International Journal of Scientific and Research Publications, Volume 9, Issue 9, September 2019 334 ISSN 2250-3153 http://dx.doi.org/10.29322/IJSRP.9.09.2019.p9343 www.ijsrp.org Analysis of Factors Affecting Performance of Distribution Logistics Among Manufacturing Firms in Kenya: A Case Study of Kibos Sugar Company Limited and Allied Industries Odek Robert 1 , Elmad Okoth 2 1 Jomo Kenyatta University of Agriculture and Technology, Master of Science-Accounting 2 Maseno University, Master of Science in Finance DOI: 10.29322/IJSRP.9.09.2019.p9343 http://dx.doi.org/10.29322/IJSRP.9.09.2019.p9343 Abstract- This study analyzed factors affecting performance of distribution logistics among production firms in Kenya: a case of Kibos Sugar Company limited and allied industries. The study applied descriptive approach through survey design. The target population comprised 122 employees. The sample size of the study was 24 respondents arrived at using the method of proportional allocation. 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 logistics. 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 logistics performance at Kibos 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. The study also realized that distribution structure is a Senables 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 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 logistics system, distribution cost is typically the highest single expense. That is, through implementing proper distribution structure, nearly all the avoidable costs will be limited. It is concluded that distribution structure used by a manufacturing firm have an impact on the ability of its Distribution Logistics 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 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. Index Terms- Distribution channel, Distribution logistics and Performance Logistics. I. INTRODUCTION ogistics 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 logistics 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 logistics costs coupled with low service quality are a barrier 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 and thus the need of the present study on performance of distribution logistics. 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. According to Parthanadee and Logendran (2006) in 1991, the Council of Logistics Management, a trade organization based in the United States, defined logistics 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 L