Abstract
Background: Small and medium-sized manufacturing enterprises (manufacturing SMEs) can
facilitate economic growth and development by creating employment and spurring economic
activities at low levels of the economy. The performance of SMEs in Kenya has, however, been
poor, despite their significance. This poor performance is attributed to the high costs of
logistics
operations in the country. Manufacturing SMEs can, however, improve the performance of
their logistics operations by adopting appropriate logistics outsourcing strategies.
Aim: The purpose of this study is to determine the extent of logistics outsourcing among
manufacturing SMEs in Nairobi.
Setting: Manufacturing SMEs in Nairobi operate from the industrial zones of the Nairobi City
County. The enterprises’ logistics operations are characterised by long cycle times, high
transportation costs and limited resources. The high operational costs experienced by the SMEs
threaten their survival, and they are therefore required, among other things, to manage
their logistics more efficiently to improve overall performance.
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