CLEARING AND FORWARDING MANAGEMENT SYSTEMS ON SUPPLY CHAIN PERFORMANCE OF FMCG MANUFACTURERS IN KENYA

Abstract

Purpose: The purpose of this study was to determine the influence of clearing and forwarding management systems on supply chain performance of FMCG manufacturers in Kenya Methodology: The study adopted descriptive research design. The unit of observation was the operations manager of the 51 FMCG manufacturers located in Nairobi. The sampling frame of the current study consisted of operations managers in the manufacturers of the FMCGs in Nairobi. The study used the census method to select 51 manufacturers of the FMCGs in Nairobi, thus the sample of the study was 51 respondents. Primary data was used in the study. The study used questionnaires to collect data. Mixed methods technique of analyzing data was used where both descriptive and inferential analysis were used. The data collected from the field was analyzed using SPSS 23 program. The questionnaires were referenced and the items in them coded for easier data entry. The presentation of the findings was done using tables. Results: The study found that inventory management systems positively and significantly influences Supply chain performance of FMCG in Kenya. The study also established that there are challenges faced by use of clearing and forwarding in logistics management systems. There is the challenge of cost forwarding; the most common currency used is US dollar which changes at any particular time and therefore affecting the freight cost. This also affects the price of customer goods and the charges by the bank. Another challenge is with service charges and fees. Unique contribution to theory, practice and policy: The study recommended that the government to adjust regulations and create a business environment that allows the process of clearing and forwarding to be efficient, straight forward and quick. here is also need for the government to develop systems and software that allows transparency and ease in submission of documents and therefore reduce the clearing time. It is also important for the government to ensure that there are clear regulations by custom department and ensure that the employees in this department are well knowledgeable of their task and are well organized and motivated to conduct their duties.