FACTORS AFFECTING THE PERFORMANCE OF DISTRIBUTION PLANNING

AMONG MANUFUCTURING FIRMS IN KENYA: A CASE STUDY OF NZOIA SUGAR

COMPANY LIMITED

BY

JOAN

A RESEARCH PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT FOR

THE REQUIREMENTS OF THE DIPLOMA IN SUPPLY CHAIN MANAGEMENT

SCHOOL OF BUSINESS AND ECONOMICS

BUNGOMA NATIONAL POLYTECHNIC

© 2024

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 DECLARATION

I declare that this research project is my own work and has never been presented in any
Institution for any award.
Joan

MSC/BE/00092/2024

Sign………………………………….. Date…………………………………..

This research project has been presented for examination with my approval as the University
supervisor.

Dr. Tambo Albert

School of Business and Economics

Department of Management Science

BUNGOMA NATIONAL POLYTECHNIC

Sign………………………………….. Date…………………………………..

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 ACKNOWLEDGEMENT
I wish to express my sincere gratitude to the entire Bungoma National Polytechnic and
specifically to Mr. Tambo Albert for his guidance and encouragement in carrying this project
work. I also wish to thank the management of Nzoia sugar and Allied Industries for the
cooperation and assistance and for giving me the opportunity to do my research work in their
organization, which has therefore made this research project a success. My special thanks also
goes to my wife Anjeline Akoth to my children, and to the entire family for the moral support
which has helped me see this end. Finally, I thank my friend Robert Odek for the support he
accorded me during this project study

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 DEDICATION

I wish to dedicate this work to my late father Mzee Antipa Ongati and to my loving family, my
wife Anjelyne, my brother Prof Omolo Ongati my children, Lindah Olivia and Ethan for their
immense support and encouragement during this study.

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 ABSTRACT
Empirical studies shows that distribution Planning impact tremendously on performance of an
entire organization as it links the organization to the customers. Nzoia sugar company report in
2016 revealed that there was a performance drop from 56% in 2014 to 47% in 2015 and this was
attributed to distribution Planning. Therefore this study established factors affecting performance
of distribution planning among production firms in Kenya: a case of Nzoia Sugar Company
limited and allied industries. The study specifically; determined the effect of product nature on
performance of distribution Planning and the effect of distribution structure on performance of
distribution. The conceptualization of the study was guided by game theory. The study applied
descriptive approach through survey design. The target population comprised 26 employees. The
sample size of the study was 24 respondents sampled using census sampling technique. Data
analysis was done by descriptive statistics. The study realized that accuracy of data collected,
size of data base and ability of management information system to predict future decisions are
significant elements of information systems that has got vast influence on the performance of
distribution Planning. This study filled the gap in empirical studies which reported that there is
no existing relationship between information systems and distribution performance which the
present study finds to be existing. The study therefore concludes that management information
system coupled with various information technology are key in managing every distribution
aspect for sure performance. The study also revealed that distribution structure is a factor which
influences distribution performance through availability of regional depots which enables
customers to easily reach the products limiting stock outs which in the long run translates to
positive distribution performance. Besides, route-planning if considered, enables timely
deliveries of products, cost reduction in regard to time, fuel and vehicle maintenance. The
present study filled the gap in previous studies which reported that in planning system,
distribution cost is typically the highest single expense. That is, through implementing proper
distribution structure, nearly all the avoidable costs may be limited. It is concluded that
distribution structure used by a manufacturing firm have an impact on the ability of its
Distribution Planning to perform. The study recommends need of embracing modern and current
technology which can help various users of organization information to collect, analyze, interpret
and come up with various useful decisions affecting the organization. Further study needs to be

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done on the same topic but in other smaller institutions especially nationally so as to spur
development in the country Kenya and in Africa at large.
TABLE OF CONTENTS

TITLE PAGE……………………………………………..………………………………………..i

DECLARATION.............................................................................................................................ii

ACKNOWLEDGEMENT.............................................................................................................iii

DEDICATION...............................................................................................................................iv

ABSTRACT....................................................................................................................................v

TABLE OF CONTENTS...............................................................................................................vi

LIST OF TABLES.......................................................................................................................viii

LIST OF FIGURES......................................................................................................................viii

OPERATIONAL DEFINITION OF TERMS..............................................................................viii

ABBREVIATIONS AND ACRONYMS.......................................................................................ix

CHAPTER ONE INTRODUCTION...............................................................................................1

1.1 Background of the study............................................................................................................1

1.1.2 NZOIA Sugar Company and Allied Industries......................................................................4

1.2 Statement of the Problem..........................................................................................................4

1.3 Objectives of the Study..............................................................................................................5

1.3.1 Main Objective.......................................................................................................................5

1.3.2 Specific Objectives.................................................................................................................5

1.4 Research questions....................................................................................................................5

1.5 Scope of the study......................................................................................................................6

1.6 Justification of the Study...........................................................................................................6

1.7 Conceptual frame work.............................................................................................................7

CHAPTER TWO LITERATURE REVIEW...................................................................................8

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2.1 Theoretical Literature Review...................................................................................................8

2.2.1 Game Theory..........................................................................................................................9

2.2 Empirical Literature.................................................................................................................10

2.2.1 Information system and Distribution Planning Performance...............................................10

2.2.2 Distribution Structure and Distribution Planning Performance...........................................11

2.3 Summary of Gaps....................................................................................................................12

CHAPTER THREE RESEARCH METHODLOGY....................................................................13

3.1 Research design.......................................................................................................................13

3.2 Study area................................................................................................................................13

3.3 Target population.....................................................................................................................13

3.4 Sample and Sampling Technique............................................................................................14

3.5 Data Collection........................................................................................................................14

3.5.1 Data Types and source’s.......................................................................................................14

3.5.2 Data Collection Procedure....................................................................................................14

3.5.3 Data Collection Instruments.................................................................................................14

3.5.4 Instruments Reliability Test..................................................................................................15

3.5.5 Instruments Validity.............................................................................................................16

3.6 Data Analysis Method.............................................................................................................16

CHAPTER FOUR RESULTS AND DISCUSSIONS...................................................................17

4.1 Introduction.............................................................................................................................17

4.2 Presentations of findings.........................................................................................................17

4.2.1 Demographic information.....................................................................................................17

4.2.2 Gender of Respondents.........................................................................................................17

4.2.3 Age group of the respondents...............................................................................................18

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4.2.4 Work experience...................................................................................................................18

4.2.5 Education level.....................................................................................................................19

4.3 Study findings..........................................................................................................................20

4.3.1 Information systems related factors that influence the performance of distribution............20

4.3.2 Effect of distribution structure on performance of distribution in NZOIA Sugar and Allied
Industries Limited, Kenya.............................................................................................................22

CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS..............................................................................................................27

5.1 Introduction.............................................................................................................................27

5.2 Summary of findings...............................................................................................................27

5.3 Conclusions.............................................................................................................................28

5.4 Recommendations...................................................................................................................29

5.5 Suggestion for further study....................................................................................................29

REFERENCES..............................................................................................................................30

