TRANSPORT MANAGEMENT SYSTEMS AND PERFORMANCE OF LOGISTICS SERVICE PROVIDERS IN UGANDA:
A CASE STUDY OF KENFREIGHT UGANDA LIMITED

BY 
ALBERT KANSIIME KATEGAYA.
REG. NO: 12/MMSLTM/027/088 

A DISSERTATION SUBMITTED TO THE SCHOOL OF MANAGEMENT SCIENCE IN PARTIAL FULFILLMENT OF REQUIREMENTS FOR THE AWARD OF MASTERS DEGREE IN MANAGEMENT SCIENCE (LOGISTICS AND TRANSPORT MANAGEMENT) OF UGANDA MANAGEMENT INSTITUTE

JANUARY, 2014
DECLARATION

I, Albert Kansiime Kategaya declare that this report is presented in original form and has never been submitted in any institution for any award.

Signature: …………………………….. 	Date: …………………………….
ALBERT KANSIIME KATEGAYA

APPROVAL 
This work has been produced under my supervision and is now submitted with my approval.

Signature……………………  Date…………
MR. MICHAEL KIWANUKA
UGANDA MANAGEMENT INSTITUTE
&

Signature……………………  Date…………
DR. GERALD KARYEIJA
UGANDA MANAGEMENT INSTITUTE

DEDICATION

This work is dedicated to my dear wife Elizabeth and my children Albert, Edgar, Mellisah and Ethan.

ACKNOWLEDGEMENT

Completing this work is a result of both direct and indirect contributions of people whom I owe acknowledgements. With great pleasure I appreciate the help I have received from my supervisor Mr. Micheal Kiwanuka and Dr. Gerald Karyeija for their generosity, patience and professional guidance. 
My sincere gratitude goes to the management and staff of Kenfreight Limited for their cooperation in providing me with necessary data without which it would have been impossible to carry out this study.    
I cannot forget to extend my gratitude to the scholars and authors whose work I have consulted to strengthen my literature. Without their previous academic effort this study would have been more difficult.  
Last but not least am indebted to my family members, my wife Mrs. Elizabeth, my children Albert, Edgar, Mellisah and Ethan for the sacrifice due to failure to render my obligation as I carried out this study.
May the Almighty God bless them all abundantly.

TABLE OF CONTENTS
DECLARATION
APPROVAL
DEDICATION
ACKNOWLEDGEMENT
TABLE OF CONTENTS
LIST OF TABLES
ABBREVIATIONS/ACRONYMS
ABSTRACT
CHAPTER ONE
INTRODUCTION
1.1 Introduction:
1.2 Background of the study.
1.2.1 Historical Background.
1.2.2 Theoretical Background:
1.2.3 Conceptual Background
1.2.4 Contextual Background
1.3     Statement of the problem.
1.4    The general Objective of the study.
1.4.1   Specific Objectives:
1.5    Research Question:
1.6 Hypotheses of the study.
1.7 Conceptual Framework.
1.8 Significance of Study
1.9 Justification of the study
1.10 Scope of the study
1.10.1 Content Scope
1.10.2 Geographical Scope
1.10.3 Time Scope.
1.11 Operational definitions.
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction.
2.1 Theoretical Review.
2.1.1 Transport Planning and Performance
2.1.2 Maintenance, Repair and Performance.
2.1.3 Scheduling, Routing and Performance.
2.1.4 Procurement, Disposal, Replacement and Performance
2.1.5 Insurance, Licensing and Performance.
2.2   Transport organization and Performance.
2.2.1 Staffing, Manpower training and Performance
2.3 Transport Cost control and Performance.
CHAPTER THREE
METHODOLOGY
3.1 Introduction
3.2 Research Design.
3.3 The Study Population.
3.4   Sample Size and Selection.
3.5 Sampling Techniques and Procedure.
3.6 Data collection Methods
3.6.1 Questionnaire
3.6.2 Interviews
3.6.3 Documentary Review
3.7 Data collection Instruments
3.7.1 Structured Questionnaire
3.7.2 Interviews Guide
3.7.3 Documentary Review
3.8 Validity and Reliability
3.8.1 Validity of Instruments
3.8.2. Reliability of Instruments
3.9   Data collection Procedure.
3.10 Data and Analysis
3.10.1 Quantitative Analysis.
3.10.2 Qualitative Analysis.
3.11 Measurement of Variables
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS.
4.1 Introduction
4.2 Response rate
4.3 Distribution of the demographic characteristics of KUL respondents using descriptive statistics.
4.3.1 Age distribution
4.2.2   Gender distribution
4.2.3 Level of education distribution
4.2.4 Distribution of number of years worked in the company
4.2.5 Working environment distribution.
4.3 General transport management of the respondents
4.3.1 Distribution of whether respondents understands transport management systems
4.3.2 Cross tabulation of whether respondents understand transport management systems and if transport is well managed in their company of work.
4.4 Bivariate analysis of the transport planning system of respondents
4.4.1 Bivariate analysis of the effect of transport planning system on performance of logistics service providers.
4.4.2 Distribution of whether KUL has a maintenance program for its vehicles
4.4.3 Distribution of when routine vehicle maintenance and repair is to be done at KUL
4.4.4 Distribution of whether KUL carries out route scheduling study prior deployment of its fleet for operation
4.4.5 Distribution of whether KUL insures and licenses its vehicles prior deployment for operation
4.4.6 Distribution of whether KUL always procures and disposes off its vehicles
4.5 Bivariate analysis of the transport organization system on performance of logistics service providers.
4.5.1 Bivariate analysis of the effect transport organization system on performance of logistics service providers.
4.5.2 Distribution of whether respondents had ever been trained in transport management
4.5.2 Duration for training distribution
4.6 Bivariate analysis of the transport cost control at KUL
4.6.1 Bivariate analysis of the effect transport cost control system   on performance of logistic service providers.
4.6.2 Distribution of whether KUL has an accounting package that provides information relating to each vehicle and overall fleet costs on a periodic basis.
4.7.2 Distribution of whether respondent agree that KUL has a package that provides detailed information relating to each vehicle and overall costs on a periodic basis.
4.8 Distribution of Institutions/companies in business partnership with KUL
4.9 Distribution of the response rate on the main strengths and weaknesses of KUL
CHAPTER FIVE
DISCUSSION, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
5.1 DISCUSSION
5.1.1 The effect of transport planning system on performance of KUL
5.1.1.1 The effect of maintenance and repair on performance of KUL
5.1.1.2 The effect of scheduling and routing on performance of KUL
5.1.1.3 The effect of procurement and disposal on performance of KUL
5.1.1.4 The effect of insurance and licensing on performance of KUL
5.2 The effect of transport management organization system on performance of KUL
5.2.1 The effect staff recruitment and training on performance of KUL
5.3 The effect of transport cost control system on performance of KUL
5.4 Conclusion
5.5 Recommendations;
5.5.1 Relationship between transport planning system and performance
5.5.2 Relationship between transport organization system and performance.
5.5.3 Relationship between transport cost control system and performance
5.6   Limitations to the Study
5.7 Contributions of the Study
5.8 Likely areas of further study
LIST OF REFERENCE:
APPENDIX (I): QUESTIONNAIRE
Appendix (II): Interview Guide for KUL Staff
Appendix (III): Interview Guide for KUL Clients/Customers
Appendix (II): Kreijcie& Morgan tables for determining sample size from given population
Appendix (III): Shows KUL’s Annual Truck Net Income Analysis for the Period of 2007-2012 (Local and International Haulage trucks):
Appendix (iv): Introduction letter from the Uganda Management Institiute to collect data

