Information Communication Technology, Staff Competence and Performance of Third-Party Logistics Service Provision in Vehicle Dealers in Kenya
- Prof. Peter Paul Kithae
- Irene Wandia Mugo
- 258-269
- Jun 30, 2025
- Communication
Information Communication Technology, Staff Competence and Performance of Third-Party Logistics Service Provision in Vehicle Dealers in Kenya
Prof. Peter Paul Kithae, Irene Wandia Mugo
Management University of Africa
DOI: https://dx.doi.org/10.47772/IJRISS.2025.913COM0023
Received: 20 May 2025; Accepted: 24 April 2025; Published: 30 June 2025
ABSTRACT
This study explored how information communication technology and staff competences affect performance of third-party logistics service provision in vehicle dealers in Kenya. A stratified random sampling technique was utilized to choose a sample size of 60 respondents from a target population of 200 employees. The results are expected to assist managements of Kenya’s vehicle dealer companies, policy makers and future researchers in fulfilling their mandates. A descriptive research design was employed in this study. Data collection instruments were questionnaires. The information gathered was analyzed using qualitative and quantitative approaches before being presented in form of tables and charts. Among key findings of the study were that provision of third-party logistics services by Kenyan vehicle dealer companies was positively impacted by information and communication technology. Adoption of advanced ICT solutions such as real-time tracking systems, automated data processing, and integrated supply chain platforms did improve logistics operations by increasing visibility, accuracy, and efficiency. Likewise, employee competency was found to be essential to the efficiency of third-party logistics service delivery in Kenyan vehicle dealer companies. Competent staff can better manage logistics challenges, optimize processes, and enhance coordination with third-party providers. As a result, the study recommended that the management of Kenyan vehicle dealer companies should invest in advanced information communication technology (ICT) systems to enhance the effectiveness of third-party logistics service provision. They should also prioritize training for staff to effectively utilize these technologies and collaborate with third-party logistics providers to ensure seamless integration of ICT systems. By leveraging ICT coupled with staff training, vehicle dealer companies can streamline operations, reduce delays, and achieve greater accuracy in logistics processes, ultimately supporting more efficient vehicle dealer and distribution practices. Finally, the management should establish clear competency standards and performance metrics to ensure that logistics staff and partners meet the required qualifications.
Keywords: Information communication technology, Staff competence, Vehicle dealers in Kenya, Third party logistics,
INTRODUCTION AND RESEARCH OBJECTIVES
The outsourcing of supply chain management and logistics tasks to outside service providers is known as third-party logistics service provision (Bouzidi and Khaled 2019). Third-party logistics (3PL) services are essential for increasing supply chain effectiveness and operational flexibility in vehicle dealer companies. Manufacturers can concentrate on their primary production tasks while taking advantage of the experience, cutting-edge technology, and scalable solutions provided by specialized 3PL providers by contracting out logistics functions like transportation, warehousing, inventory management, and order fulfillment. Through this relationship, manufacturers can increase delivery times, cut costs, streamline their supply chain operations, and react more quickly to changes in the market. Furthermore, 3PL suppliers frequently provide value-added services like assembly, packaging, and reverse logistics, which improve overall efficiency and further streamline operations (Adegbola and Ogunleye 2016).
Information Communication Technology
The term information and communication technology (ICT) encompasses a wide range of technological resources and techniques used for creation, archiving, transmission, retrieval, and management. The ICT significantly influences third-party logistics (3PL) service provision in vehicle dealers by enabling enhanced communication, data exchange, and process automation throughout the supply chain. Advanced ICT tools and systems allow 3PL providers to track shipments in real-time, optimize route planning, and efficiently manage inventory levels. Additionally, ICT facilitates seamless integration between different stakeholders in the supply chain, including manufacturers, suppliers, and customers, enabling faster information sharing and collaboration. 3PL providers may increase overall service quality, optimize operations, and make better decisions with the use of ICT solutions including supply chain management software, cloud computing, and RFID technology (Rahman, 2018).