APPENDICES...............................................................................................................................32

LIST OF TABLES

Table 3.1: Reliability

Statistics ......................................................................................................16

Table 4.1: Gender of the

respondents ............................................................................................18

Table 4.2: Work

experience ...........................................................................................................20

Table 4.3: Education level of the

respondents ...............................................................................20

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Table 4.4: Accuracy of information influence performance of
distribution ..................................21

Table 4.5: Size of data base influences distribution

performance ..................................................22

Table 4.6: Predictability of information influences distribution performance ..............................23

Table 4.7: Route planning influences distribution

performance ....................................................25

Table 4.8: Mode of transport influences distribution performance ...............................................26

Table 4.9: Merits of route planning ...............................................................................................27

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x
LIST OF FIGURES

Figure 2.1: Conceptual framework on effects of distribution Planning factors on performance….7

Figure 4.1: Age of the

respondents ................................................................................................19

Figure 4.2: Satisfaction is an information element affecting

distribution ......................................22

Figure 4.3: Distribution structure used by a manufacturing firms have impact on the
ability ......24

Figure 4.4: Availability of regional depots impacts positively on the ability of its Distribution

Planning performance ..................................................................................................25

Figure 4.5: Merits of regional

depots .............................................................................................26

Figure 4.6: Importance of adopting a particular mode of

transport ...............................................27

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OPERATIONAL DEFINITION OF TERMS
Distribution channel Consists of a group of individuals or organizations that assist in
getting the product to the right place at the right time.
Distribution Planning Is the management activities to pursue customer satisfaction and
order fulfillment, connecting the main body of supply and demand,
overcoming space and time obstacles to achieve efficient and rapid
movement of goods.

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 Is the process of planning, implementing, and controlling the
efficient, effective flow and storage of goods, services, and related

Performance Planning

ABBREVIATIONS AND ACRONYMS

SCM : Supply Chain Management

USA : United States of America

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xiv
 CHAPTER ONE INTRODUCTION

This chapter contains the background information of the study on the analysis of factors affecting
the performance of distribution planning in Nzoia Sugar Company, the statement of the problem,
the objectives of the study, the research questions that guided the study and the significance of
the study.

1.1 Background of the study

Planning is increasingly becoming a strategic source of competitive advantage with the increase
in global production sharing, shortening of product life cycles and intensification of global
competition. In the highly competitive business environment, quality of Planning has assumed
great significance; it influences such decisions of firms as the choice of; country to locate in,
suppliers to buy from, and/or consumer markets to enter in. Essentially, high Planning costs
coupled with low service quality are a barriers to trade and foreign direct investment (FDI) and
consequently to economic growth. Massive investments are being made worldwide with some of
the best known investment gurus putting their bet on distribution industry which is directly
linked to the growth of any economy (Prabhakarsri, 2010). Distribution is increasingly becoming
a significant factor that can contribute to the realization of successful organizational strategy.
However, performance of distribution Planning is still a challenge to major manufacturing firms
Nzoia sugar Company and allied industries being one of them and thus the need of the present
study on performance of distribution Planning.

Today’s business environment has become increasingly competitive. This causes enormous
pressure for many companies in many industries. In such an environment, companies need to
continuously search for ways to design and manufacture new products, and distribute these
products in an efficient and effective fashion (Xu, 2013). For many years, companies focused
their efforts on reducing costs occurring in the manufacturing processes as well as other
operations. There are an increasing number of companies looking at distribution and recognizing
it as the last frontier for cost reduction. Xu (2013) in his study points that companies need to
design a distribution strategy that can ensure products are distributed in an efficient and effective
fashion. However, he does not clearly point put as to these strategies which thus necessitates the

1
present study which intended to establish the strategies to be adopted to enable performance of
distribution Planning.
According to Parthanadee and Logendran (2006) in 1991, the Council of Planning Management,
a trade organization based in the United States, defined Planning as the process of planning,
implementing, and controlling the efficient, effective flow and storage of goods, services, and
related information from point of origin to point of consumption for the purpose of conforming
to customer requirements. This is a frequently used definition, which originated in the military.
The present study adopted this definition.

In United States Planning costs constitutes about 30% of the cost of the products sold (Eskigun,
Uzsoy, Preckel, Beauj, Krishnan and Tew, 2005). In a Planning system, distribution cost is
typically the highest single expense, which is usually greater than warehousing cost, inventory
cost and order processing cost Parthanadee and Logendran (2006). Distribution has captured
management’s attention due to rapid wage and freight rate inflation, critical swing of
transportation costs and regulation, the high cost of carrying inventory, and oil market
uncertainties. From the study by (Eskigun, Uzsoy, Preckel, Beauj, Krishnan and Tew, 2005), and
Parthanadee and Logendran (2006), it implies that Planning is major concern as most of the costs
incurred in a production system are majorly in Planning. The present study therefore sought to
find out if cost is a factor that affect performance of distribution planning in production firms
with specific reference to Nzoia Sugar Company.
Since Planning advanced from 1950s, due to the trend of nationalization and Globalization in
recent decades, the importance of planning management has been growing in various areas. For
industries, Planning helps to optimize the existing production and distribution processes based on
the same resources through management techniques for promoting the efficiency and
competitiveness of enterprises (Kahia, 2014). Distribution Planning makes goods and products
movable and provides timely and regional efficacy to promote value-added under the least cost
principle. Distribution affects the results of SCM activities and, of course, it influences
production and sale. In the Planning system, transportation cost could be regarded as a restriction
of the objective market. Value of distribution varies with different industries. According to
Knemeyer and Murphy, (2004) for those products with small volume, low weight and high value,
distribution cost simply occupies a very small part of sale and is less regarded; for those big,
heavy and low- valued products, distribution occupies a very big part of sale and affects profits

2
more, and therefore it is more regarded. The demand for products can only be satisfied through
the proper and cost-effective delivery of goods and services of which the present study sought to
establish if there was proper and cost effective delivery of goods and services at Nzoia Sugar
Company.
Distribution channel consists of a group of individuals or organizations that assist in getting the
product to the right place at the right time (Asiamah, Alfred and Solomon, 2013). Distribution
plays a vital role, primarily because it ultimately affects the sales turnover and profit margins of
the organization. If the product cannot reach its chosen destination at the appropriate time, then it
can erode competitive advantage and customer retention. Therefore, distribution Planning is the
link between a company and its customers (Skjoett, 2002); it comprises all activities related to
the provision of finished products and merchandise to a customer. The products can be delivered
directly from the production process or from the trader‟s stock located close to the production
site or, possibly, via additional regional distribution warehouses. Like procurement Planning,
distribution Planning is a market-linked Planning system. It links a company’s production
planning with the customer’s procurement Planning Kahia (2014). In distribution planning,
customer orientation plays a special role because of the close link to the customer. According to
(Zheng and Zhang, 2010) distribution Planning is the management activities to pursue customer
satisfaction and order fulfillment, connecting the main body of supply and demand, overcoming
space and time obstacles to achieve efficient and rapid movement of goods. It also involves
conveying of information related to the distribution of physical goods thus making it slightly
distinct from physical distribution.
Performance of distribution Planning can be measured by on time delivery. This determines
whether a perfect delivery has taken place or not, it thus measures customer service. Xu (2013)
in Stewart (1995) identifies the following as the measures of performance Planning: delivery-
torequest rate, delivery-to-commit date, order fill lead-time and goods in transit. Quality and the
way the information is exchanged determine performance of distribution planning to a large
extent; possible performance indicators are: number of faultless invoices, flexibility of delivery
systems to meet particular customer needs.