LIST OF TABLES 
Table 1: shows KUL Annual Truck Net Income Analysis for the Period of 2007-2012 (Local and International Haulage trucks):
Table 3.1 Target population
Table 3.2 Population and Sample Size in the Study Area.
Table 4.2 Age group distribution of respondents
Table 4.3 Gender distribution of the respondents
Table 4.4 Level of education distribution of respondents
Table 4.5 Distribution of number of years worked in the company
Table 4.6 shows KUL’s staff rating of the working environment at the company
Table 4.7 Distribution of whether respondents understanding of transport management systems
Table 4.8 Cross tabulations of whether respondents understand transport management systems and if transport is well managed in their company of work.
Table 4.9 Bivariate analysis of the effect transport planning on performance of KUL
Table 4.10 Distribution of whether KUL has a maintenance program for its vehicles
Table 4.11, Distribution of when routine vehicle maintenance and repair is to be done at KUL
Table 4.14 Distribution of whether respondents had ever been trained in transport management by the company.
Table 4.15 Duration for training distribution
Table 4.16 Bivariate analysis of the effect transport cost control on performance of logistic service providers.
Table 4.17 Distribution of whether KUL has an accounting package that provides information relating to each vehicle and overall fleet costs on a periodic basis.
Table 4.18 Distribution of whether respondents agree that KUL has a package that provides detailed information relating to each vehicle and overall costs on a periodic basis
Table 4.19 Cross tabulation of the complaints raised the respondents and period of partnership with KUL
Table 4.20 Distribution of Institutions/companies that are in business partnership with KUL
Table 4.21 Distribution of the response rate on the main strengths and weaknesses of KUL

ABBREVIATIONS/ACRONYMS

CVI – Content Validity Index   
DV – Dependent Variable 
e.g. – For example 
GST – General System Theory 
IV – Independent Variable 
KUL – Kenfreight Uganda Limited 
MoWT – Ministry of Works and Transport 
MSC – Mediterranean Shipping Company 
MV – Moderating Variable 
RBT – Resource Based Theory
SPSS – Statistical Packages for Social Scientists 
UNRA – Uganda National Road Authority 

ABSTRACT

The study was carried out at Kenfreight U Limited to establish the transport management systems and performance of logistic service providers in Uganda. Specifically, the study set out to establish how transport planning system, transport organization system and transport cost control system contributes to performance of KUL. The study used a case study design to observe a sample of 97 respondents comprised of the staff, clients and customers of the company. Data was collected using observations, checklists, questionnaires and documentary review guides. Data was analyzed using SPSS. The main findings showed that the transport management systems such as Planning, organization and cost control had a positive effect on the performance of KUL. It was further revealed from the findings that the importance for logistic service providers to manage its fleet was to assist the company focus on; expansion and growth of its fleet, monitoring and evaluation of the transportation activities and determine its profits among others. More  findings   revealed that the staff often received complaints from customer concerning cargo delays, wrong billings, delay in clearing creditor bills and a few complained of loss of their cargo. The study recommended that the management of KUL should emphasize routing and scheduling as part of planning for their fleet. In addition to this KUL should consider Overall Vehicle Effectiveness (OVE) for it to improve performance and quality of delivery. It further recommended that logistic service providers should also ensure driver efficiency which can be done through Training schemes which motivate drivers in fuel-efficient driving techniques and lastly that KUL should consider integration of Transport management information systems with external enterprise systems that will assist to achieve a more optimized supply chain, as well as, lower transport and total logistics/ supply chain costs.

CHAPTER ONE
INTRODUCTION 
1.1 Introduction:
The transportation and logistics functions of the wholesaling and retailing industry focus on a different aspect of supply chain management, that is, one of location and logistics issues more often than transformation. Its origin can be traced to an effort for better management of the transportation and logistics functions (Christopher et al., 1998).
According to World Vision International transportation manual (2000), a transportation system will provide specific guidelines for the management and use of vehicles and other mobile assets. Systems are designed to facilitate and encourage accountability, monitoring of usage and costs, provide internal control and to serve as a management tool for better decisions. A basic transportation management system would have the following inclusions amongst others: purpose, scope, objectives, planning, approval and budget process, procurement, approved types for vehicles, ordering of vehicles process, assignment of vehicles, personal use of vehicles by staff, management of vehicles and guidelines for drivers.
The study was an investigation into the relationship between transport Management systems and performance of Logistics service providers in Uganda using a case study of Kenfreight Uganda Limited (KUL). In this study transport management was the independent variable while performance independent variable.  This chapter presents the background of the study, the problem statement, general and  specific objectives of the study, research question, hypothesis, scope of the study, conceptual frame work for factors earmarked as important to this problem , significance of the study followed by justification of the study and operational definition of terms and concepts.  
1.2 Background of the study.
The study looked at the historical, theoretical, conceptual and contextual back-grounds. 
1.2.1 Historical Background.
According to Shapiro, R.D. (1985). the beginning of logistics thinking can be traced to early humans.  The individuals or families who stockpiled food in their caves at certain times of year in order to survive the rigor of winter practiced a basic approach to inventory control.  Later as families produced more of certain foods or clothing than they could consume the distribution of such goods from place to place began.  The development of the wheel and subsequent improvements in transportation technology through the early years of civilization, indeed through-out all the history, altered the economic characteristics (but not the essential nature) of logistics activities enabled new patterns of the trade and economic activity to evolve. Logistics played key role in the industrial revolution as well the emergency of new transport technology, particularly barges and later rail, roads, enabled large quantities of raw-materials and processed goods to be transported economically over longer distances than ever before possible. Since in the Adam Smith’s terms specialization is determined by the extent of the market, these larger, accessible markets enable the firms to become more specialized leading to greater efficiency and lower costs.  Our modern economy is rooted in that dynamic. 
He further stressed that by,  the mid-1950‘s , logistics had begun its emergence from the realm of separate tactical activities accorded little interest to its recognition, by many today , as an essential management responsibility requiring careful coordination and attention . In all probability, American managers first took serious notice of the benefits of a well –managed logistics operation because of the indisputable success of the military logistics during World War II and Korean conflict .Yet many of the lessons learned there were forgotten or, at least ignored, in the heady atmosphere that accompanied the postwar surge in economic activity. Initial management attention in the late 1940s and early 1950s turned toward filling the increased demand for goods. It was long, however, before attention turned again to logistical issues. 
In Uganda, according to MoWT Abstract (2009), transport sector consists of: rail, water, air, pipeline and roads, the last being the predominant mode. The road network is an estimated 64,558 km. National (trunk) roads constitute 14.7% of the network and connect the respective districts and the country with its neighbors. The transport sector in Uganda is steered by the Ministry of Works and Transport whose mission is to promote adequate, safe and well maintained works and transport infrastructure and services for socio-economic development of Uganda. Other key actors in the management of Uganda’s transport sector include: UNRA responsible for development and maintenance of national roads.
In Uganda, until 1994 when liberalization of the economy started, the transport and logistics service sector had the government as the monopoly provider. With liberalization all these were diversified thus opening up opportunities for private players in the industry. In 1994, KUL a pioneer in freight logistics and a company within the Mediterranean Shipping Company (MSC) Group acting as agent for MSC shipping line within the Great Lakes region was born and became operational; it was started as a regional office for Ken freight E. Africa then based in Mombasa. KUL is dedicated to provide excellent freight forwarding and logistics solutions to customers in East & Central Africa, with the integrity of a trustworthy associate. The company mainly deals in inland logistics, ocean transportation, imports and exports forwarding, inland container depot services, customs brokerage, air freight as well as ware housing and distribution.
1.2.2 Theoretical Background:
This study was guided by three theories; Fred Fiedler’s Contingency Theory (1964) sometimes referred to as situational theory which stresses the under-laying importance of the managerial strategy. The study further adopted Fred Fiedler’s Resource-Based Theory, which underpins that the firms’ competitive advantage lies in their internal resources as opposed to the external environment.  The study further banked on Von Bertalanffay’s (1950) General Systems Theory that views organizations management as a collection of parts unified to accomplish an overall goal. Under this system he defined systems as “elements in standing relationship”.  
The theories visualized bidirectional interplay amongst resources, management systems and strategy as very vital in the research problem under investigation. Integration of these theories’ ideas and identification of the gaps exhibited by all the theories will be the key guides to the researcher’s investigation into finding the solution. The study adopted the three theories to work on gaps existing in all explanations to investigate whether transport management systems could impact on the performance of logistics service providers. 
1.2.3 Conceptual Background
Transportation, a component of logistics is defined as the movement of goods and people from one location to another for purposes of satisfying demand. It is further defined as “a means of conveyance or travel from one place to another (Boxwersox et al; 1981).
In today’s modern world , transport management is basically focused on the systems and  the carriers engaged in physical movement or distribution that include motor-vehicles , trains , aero-planes plus other special transport-handling-equipment - which is commonly referred to as fleet . The researcher’s concern was mainly management of motor vehicles that form the fleet for KUL.  This study therefore kept using the terms transport management and fleet management interchangeably.
Performance of KUL was analyzed by transports’ fleet management systems in areas of; planning, organization and cost controls. Whereas, the function of transport has clearly been manifested in development of world economies, its effective management has more than often not been addressed although it should be the main operating objective for an efficient and profitable transportation. According to Mohinder & Anastasia (2007) quality multiple organizational performance variables include sales growth, productivity, profitability, social achievements and good services found to be arising from execution of management functions of planning, leading, organizing and controlling.
Management in general refers to planning, leading, organizing and controlling of the organizations functions with systems in place .It entails achievement of  organizations key expectations by working through people using the available resources, thus  the relationship between management activities or functions and organization’s performance are implied and complimentary. The two must be concurrently executed for better performance of the organization.
1.2.4 Contextual Background
Transport sector in Uganda was privatized like any other government ran enterprises in the early 1990s. This attracted many private players in the transport industry. With this kind of economic environment competition was so high, the level of service expectation from client was equally high, and this was without consideration of profit margins and operational costs. It made the industry so competitive that performance indicators were greatly hard to attain if proper management systems were not instituted in place.
The researcher assessed the factors that affect transport management and performance, analyzed the trend of KUL transport section for the past six years between 2007 to 2012 for both local and international haulage trucks. From this analysis it was evident that performance had always been below its expectation thus need for an investigation. 
1.3     Statement of the problem.
According to Yossi, J. (1995), a growing number of logistics companies are providing logistics services to their clients with the objective of influencing a change in performance behavior in terms of transport management activities like; planning, optimization, execution, visibility and performance management among others. Previous surveys conclude that in spite of increased focus on logistics by most companies, the gap is widening between logistics cost leaders and laggards. 

