Physical distribution practices and logistics performance in the Kenyan brewing industry

Abstract

Physical distribution practices are fundamental to the operational success of Kenya’s brewing industry, as inefficiencies in transportation, warehousing, inventory control, and order processing often result in increased logistics costs and reduced customer satisfaction. This study examined the effect of physical distribution practices on logistics performance in the Kenyan brewing industry. Specifically, it analyzed how transportation management, warehousing management, inventory management, and order processing practices influence logistics performance among major breweries in Kenya. The study was anchored on three theoretical frame works Bargaining Theory, Resource- Based Theory (RBT), and Agency Theory to provide a conceptual foundation for explaining the relationships between distribution practices and logistics outcomes. A descriptive research design was adopted, targeting 240 employees from logistics, marketing, and management departments in Kenya Breweries Limited, Keroche Breweries, and Summit Breweries. A stratified random sampling technique was used to select 150 respondents, and data were collected through structured questionnaires. Descriptive and inferential statistical analyses, including regression analysis, were performed using SPSS. The findings revealed that transportation management practices had a significant positive effect on delivery reliability and cost efficiency. Warehousing management practices improved order accuracy and product availability. Inventory management practices enhanced responsiveness and reduced stockouts, while effective order processing practices were found to increase customer satisfaction and service dependability. Overall, physical distribution practices collectively explained a substantial portion of the variation in logistics performance within the brewing industry. The study recommends that brewing firms adopt technology-driven distribution systems, implement integrated warehouse and inventory management software, and invest in transport optimization tools to enhance performance. Strengthening interdepartmental coordination and establishing performance- based logistics contracts can further improve efficiency. Enhancing physical distribution practices can ultimately lead to better operational effectiveness, customer satisfaction, and competitive advantage in Kenya’s brewing sector.