STRATEGIC OUTSOURCING SERVICES AND SUPPLY CHAIN PERFORMANCE OF HOSPITALS IN KENYA

Abstract

Outsourced logistics service providers specialize in the logistics functions described as third logistics providers. These organizations are popular in the private sector as solution providers to firms interested in outsourcing some or all aspects of their supply chain management functions. The main objective of this study was to determine the influence of outsourced distribution services on performance of Level four and five hospitals for five County governments in Kenya. The study was guided by the following specific objectives; Effects of inbound logistics influence of distribution channel management, to determine the influence of third party logistics management and to analyze the influence of integrated transport systems on performance of level four and five hospitals in County Government of Kenya. The study involved 96 staff working in level four and five hospitals in Kenya. The study adopted the descriptive research design. The study established that Reporting 3PL warehouse management systems (WMS) give county health facilities full visibility into stock levels, including which stock is moving off the shelf, how long things are stored for, and much more. This visibility is very reassuring for product managers who want to see where their products are at all times. The study recommended that county hospitals should use 3PL report so that they experience improvements in order fill rate and order accuracy.