It was further pointed out by Kewell, (2008)., that despite the opportunities and large sums of money invested by logistics service providers in transport these companies continue to experience shortfalls like long lead-times, motor-vehicle breakdowns, lower customer satisfaction originating from supply shortages caused by lead-times and lower returns on invested capital.

At Kenfreight Uganda Limited a logistics service provider, the focus has always been on provision of ‘‘Secure, Reliable and On-time” transport service delivery so as to improve customer satisfaction, enjoy high returns on investment and minimized costs. This was done through; well laid down policies, procedures, fully equipped facilities, staff development schemes, financial commitment and strategic development plans.

However, despite having put all the above in place, Kenfreight has continued to experience shortfalls like long lead-times, high rates of motor-vehicle breakdowns, lower customer satisfaction and low capital returns that have exposed their services as ineffective and inefficient.
During the period of 2007-2012 none of KUL’s local and international haulage trucks achieved the budgeted net income (KUL Accounts records, 2007-2012). Similarly, majority  of  the clients that Kenfreight Uganda Limited handled registered complaints about delayed deliveries and high rates of truck break downs (KUL client records, 2008-2012). It was eminent that if the situation was to continue, Kenfreight was to lose its customers and perhaps all its invested capital.
 
This performance could be attributed to the fact that logistics service providers could be mismanaging their transport operational systems, although there is no substantive evidence linking this poor performance to mismanagement of transport management systems, thus it was on this basis that this study was conducted to investigate whether there is a relationship between transport Management systems and performance of Logistics service providers.
1.4    The general Objective of the study.
To examine the relationship between transport management systems and performance of logistics service providers taking a case study of KUL.
1.4.1   Specific Objectives:
The following objectives were used to guide the study;
1.	To establish how transport planning  system contributes to performance of KUL
2.	To establish how transport organization system contributes to performance of KUL.
3.	To establish how transport cost control system contributes to performance of KUL.
1.5    Research Question:
The research questions that guided the study were;
1-	How does transport planning system contribute to performance of KUL?
2-	How does transport organization system contribute to performance of KUL?
3-	How does transport cost control system contribute to performance of KUL?
1.6 Hypotheses of the study.
1.	H1: Transport planning system has a positive significant effect on performance on logistics service providers.         
2.	H2: Transport organization system has a positive significant effect on performance on logistics service providers.
3.	H3: Transport cost control system has a positive significant effect on performance on logistics service providers.
1.7 Conceptual Framework.
The below conceptual frame work was designed explains the logistical sense of the relationship between the IV and DV of the research problem under investigation.

Figure 1: Conceptual Framework showing the relationship between transport management system and performance  
Independent Variable                                                                  Dependent Variable 

Transport planning.
- Maintenance and repair 
- Scheduling and routing 
- Procurement & disposal.
- Insurance & licensing.

-Vehicle replacement

Transport organization.
- Staff recruitment & training  

-	Returns on investment (profitability).

-	Efficiency (reliability).

-	Effectiveness.

-	Service quality ( customer satisfaction)

  Transport cost control.
- Crew cost analysis.
- Individual motor /vehicle cost analysis. 
- General cost and profitability
Analysis.

