Sustainable Logistics Management Practices and Performance of the Distribution Firm Industry in Kenya.

Abstract

Sustainable logistics management practices have become a key driver of performance in the distribution industry as firms face increasing pressure to reduce environmental impact while remaining competitive amid rising operational costs, regulatory requirements and growing consumer awareness. However, many distribution firms in Kenya continue to rely on outdated transportation systems, inefficient warehousing and non-compliant waste disposal methods, which raise fuel costs, delay deliveries and weaken customer satisfaction. Therefore, the purpose of this study was to establish the effect of sustainable logistics management practices on the performance of the distribution firm industry in Kenya. It specifically examined the effect of sustainable transportation, sustainable packaging, sustainable inventory management and sustainable reverse logistics on performance. The study was anchored on the Resource-Based View, Triple Bottom Line Theory, Systems Theory and Closed-Loop Supply Chain Theory. A cross-sectional survey design was adopted, targeting 234 logistics mapping officers, dispatch officers, programme coordinators and supervisors in 26 distribution firms operating in Nairobi, Mombasa and Kisumu. A sample of 148 respondents was determined using the Yamane formula and selected through stratified random sampling. Data were collected using a semi-structured questionnaire and analysed using descriptive statistics, Structural Equation Modelling in AMOS and content analysis in NVIVO, and the results were presented in tables and discussed. The findings revealed that sustainable transportation had a positive and significant effect on performance, explaining 70.3% of its variation. The study also found that sustainable inventory management had a strong positive and significant effect on performance, explaining 69.0% of its variation. The study further found that sustainable packaging had a positive and significant effect on performance, driven by biodegradable and renewable materials rather than packaging weight reduction. Finally, the study established that sustainable reverse logistics had a moderate but significant effect on performance, driven mainly by reuse and recycling, while the four practices jointly explained 93.1% of the variation in performance. The study, therefore, recommends that distribution firms should adopt low-emission vehicles, route optimization and backhauling, invest in demand forecasting, inventory turnover optimization and eco-friendly warehousing, prioritize biodegradable and renewable packaging, and strengthen reuse, recycling and take-back schemes through collaboration with suppliers, recyclers and supportive government policies.