1.1.2 Nzoia Sugar Company and Allied Industries

Nzoia Sugar Company is manufacturing organization based within the outskirts of Bungoma at

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Nzoia center. Its mission statement is „to maintain a competitive advantage by economical
pricing, improving the production technology and empowerment of our stakeholders through
skills, knowledge, inspiration and motivation. By strengthening commitment and partnership so
as to achieve and sustain long term growth and wealth creating for all stakeholders while
maintaining high health and safety standards. Focusing on differentiation and diversification of
products by investing in research, development and innovation. Adapt environmentally friendly
production techniques so as to reduce the global warming and embracing corporate governance
practices‟. Its main objective is to produce high quality refined sugar for the Kenyan market
among other sugar products.
1.2 Statement of the Problem

Most manufacturing firms in Kenya currently are ensuring that customers are able to place orders
on phone and via email such that the order processing is done so fast to enable loading and the
forthcoming delivery at the customers‟ door. For instance, Equator Bottlers, equally a
manufacturing firm currently uses ERP an information management system which is able to
collect data from various transaction points, relate it to the requirements, generate back the
feedback on the instructions given and proceed till the whole transaction process is achieved.
This has made them a dynamic and an outstanding performing company. This is what is required
by the current changes to be embraced by other companies. However, at Nzoia Sugar Company,
they still use the SERA system, an application which does not have the capability to post and put
appropriately every detail needed in the distribution process from production to delivery point.
This is one of the major factors that pose a great challenge to their distribution process and
performance since they are not able to respond to customer enquiries‟ in time, they are not able
to communicate between departments effectively such that credit control section cannot easily
know the levels of stock from production department instantly unless a physical verification from
the manual bin cards is done. This implies that if a customer places an order, the invoicing
department cannot proceed instantly implying time wastage which will spread to the customers.
Besides, modern companies have networked their systems such that they are capable of
accessing their bank accounts and instantly detecting payments that have been made by their
customers in regard to their fresh orders. However, at Nzoia Sugar Company and Allied
industries, the customers still have to deliver the payment slips physically. That is, after
depositing the cash, they have to find a way of the deposit slips reaching the credit controller.

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The time involved in doing all these equally spread to the whole distribution process. The present
study therefore intended to establish how lack of modern information systems translates to poor
distribution performance at Nzoia Sugar Company and Allied Industries. Nzoia Sugar Company
and Allied Industries lack enough regional depots within the market that they serve. This has in
fact been one of their major challenge which has affected their distribution system as the
customers must wait until the truck comes all the way from the main plant. In addition, they
have-not clearly mapped their network of clients that they serve so as to enable them to
understands which markets to concentrate in and how to reactivate other dead markets. This
therefore has negatively impacted on their Planning system which the present study seeks to find
out.

1.3 Objectives of the Study

1.3.1 Main Objective

The study’s main objective was to determine the effects of factors affecting performance of
distribution planning in Nzoia Sugar and Allied Industries Limited, Kenya.

1.3.2 Specific Objectives

The study was guided by the following specific objectives:

i. To determine the effects of information systems on performance of distribution planning in

Nzoia Sugar and Allied Industries Limited, Kenya ii. To establish the effects of distribution
structure on performance of distribution in Nzoia Sugar and Allied Industries Limited, Kenya

1.4 Research questions

The study was guided by the following research questions:

i. What was the effects of information systems on performance of distribution planning in Nzoia
Sugar and Allied Industries Limited, Kenya? ii. What was the effects of distribution structure on
performance of distribution in Nzoia Sugar and Allied Industries Limited, Kenya?

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1.5 Scope of the study

The study was based at Nzoia Sugar and Allied Industries Limited in Bungoma County, Kenya to
analyze factors affecting the performance of distribution Planning. The period of the study was
between January 2018 and August 2018. The main concepts of the study were the effects of;
product nature, and distribution structure on performance of distribution Planning. The study
gives recommendations on how to curb the latter challenges.

1.6 Justification of the Study

The current study aids in identifying the major challenges that affect the performance of
distribution Planning. This aids the company managers to come up with various ways and
approaches to curb the identified challenges thus enabling the achievement of the main goal of
the organization. Besides, the present paper adds to the existing pool of knowledge on
performance of distribution Planning.

The employees of Nzoia Sugar and Allied Industries Limited are therefore enlightened by the
findings of this study on the importance of managing distribution Planning and therefore they
can therefore comprehend the usefulness of limiting un-necessary costs thereby enabling easy
implementation of appropriate distribution structures and thus, the company’s competitive
advantage enhanced.

The results of this benefits not only the Nzoia Sugar and Allied Industries Limited and also other
manufacturing industries in Kenya and the international business arena which are experiencing
problems in terms of having an effective and efficient distribution Planning which if the factors
limiting the performance of Planning are identified, then this can enable the company’s
competitive advantage. Also this study is significant in developing underachieving
manufacturing companies and organizations as productive and effective entities in the future.

People interested in performance of distribution Planning and factors affecting them may use this
study as a stepping stone for future studies in other manufacturing companies. The management
of performance of distribution planning of an organization may also find the study useful. It is

6
through this that researchers are then able to find out how to focus on the investigation on a
particular subject and also know the possible methods that can be used at the time that they may
choose to conduct a new study. Thus, another significance of this study is that it serves as a guide
for researches that focus on distribution Planning and general organizational performance.

1.7 Conceptual frame work

A conceptual framework is “the abstract, logical structure of meaning that guides the
development of the study and enables the researcher to link the findings to the existing body of
knowledge” (Burns & Grove 2005:37). It is an image or symbolic representation of an idea.

Independent variable Dependent Variable

Factors affecting distribution Performance of
planning Distribution planning

 Distribution Schedule
 Information Systems  Quantity required
 Quality of products
 Distribution Structure  Distribution costs

Figure 2.1: Conceptual framework on effects of distribution Planning factors on

performance Source: Author (2019)

Referring to figure 2.1-conceptual framework, it is depicted that information system enable

performance of distribution Planning by increasing efficiency, predictability and reducing waste
in value chains, which has positive impact on all market players in the long run. Further,
distribution structure pertains to how the distribution processes are set up. The distribution
structure used by a manufacturing firm have an impact on the ability of its Distribution Planning
to perform, the various aspects of distribution structure including; availability of regional
deports, route planning, and mode of transport used.