Transport Management system                                                      Performance

	

	
Source: Adopted from Bertalanffay’s systems theory model, Chopra and Meindl (2001), Kaplan and Norton (1992) BSC model; and modified by the researcher.
The conceptual framework depicts that Transport management systems (the independent variable) influences performance (the dependent variable). It depicts that each of the variables of the IV that is, planning, organization and cost control system has effects that influence performance of logistics service providers in terms of returns of investment on investment, efficiency, effectiveness and service delivery. The arrows connecting the independent and dependent variables mean that the two are related to one another.
The model shows the relationship between planning, organization, and cost control systems on performance of logistics service providers. The arrows indicate a logical progress to performance. Although government policy factors were crucial obstacles, they were not the focus of this study. 
It was conceptualized that; Planning, organization and cost control dimensions of the independent variable (IV), because they can be manipulated and if properly handled, they would not undermine performance, which is the dependent variable. Other factors constitute the moderation variables that is, government policy since it modifies the original relationship between transport management and performance of logistics service providers. If the moderating variable (MV) is checked, the IV-DV impact is strengthened and if the MV is not checked, the IV-DV impact is weakened.
1.8 Significance of Study
The study focused on examining and assessing the impact of transport management systems on performance of logistics service providers .The findings of this study were intended to benefit logistics service providers and more so KUL management to appreciate issues surrounding transport management as a core process unit in their organization’s supply chain and help the industry to develop a more comprehensive and efficient fleet management system with a view of improving performance. The research report is available for use by the government, policy makers and other stake holders to inform their strategies for promoting transport management. The study highlighted the challenges faced by the transport industry and was intended to demystify persistent short-falls in performance of fleet section in the organization. It could further help the company to develop transport management systems that aims at improving fleet management. 
The study has further provided a basis for further research by serving as a source of material for future studies in related areas of study. 
1.9 Justification of the study
According to logistics supply chain, transport is a functional unit   in the whole supply chain process. KUL’s transport section interfaces with finance department, imports, exports, warehousing, marketing and customer care departments as part of the supply chain. Its these departments that forms the supply chain of KUL, each department has a role to play that  forms part of service delivery chain , any  hold-up at whatever level along the chain will impact negatively to the progress in the next stage of the operation , thus proper, effective and efficient  management of each of these  sections  remains key  to improvement and subsequent better  organizational performance. It was noticed that transport section was faced with an unidentified challenges that have actually hindered its performance and hence need to establish what these challenges could be thus presumed that the results of this study could be very instrumental to the performance improvement of KUL and other logistics service providers.
1.10 Scope of the study
1.10.1 Content Scope 
The study focused on examining the effects of transport management systems to the performance of logistics service providers in Uganda, using a case study of KUL specifically the organization’s transport section.  It was restricted to indicator variables in conceptual frame work for both dependent and Independent Variables.
1.10.2 Geographical Scope 
The study was carried out at Kenfreight Uganda Limited, located on Plot NO.1906, Bweyogerere, Jinja Road, and Kyadondo in Wakiso District , purposely because the organization transport function is centralized and managed from Kampala Head office 
1.10.3 Time Scope.
The study covered the organization’s operational period from 2006 to mid-2013. This was the period the when organization committed considerable funds and re-organized management of the department and period when there was persistent budget short-falls. 
1.11 Operational definitions.
Transport management – management of a fleet of vehicles concerns all aspects of acquisition, buying/ leasing, maintenance operation, safety, scheduling and inventory issues associated with maintaining a fleet of vehicles within an organization for purposes of  improving operational efficiency and effectiveness  
A system - refers to inputs (e.g., resources such as raw materials, money, technologies, and people), processes (e.g., planning, organizing, motivating, and controlling), outputs (products or services) and outcomes (e.g., enhanced quality of life or productivity for customers/clients, productivity). 
Control management; putting mechanism in place to ensure that transport systems operate as planned and desired and in accordance to the organizational policies.
Efficiency; Producing desired results with minimum effort and expense in the process of planning, administering, controlling of motor vehicles and equipping with skills those charged with managing of transport.
Transport planning system; laid down action programs for managing future, reliability and availability of vehicles.
Government policy; written government guidelines, regulations and laws to manage transport operations.
Transport organization system; a system that provides capital, personnel and raw materials for the day to day running of the business and building the structure to match the work for purposes of securing compliancy and equipping with skills. 

CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction.
The study examined the relationship between transport Management systems and performance of Logistics service providers in Uganda using a case study of Kenfreight .U. Limited (KUL). This chapter reviewed literature on theories, concepts relating to transport management system and performance of logistics service providers. In particular this chapter presents the theoretical review, conceptual review and the summary of literature review.
2.1 Theoretical Review.
Many theories have been advanced to explain the determinants of transport management performance. This study adopted only three theories; Contingency Theory (CT), resource-based theory (RBT) and General System Theory (GST).  According to Fred Fiedler’s Contingency theory (1964), under its competence and innovations approach hinges on four important ideas that   include; (1) there is no universal or one best way to manage. (2) the design of an organization and its subsystems must 'fit' with the environment (3) effective organizations not only have a proper 'fit' with the environment but also between its subsystems.(4) the needs of an organization are better satisfied when it is properly designed and the management style is appropriate both to the tasks undertaken and the nature of the work group. 
Under this approach, the contingency theory stresses the under-laying importance of the managerial strategy. This is a perspective on management that emphasizes that no single way to manage people or work is best in every situation. It encourages managers to study individual and situational differences before deciding on a course of action. It stresses that due to differing environmental and organizational needs and structures that affect an organization, coupled with differing resources and capabilities pertaining to individual organization competence and innovation is key to the organization’s performance .It shows the relationship between leader’s orientation or style and group performance under differing situational conditions .The theory however, falls short of explanation on availability of resource and the missing link to management of the same resources. It’s important that once resources are available, proper control and management of the same will result into the desired performance.
This shortfall was however well addressed by the resource-based theory (RBT) which; assumed that the firms competitive advantage lies in their internal resources, as opposed to the external environment. That is rather than simply evaluating environmental opportunities and threats in conducting business, competitive advantage depends on the unique resources and capabilities that a firm possesses (Barney, 1995).  It was further noted by Ainuddin et al., (2007), the resource –based view of the firm predicts that certain resources owned and controlled by firms have the potential and promise to generate competitive advantage and eventually superior firm performance.
 However  , much as emphasis on management  of available  resources and   effective   decision making  by  managers, were taken  into account the  aspect of  organizational systems to act on those  situations were not  addressed. Von Bertalanffay’ addressed this in his first presentation of his idea of General System Theory (GST) in which he defined systems as “elements in standing relationship”. 
He defined the aims of the theory as follows: (1) there is a general tendency toward integration in the various sciences, natural and social. (2) Such integration seems to be centered in a general theory of systems. (3) Such theory may be an important means for aiming at exact theory in the nonphysical fields of science. (4) Developing unifying principles running "vertically" through the universe of the individual sciences, this theory brings us nearer the goal of the unity of science. (5) This can lead to a much-needed integration in scientific education. (Von Bertalanffay,1968).
The systems theory has had a significant effect on management science and understanding organizations. A system is a collection of part unified to accomplish an overall goal.  If one part of the system is removed, the nature of the system is changed as well. A system can be looked at as having inputs (e.g., resources such as raw materials, money, technologies, and people), processes (e.g., planning, organizing, motivating, and controlling), outputs (products or services) and outcomes (e.g. enhanced quality of life or productivity for customers/clients, productivity). Systems share feedback among each of these four aspects of the system. 
KUL’s supply chain is dependent on inputs, processes, outputs and outcomes. Management of the supply chain depends on systems in place, lack of whole or part of the chain will result into an organizational performance gap thus the researcher’s concern to establish.
2.1.1 Transport Planning and Performance
According to Crainic (2002), planning is more pronounced in Logistics structure and service network and operations of a long distance freight transport systems. The author further stressed that network design is particularly relevant to firms and organizations that operate consolidated transportation systems and typically related to the planning of operations. Perhaps this is often referred to as strategic / tactical or / tactical operational according to the planning traditions and horizons of the firm. Chopra and Meindl (2001), affirmed that the ultimate aim is to respond to demand and ensure the profitability of the firm, consequently, one of the major objectives of tactical planning is to achieve the best trade-off between operating costs and firm profitability and service performance measured (cost efficiency and responsiveness), such that total logistics cost will be reduced and firms revenue and profit could be enhanced.
The literature review was limited to these dimensions; Maintenance and repair, Scheduling and routing, Procurement, disposal and motor vehicle replacement and insurance and licensing.
2.1.2 Maintenance, Repair and Performance.
As noted by Cappelli (2008), those who study supply chain management ask questions like, ‘Do we have the right parts in stock?’ ‘Do we know where to get these parts when we need them?’ ‘Does it cost a lot of money to carry inventory?’ These questions are just as relevant to companies that are trying to manage their talent needs. In other words, the principles of supply chain management can be applied to human resource management which takes human resource recruiting well beyond the scope that the originator of the discipline had visualized. Hence the researcher investigated the relationship between maintenance, repair and performance of KUL fleet basing on the information obtained. 
2.1.3 Scheduling, Routing and Performance.
According to Cooke (2000) , ineffective routing and scheduling of orders or the absence thereof can also impact on transport cost. El Shafey &Nasimudheen (1997) used Network Analysis to produce optimum routes for the buses used in the schools and to reduce bus transportation cost. Results of the application are very encouraging. The result of the studies shows that during test running, vehicle routing application could generate routes which are 33% more efficient and cheaper than the previous routes. The researcher internalized the scheduling and routing programs at KUL while investigating their relationship on the performance of the company. 
Logistics service providers’ management should be aware of vehicle scheduling and routing as a way of effective management and maximum utilization of its fleet. It is important to avoid the traditional reactive response method of fleet deployment to satisfy demand .Ability, coupled with supervisors will to operationalize the system may impact on fleet performance.
2.1.4 Procurement, Disposal, Replacement and Performance
Running old vehicles may lead to high costs of maintenance and uneconomical fuel consumption. To avoid this, organizations should have approved and clearly stipulated policies and procedures on how and when to replace and dispose of vehicles/assets. The need to dispose may arise due to as a result of extensive un-repairable damage, or cost-prohibitive repairs; when the vehicle attains the stipulated mileage or years for disposal; when the vehicle is no longer economically sustainable; when the vehicle is no-longer required and when programs downscale or shut down, Concern Logistics Manual (Dec 2004). The researcher looked at the procurement, disposal and replacement of vehicles at the company in relation to its performance. 
It is important for logistics service providers not to allow vehicles to work until they are grounded, the procurement and replacement processes should be managed by top management with fully involvement of technocrats in order to realize maximum fleet performance. 
2.1.5 Insurance, Licensing and Performance.
Gilbert , (1998) noted that adopting insurance policy is another method of proper fleet management. He asserted though vehicle insurance is a requirement of the law and whereas it is emphasized, the literature did not explain the expenditure element born in paying the insurance premium for all the trucks for case of comprehensive insurance policy. Licensing until 2006, was compulsory until it was abolished by government (budget for the fiscal year 2006/ 2007) it had an impact on KUL performance until that year. Section 15 of traffic and roads safety 1998 laws of Uganda provides that no person shall own or possess a motor vehicle or use it on the road if it has not licensed unless it is exempted. A standard license is required by operator who carries cargo for hire or road haulers as observed by Fawcett, et al (1992). To-date transit goods license is still in force for all the cargo lifting trucks and road user charge has continued to be levied on all foreign registered vehicles plying on foreign roads. Basing on the literature obtained the researcher was able to investigate the relationship between insurance, licensing and performance of KUL.
2.2   Transport organization and Performance.
The organization and transport management of every company is specific and it largely depends on the company structures and policies. The custodian of the transport management function is also very much dependent on these policies and structures. On the other hand this is also influenced by external factors like government guidelines. The study concentrated on the following variables; staffing and manpower training while relating them to the performance of KUL.
2.2.1 Staffing, Manpower training and Performance
According to Berger and Ghei (1995), in his study on a facet of transport management concluded that the success of the transport industry depends on the quality of its employees and their effective management in order to assist the organization to achieve its objectives. 
The need for training is further stressed that “We are witnessing a change in the nature of jobs. Muscle jobs are disappearing, finger and brain jobs are growing or, to put it more formally, labor-based industries have been displaced by skill-based industries and these in turn will have to be replaced by knowledge-based industries” Charles Handy (1984).
Training that focuses on transportation-related issues can help address the demographic changes, technology advances, and greater demands that this industry faces. Much attention has been paid to the need for training within transportation as a whole, as well as available training resources for the industry (Warne, 2003, Warne, 2005, Shiplett, 2007, Spy Pond Partners et al., 2009; and TRB, 2003). With this review the researcher was able to investigate the relationship between staffing, manpower training and performance of KUL.
It was evident at KUL that priority has been given to   staff development , although in mechanical and technical  areas scheduling of staff in this  particular section of organization is yet to be felt due  under staffing it is has made it hard especially balancing between volume of work and securing time off for training . To those who have managed to access training, the courses have been short limiting staff from acquiring adequate knowledge that would help improve performance. 
2.3 Transport Cost control and Performance.
Brandy (2002) is of the opinion that great saving can be made in the area of critical logistics planning of outbound transportation, inventory management, production planning, warehousing distribution and purchasing are needed to reduce static inventory. In a related development, Transport management information systems should be integrated with external enterprise systems that will assist to achieve a more optimized supply chain, as well as, lower transport and total logistics/ supply chain costs. In other words, company that is more effective in transport function will also be more efficient in providing better customer service which will in turn earn more profits. Similarly, according to Franceshin and Rafele (2000) total logistics cost analysis has been proven to be the key to managing the logistics functions; consequently, it is important that management considers the total of all logistics costs. Controls are expected to be instituted to minimize the total costs of logistics rather than to minimize the cost of each component. However, determining which component of logistics costs to reduce can be problematic, since there is a trade-off between costs components.  In fact, attempts to reduce the cost of individual logistics activities in isolation may even lead to greater total logistics costs hence the researcher investigated the relationship between transport cost control systems and performance of KUL basing on the reviewed information.

CHAPTER THREE
METHODOLOGY
3.1 Introduction
The study examined the relationship between transport management systems and performance of logistics service providers taking a case study of KUL. This chapter presented a description of the research design, study population, sample size and selection, sampling techniques, data collection methods, data collection instruments, pre-testing (validity and reliability), Data collection procedures and Data analysis.
3.2 Research Design.
The study used a case study design that adopted a Cross-sectional survey to collect data. Case study design was appropriate to make an in-depth investigation of an individual, group, institution or phenomenon (Mugenda and Mugenda, 2003:173). It also adopted a cross-sectional survey where data is collected from a group of people at once as opposed to longitudinal design which collects data in series over time (Amin, 2005). Using the two designs, both qualitative and quantitative approaches were employed in the study during data collection and analysis to provide accurate results. The researcher used questionnaires as a data collection tool. Oral interview was used for the respondents to give independent opinions about the study.  The choice of this design was based on the evaluative nature of the work under study.  Oso and Onen (2005:32) also noted that survey method is convenient because it is able to make a researcher understand the population from a part of it. A descriptive approach was adopted to facilitate complementary understanding of views, opinions and perceptions of interviewed respondents. A review of existing records was made to establish the trend of transport management and performance. This was done to enhance the researcher’s evaluation.
The study involved some analytical and observational study in order to obtain relationship among the independent and dependent variables. The choice of this design was based on the evaluative nature of the work understudy.
3.3 The Study Population.
This refers to the complete collection (or universe) of all the elements (units) that are of interest in particular investigation Amin (2005). The study used a population of 107 people consisting of all stakeholders at Kenfreight Uganda Limited; directors, employees, customers and suppliers (see table 3.1). 
Table 3.1 Target population
Category	Population	
Company Directors	2	
Heads of Suppliers Transport section	5	
Heads of departments	5	
Suppliers / service providers	15	
Clients /customers	20	
Company Staff	60	
Total	107	
Source: KUL Human Resource and Organization Records, 2013

The above study population was chosen because opinions on transport management and performance of KUL could best be obtained from the suppliers, customers and employees themselves. 
3.4   Sample Size and Selection.
The sample size was 97 out of a population of 107 determined using statistical tables for determining sample size developed by Kreijcie and Morgan (1970). Selection of the sample size was carried out as explained as below in the table;

Table 3.2 Population and Sample Size in the Study Area.

