The Impact of Outsourcing on Lead-Time and Customer Service in Supermarkets in Nairobi-Kenya

Abstract

This study explored the impact of Outsourcing on Lead-Time and Customer Service in Supermarkets in the City of Nairobi-Kenya. The study used a descriptive survey design to obtain information on the extent to which supermarkets outsourced services and the impact of outsourcing on lead-time. The population of the study mainly constituted of procurement officers, marketing managers, operation managers or their equivalents in supermarket headquarters within Nairobi city. The population of this study consisted of one hundred and two (102) Supermarkets while the sample consisted of fifty (50) supermarkets within Nairobi. The data collected was analyzed by use of frequency, percentage and correlation analysis. The study findings indicate that supermarkets outsourced advertising and marketing to a very large extent. Consultancy and training, administration of information and systems maintenance, security, facilities maintenance, general maintenance and repair were also outsourced to a large extent. Besides, payroll processing, recruitment/staffing and general accounting were outsourced to no extent. The analysis also revealed that outsourcing and lead time were positively correlated (r =0.66). The study contribute to the outsourcing research area by identifying how the existing processes and methods in the Organization must be adapted to fit the specific conditions of outsourcing. Contributions to the outsourcing research area are made by showing that to ensure effective Customer service, the whole outsourcing process has to be in focus i.e., from before physical transfer decisions to outsource are made until a steady state is reached with a continuous supply from the new source.

Key words: Outsourcing, Outsourcing process, Lead-Time, Customer service, Supermarket