Staff competence refers to the combination of skills, knowledge, abilities, and behaviors that employees possess and apply in their roles to perform tasks effectively and meet organizational goals (Hernandez and Rodriguez 2018). Staff competence significantly impacts third-party logistics (3PL) service provision in vehicle dealers by influencing the quality, efficiency, and reliability of logistics operations. Competent employees have the abilities, know-how, and experience needed to handle a variety of supply chain responsibilities, such as customer service, inventory control, warehousing, and transportation. In a 3PL context, skilled personnel can optimize route planning, ensure accurate inventory control, and resolve logistical challenges promptly, leading to improved service levels and customer satisfaction. Moreover, competent staff are better equipped to handle complex tasks, adapt to changing market conditions, and implement innovative solutions to enhance operational efficiency. Investing in staff training and development not only enhances the capabilities of individual employees but also strengthens the overall performance and competitiveness of 3PL service provision in vehicle dealers (Mushi, 2018).
Third Party Logistics Service Provision
The outsourcing of supply chain management and logistics tasks to outside service providers is known as third party logistics service provision (Wang and Li 2017). Supply chain interruptions, regulatory constraints, technology improvements, and shifts in market demand are some of the variables that might impact vehicle dealer companies’ use of third-party logistics (3PL) services. Fluctuations in consumer preferences, industry trends, and economic conditions can lead to shifts in logistics requirements, necessitating agile and responsive services from 3PL providers. Regulatory changes, such as customs regulations and trade agreements, may impact the efficiency and cost-effectiveness of logistics operations. Additionally, advancements in information communication technology (ICT) and automation can influence service delivery capabilities, requiring 3PL providers to continually upgrade their systems and expertise. Moreover, supply chain disruptions, such as natural disasters or geopolitical conflicts, can disrupt transportation networks and lead to delays or disruptions in service provision. To thrive in this dynamic environment, 3PL providers must remain adaptable, innovative, and focused on delivering value-added solutions that meet the evolving needs of vehicle dealers (Bouzidi and Khaled 2019).
In Kenya, third-party logistics (3PL) service provision in vehicle dealers faces several challenges that impact efficiency and effectiveness (Martinez and Gomez 2017). One major challenge is the complexity and inconsistency of custom clearance policies, which often lead to delays, increased costs, and administrative burdens for 3PL providers. Additionally, limitations in transportation infrastructure and the availability of different modes of transport can hinder the timely and cost-effective movement of goods, further exacerbating logistical challenges. Moreover, inadequate information communication technology (ICT) infrastructure and expertise may restrict the ability of 3PL providers to leverage digital solutions for optimizing supply chain processes and enhancing communication with stakeholders. Furthermore, variations in staff competence across different 3PL providers can affect service quality and reliability, leading to inconsistencies in performance and customer satisfaction (Hassan and Ali 2018).
To address these challenges and better understand their impact on 3PL service provision in Kenya, researchers have conducted studies to examine the factors affecting logistics operations in the vehicle dealer sector. For instance, a study by Ochieng (2018) investigated the influence of custom clearance policies, transportation modes, ICT adoption, and staff competence on the performance of 3PL providers in Kenya. The findings revealed significant challenges stemming from regulatory hurdles, transportation constraints, and technological limitations, highlighting the need for strategic interventions to improve logistics efficiency. However, the study identified a gap in research focusing specifically on the role of staff competence in mitigating logistical challenges and enhancing service provision. Another study by Kamau and Muturi (2020) explored the impact of ICT adoption on the competitiveness of 3PL providers in Kenya, emphasizing the importance of digitalization in overcoming logistical barriers and improving supply chain performance. Nonetheless, the study highlighted a need for further research to assess the interplay between ICT infrastructure, staff capabilities, and operational outcomes in the context of 3PL service provision in Kenya. This survey sought to fill the gaps by focusing on the factors affecting third party logistics service provision in vehicle dealers in Kenya.
The general objective was to establish the factors affecting third party logistics service provision in vehicle dealers in Kenya.
Specific Objectives of the Study
- To explore the effect of information communication technology on third party logistics service provision in vehicle dealers in Kenya.
- To assess how staff competence affect third party logistics service provision in vehicle dealers in Kenya.
The survey’s findings are expected to assist vehicle dealers’ management in identifying critical areas necessary for supply chain operations optimization and enhancement. This could involve putting new technology into use, streamlining processes, or giving employees opportunity for competency-building training and development. Likewise, the study will be of significant interest to policy makers in Kenya who are responsible for shaping regulatory frameworks and infrastructure development initiatives. Finally, the study is expected to offer a foundation for future research efforts aimed at deepening our understanding of the dynamics and complexities of logistics operations in Kenya’s vehicle dealer sector.
Using selected vehicle dealers in Kenya, the survey aimed to identify the variables influencing the provision of third-party logistics services in Kenyan vehicle dealer companies. The survey was done from May 2024 to October 2024 with 200 employees as its target population.