Category 	Population	Sample size 	Sampling Technique	
Company Directors 	2	2	Purposive	
Heads of Transport section 	5	5	Purposive	
Heads of departments 	5	5	Purposive	
Suppliers/service providers 	15	14	Random  sampling 	
Clients /customers 	20	19	Random sampling	
Company Staff 	60	52	Random sampling	
Total	107	97		
Source: Primary data from KUL records.
This sample size represented 91% of the total population, which in the researcher’s view, was an appropriate fraction for a study sample. Only directors, heads of the transport section, suppliers, clients and staff of KUL were sampled and issued with the questionnaires. 
3.5	Sampling Techniques and Procedure.
The study used simple random sampling and purposive sampling technique. Simple random sampling technique was preferred in the study to select the sample because according to Oso and Onen (2005:35), it selects samples without bias from the accessible population. It also ensures that each member of the target population has equal and independent chance of being included in the sample. This technique was used to control some looming extraneous variables. For transport administrators, however, purposive sampling was employed. This is because the researcher considers them central in having the information he required on transport management and performance of KUL. As noted by Amin (2005:242), in purposive sampling, the researcher selects a sample based on the knowledge that respondents have the information required.
3.6 Data collection Methods
Data collection methods are techniques of collecting data. In this study, the researcher used questionnaires for gathering quantitative data while interviews guide was used to collect qualitative data as primary sources. Documentary analysis was used as secondary data collection method. 
3.6.1 Questionnaire
The questionnaire was both open and close-ended, designed in appropriate Likert scales to solicit the opinions of the respondents. Likert scale was preferred because it provides standardized sets of response options that represent varying degrees of agreement. The researcher used questionnaire because it was a reliable and dependable instrument for collecting information from respondents.
3.6.2	Interviews
The researcher used interview guide as a tool to obtain first-hand information from the respondents on their and collector capacity about transport management and performance, the methods of collection and their convenience.  As noted by Amin (2005:178), interview is an appropriate data collection tool because the researcher is able to explain and clarify the questions being asked. It will access him/her to in-depth information on transport management, performance and service delivery.  Responses will be compared with those from questionnaires.  The method has a number of advantages, it ensures interaction and social situated-ness, is motivational to both the interviewer and the interviewee. It also gives chance for getting highly personalized data, eases probing and gives a good return rate.
3.6.3	Documentary Review
Additional information was gathered through documentary review where a number of documents for example; profit and loss accounts operational reports, weekly performance, quarterly and annual statistics reports among others. 

3.7	Data collection Instruments
These refer to the tools the researcher used for gathering data. The study used structured questionnaire, interview guide and documentary review check list for collecting data. As noted by Touliatos and Compton (1988), they are the best tools for getting views, perceptions, feeling and attitudes of respondents. 
3.7.1 Structured Questionnaire
The questionnaires are an instrument structured for collection of data in line with the research questions and hypotheses. Respondents provided detailed information and expressed their opinions by way of filling the questionnaire. This instrument was economical and could be completed by respondents in absence of the researcher. The instrument was preferred because; it is a reliable and dependable for collecting information from respondents who are scattered in a vast area as noted by Ghosh (2000:241). The instrument was particularly convenient for the researcher who found it motivational. 
3.7.2 Interviews Guide
This is a face to face instrument that was purposely used to gather data from key informants’ Views and opinions of respondents expressed in structured questions were clarified. As noted by Amin (2005:178), interview is an appropriate data collection tool because the researcher is able to explain and clarify the questions being asked. It will access him/her to in depth information on transport management, performance and service delivery.  Responses were compared with those from questionnaires.
3.7.3 Documentary Review 
Purposively this helped in gathering additional information as evidence in support of data collected through questionnaire and interview guide. 
3.8 Validity and Reliability 
According to Amin, (2005) Pretesting is an indispensable part of the questionnaire design and demands that the researcher examines individual questions as well as the whole questionnaire very carefully.
3.8.1 Validity of Instruments
The validity of instruments was established using the content validity index (CVI). To accomplish this, five judges were given the questionnaire to assess whether the items in them measure the impact of transport management systems on performance in KUL. They established the number of relevant and irrelevant items out of the total of the 53 questionnaire items. The inter-judge validity for each item was computed and their ratings were as; Judge one = 35, Judge two = 44, Judge three = 38, Judge four = 42 and Judge five = 41.
On average 40 questions were rated to be relevant to the study. Validity of the research instruments was determined as below;
Cvi was the content validity index.
n (Aj) was  the number of items agreed on by judges as suitable
n (Tj) was the total number of items that were being  judged.
n (Aj) =40, n (Tj) =53
Therefore, Cvi = 	Cvi = 	= 0.75
The computed CVI of the instrument was 0.75. This was considered valid because the minimum CVI recommended in the survey studies is 0.7 (Amin, 2005: 288).
3.8.2. Reliability of Instruments	
Reliability of research instruments is the repeatability of a particular set of research findings or how accurately they would be replicated in a second identical piece of research. This was determined using Cronbach’s Alpha for testing the reliability of the questionnaire responses, using SPSS software. The objective here was to establish the coefficient of stability.  Should the correlation be high, the instruments will be deemed reliable as noted by Amin (2005).
In this study a Cronbach’s alpha coefficient was computed to show how reliable the data and the results are shown below.

Table 3.3 Reliability Results.
Variable 	Number of items 	Cronbach’s alpha 	
Transport planning   systems 	15	0.929	
Transport organization systems  	14	0.712	
Transport cost control systems  	05	0.728	
Performance of transport sector 	09	0.759	
Source: Primary data 
From Table 3.3 above transport planning systems yielded Cronbach’s alpha value of 0.929, transport organization systems yielded an alpha value of 0.712, transport cost control systems yielded Cronbach’s alpha value of 0.728 while performance of transport sector yielded Cronbach’s alpha value of 0.759. Since all variables under study yielded Cronbach’s alpha value above 0.70 accepted for research studies, it was concluded that the instrument was reliable thus a good performance of logistics service providers in Uganda. 
3.9   Data collection Procedure.
Introductory letter was obtained from Uganda Management Institute. The researcher drew a work plan to guide him to for meeting respondents, distributing questionnaires and conducting interviews as well as reporting to the supervisor for expert review. After data collection, the researcher began the analysis process by: editing, coding and entering of data and analysis of variables. The outcomes from the analysis were then compiled into a report for onward submission to examiners.
3.10 Data and Analysis
After successful retrieval of filled–in questionnaires and conducting of interviews, the researcher made the necessary editing and for any inappropriate responses or missing information the researcher consulted the respondents for clarification. Raw data was entered and analyzed using a statistical package known as Statistical Package for Social Scientists (SPSS).
3.10.1 Quantitative Analysis.
Quantitative data was analyzed using the mean, frequency and correlations procedures to draw conclusions from responses to be used in interpretation of variables. Outcomes were presented as percentages using tables as a primary analysis. 
3.10.2 Qualitative Analysis.     
The study employed multiple response analysis and bi-variate analysis to measure the relationships between categorical variables such as job category and education level amongst others and results were presented using tables.
3.11 Measurement of Variables
A five point Likert scale numbering from “1” strongly disagree to “5” strongly agree, was used for measurement of variables. 

CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS.
4.1 Introduction
The study examined the relationship between transport managements systems and performance of logistics service providers taking a case study of KUL. This chapter presents analyses and interprets the results analyzed as described in chapter three.  The chapter consists of the response rate, background findings of respondents and the empirical findings. 
4.2 Response rate 
A total of 97 questionnaires were issued but 64 questionnaires were returned and considered in the study giving a response rate as shown in table 4.1 below. 
Table 4.1 Response rate 
Category of Respondents	Questionnaire issued 	Questionnaire returned 	Response rate 	
Company directors	2	2	100%	
Heads of Transport section	5	5	100%	
Head of departments 	5	4	80%	
Company suppliers	14	9	64%	
Clients/customers	19	11	58%	
Company staff 	52	33	63%	
TOTAL	97	64		
Overall response rate 			66%	
Source: Primary data 
Table 4.1 above shows an overall response rate of 66% which is a very good response rate for the study according to Amin, (2005) who suggests that the results contain substantial data collected and the survey results were representative of the survey population. Lin (1976) equally suggested a minimum response rate 50% is adequate while above 65% is good. This response rate was therefore good given that only response from a few respondents was not obtained for consideration in the study. The company staff such as truck drivers were always in field and too busy to access for any information whereas company suppliers and clients/customers would receive questionnaires and disguise to be filling in answers until they would depart with them or return them unfilled claiming that they don’t have enough time for the exercise hence contributing to low response rate. 
4.3 Distribution of the demographic characteristics of KUL respondents using descriptive statistics. 
4.3.1 Age distribution 
The age distribution of respondents was observed and findings are presented in table 4.2 below.
Table 4.2 Age group distribution of respondents
	
	Frequency	Percent	Valid Percent	Cumulative Percent	
Valid		1	1.6	1.6	1.6	
	20-29	24	37.5	37.5	39.1	
	30-39	22	34.4	34.4	73.4	
	40-49	12	18.8	18.8	92.2	
	50-59	5	7.8	7.8	100.0	
	Total	64	100.0	100.0		
Source: Researcher’s data, 2013
From table 4.2 above the results indicate that majority of respondents are between age group of 30-39 with 34.4% while those with age group above 50yrs have lowest response rate of 7.8%. This is because those respondents of age group 30-39years are still in lower positions and less busy than those above 50years. This implies that the majority of the respondents were mature enough to understand and appreciate the study. The results also imply that KUL appreciates the efforts of young and energetic personnel to spur its performance to the expected level. 
4.2.2   Gender distribution 
The gender distribution of respondents was observed and findings are presented in table 4.3 below; 
Table 4.3 Gender distribution of the respondents
	Frequency	Percent	Valid Percent	Cumulative Percent	
Valid		4	6.3	6.3	6.3	
	Female	11	17.2	17.2	23.4	
	Male	49	76.6	76.6	100.0	
	Total	64	100.0	100.0		
Source: Researcher’s data, 2013
From table 4.3 above, the results showed that the male component with the majority percentage of 76.6% while the female component is only 17.2%. This is because in KUL’s male employees are more than female ones.  This implies that more men are preferred than women since most of the tasks done in the field are muscle jobs. Therefore KUL employs more male than females because the tasks dealt with are more physical and muscle jobs and this plays a great role for the company to achieve the forecasted results or performance.
4.2.3 Level of education distribution 
The level of education distribution of respondents was observed and findings are presented in table 4.4 below.

Table 4.4 Level of education distribution of respondents
	Frequency	Percent	Valid Percent	Cumulative Percent	
Valid		9	14.1	14.1	14.1	
	Other specify	7	10.9	10.9	25.0	
	Primary	6	9.4	9.4	34.4	
	Secondary	17	26.6	26.6	60.9	
	Tertiary	25	39.1	39.1	100.0	
	Total	64	100.0	100.0		
Source: Researcher’s data, 2013
From table 4.4 above, KUL staff that had obtained tertiary level of education are more than those of primary level with 39.1% and 9.4% respectively. This implies that the majority of employees at KUL are at bachelor’s level of education hence quality services are obtained from highly qualified professionals. Therefore from the study, KUL has sought to employ highly qualified professionals so as to provide distinguished logistical services thus achieving its targeted goals. 
4.2.4 Distribution of number of years worked in the company 
The number of years worked in the company distribution of respondents was observed and findings are presented in table 4.5 below.
Table 4.5 Distribution of number of years worked in the company 
	Frequency	Percent	Valid Percent	Cumulative Percent	
Valid		2	3.1	3.1	3.1	
	1 to 5 years	30	46.9	46.9	50.0	
	11to 15 years	3	4.7	4.7	54.7	
	6 to 10 years	21	32.8	32.8	87.5	
	Less than 1 year	8	12.5	12.5	100.0	
	Total	64	100.0	100.0		
Source: Researcher’s data, 2013
From table 4.5 above, results indicate that the majority of KUL’s staff (46.9%) has worked for 1-5 years against 4.7% who have worked in the company for11years and above. This implies that those who have worked for 1-5years are less experienced than those who have worked for 11years and above.  From the results it was very clear that KUL tries to retain its old workers at the company which results into high performance due consistence in service production and experience portrayed by the long serving workers of the company. 
4.2.5 Working environment distribution.
The working environment distribution of respondents was observed and findings are presented in table 4.6 below;
Table 4.6 shows KUL’s staff rating of the working environment at the company
	Frequency	Percent	Valid Percent	Cumulative Percent	
Valid		3	4.7	4.7	4.7	
	Excellent	3	4.7	4.7	9.4	
	Fair	9	14.1	14.1	23.4	
	Good	31	48.4	48.4	71.9	
	Poor	2	3.1	3.1	75.0	
	Very good	16	25.0	25.0	100.0	
	Total	64	100.0	100.0		
Source: Researcher’s data, 2013
From table 4.6 above, shows that majority of the company staff (48.4%) revealed that the working environment at KUL was good, 25.0% said the environment was very good and least 3.1% said the working environment was poor. This implies that the majority of the staff was satisfied and happy with the environment at their workplace. More clarification was made that job satisfaction is a pleasurable emotional state resulting from appraisal of one’s job (Winter, 2004). Basing on the fact that most employees appreciated the working environment at the company during the study, it simply means that KUL does or provides all it can to enable its employees perform diligently in order to achieve the company’s expected targets.
4.3 General transport management of the respondents 
4.3.1 Distribution of whether respondents understands transport management systems
The distribution of whether respondents understand the term transport management systems was observed and findings are presented in table 4.7 below.
Table 4.7 Distribution of whether respondents understanding of transport management systems
	Frequency	Percent	Valid Percent	Cumulative Percent	
Valid	No	25	39.1	39.1	39.1	
	Yes	39	60.9	60.9	100.0	
	Total	64	100.0	100.0		
Source: Researcher’s data, 2013
From table 4.7 above, majority of KUL’s staff (60.9%) understood transport management systems used by the company against 39.1% who revealed that that they did not understand the transport management systems used at KUL. This implies that majority of the respondents had required knowledge of the tasks they performed since they understood transport management systems and this has a significant positive impact on performance of KUL as a logistics service provider in particular. 
4.3.2 Cross tabulation of whether respondents understand transport management systems and if transport is well managed in their company of work.
The cross tabulation of whether respondents understand transport management systems and if transport is well managed in their company of work were observed and findings are presented in table 4.8 below.
Table 4.8 Cross tabulations of whether respondents understand transport management systems and if transport is well managed in their company of work.
	
