Abstract

This project “The influence of transportation management on the performance of delivery firms in Buea”. The investigation was further broken down into; analyzing the influence of fleet management on the performance of delivery firms in Buea, evaluating the influence of route optimization on the performance of delivery firms in Buea, investigating the influence of vehicle maintenance on the performance of delivery firms in Buea.

The census study was employed and data was collected from 30 respondents from 30 different delivery firms with the help of administered questionnaire using the Likert type scale by Cronbach Alpha of five responses ranging from strongly agree to strongly disagree. Data was analyzed using the SSPS 26.0 software. From our findings, there exist a strong positive association between fleet management and organizational performance for delivery firms.

This means that delivery firms with well-structured and efficient fleet management practices tend to perform better overall. While vehicle maintenance also exhibits a positive correlation with organizational performance, the relationship is moderate, indicating that good maintenance practices are important but not as impactful as fleet management.

However, route optimisation similarly displays a moderate positive correlation on organisational performance, suggesting that optimizing delivery routes can improve efficiency and reduce costs, leading to better overall performance. It was recommended that to enhance the performance of delivery firms in Buea, it is essential to invest in advanced fleet management technologies that can optimise operations. Also, fostering a culture of continuous improvement through regular training and performance assessments for fleet managers can ensure that best practices are consistently applied.

CHAPTER ONE

INTRODUCTION

1.1 Background to the study

The delivery industry has experienced significant growth in the past years which has led to the rise of E-commerce and changing consumer behavior (Kotler et al., 2017). As a result, delivery firms face increasing pressure to provide fast, flexible and reliable transportation services to meet customer’s demand or expectations (Bhatnagar et al., 2018). Effective transportation is very important in achieving these goals as it has direct impact on the delivery speed, costs as well as quality (Madsen & Ulhoi, 2016).

Transportation management involves all activities that have to do with the planning, controlling, coordinating and organizing the movement of goods from one place to another (Gupta & Govindarajan, 2017). It includes all activities such as route planning, load optimization, and fleet management (Davenport, 2019). The importance of transportation management in delivery firms cannot be undermined as it does not affect only operational efficiency but also customer satisfaction and loyalty (Kotler et al., 2017).

In addition, transportation management is very critical for building relationships and ties with customers and suppliers (Kotler et al., 2017). Effective transportation management enables firms to provide their customers with high quality services which will in turn lead to increased customer satisfaction and loyalty (Madsen & Ulhoi, 2016). The complex nature of transportation management in the performance of delivery firms cannot be under-looked. Firms must have the ability to manage all their stakeholders which comprises of customers, suppliers, and logistics providers (Kotler et al., 2017). Effective transportation management requires strong collaboration and communication skills, as well as the ability to adapt to changing circumstances (Bhatnagar et al., 2018).

The rise of E-commerce has resulted in an increase in delivery volumes, making it difficult for firms to manage their transportation operations in a more efficient and effective manner (Kotler et al., 2017). Moreover, changes in customer expectations as well as increasing competition have forced delivery firms to innovate their preferred transportation management strategies (Davenport, 2019). Recent studies have shaded more light on the impact of transportation management on delivery firm performance, including improved delivery speed and reduced costs (Madsen & Ulhoi, 2016).

Technological advancements like digital platforms and data analytics have made a turn-around for transportation management in delivery firms (Bhatnagar et al, 2018). In the recent years, the emergence of advanced transportation management systems (TMS) has transformed the way delivery firms approach this challenge. TMS technologies which utilize sophisticated data algorithms and data analytics to optimize transportation planning and execution have enabled firms to make more informed data-driven decisions about their transportation strategies (Tseng et al., 2019).

By making use of real time data on traffic, weather and other factors can directly have an impact on the delivery performance. TMS can help firms anticipate and respond to disruptions more effectively, reducing the risk of delays and improving customer satisfaction. These technologies have improved aspects such as route optimization, load optimization and fleet management, enabling firms to respond swiftly to changing customer demands (Davenport, 2019). However, the adoption of these technologies also poses challenges such as data privacy concerns and cyber security threats (Davenport, 2019).

Transportation management does not only have effects on operational efficiency but also on strategic decisions such as network design and capacity planning (Gupta & Govindarajan, 2017). Delivery firms must try as much to balance the need for speed and flexibility with the need for cost control and efficiency (Madsen & Ulhoi, 2016)

Moreover, the growing adoption of sustainable transportation practices (green logistics) such as the use of alternative fuel sources, newer versions of vehicles and the optimization of truck loading and routing, has also had a significant impact on the performance of delivery firms (Lam & Dai, 2015). As environmental concerns become increasingly important and calls for more attention, delivery firms must find ways to reduce their carbon footprint and demonstrate their commitment to sustainability while still keeping up with the speed and reliability of their customer demand.

In summary, transportation management plays a critical role in the performance of delivery firms. Efficient and effective transportation management is important for achieving fast, flexible and reliable transportation services, which are critical aspects for meeting customer demands in the digital age (Kotler et al., 2017).

1.2 Problem statement

Transport management deals with the planning and execution of freight movement by looking at the details such as whether it will move by land, air or sea. It is observed that leading firms adopt and implement the different transportation management techniques to optimize transportation such as route optimisation, fleet management, technology integration as well as warehouse management and inventory management.

Delivery firms play a crucial role in the economic and social development of urban areas. These firms are responsible for the timely and efficient transportation of goods and packages from suppliers to customers, supporting various businesses and meeting the needs of the local population. However, the performance of delivery firms in Buea is often hindered by the city’s complex and often congested road network.

The rapid urbanization and population growth in Buea have led to an increase in the frequent traffic jams, delays and longer delivery times. The congestion also results in increased fuel consumption and higher operating costs of the delivery firms. Vehicles that are idling or moving at a slower pace in traffic consume more fuel than those travelling at optimal speed. This increases the firm’s expenses, cutting into their profit margins. While many studies on consumer satisfaction focus on the qualities of the final product and consumers, this study is focused on the impact of transportation management on the performance of delivery firms. The research problem is best presented through the research objectives below

1.3 Research question

1.3.1 General research question

The main research question is ‘what is the influence of transportation management practices on the performance of delivery firms in Buea? Other specific questions that guide this thesis are;

1.3.2 Specific questions

1. To what extent does fleet management affect the performance of delivery firms in Buea?
2. What is the impact of route optimization on the performance of delivery firms in Buea?
3. To what extent does vehicle maintenance influence the performance of delivery firms in Buea?

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