THEORETICAL BACKGROUND AND INFORMING LITERATURE REVIEW
Transaction Cost Economics (TCE) forms the underpinning theories of this study. The Transaction Cost Economics (TCE) theory was created in the 1970s by Oliver Williamson. TCE explores the costs and benefits associated with different modes of organizing economic transactions. According to TCE, firms choose between internalizing activities within the firm or outsourcing them to external parties based on minimizing transaction costs, including search, negotiation, and monitoring costs. In the context of third-party logistics service provision in vehicle dealers, TCE suggests that firms may opt to outsource logistics functions to 3PL providers to reduce transaction costs associated with managing these activities internally (Williamson, 1979).
TCE provides a robust framework for understanding the determinants of organizational boundaries and governance structures. By focusing on transaction costs, TCE offers practical insights into why firms choose to outsource certain activities and how they can effectively manage relationships with external partners. Critics argue that TCE oversimplifies complex organizational decisions and overlooks other factors, such as strategic considerations and relational aspects, that may influence outsourcing decisions. Additionally, TCE has been criticized for its static view of transaction costs and limited applicability to dynamic and uncertain environments (Williamson, 1979).
Because it provides insights into the factors driving the decision to outsource logistics services to third-party providers, TCE theory is pertinent to the study. Businesses can choose the best governance structure for their supply chain operations by comparing the transaction costs of managing logistics domestically versus outsourcing.
Information communication technology and third party logistics service provision in vehicle dealers
Smith (2018) looked into how information and communication technology (ICT) affected vehicle dealer companies’ use of third-party logistics (3PL) services in the USA. The research aimed to explore how the use of ICT affects the efficacy and efficiency of logistics operations that are contracted out to 3PL providers. Surveys, interviews, and industrial data analysis were used to gather data, which were then subjected to both qualitative and quantitative analysis. The results showed that sophisticated ICT solutions, such supply chain management software and cloud computing, greatly enhanced coordination, communication, and visibility across the supply chain. Moreover, ICT-enabled solutions enhanced process automation, data analytics, and decision-making, leading to improved service quality and operational efficiency. The study concluded that investing in ICT infrastructure and capabilities is essential for improving supply chain performance and competitiveness in the USA.
Ivanov and Sokolov (2017) investigated how information and communication technology (ICT) affected the supply of third-party logistics (3PL) services in the industrial sector in Russia. The research aimed to assess evaluate the impact of ICT adoption on the efficacy and efficiency of logistics operations that are contracted out to 3PL providers. Surveys, interviews, and industrial data analysis were used to gather data, which were then subjected to both qualitative and quantitative analysis. The results showed that different companies adopted ICT in different ways. While some used cutting-edge technologies for inventory control, demand forecasting, and real-time tracking, others fell behind because of organizational and resource limitations. Nonetheless, companies who adopted ICT solutions saw an increase in supply chain operations’ responsiveness, agility, and visibility. The study remarked that improving supply chain competitiveness and resilience in Russia requires encouraging ICT use and digitization.
Ndlovu and Mbohwa (2019) looked into how information and communication technology (ICT) affected vehicle dealer companies’ use of third-party logistics (3PL) services in South Africa. The research aimed to explore how the use of ICT affects the efficacy and efficiency of logistics operations that are contracted out to 3PL providers. Surveys, interviews, and industrial data analysis were used to gather data, which were then subjected to both qualitative and quantitative analysis. The results showed that different companies used ICT in different ways. While some used cutting-edge technologies for real-time tracking, warehouse management, and transportation optimization, others had difficulties because of infrastructural constraints and problems with the digital divide. However, supply chain visibility, decision-making, and collaboration all improved for businesses that successfully deployed ICT solutions. The study came to the conclusion that improving supply chain sustainability and competitiveness in South Africa requires fostering ICT literacy and closing the digital gap.
Ochieng and Wambui (2020) looked into how information and communication technology (ICT) affected the vehicle dealer sector’s use of third-party logistics (3PL) services in Kenya. The research aimed to evaluate the impact of ICT adoption on the efficacy and efficiency of logistics operations that are contracted out to 3PL providers. Surveys, interviews, and industrial data analysis were used to gather data, which were then subjected to both qualitative and quantitative analysis. The results showed that different Kenyan businesses used ICT in different ways. While some used cutting-edge technologies for order processing, inventory management, and supply chain visibility, others struggled because of a lack of ICT infrastructure and expertise. Nonetheless, businesses who effectively deployed ICT solutions saw increases in customer satisfaction, operational effectiveness, and competitive advantage. The study came to the conclusion that increasing supply chain resilience and competitiveness in Kenya requires funding ICT capabilities and encouraging digital innovation.
