Effect of logistics management and organisational performance of manufacturing companies in Rwanda: A case of Africa Improved Food Rwanda Ltd.

Wilson Kabagambe; Jean de Dieu Dushimimana

doi:10.51867/AQSSR.3.3.2

Authors

Wilson Kabagambe University of Kigali, Rwanda Author https://orcid.org/0009-0002-7713-7905
Dushimimana Jean de Dieu University of Kigali, Rwanda Author https://orcid.org/0000-0002-4826-0368

DOI:

https://doi.org/10.51867/AQSSR.3.3.2

Keywords:

Inventory Control, Logistics Management, Manufacturing Companies, Material Requirement Planning, Organisational Performance, Transportation and Distribution

Abstract

The general objective of this research is to assess the effect of logistics management on the organizational performance of manufacturing companies. This research was guided by the following specific objectives were to establish the effect of material requirement planning on the performance of Africa Improved Food Rwanda Ltd, assess the effect of inventory control on the performance of Africa Improved Food Rwanda Ltd and assess the effect of transportation and distribution on performance of Africa Improved Food Rwanda Ltd. Three theoretical perspectives including Logistic Management Development Theory, Contingency Theory and Theory of Change were used to explain the outsourcing decision and underpin defining logistic management. The researcher used descriptive and correlational research design basing on a case study, where quantitative approach used. The study population was 68 consisted of finance and administration department, procurement department and Suppliers and sales agents of manufacturing. The researcher used census method rather than sampling due to the small population. The research collected data through questionnaire technique, interview and Documentation technique. The data analyzed by using both descriptive statistics such as frequencies, percentages, mean and standard deviation and inferential statistics such as Pearson’s correlation was employed to analyze the data. Statistical package for social sciences (SPSS 25.0) used to determine various correlation and regression analysis. The regression coefficient (B = 0.409) indicates that a 1-unit increase in Material Requirement Planning leads to a 0.409 increase in Organizational Performance, assuming other factors remain constant. The t-value (t = 6.292) is high, indicating a strong statistical impact on the dependent variable. The p-value (Sig. = 0.000) is below 0.05, confirming that the effect of Material Requirement Planning on Organizational Performance is statistically significant. The regression coefficient (B = 0.282) shows that a 1-unit increase in Inventory Control leads to a 0.282 increase in Organizational Performance, holding other variables constant. The t-value (t = 4.476) is also high, demonstrating a notable influence on Organizational Performance. The p-value (Sig. = 0.000) is below 0.05, indicating a statistically significant effect of Inventory Control on Performance of Africa Improved Food Rwanda Ltd. The regression coefficient (B = 0.251) suggests that a 1-unit increase in Transportation and Distribution results in a 0.251 increase in Organizational Performance, assuming other factors remain unchanged. The t-value (t = 3.586) is relatively high, indicating a meaningful contribution to Organizational Performance. The p-value (Sig. = 0.001) is below 0.05, confirming that Transportation and Distribution significantly affect Performance Africa Improved Food Rwanda Ltd. The study concluded that material requirement planning, inventory control, and transportation and distribution have positive and significant effects on the organisational performance of Africa Improved Food Rwanda Ltd., with material requirement planning exerting the greatest influence. Accordingly, the study recommends strengthening material planning, inventory control, and transportation systems to enhance operational efficiency, customer satisfaction, and overall organisational performance.

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