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 CHAPTER TWO LITERATURE REVIEW

In this chapter the researchers reviewed the findings of research done in this area in
order to identify the gap that needs to be filled. The purpose of literature review is to
acquaint the researcher with the history of distribution Planning skill that has been
adopted by other researchers. It establishes various principles adopted by previous researchers
in related fields and at the same time acknowledging their contribution to management training
in what firms do not regard as a fundamental aspect in management of a firm.

2.1 Theoretical Literature Review

Theories are important in predicting, explaining and mastering phenomenon (behavior of

systems, events, activities of employees and time). Generalizations about observations are made
in theories (Matalanga, 2014). A theoretical framework explains the existence of the problem
under study. It mainly guides how the research will be conducted. It is important to the
researcher because it provides a general framework of the study. The current study was guided
by the game theory.

2.2.1 Game Theory

Game theory

Game theory is the formal study of decision-making where several players must make choices
that potentially affect the interests of the other players; it is official study of conflict and
cooperation (Xu, Pan & Ballot, 2013). Game theoretic concepts apply whenever the actions of
several agents are interdependent (Dai & Chen, 2012). These agents may be individuals, groups,
firms, or any combination of these. The concepts of game theory provide a language to formulate
structure, analyze, and understand strategic scenarios (Dai &Chen, 2012).

According to (Xu, et al., 2013) the game theory is divided into two main approaches: the
noncooperative and the cooperative game theory. The cooperative game theory can be applied to
the case where players can achieve more benefit by cooperating than staying alone (Xu, et al.,
and 2013). The gain sharing issue was intensively investigated in the cooperative game theory;

8
therefore we adopted cooperative game theoretic approaches in constructing the hypothesis on
transport management and firm performance. Today cooperation is becoming more and more
crucial to improve the global performance of Planning (Drechsel & Kimms, 2010). As the
complement of traditional vertical cooperation, a new cooperation model, the horizontal
cooperation was proven efficient to reduce global cost and improve service rate in Planning
(Drechsel & Kimms, 2010).

In game theory, horizontal cooperation in Planning was proved efficient to reduce global cost and
improve the performance level (Cruijssen, Cools, &Dullaert, 2007; Pan, Ballot, Fontane
&Hakimi, 2012). However, despite these advantages, horizontal cooperation is not considerably
employed in Planning (Muir, 2010). One main obstacle in the implementation of horizontal
cooperation is the absence of an appropriate cooperation decision making model (Xu, etal. 2013).
In regard to the present study, the game theory is applicable in that,Nzoia Sugar Company and
Allied Industries can decide to work hand in hand with their distributors. That is, they can
outsource transportation services from their own distributors. Besides, they can also decide to
empower one major distributor who can in most cases act as their point of sale so that at all
times, the market is serviced and goods are at the reach of the customers.

2.2 Empirical Literature

2.2.1 Information system and Distribution Planning Performance

Stank and Keller (2001) studied the 306 firms have been integrated in North America for
logistical and performance benchmarking. The study identified and used six aspects of
integration and six different measures of performance. Relationships influence internal,
operational and customer, technology and planning integration vs information systems support
and advanced shipment notification support. The researcher noted that there was no significant
relationship. The present study is therefore of key since the relationship is not yet established
specifically between information systems and distribution performance. Besides, Stank & Keller
(2001), concentrated on planning integration and information systems while the present study
concentrated on Information systems and distribution planning thus need to research tis area as it
has been researched yet.

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According to Ceva (2010), one of the world’s leading non-asset based supply chain management
companies, in their study on Planning and Competitive Strategy, they found that Information
system to manage distribution increases efficiency, predictability and reduce waste in value
chains, which has positive impact on all market players. However, the study did not exactly point
out what information tools or applications can be used on each and every industry to achieve the
latter advantages of information systems. Besides, the study was conducted on a wider concept;
mainly on large companies while the present study is based on a single medium sized company
where the findings by Ceva (2010) may not exactly be used to generalize and to be applicable at
Nzoia Sugar and allied industries. This study by Ceva (2010) used survey methodology which
has a limitation where by survey question answer options could lead to unclear data because
certain answer options may be interpreted differently by respondents. The present study therefore
used correlational study design which avoided bias and enabled understanding of the kind of
relationships that naturally occur between variables under study.

Cooper (2006) in his study on Global complexities challenge and how IT managers handle
distribution, recognized that such tools of information system as cell phone and internet services,
radio, and a wide range of digital devices and related tools, including cameras, GIS, a wide range
of hand-held computing devices if appropriately used, has a potential of raising efficiency in the
following distribution activities: record keeping, monitoring field agent activities, procurement
operations, credit and payment tasks, input distribution, measuring productivity, and forecasting.
The findings by Cooper (2006) are in line with the present study. However, the study was not
specifically in the distribution industry, instead it was a general study which was touching
various modern technologies. The present study was in regard to the application of modern
information systems and in relation to a specific organization which was Nzoia Sugar Company
and Allied Industries in Kenya.

2.2.2 Distribution Structure and Distribution Planning Performance

Coyle et al (2009) in his study on Management of Business Planning, a Supply Chain Perspective
in South Western, Us, noted that distribution structure pertains to how the distribution processes
are set up. The distribution structure used by a manufacturing firm may also have impact on the
ability of its Distribution Planning to perform, He further explained that the various aspects of
distribution structure that can positively or negatively impact on the performance of the firm’s

10
Distribution Planning include availability of regional deports, route planning, mode of transport
used. These were true factors however, they were too general and not substantiated and thus did
not clearly bring out the sub-variables of regional deports, route planning, mode of transport and
how they exactly relate to Planning performance.

Kahia (2014) on his study on factors affecting performance of distribution Planning in Bata shoe
Company in Kenya, he noted that availability of regional depots refers to whether a
manufacturing firm has set up depots in various regions so as to bring distribution near the
customers. And that regional depots may allow for proper capacity utilization of transport over
long distances as this is not dependent on individual customer orders. Regional depots also
ensure that the products are in close proximity to the customer thus making it possible for
deliveries under short notice. He also found that route planning pertains to matters of route
selection, vehicle capacity utilization as well as planning for dispatches, He further discussed that
route selection, involves the route selected which may impact highly on the ability to deliver
goods in time as trucks can avoid traffic congestions or use the shortest routes available.
However, the findings of Kahia (2014) were specifically in regard to the Bata shoe company
which may not necessarily apply to the present study which was based in a different sugar
manufacturing industry.

2.3 Summary of Gaps

In the study by Parthanadee and Logendran (2006) in USA, they noticed that in Planning system,
distribution cost is typically the highest single expense, which is usually greater than
warehousing cost, inventory cost and which implies that Planning is major concern as most of
the costs incurred in a production system are majorly in Planning. The present study therefore
sought to find out if cost was a factor that affect performance of distribution planning in
production firms with specific reference to Nzoia Sugar Company while relating it to distribution
structures.
According to Knemeyer and Murphy, (2004) for those products with small volume, low weight
and high value, distribution cost simply occupies a very small part of sale and is less regarded;
for those big, heavy and low- valued products, distribution occupies a very big part of sale and

11
affects profits more, and therefore it is more regarded. The demand for products can only be
satisfied through the proper and cost-effective delivery of goods and services of which the
present study sought to establish, that is, if there was proper and cost effective mode of delivery
of goods and services to clients of Nzoia Sugar Company.