Staff competence and third party logistics service provision in vehicle dealers
In the UK, a study by Smith and Jones (2019) examined the effect of staff competence on third-party logistics (3PL) service provision in vehicle dealers. The research aimed to look into how staff members’ abilities, know-how, and proficiency affect the efficacy and efficiency of logistics operations that are contracted out to 3PL providers. Surveys, interviews, and industrial data analysis were used to gather data, which were then subjected to both qualitative and quantitative analysis. The outcomes revealed that staff competence played a crucial role in the performance of 3PL providers, with skilled and knowledgeable employees contributing to improved service quality, operational efficiency, and customer satisfaction. However, challenges related to staff turnover, skills gaps, and training needs were identified as barriers to achieving optimal performance. The study remarked that improving supply chain performance and competitiveness in the UK requires spending money on employee training and development.
In China, a study by Wang and Li (2017) investigated the effect of staff competence on third-party logistics (3PL) service provision in vehicle dealers. The study aimed to investigate how staff members’ abilities, know-how, and proficiency affect the efficacy and efficiency of logistics operations that are contracted out to 3PL providers. Surveys, interviews, and industrial data analysis were used to gather data, which were then subjected to both qualitative and quantitative analysis. The outcomes revealed that staff competence was a key driver of service quality and operational performance in 3PL providers in China. Well-trained and experienced employees were able to handle complex logistics tasks, adapt to changing customer needs, and effectively manage operational challenges, leading to improved service delivery and customer satisfaction. However, challenges related to talent management, skills shortages, and employee turnover were identified as areas requiring attention. According to the study’s findings, improving supply chain performance and competitiveness in China requires spending money on employee development, retention, and training.
In Nigeria, a study by Adegbola and Ogunleye (2019) examined the impact of staff competence on third-party logistics (3PL) service provision in the vehicle dealer industry. The study aimed to assess how the skills, knowledge, and expertise of staff influence the effectiveness and efficacy of logistics operations outsourced to 3PL providers. Data were collected through surveys, interviews, and analysis of industry data, and analyzed through qualitative and quantitative methods. The outcomes revealed that staff competence significantly influenced the quality and reliability of logistics services provided by 3PL providers in Nigeria. Competent and well-trained employees were able to handle complex logistics tasks, manage customer relationships effectively, and respond promptly to operational challenges, leading to improved service delivery and customer satisfaction. However, challenges related to skills development, talent retention, and workforce management were identified as barriers to achieving optimal performance. The study concluded that investing in staff competence is essential for enhancing supply chain efficiency and competitiveness in Nigeria.
Mensah and Asante (2020) investigated the impact of employee competency on third-party logistics (3PL) service delivery in vehicle dealer companies in Ghana. The survey aimed look into how staff members’ abilities, know-how, and proficiency affect the efficacy and efficiency of logistics operations that are contracted out to 3PL providers. Surveys, interviews, and industrial data analysis were used to gather data, which were then subjected to both qualitative and quantitative analysis. The results showed that, for 3PL providers in Ghana, staff competency was a crucial factor in determining both service quality and operational success. Higher levels of customer satisfaction and loyalty resulted from competent and well-trained staff members’ ability to manage logistics duties effectively, address problems quickly, and adjust to changing customer needs. Nonetheless, issues with workforce planning, talent management, and skill development were noted as needing focus. According to the study’s findings, establishing a competitive edge and maintaining long-term success in Ghana’s logistics sector need investments in employee training and development.
Otieno and Nyambura (2019) looked into how personnel competency affected the vehicle dealer sector’s use of third-party logistics (3PL) services in Kenya. The survey aimed to evaluate how staff members’ abilities, know-how, and proficiency affect the efficacy and efficiency of logistics operations that are contracted out to 3PL providers. Surveys, interviews, and industrial data analysis were used to gather data, which were then subjected to both qualitative and quantitative analysis. The outcomes revealed that staff competence significantly influenced the quality and reliability of logistics services provided by 3PL providers in Kenya.
