Distribution Strategies and Performance of Sugar Milling Companies in Kisumu County, Kenya
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Publication Date
2022Author
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ThesisMetadata
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Abstract/ Overview
Globally, Sugar industry have diversified products as cost reduction strategy and synergy building for sustainability. The sugar producing companies have exploited various distribution strategies in attempt to maximize profitability and achieving market dominance. However, studies show inconsistent supply chain network of sugar producing companies in Kisumu leading to reduced operational efficiency, excess inventory, reduced market share, elongated lead time and diminished profit. The study therefore sought to determine the influence of Distribution Strategies on Performance of Sugar Milling Companies in Kisumu County, Kenya. The study objectives include: to establish the influence of Direct Strategy on performance of Sugar Milling Companies in Kisumu County, Kenya; to examine the influence of indirect Strategy on performance of Sugar Milling Companies in Kisumu County, Kenya; to determine how exclusive Strategy influence performance of Sugar Milling Companies in Kisumu County, Kenya; to assess how Intensive Strategy influence performance of Sugar Milling Companies in Kisumu County, Kenya. The study was grounded on Economic Distribution Channel Theory and Goal Setting Theory. Descriptive survey design was used with questionnaires for data collection from a census of 186 respondents. A Validity and reliability coefficients of 0.78 and 0.79 was achieved respectively. Descriptive and inferential statistics of Correlation and Regression were conducted at a significance level of 0.05 were used in data analysis. The hypothesis results included: H01: Direct strategy does not significantly influence performance of Sugar Milling Companies was rejected since P=0.000<0.05; H02: Indirect strategy does not significantly influence performance of Sugar Milling Companies was rejected since P=0.004<0.05; H03: Exclusive strategy does not significantly influence performance of Sugar Millers was rejected since P=0.000<0.05 and; H04: Intensive strategy does not significantly influence performance of Sugar Milling Companies was rejected since P=0.000<0.05 was rejected since P=0.000<0.05. The coefficient of Direct Strategy (B = 0.498, p = 0.001), coefficient of Exclusive Strategy (B = 0.394, p = 0.013) and coefficient of Intensive Strategy (B = 0.258, p = 0.024) were significant statistically hence inclusion in the model. Thus, the study concluded that all the distribution strategies have a significant influence on performance of Sugar Milling Companies. The study contributes valuable knowledge on the appropriate distribution strategies for improvement of performance of Sugar Milling Companies with presupposition policies to enhance implementation of distribution strategy for quality supply control procedures, timeliness in product delivery, distribution cost reduction, efficiency in placing order and customer satisfaction. It is recommended that firms should apply different distribution strategies based on geographical proximity to the customers to enhance performance of sugar firms. Future studies should focus on other case studies apart from sugar firms.