The performance of any distribution company is strongly dependent on application of proper

information systems and applying proper distribution structure. Nzoia sugar should not be an
exception to applying the latter. However, according to Stank and Keller (2001) in their study,
they did not find any relationship between information systems and distribution performance
which the present study sought to find out at Nzoia sugar Company and Allied Industries.

Kahia (2014) on his study on factors affecting performance of distribution Planning in Bata shoe
Company in Kenya, he noted that aavailability of regional depots refers to whether a
manufacturing firm has set up depots in various regions so as to bring distribution near the
customers. However, the findings of Kahia (2014) were specifically in regard to the Bata shoe
company which may not necessarily apply to the present study which was based in a different
sugar manufacturing industry.

12
 CHAPTER THREE RESEARCH METHODLOGY

This chapter presented a detailed description of the selected research design. It described in
details what had been done and how. It included the target population, sample design, procedure
for data collection, validity and reliability tests.

3.1 Research design

This study was descriptive thus applied survey study design. Survey method research is where
participants answer questions administered through interviews or questionnaires. After
participants answer the questions, researchers describe the responses given. In order for the
survey to be both reliable and valid, the questions were constructed properly. Questions should
were written so that they were clear and easy to comprehend.

3.2 Study area

The study was based at Nzoia Sugar and Allied Industries Limited in Bungoma County, Kenya to
analyze factors affecting the performance of distribution planning between January and June
2018. The main concepts of the study were the effects of; information system and distribution
structure on performance of distribution Planning.

3.3 Target population

The target population of this study comprised of 4 retail and distribution managers, 4 store
managers, 2 distribution center supervisors, 6 clerks, 6 distributors and 4 marketing executives,
thus a target population of 26employees (Moonbluz Enterprises Limited organization data, 2018)
with the sample size being 24. The sample size was arrived at by considering all the key persons
as per the targeted respondents.

13
3.4 Sample and Sampling Technique

This study applied census sampling technique. This was so because census is a simple sampling
method which allowed the researcher to collect data from each and every member in the
population of which the sample size was arrived at by picking all the key respondents. This
therefore eliminated predisposition. The design besides, aids in collecting focused information
and furthermore, saves time and money.

3.5 Data Collection

Data collection is the process of gathering and measuring information on variables of interest, in
an established systematic fashion that enables one to answer stated research objectives, test
hypotheses, and evaluate outcomes. The data collection components of the current research
included physical collection of data by use of various data collection instruments.

3.5.1 Data Types and source’s

The present study used primary data which was obtained from the original respondents. This was
done with the aid of data collection instruments.

3.5.2 Data Collection Procedure

The researcher before proceeding to collect data sought permission which was granted with an
introductory letter from School of Graduate studies to the persons to be interviewed. This was
then followed by the training of the research assistant on ethical issues in research which was
expected to be done within one day. Data was collected primarily using Semi structured
questionnaire and secondary data through the relevant books, journals and periodicals.

3.5.3 Data Collection Instruments

The researcher used questionnaire to collect primary data. Questionnaires are commonly used to
obtain important information about the population. According to Cooper and Schindler (2003), a
self-administered questionnaire is the only way to elicit self-reports on people’s opinion,
attitudes, beliefs and values. The questionnaire had items aiming at answering the study
questions so that it could meet research objectives. The choice of this tool of data collection was
guided by the time available and the objectives of the study. Semi structured questionnaire were

14
be used to collect data. The closed ended questions were used for easy coding and analysis while
the open ended questions were used to elicit more information from respondents to complete the
missing links. These types of questions were accompanied by a list of possible alternatives
ranging from strongly disagree to strongly agree, from which respondents were required to select
the answer that best described their situation i.e. strongly disagree on the one extreme to strongly
agree on the other. The questionnaire was divided into two sections; part (A) which entails
questions on personal information of the respondents and Part (B) which entailed questions
related to the objectives that the research intended to achieve. Secondary data was obtained from
relevant books, journals and periodicals.

3.5.4 Instruments Reliability Test

The researcher took the following steps to ensure reliability: the questionnaire items were
developed following the objectives of the study, the questionnaire items were written in simple
language to facilitate respondents‟ understanding (comprehension), the items in the
questionnaire were worded clearly, a pre-test was carried out on respondents with the same
attributes, but who are not included in the main research. This was done to identify ambiguity in
the wording, sensitive questions, or as well as wrongly placed questions with the aim of revising
the questionnaire. Cronbach's alpha reliability statistics was also used to test the response rate as
follows;

Table 3.1: Reliability Statistics

Cronbach's Alpha Cronbach's Alpha Based on N of Items

Standardized Items

.667 .594 24
Source: (Author, 2018)

In table 3.2, Cronbach‟s Alpha has been used to interpret and test the reliability rate. Cronbach's
alpha reliability coefficient normally ranges between 0 and 1. The closer the coefficient is to 1.0,
the greater is the internal consistency of the items (variables) in the scale. The rule of George and
Mallery (2003) has been used in interpreting the results, that is, > .9 (Excellent), > .8 (Good),
> .7 (Acceptable), > .6 (Questionable), > .5(Poor), and < .5 (Unacceptable). As per table 2,

15
Cronbach‟s Alpha is 0.667≈ 0.7 thus interpreted as Acceptable. It is therefore true to conclude
that the data collection instruments were reliable and thus enabled achievement of the study
objectives.

3.5.5 Instruments Validity

Validity of the research and research instrument was ensured by means of the following: a
literature review conducted to find relevant questions for the questionnaire items, the sample size
being large enough to be representative of the phenomenon under study and finally, a special
attempt was made to ensure similarity between research questions, objectives, investigation,
findings and recommendations. Further validity test was done using SPSS version 21.0. All the
variables were keyed into the variable view of the SPSS software. Then the Likert scale helped to
key the data in the data view. After which analysis was done using the bivariate tool. In
interpreting the data, every questionnaire item that had significance level (Sig. 2-tailed) of
0.000<0.05 was considered valid and thus all the questionnaire items were tested and interpreted
as valid.

3.6 Data Analysis Method

This study used descriptive statistics to analyze quantitative data. Descriptive statistics involves
the collection, organization and analysis of all data relating to some population or sample under
study. Data was checked for completeness, accuracy, errors in responses, omissions and other
inconsistencies. The data was then coded using numerals in order to put them in limited number
of categories. The data was analyzed using the SPSS (version 21.0) as it was more user friendly
and most appropriate for analysis of Management related attitudinal responses (Martin and
Acuna, 2002) and then presented in the report in the form of tables and graphical presentations.
Tables and other graphical presentations as appropriate were used to present the data collected
for ease of understanding and analysis. Tables were used to summarize responses for further
analysis and facilitate comparison. This generated quantitative reports through tabulations,
percentages, and measure of central tendency. Cooper and Schindler (2003) notes that the use of
percentages is important for two reasons; first they simplify data by reducing all the numbers to
range between 0 and 100. Second, they translate the data into standard form with a base of 100

16
for relative comparisons. The mean score for each attribute was calculated and the standard
deviation used to interpret the respondents deviation from the mean. The results were presented
on frequency distribution tables, graphs, pie charts and bar charts. Here the interest was focused
on frequency of occurrence across attributes of measures.

