IMPACT OF VEHICLE CONGESTION ON DISTRIBUTION OF PRODUCTS IN NAIROBI: A CASE OF FARMERS CHOICE LIMITED (FCL)

PETER RIGII GAITHO, DR. PAUL KATUSE (Ph.D)

Abstract


The problem of congestion plagues all the major cities in the world. In Nairobi the problem is even more pronounced. The purpose of this study was to determine the impact of vehicle congestion on the distribution of fast moving consumer goods (FMCG) in Nairobi. This study was guided by the following specific objectives; to investigate the causes of vehicle congestion and the effects of vehicle congestion on distribution of products. The research design adopted in the study was descriptive focusing on Farmers Choice limited (FCL).  Stratified sampling technique was used to select 94 from 240 FCL employees. Data was collected using questionnaires and analyzed through univariate analysis. The study found that poor infrastructure planning were two major causes of congestion in Nairobi. The study found that the vehicle congestion affected distribution of products due to the time lost in hold ups, wasted time while looking for parking to offload the cargo. To deal with these the company had implemented distribution strategies such as market segmentation, use of motorbikes and trolleys, direct marketing and linkage with supermarkets. The study recommended that the company needs to join hands with other stakeholders to ensure upgrade of the road network and be involved in campaigns aimed at changing road use attitudes among drivers and residents in Nairobi. 

Key Words: Congestion, Distribution, fast moving consumer goods

CITATION: Gaitho, P. R., & Katuse , P. (2019). Impact of vehicle congestion on distribution of products in Nairobi: A case of Farmers Choice Limited (FCL). The Strategic Journal of Business & Change Management, 6 (2), 770 –780.


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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1140

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