, hence impacts the supplier-customer relationship

1 2 3 4 5

6 Proper location of items in the warehouse reduces the customers waiting time, hence this has an impact on the supplier-customer relationship

1 2 3 4 5

7 Items on lines are picked accurately as per customer orders. A thing that impacts the supplier-customer relationship

1 2 3 4 5

TRANSPORTATION

1 The transportation system provides efficiency in logistics a thing that impacts the supplier-customer relationship

1 2 3 4 5

2 The transportation system helps the company reach economies of scale, hence impacts the supplier-customer relationship

1 2 3 4 5

3 The overall quality of companies transportation is very high

1 2 3 4 5

4 The company transportation service is cost efficient,hence impacts on the supplier-customer relationship

1 2 3 4 5

5 Transportation service of the company is flexible hence impacts the supplier-customer relationship

1 2 3 4 5

6 The transportation service gives quick response to special requests, hence has an impact on the supplier-customer relationship

1 2 3 4 5

7 The transportation cost is very competitive in comparison with the market cost a thing that has an impact on the supplier-customer relationship

1 2 3 4 5

8 Transportation system ensures safety and timely delivery to satisfy your customers, hence impacts the supplier-customer relationship

1 2 3 4 5

9 Employee performance, inadequate training,lack of understanding team work are are the human factor challenges affecting transportation hence impacts the supplier-customer relationship

1 2 3 4 5

10 Lack of adequate and modern equipment, infrastructure problems, higher rate of loss and damage, high traffic jam in cities is the non human challenges that affect transportation operation and hence have impacts on the supplier-customer relationship

1 2 3 4 5

DISTRIBUTION

1 The units that are ordered by the customers are fully distributed, hence impacts the supplier-customer relationship

1 2 3 4 5

Page 93: THE IMPACT OF INBOUND AND OUTBOUND LOGISTICS …

79  

2 All orders are consistently distributed to the right customers, hence impacts the supplier –customer relationship

1 2 3 4 5

3 The goods distributed to the customers at the right time, hence impacts the supplier-customer relationship

1 2 3 4 5

4 The average delivery time is reliable, this impacts the supplier-customer relationship

1 2 3 4 5

5 The Products are always distributed as promised,hence impacts the supplier-customer relationship

1 2 3 4 5

6 The damage in transit is minimum hence the quality of goods are well maintained a thing that has an impact on the supplier-customer relationship

1 2 3 4 5

7 The Distribution team responds timely to special request and needs of customers, hence has an impact on the supplier-customer relationship

1 2 3 4 5

8 The distribution sector order policies are flexible enough to permit timely response to the market demand, hence impacts the supplier-customer relationship.

1 2 3 4 5

9 The units distributed to the customers are correct and exactly as specified hence impacts the supplier-customer relationship

1 2 3 4 5

10 Goods are well inspected before distribution, hence impacts the supplier-customer relationship.

1 2 3 4 5

SUPPLIER-CUSTOMER RELATIONSHIP

1 The roles and responsibilities between the suppliers and Customers are well defined

1 2 3 4 5

2 The trust and open communication exists between the suppliers and Customers

1 2 3 4 5

3 There is a continuous improvements between the suppliers and customers toward the agreed targets

1 2 3 4 5

4 The relationship between the supplier and the customers focus more on the common vision and the agreed strategies and the activities

1 2 3 4 5

5 The needs between the two parties are well anticipated and the creative solution normally provides

1 2 3 4 5

6 On time delivery and payments usually takes place 1 2 3 4 5

7 Business Risk are equally shared between the suppliers and the customers

1 2 3 4 5