The Effects of Logistic Management on Enterprise Performance: A Case of Gas Depot Atem in Yaounde Cameroon

Abstract

In a global economy, competitive and dynamic environment, logistics managements is an important strategic factor for increasing competitiveness. The significance of logistics management had evolved from a more passive and cost minimization oriented activity to a key success factor for firm competitiveness. There was therefore an emerging consensus about the need for companies to handle logistics issues together with economic and business issues. The performance of logistics systems was typically related to delivery service, logistics cost and tied up capital. Customers increasingly expected shorter delivery times and more accurate services and logistics management was perhaps most easily conceptualized in a third party logistic service provider like Gas Depot Atem. The study also looked at the effect of the logistics performance as the moderating variable on the relationship between logistics management and the firm Performance. The specific objectives of the study were to examine the influence of transport management on firm performance, evaluate the influence of inventory management on firm performance, examine the influence of order processing on firm performance, establish the influence of information flow on firm performance, and evaluate the moderating effect of logistics information system on the relationship between the logistics management and firm performance. The study used both descriptive and explanatory research designs. The target population for this study was the workers of Gas Depot Atem (about a 100). Our sample was about 40 workers of gas depot. A semi-structured questionnaire was administered through the e-mail survey and hand delivery. Secondary data was obtained from both published and unpublished records. The questionnaire was tested for validity and reliability. Both quantitative and qualitative techniques were used to analyses the data with the assistance of SPSS software program version 22. The study found that transport management; inventory management; order process management and information flow management were individually predictors of firm performance with inventory management being the most significant predictor. The study concludes that logistics management has the potential of positively influencing performance on firms in terms of cost reduction, timely delivery, reduced lead time, demand realization, increased market share, quality products and customer service satisfaction. Consequently, this study provides firms' managers with insights of how firms can develop a competitive edge through the implementation of logistics management. This study therefore, recommends that factors associated with logistics management need to be considered by firms in their performance strategic plans as they have significant impact on performance.