Factors Influencing Outsourcing Of Logistics Services By Manufacturi ng Firms Listed In The Nairobi Securities Exchange (NSE)

Abstract

Outsourcing has emerged as one of the popular and widely used business strategy of this globalized era. After exhausting the traditional modes of cost cutting, outsourcing has become the most favoured avenue for cost cutting. This study examinedthe factors which influence logistics outsourcing decision for large manufacturing firms in Kenya. A survey research design was adopted. The population was all manufacturing firms listed in the NSE. The sample consisted of 90 respondents to get primary data. Quantitative data analysis was used. The study found that logistics outsourcing decision was greatly influenced by the need to reduce operational costs and need to gain access to quality service .