Third party logistics service provision in vehicle dealers
In vehicle dealer companies, third-party logistics (3PL) services entail contracting with specialist outside providers to handle a range of logistics tasks, including inventory management, warehousing, and shipping. These firms offer expertise, technology, and resources that enable manufacturers to focus on core production activities while benefiting from streamlined logistics operations. According to Smith (2018), 3PL providers play a crucial role in enhancing supply chain efficiency, reducing costs, and improving delivery times for vehicle dealers. They often offer value-added services like packaging, assembly, and reverse logistics, further optimizing operations and enhancing overall productivity.
Furthermore, 3PL providers leverage advanced technologies, such as information communication technology (ICT) systems, to improve supply chain visibility, coordination, and decision-making. Studies by Wang and Li (2017) and Ndlovu and Mbohwa (2019) highlight the importance of ICT in enhancing the competitiveness of vehicle dealers through improved operational efficiency and customer service. All things considered, vehicle dealer companies looking to enhance their logistics operations, cut expenses, and maintain their competitiveness in the fast-paced business world of today must offer 3PL services.
Smith (2018) highlights how crucial third-party logistics (3PL) providers are to vehicle dealer companies’ improved delivery schedules, cost savings, and supply chain efficiency. In order to streamline processes and increase overall efficiency, these suppliers usually supply additional services including packaging, assembly, and reverse logistics. Furthermore, 3PL companies use state-of-the-art technologies such as information and communication technology (ICT) platforms to improve supply chain coordination, visibility, and decision-making. Studies by Ndlovu and Mbohwa (2019) and Wang and Li (2017) highlight the importance of ICT in enhancing vehicle dealer companies’ competitiveness through improved operational efficiency and higher customer service standards. Notwithstanding these developments, research gaps still exist in the areas of 3PL service scalability across various vehicle dealer sectors, the incorporation of cutting-edge technologies like blockchain and artificial intelligence in logistics operations, and the evaluation of environmental sustainability practices in 3PL service delivery. Additional research filling in these gaps may yield important information for improving the sustainability and efficacy of 3PL service delivery in vehicle dealer companies.
A theoretical framework serves as the foundation for the study. With an emphasis on the variables examined in the study, the conceptual framework describes and identifies the theories that aim to explain the research problem.
RESEARCH METHODOLOGY
According to Kothari (2014), a research design is a comprehensive plan outlining the techniques and steps used to gather and examine the necessary data. Since the information to be collected in this study required distributing questionnaires, the researcher employed a descriptive research design. The main objective of the design was to methodically provide an exact and honest representation of the situation or region of interest. In addition to helping with the what, why, and how much inquiries, it might be used to determine the frequency of events.
To guarantee an illustrative selection of participants from different subgroups within the target population, the research utilized a stratified random sampling technique. In order to obtain more accurate and trustworthy data, stratified sampling separates the population into discrete, non-overlapping strata according to pertinent attributes like department, job rank, or experience. This technique minimizes sampling bias and enhances the generalizability of findings by ensuring that each subgroup is proportionately represented (Taherdoost, 2016). It is particularly useful in heterogeneous populations, such as in commercial banks, where different roles or functions may influence responses. Through random selection within each stratum, the study ensures that every individual has an identical chance of being involved, promoting fairness and objectivity.
Reliability is the term utilized to describe how consistent the results of a measuring technique are when repeated multiple times. Without the approval of unbiased observers who can replicate research procedures and utilize reliable methods and instruments for accurate measurements, researchers would struggle to form conclusions, create hypotheses, or establish the generalizability of their work. In order to evaluate the reliability of the questionnaire, a pilot study was done and a Cronbach’s Alpha Coefficient was computed. This determined how consistently the questionnaire receives identical responses.
Data analyses
Microsoft Excel was utilized for the analysis of quantitative data. A multiple linear regression model was also utilized to assess the primary data. The following is the model equation.
Where,
Y – is the dependent variable (third party logistics service provision in vehicle dealers in Kenya)
X1- Custom clearance policies
X2- Mode of transport
X3- Information communication technology
X4- Staff competence
researchers foster an environment that respects participants’ autonomy and promotes the integrity of the research findings
RESEARCH FINDINGS AND DISCUSSIONS
The researcher distributed a set of 60 questionnaires to the sample population, With an astounding 90% response rate, the study demonstrated a high degree of participant involvement. A response rate of more than 10% is deemed extraordinary by Kombo and Tromp’s (2019) criterion, highlighting the questionnaire’s outstanding validity during the data processing stage.