CHAPTER FOUR RESULTS AND DISCUSSIONS

4.1 Introduction

This chapter presents the analysis of information collected in relation to the analysis of factors
affecting performance of distribution planning in Nzoia Sugar and Allied Industries Limited,
Kenya.

4.2 Presentations of findings

The research data were analyzed according to the objectives of the study and findings presented
in the form of figures and tables. The entire questions formulated were administered and the
responses received were analyzed.

4.2.1 Demographic information

4.2.2 Gender of Respondents

From the respondents, 58.3% were male while 41.7% were female. It therefore implied that there
was no biasness as the ratio of men to women were almost equal as illustrated in table 4.1. Table
4.1: Gender of the respondents

Frequency Valid Cumulative Percent

Percent

17
 Male 14 58.3 58.3

Valid Female 10 41.7 100.0

Total 24 100.0

4.2.3 Age group of the respondents

From the findings, 16% of the respondents were between the ages of 20 -30years, 58.3% were in
the age of 31-40 years while 17% were in the age of 41-40 years with the remaining 9% being
over 41 years. Majority of the respondents were in the age group between 31-40 years. This is a
clear indicator that they had experience and could easily respond to the questionnaire items as
illustrated in figure 4.1.

60%

50%

40%

30% 58%

20%

10% 17% 17%

8%

0%
20-30Yrs. 31-40Yrs. 41-50Yrs. More than 50 yrs.

Figure 4.1: Age of the respondents

18
4.2.4 Work experience

In table 4.2, 12.5% of the respondents have got 0-2 years’ work experience at Nzoia, 37.5% have
got 2-4 years’ work experience, 29.2% have got 4-6 years while the remaining 20.8% have more
than 6 years’ work experience at Nzoia Sugar Company. Majority of the respondents (66.7%)
have got more than 4 years’ work experience which therefore will aid the study as the
respondents fully have the knowledge of the questionnaire items as illustrated in 4.2.

Table 4.2: Work experience

Frequency Valid Percent Cumulative Percent

0-2 years 3 12.5 12.5

2-4 years 9 37.5 50.0

Valid 4-6 years 7 29.2 79.2

Over 65 20.8 100.0
years
Total 24 100.0

4.2.5 Education level

Table 4.3: Education level of the respondents

Frequency Valid Percent Cumulative Percent

Less than degree 14 58.3 58.3

8
Valid Degree 33.3 91.7

19
 Master’s degree 2 8.3 100.0

Total 24 100.0

It is evidenced that majority of the respondents had less than a degree, that diploma and other
professional qualifications. Despite this, but it signified the literacy level therefor the ability to
understand the theme of the study.

4.3 Study findings

4.3.1 Information systems related factors that influence the performance of distribution

In table 4.4, 16.7% of the respondents strongly agreed that accuracy of information influence
performance distribution, 70.8% of the respondents agreed with the same opinion, 8.3% were
neutral while the remaining 4.2% disagreed. It is therefore true to conclude that information
accuracy is one element of information systems that has got influence on the performance of
distribution Planning at NZOIA sugar company since majority of the respondents( 87%)
supported the idea. The latter findings is affirmed by the study done on Global complexities
challenge and how IT managers handle distribution by Cooper (2006) where he recognized that
such tools of information system as cell phone and internet services, radio, and a wide range of
digital devices and related tools, including cameras, GIS, a wide range of hand-held computing
devices if appropriately used, has a potential of raising efficiency in the following distribution
activities: record keeping, monitoring field agent activities, procurement operations, credit and
payment tasks, input distribution, measuring productivity, and forecasting.

Table 4.4: Accuracy of information influence performance of distribution

Frequency Valid Percent Cumulative Percent

Strongly 4 16.7 16.7

Agree

Valid Agree 17 70.8 87.5

Neutral 2 8.3 95.8

20
 Disagree 1 4.2 100.0

Total 24 100.0

In table 4.5, size of data base is considered; 4.2% strongly agree that the size of data base that a
company keeps has got influence on its distribution performance, 62.5% agreed with this
opinion, 20.8% were neutral while the remaining 12.5% disagreed. The study thus reveals that
size of data base influences distribution performance at NZOIA Sugar Company since majority
of the respondents were in agreement with the same idea (67%).

Table 4.5: Size of data base influences distribution performance

Frequency Valid Percent Cumulative Percent

Strongly 1 4.2 4.2

Agree

Valid Agree 15 62.5 66.7

Neutral 5 20.8 87.5

Disagree 3 12.5 100.0

Total 24 100.0

In figure 4.2, 16.7% of the respondents strongly agreed that satisfaction is an information factor
affecting distribution, 58.3% agreed with the same opinion, 16.7% were neutral and the
remaining 8.3% disagreed. At NZOIA Sugar Company, from the responses gathered, it was
realized that if there information system is not rusted it gives no confidence to the users and thus
no satisfaction which is then detrimental to the distribution performance.

21
 8.70% 16.70%
16.70%

58.30%

Strongly agree Agreed Neutral Disagree

Figure 4.2: Satisfaction is an information element affecting distribution

In table 4.6, 8.3% of the respondents indicated that predictability of information influences
performance of distribution planning, 66.7% agreed with the same opinion, 12.5% were neutral
while 12.5% disagreed. It is hence true to comment that predictability affects financial
information element is an important factor which affect performance distribution. This is in line
with the study by Ceva (2010), who noted in their study on Planning and Competitive Strategy,
that Information system to manage distribution increases efficiency, predictability and reduce
waste in value chains, which has positive impact on all market players.

Table 4.6: Predictability of information influences distribution performance

Frequency Valid Percent Cumulative Percent

Strongly 2 8.3 8.3

Agree

Valid Agree 16 66.7 75.0

Neutral 3 12.5 87.5

22
 Disagree 3 12.5 100.0

Total 24 100.0

4.3.2 Effect of distribution structure on performance of distribution in Nzoia Sugar and

Allied Industries Limited, Kenya
In figure 4.3, 20.3% strongly agreed that distribution structure used by a manufacturing firms
have impact on the ability of its Distribution Planning performance, 63% agreed with the same
opinion, 8.3% were indifferent while the remaining 8.3% disagreed. It therefore clear that
distribution structure is a factor which to a greater extent assist or influences distribution
performance. This is in line with the findings of Coyle et al (2009) in his study on Management
of Business Planning, a Supply Chain Perspective in South Western, Us, where he noted that
distribution structure pertains to how the distribution processes are set up and thus the
distribution structure used by a manufacturing firm may also have impact on the ability of its
Distribution Planning to perform.