Participants Gender
The study findings observed that most participants were men (52% of all responses), with women making up 48% of the total. Although there were significantly more male respondents, this suggests that the survey participants were fairly evenly distributed by gender, permitting for a wide range of perspectives from both sexes. Kothari (2004) highlights that understanding respondents’ viewpoints on a range of subjects requires taking into account their gender.
Table 1 Participants’ work experience
Category | Frequency | Percentage |
Less than 5 years | 5 | 9 |
5-7 years | 10 | 19 |
8-10 years | 20 | 37 |
11-13 years | 13 | 24 |
Above 14 years | 6 | 11 |
Total | 54 | 100 |
According to Table 7, 9% of respondents had fewer than five years of work experience, 19% had five to seven years, 37% had eight to ten years, 24% had eleven to thirteen years, and 11% had more than fourteen years. These results imply that the participants have worked for the company for a significant amount of time, which puts them in a good position to answer the questionnaires intelligently. Long-time employees have a better grasp of an organization’s dynamics and are better equipped to respond authoritatively to research inquiries, claims Zikmund (2011).
Descriptive Analysis of Study Variables
Information communication technology and third-party logistics service provision in vehicle dealers in Kenya
Table 2 Information communication technology and third-party logistics service provision in vehicle dealers in Kenya
S/N | Statement | Mean | Standard Deviation |
1 | The use of ICT has improved the accuracy of our inventory management systems | 4.32 | .147 |
2 | ICT has significantly improved the efficiency of our order processing | 4.35 | .368 |
3 | EDI has facilitated seamless communication between our company and third-party logistics providers | 4.32 | .238 |
4 | ICT solutions have improved the visibility of our supply chain operations | 4.32 | .501 |
The participants’ opinions regarding the connection between third-party logistics services and information and communication technology in Kenyan vehicle dealer companies are shown in Table 10. Respondents agreed that the use of ICT has improved the accuracy of our inventory management systems (M=4.32, SD=.147). On the statement that ICT has significantly improved the efficiency of our order processing (M=4.35, SD=.368). On the statement that EDI has facilitated seamless communication between our company and third-party logistics providers (M=4.32, SD=.238). On the statement that ICT solutions have improved the visibility of our supply chain operations (M=4.32, SD=.501). The general average was 4.3. The results are back-up by Ivanov and Sokolov (2017), the outcomes uncovered that ICT adoption varied across firms, with some leveraging advanced technologies for real-time tracking, inventory management, and demand forecasting, while others lagged behind due to resource constraints and organizational barriers. However, firms that embraced ICT solutions experienced improved visibility, agility, and responsiveness in their supply chain operations. The study concluded that promoting ICT adoption and digitalization is essential for enhancing supply chain resilience and competitiveness.
Table 3 Staff competence and third-party logistics service provision in vehicle dealers in Kenya
S/N | Statement | Mean | Standard Deviation |
1 | Staff members show a high level of commitment to improving their skills in logistics operations | 4.30 | .145 |
2 | Staff members possess the necessary skills to accurately track and control inventory levels | 4.35 | .368 |
3 | Staff members effectively identify and address issues in the logistics process to ensure smooth operations | 4.30 | .236 |
4 | Effective communication among logistics team members ensures smooth coordination and collaboration | 4.31 | .500 |
Table 11 exhibit the participant’s opinions on the association between staff competence and third-party logistics service provision in vehicle dealers in Kenya. Respondents agreed that staff members show a high level of commitment to improving their skills in logistics operations (M=4.30, SD=.145). On the statement that staff members possess the necessary skills to accurately track and control inventory levels (M=4.35, SD=.368). On the statement that staff members effectively identify and address issues in the logistics process to ensure smooth operations (M=4.30, SD=.236). On the statement that effective communication among logistics team members ensures smooth coordination and collaboration (M=4.31, SD=.500). The average was 4.3 overall. The results are accompanied by a research by Silva and Oliveira (2018), the outcomes uncovered that staff competence was a critical determinant of service quality and operational performance in 3PL providers. Skilled and experienced employees were able to effectively manage complex logistics tasks, handle customer inquiries, and resolve issues promptly, leading to higher levels of customer satisfaction and loyalty. However, challenges related to staff retention, recruitment, and skills development were identified as areas requiring attention.
Limitations of the Study
Due to the time constraints of organizational personnel, the researcher employed a questionnaire-based approach to data collection. This method facilitated participation by minimizing disruption to employee schedules and ensuring data collection efficiency.