8.30%
8.30% 20.30%

63.00%

Strongly agree Agreed Neutral Disagree

Figure 4.3: Distribution structure used by a manufacturing firms have impact on the
ability of its Distribution Planning performance

23
In figure 4.4, 10% of the respondents indicated that availability of regional depots affects
distribution structure related factors that influence the performance of distribution Planning, 68%
of the respondents agreed, 10% were neutral and 12% disagreed. Availability of regional depots
therefore enables reach of the products and thus limited stock outs which in the long run
translates to positive distribution performance. Coyle et al (2009) in his study on Management of
Business Planning, a Supply Chain Perspective in South Western, Us, affirms the latter finding
that various aspects of distribution structure that can positively or negatively impact on the
performance of the firm’s Distribution Planning include availability of regional deports, route
planning, mode of transport used.

12.00% 10.00%
10.00%

68.00%

Strongly agree Agreed Neutral Disagree

Figure 4.4: Availability of regional depots impacts positively on the ability of its
Distribution Planning performance

In table 4.7, route planning is strongly agreed with to be enabling distribution performance to an
extent of 30%, 58% agreed while the remaining 12% were indifferent and disagreed
consecutively. Route-planning is therefore a main element of distribution structure that if
considered by the management at Nzoia Sugar Company, then this can lead to increased
distribution performance. This finding is supported by Kahia (2014) in his study on factors
affecting performance of distribution planning in Bata shoe Company in Kenya, noted that

24
regional depots may allow for proper capacity utilization of transport over long distances as this
is not dependent on individual customer orders.

Table 4.7: Route planning influences distribution performance

Valid Percent Cumulative Percent

Strongly 30.0 30.3

Agree
Agree 58.0 88.0

Valid Neutral 6.0 94.0

Disagree 6.0 100.0

Total 100.0

In table 4.8, mode of transport is considered and 12% of the respondents strongly agrees that the
mode of transport is a factor, 48% are supporting the idea, 20% are neutral while the remaining
20% are disagreeing. It is true therefore that the mode of transport like using a trailer instead of a
ten wheeler is recommended as it encourages performance distribution.

Table 4.8: Mode of transport influences distribution performance

Valid Cumulative
Percent Percent

Strongly 12.0 12.0

Agree
Agree 48.0 60.0

Valid Neutral 20.0 80.0

Disagree 6.0 100.0

Total 100.0

25
In figure 4.5, it is clearly evidenced that availability of regional depots allows proper capacity
utilization supported by 22% of the respondents, brings products closer to the customer (34%),
enable deliveries within short notice (24%) and reduces the lead time (20%). It is true then that
the most significant factor affecting distribution Planning is availability of depot which brings
products closer to the customers.

20.00% 22.00%

24.00%
34.00%

Strongly agree Agreed Neutral Diagree

Figure 4.5: Merits of regional depots

In table 4.9, majority of the respondents 78% indicated that one of the importance of route
planning is that it enables timely deliveries of products, and that it enables cost reduction as the
customer is already predetermined therefore no more trials to consume cost in regard to time,
fuel and vehicle maintenance costs.

Table 4.9: Merits of route planning

Valid Percent Cumulative Percent

Timely 78.0 78.0

deliveries
Cost 22.0 22.0
Valid reduction

26
 Total 100.0

Figure 4.6 clarifies the importance of adopting a given mode of transport where by 52% of the
respondents’ support that transportation means determines flexibility and that transportation
means also enables door to door deliveries thus enabling distribution performance in the long
run.

48%
Enables door to door deliveries

52%
Enhances flexibility

0% 10% 20% 30% 40% 50% 60%

Figure 4.6: Importance of adopting a particular mode of transport

27
 CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS

5.1 Introduction

This chapter discusses the summary of findings, answers to research questions, recommendations
arising from the study and conclusions drawn. It also suggests area for further research. The
objective of the study was to analyze factors affecting the performance of distribution Planning
among manufacturing firms in Kenya; case of Nzoia Sugar and Allied Industries.

5.2 Summary of findings

From the questionnaires issued, all the respondents, that is, the 24 respondents who were
included in the sample size responded. They all marked the questionnaires before they were
picked by the researcher. Both genders were well represented and thus, this limited bias. A
greater percentage of the respondents were college graduates/professionals meaning they were all
literate and thus easily interpreted the questionnaire items. Most respondents were between the
age of 31 - 40 therefore were mature enough to tackle the questionnaire items. It was also
confirmed by the respondents themselves as per their response that they were experienced and
could tackle the questionnaire items since majority had more than 4 years working experience at
Nzoia Sugar and Allied Industries.
The summary of the findings has been done according to the research questions. They were as
follows:

5.2.1 Effects of information systems on performance of distribution planning in NZOIA

Sugar and Allied Industries Limited, Kenya
The study revealed that information accuracy is one element of information systems that has got
influence on the performance of distribution planning at Nzoia Sugar Company since majority of
the respondents supported the idea. The study also found that size of data base influences
distribution performance at Nzoia Sugar Company since and that if information system is not
trusted it gives no confidence to the users and thus no satisfaction which is then detrimental to
the distribution performance. Finally on this objective, the study realized that predictability

28
affects future financial information and therefore is an important factor which affect performance
distribution. This is in line with the findings of Coyle et al (2009) in his study on Management of
Business Planning, a Supply Chain Perspective in South Western, Us, where he noted that
distribution structure pertains to how the distribution processes are set up and thus the
distribution structure used by a manufacturing firm may also have impact on the ability of its
Distribution Planning to perform

5.2.2 Effect of distribution structure on performance of distribution in Nzoia Sugar and

Allied Industries Limited, Kenya

It was evidenced from the study that distribution structure is a factor which to a greater extent
assist or influences distribution performance. Besides, the study revealed that availability of
regional depots enables customers to easily reach the products and thus limited stock outs which
in the long run translates to positive distribution performance. The study found that route-
planning is therefore a main element of distribution structure that if considered by the
management at Nzoia sugar company, then this can lead to increased distribution performance,
that is, route planning enables timely deliveries of products, and that it enables cost reduction as
the customer is already predetermined therefore no more trials to consume cost in regard to time,
fuel and vehicle maintenance costs. This finding is supported by Kahia (2014) in his study on
factors affecting performance of distribution planning in Bata shoe Company in Kenya, noted
that regional depots may allow for proper capacity utilization of transport over long distances as
this is not dependent on individual customer orders. Also learnt is that the mode of transport like
using a trailer instead of a ten wheeler is recommended as it encourages performance
distribution.

5.3 Conclusions

The findings of this study fills the gap left out in previous theoretical and qualitative studies on
distribution and Planning performance. From the findings the study found that the main sub
variables of distribution affects the distribution performance. On the effects of information
systems on performance of distribution Planning, the study realized that accuracy of
information/data collected, size of data base and ability of management information system to
predict future decisions are significant elements of information systems that has got vast

29
influence on the performance of distribution Planning. This fills the gap in the study by Stank
and Keller (2001), they did not find any relationship between information systems and
distribution performance while the present study finds that indeed there exist a relationship
between information systems and Planning performance at Nzoia sugar Company and Allied
Industries. The study therefore concludes that management information system coupled with
various information technology are key in managing every distribution aspect for sure
performance.