The researcher encountered recruitment hurdles due to some respondents perceiving the study as an unwelcome time commitment. To bridge this gap, the researcher emphasized the study’s significance and guaranteed the anonymity of responses. Additionally, highlighting the study’s purely academic purpose aimed to alleviate concerns and boost participation.
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Information communication technology and third-party logistics service provision in vehicle dealers in Kenya The research aimed to look into how information and communication technologies affected Kenyan vehicle dealer companies’ use of third-party logistics services. The results showed that the provision of third-party logistics services by Kenyan vehicle dealer companies was positively impacted by information and communication technology. According to a study by Ivanov and Sokolov (2017), ICT adoption differed amongst businesses, with some using cutting-edge technologies for demand forecasting, inventory management, and real-time tracking while others fell behind because of organizational and resource limitations. Nonetheless, companies who adopted ICT solutions saw an increase in supply chain operations’ responsiveness, agility, and visibility. The study came to the conclusion that increasing supply chain competitiveness and resilience requires encouraging ICT usage and digitization.
Staff competence and third-party logistics service provision in vehicle dealers in Kenya
In the same breadth, the research looked into how staff competency affected the provision of third-party logistics services in Kenyan vehicle dealer companies. The results showed that third-party logistics service offering in Kenyan vehicle dealer enterprises was positively impacted by worker competence. According to a study by Silva and Oliveira (2018), personnel competency was a key factor in determining the operational success and service quality of 3PL providers. Customer satisfaction and loyalty increased as a result of skilled and experienced staff members’ ability to perform intricate logistics duties, respond to customer concerns, and quickly address problems. Nonetheless, issues with hiring, skill development, and staff retention were noted as needing improvement. The research remarks that investing in human capital is essential for building competitive advantage and sustaining long-term success.
The study concludes that ICT is essential to improving the efficiency of third-party logistics service delivery in Kenyan vehicle dealer companies. The adoption of advanced ICT solutions, such as real-time tracking systems, automated data processing, and integrated supply chain platforms, significantly improves logistics operations by increasing visibility, accuracy, and efficiency. Additionally, the research observes that employee competency is essential to the efficiency of third-party logistics service delivery in Kenyan vehicle dealer companies. Higher levels of employee competence, such as supply chain management, problem-solving, and technology use, are directly associated with better logistics performance and operational effectiveness. Competent staff can better manage logistics challenges, optimize processes, and enhance coordination with third-party providers.
The study recommends that vehicle dealers management should spend money on cutting-edge ICT systems to improve the efficiency of third-party logistics service delivery. Modern ICT solutions, like integrated supply chain platforms, automated inventory management, and real-time tracking, can greatly increase logistics operations’ efficiency, visibility, and coordination. Likewise, management should put more emphasis on employee competency in order to raise the quality of third-party logistics services. This can be accomplished by putting in place thorough training and development programs that include important knowledge and skill areas related to logistics operations, like supply chain management, technology use, and problem-solving.
Finally, the study recommends additional research to be done on other variables influencing third-party logistics service delivery in Kenyan vehicle dealer companies
REFERENCES
- Adebayo, O. (2022). Enhancing third-party logistics service provision in vehicle dealers: A study in Nigeria. Logistics Dynamics, 1(2), 45-59. Nigeria: Logistics Publishing House.
- Adegbola, F., & Ogunleye, A. (2016). Third-party logistics service provision in vehicle dealers: Insights from Nigeria. Logistics Trends, 3(4), 102-118. Nigeria: Logistics Trends Publishing.
- Barney, J. (1986). Strategic factor markets: Expectations, luck, and business strategy. Management Science, 32(10), 1231-1241.
- Botes, T., & Von Leipzig, H. (2022). Logistics management in South Africa: A focus on third-party service provision in vehicle dealers. Supply Chain Review, 7(1), 15-30. South Africa: Supply Chain Publishing.
- Bouzidi, A., & Khaled, M. (2019). The role of third-party logistics in Algerian vehicle dealers: A case study approach. International Journal of Logistics Management, 15(3), 78-92. Algeria: Logistics Press.
- Christopher, M., & Towill, D. (2020). Advancements in third-party logistics service provision: A UK perspective. Journal of Supply Chain Management, 25(4), 112-126. United Kingdom: Supply Chain Press.
- Diop, M., & Ndiaye, A. (2018). Third-party logistics service provision in Senegal: Challenges and opportunities. African Journal of Logistics, 4(2), 65-78. Senegal: African Logistics Publishers.
- Hassan, M., & Ali, A. (2018). Improving third-party logistics service provision in Egypt: An exploratory study. Logistics Research Quarterly, 12(1), 30-45. Egypt: Logistics Research Publications.
- Hernandez, J., & Rodriguez, L. (2018). Mode of transport and third-party logistics service provision in Mexico: A case study. Journal of Transport Management, 8(3), 88-102. Mexico: Transport Press.
- Ivanov, V., & Sokolov, A. (2017). Third-party logistics service provision in Russia: Challenges and prospects. Logistics Today, 9(2), 55-70. Russia: Logistics Today Publishing.
- Järvinen, R., & Kärkkäinen, M. (2017). Logistics outsourcing in Finland: A study on third-party service provision in vehicle dealers. International Journal of Logistics, 20(1), 18-32. Finland: Logistics Association.
- Kamau, P., & Muturi, J. (2020). Trends in third-party logistics service provision: A Kenyan perspective. Logistics Insights, 6(2), 75-89. Kenya: Logistics Insights Publishers.
- Kothari, C.R (2014). Research methodology. Methods and Techniques Wishawa Prakashan: New Delhi
- Lawrence, P. R., & Lorsch, J. W. (1967). Differentiation and integration in complex organizations. Administrative Science Quarterly, 12(1), 1-47.
- Lieb, R., & Randall, W. (2021). Third-party logistics service provision in the United States: Current trends and future outlook. Journal of Logistics Management, 30(3), 50-64. USA: Logistics Management Press.
- Martinez, G., & Gomez, J. (2017). ICT adoption and third-party logistics service provision in Spain: A comparative study. European Journal of Logistics, 14(4), 120-135. Spain: European Logistics Association.
- Mensah, K., & Asante, G. (2017). Third-party logistics service provision in Ghana: Challenges and opportunities. African Journal of Logistics, 3(1), 25-39. Ghana: African Logistics Publishers.
- Mugenda, A., & Mugenda, O. (2015). Research methods: Quantitative and qualitative approaches. Nairobi, Kenya
- Mushi, E. (2018). Enhancing third-party logistics service provision in Tanzania: A case study approach. International Journal of Supply Chain Management, 12(2), 55-68. Tanzania: Supply Chain Management Press.
- Namagembe, S. (2022). Third-party logistics service provision in Uganda: An analysis of current practices. Journal of Logistics Research, 5(3), 80-94. Uganda: Logistics Research Association.
- Ndlovu, B., & Mbohwa, C. (2019). Third-party logistics service provision in South Africa: An exploratory study. Journal of African Logistics, 6(1), 35-49. South Africa: African Logistics Publishers.
- Rahman, M. (2018). Custom clearance policies and third-party logistics service provision in Bangladesh: A case study. Asian Journal of Logistics, 7(2), 40-54. Bangladesh: Asian Logistics Association.
- Silva, J., & Oliveira, L. (2018). Impact of staff competence on third-party logistics service provision in Brazil: A study in the vehicle dealer industry. Brazilian Journal of Logistics, 5(3), 70-85. Brazil: Brazilian Logistics Society.
- Smith, A. (2018). The effect of information communication technology on third-party logistics service provision in the USA. Journal of Logistics Technology, 11(4), 105-120. USA: Logistics Technology Press.
- Smith, J., & Johnson, R. (2016). Third-party logistics service provision in England: An analysis of current trends. European Journal of Logistics, 18(2), 65-79. England: European Logistics Association.
- Smith, P., & Jones, L. (2015). Custom clearance policies and third-party logistics service provision in Australia: A case study analysis. Australian Journal of Logistics, 9(1), 25-38. Australia: Australian Logistics Association.
- Wambui, M. (2018). Third-party logistics service provision in Kenya: Challenges and opportunities. East African Journal of Logistics, 3(2), 45-59. Kenya: East African Logistics Association.
- Wang, H., & Li, Q. (2017). Information communication technology and third-party logistics service provision in China: A survey. Chinese Journal of Logistics, 14(3), 80-95. China: Chinese Logistics Society.
- Williamson, O. E. (1979). Transaction-cost economics: The governance of contractual relations. Journal of Law and Economics, 22(2), 233-261.
- Woodward, J. (1965). Industrial organization: Theory and practice. Oxford, UK: Oxford University Press.