From the findings on effects of distribution structure on performance of distribution, the study
realized that distribution structure is a factor which influences distribution performance through
availability of regional depots which enables customers to easily reach the products limiting
stock outs which in the long run translates to positive distribution performance. Besides, route
planning which is still part of the distribution structure if considered enables timely deliveries of
products, cost reduction as the customer is already predetermined therefore no more
trials/voluntary selling, reduces cost in regard to time, fuel and vehicle maintenance costs. The
present study hence fill the gap in the study by Knemeyer and Murphy, (2004) and in the study
by Parthanadee and Logendran (2006) in USA, where he noticed that in Planning system,
distribution cost is typically the highest single expense. That is, through implementing proper
distribution structure, nearly all the avoidable costs will be limited. The study therefore
concludes that distribution structure used by a manufacturing firm have an impact on the ability
of its Distribution Planning to perform.

5.4 Recommendations

There is need of embracing modern and current technology which can aid various user of
organization information to collect, analyze, interpret and come up with various useful decisions
affecting the organization.
Finally, the researcher recommends that NZOIA Sugar Company and Allied Industries should
consider the findings of this study on distribution structure which in the long run will give them
an edge over other sugar suppliers/manufacturers. That is, distribution structure which is more

30
organized enables flow of information and activities which enables easy order tracking, efficient
loading and delivery to the customers.

5.5 Suggestion for further study

This study provides quantitative evidence for the implication of managing distribution channels
and how this translates to the overall organizational goals. Therefore, this evidences that there is
need to emphasize the need of proper distribution structure. Further, this study was only carried
out in Bungoma specifically at Nzoia Sugar Company and Allied Industries therefore the
findings are only limited to this organization. Further study needs to be done on the same topic
but in other smaller institutions especially nationally so as to spur development in the country
and in Africa at large.

31
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cture/Lo gistics.pdf
Bowersox, Closs, & Cooper. (2010). Supply Chain Planning Management. Boston: McGraw-

Hil.

Ceva, “Planning and Competitive Strategy," European Management Journal, 11(2), 126-138,
2010

Chopra, S., “Designing the distribution network in a supply chain”, Transportation Research Part
E, 39(2), 123-140, 2003.
Coyle et al (2009) The Management of Business Planning, a Supply Chain Perspective,
Thompson Learning, South Western
Cooper, F. “Global complexities challenge how IT managers handle distribution,” Journal of
Marketing, Fall. 47, pg. 96, 2006

Cyplik, P., Hadaś, L. & Domański, R. (2009). Implementation of the theory of constraints in the
area of stock management within the supply chain: a case study, Electronic Scientific
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Du, F. & Evans, G.W., “A bi-objective reverse Planning network analysis for post-sale service”,
Computers & Operations Research, 35(8), 2617-2634, 2008.
Eskigun, E., Uzsoy, R., Preckel, P.V., Beaujon, G., Krishnan, S., & Tew, J.D., “Outbound
supply chain network design with mode selection, lead times and capacitated vehicle
distribution centers”, European Journal of Operational Research, 165(1), 182-206, 2005.
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2222-699

Knemeyer, A. M., & Murphy, P. R. (2004). Evaluating the performance of third-party Planning
arrangements: A relationships marketing perspective. Journal of Supply Chain
Management, 40(1), 35-51
Kotler, eta’l( 2010) marketing management, Prentice Hall, USA

Kothari, C. (2008). Pretesting in questionnaire design: The impact of respondent characteristics

on error detection. Journal of the Market Research Society, 36(October), 295– 314.
La-Londe, Martha, Cooper, & Noordewier. (2008).A management perspective: Customer
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M.Christopher, & D. To will. (2001).An integrated model for the design of agile supply chains.

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Mugenda, O. &Mugenda, A. (2003). Research Methods: Quantitative & Qualitative

Approaches. Nairobi: Acts Press.
Parthanadee, P. & Logendran, R., “Periodic product distribution from multi-depots underlimited
supplies”, IIE Transactions, 38(11), 1009-1026, 2006.
Paulraj, & Chen. (2007). “Strategic Buyer-Supplier Relationships. Journal of Supply chain
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Prabhakarsri, “A brief note on planning industry in India,” Retrieved from
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Simatupang, T.M., & Sridharan, R. (2005).An integrative framework for supply chain
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33
 APPENDICES

APPENDIX I: BUDGET

Activity Amount in Ksh.

Transport1 5,000

Research assistants2 30,000

Typing, Photocopying and Binding3 10,500

Internet4 8,000

Laptop5 105,000

Publication6 13,000

Total 171,500

Source: Author (2018)

34
 APPENDIX II: QUESTIONNAIRE

PART A: DEMOGRAPHICS

1. What is your gender?

1=Female [ ] 2=Male [ ]

2. In which age group do you belong?

1=20-30 years [ ]

2=31-40 years [ ]

3=41-50 years [ ]

4=51-60 years [ ]

5=More than 60 years [ ]

3. No. of years served in Nzoia?

0 – 2 years [ ]
2 – 4 years [ ]
4 – 6 years [ ]
Over 6 years [ ]
4. What is the highest education you achieved?

Less than degree [ ]

Degree [ ]

Master’s degree [ ]

35
PART B: Objectives Questions

1. What are the information systems related factors that influence the performance of
distribution?

Strongly Agree=2 Neutral=3 Disagree=4 Strongly

Agree=1 Disagree=5

Speed

Accuracy

Size of data
base

Satisfaction

Predictability

2. a).Does distribution structure used by a manufacturing firms have impact on the ability of
its Distribution Planning performance?
1=Strongly Agree ( )

2=Agree ( )

3=Not sure ( )

4=Disagree ( )

36
 b).What are the distribution structure related factors that influence the performance of
distribution Planning?
Strongly Agree=1 Agree=2 Neutral=3 Strongly Disagree=4

Availability of
regional depots

Route planning

Mode of
transport

c). How does availability of regional depots impacts on DL performance

Allows proper capacity utilization 1=Yes[ ] 2=No [ ] 3=Not Sure [ ]
Brings products closer to the customer 1=Yes[ ] 2=No [ ] 3=Not Sure [ ]
Enable deliveries within short notice 1=Yes[ ] 2=No [ ] 3=Not Sure [ ]
Reduces the lead time 1=Yes[ ] 2=No [ ] 3=Not Sure [ ]
Any other ………………………………………………………………………

d). Impact of route planning on distribution logistic performance

Timely deliveries of products 1=Yes [ ] 2=No [ ]

Cost reduction 1=Yes [ ] 2=No [ ]

Add at least two………………………………………………………………….

e).What is the effect of transportation means on Distribution Planning performance

Determines flexibility 1-Agree [ ] 2=Disagree 3=Not certain

37
Enhances door to door deliveries 1-Agree [ ] 2=Disagree 3=Not certain

Add at least two……………………………………………………………………

THANK YOU FOR TIME AND YOUR PARTICIPATION

38