	think transport is well managed	Total	
	No	Yes		
Understand transport management systems at KUL	No	9
10
19	16	25	
	Yes		28	39	
Total		44	64	
Source: Researcher’s data, 2013
From table 4.8 above, majority (39) understood transport management systems at the company against 25 who revealed that they did not understand them. On other hand the table also indicates the majority (44) think that transport is well managed against 19 who think that KUL is not well managed. Since most of the respondent understood the transport management systems at the company, therefore the company’s performance is equally fostered by the adequate knowledge possessed by staff and clients/customers on the existing management systems. 
4.4 Bivariate analysis of the transport planning system of respondents 
The bivariate analysis of the transport planning system of respondents was observed and findings are presented in table 4.9 below.
4.4.1 Bivariate analysis of the effect of transport planning system on performance of logistics service providers.
The hypotheses for the analysis are stated as follows;
 Ho: Transport planning system does not have a positive significant effect on performance on logistics service providers.         
 H1: Transport planning system has a positive significant effect on performance on logistics service providers.    

  

Table 4.9 Bivariate analysis of the effect transport planning on performance of KUL	
	Level of performance of transport systems at KUL	Level of transport planning at KUL	
Level of performance of transport systems at KUL	Pearson Correlation	1	.527**	
	Sig. (2-tailed)		.000	
	N	64	64	
Level of transport planning at KUL	Pearson Correlation	.527**	1	
	Sig. (2-tailed)	.000		
	N	64	64	
**. Correlation is significant at the 0.01 level (2-tailed).	

According to the table above, the Correlation value r between level of transport planning and level of performance is 0.527. The correlation value is positive and high which means that the better the level of transport planning the higher the level of performance of KUL.
The significance value for this correlation is less than 0.05 and this gave evidence for rejecting the null hypothesis and make conclusion with the alternative hypothesis. It therefore led to a conclusion that transport planning affects performance.
4.4.2 Distribution of whether KUL has a maintenance program for its vehicles
The distribution of whether KUL has a maintenance program for its vehicles was observed and findings are presented in table 4.10 below.

Table 4.10 Distribution of whether KUL has a maintenance program for its vehicles

	Frequency	Percent	Valid Percent	Cumulative Percent	
Valid		4	6.3	6.3	6.3	
	No	16	25.0	25.0	31.3	
	Yes	44	68.8	68.8	100.0	
	Total	64	100.0	100.0		
Source: Researcher’s data, 2013
From table 4.10 above, out of 64 KUL staff, only 68.8% indicated that KUL has a maintenance program for its vehicles against 25.0% who confirmed that KUL has never had a maintenance program for its fleet. However, 6.2% of the staff never indicated their side about the matter.
4.4.3 Distribution of when routine vehicle maintenance and repair is to be done at KUL
The distribution of when routine vehicle maintenance and repair is to be done at KUL was observed and findings are presented in table 4.11 below.
Table 4.11, Distribution of when routine vehicle maintenance and repair is to be done at KUL
	Frequency	Percent	Valid Percent	Cumulative Percent	
Valid		16	25.0	25.0	25.0	
	After covering 5000kms	10	15.6	15.6	40.6	
	On the advice of mechanic preview	13	20.3	20.3	60.9	
	others specify	10	15.6	15.6	76.6	
	Subjective	8	12.5	12.5	89.1	
	When oil level is black & sticky	7	10.9	10.9	100.0	
	Total	64	100.0	100.0		
Source: Researcher’s data, 2013
From table 4.11 above, out of 64 company staff 20.3% revealed that routine vehicle maintenance and repair was done on the advice of mechanic preview while 15.6 % revealed that it is done after covering a distance of 5000kms and the least (10.9%) indicated that routine maintenance and repair is done when oil level is black and sticky. However, only 25.0% of the staff never gave their response on this matter. Since routine vehicle maintenance and repairs were always done on advice of mechanics after several truck breakdowns, this implied that KUL was failing to put up preventive measures to avert possible breakdowns hence affecting truck performance. 
4.4.4 Distribution of whether KUL carries out route scheduling study prior deployment of its fleet for operation 
The distribution of whether KUL carries out route scheduling study prior deployment of its fleet for operation was observed and findings are presented in table 4.12 below.
Table 4.12 Distribution of whether KUL carries out route scheduling study prior deployment of its fleet for operation
Does KUL carry out route scheduling study prior deployment of its fleet for operation? 	Frequency 	Percent 	Cum Percent 	
No 	40 	74.1% 	74.1% 	
Yes 	24 	25.9% 	100.0% 	
Total 	64 	100.0% 	100.0% 	
Source: Researcher’s data, 2013 

From table 4.12 above, majority 74.1% revealed that KUL does not carry out route scheduling study prior deployment of its fleet for operation against only 25.9% who indicated that routing and scheduling is always done prior to deployment of its fleet although no specific method was identified by the respondents.  From the study findings this would imply that generally KUL is lacking this operation tool in their transport planning system. 

In an interview with one of the staff at KUL, this is what he had to say:
“The reluctance by transport managers to engage in route scheduling prior deployment of their fleet is further exacerbated by effects of traffic congestion on logistical efficiency, as congestion interferes with delivery schedules and can be blamed for decreased productivity through delays and stock-outs.  Furthermore, unpredictable traffic incidents, such as accidents, road works and events often intensify congestion, and hauliers frequently have limited choice other than to ride out congestion owing to the timing and routing of deliveries.”
The qualitative findings seem to suggest that managers at KUL are reluctant to engage in route scheduling prior to deployment of their fleet which has attributed to delays and stock-outs for its customers/clients. Route scheduling prior to deployment of fleet was vital for KUL to intensify on logistical efficiency. 
4.4.5 Distribution of whether KUL insures and licenses its vehicles prior deployment for operation
The distribution of whether KUL insures and licenses its vehicles prior deployment for operation was observed and findings are presented in table 4.13 below.
Table 4.13 Distribution of whether KUL insures and licenses its vehicles prior deployment for operation
Does KUL insure and license its vehicles prior deployment for operation? 	Frequency 	Percent 	Cum Percent 	
No 	2 	3.1% 	3.1% 	
Yes 	62 	96.9% 	100.0% 	
Total 	64 	100.0% 	100.0% 	
Source: Researcher’s data, 2013 
From table 4.13 above, the study findings indicate that almost all the respondents (96.9%) agree that KUL insures and licenses all its company vehicles before set for use against a few (3.1%) who revealed sometimes the company delayed to pay for insurance and licenses of some vehicles and implying that some vehicles were put to work without two requirements at times but was so rare.
4.4.6 Distribution of whether KUL always procures and disposes off its vehicles
The distribution of whether KUL always procures and disposes-off its vehicles was observed and findings are presented in table 4.14 below.
Table 4.14 Distribution of whether always procures and disposes off its vehicles
Does KUL always procure and dispose-off its old vehicles?  	Frequency 	Percent 	Cum Percent 	
No 	41 	64.2% 	64.2% 	
Yes 	23	35.8%	100.0% 	
Total 	64 	100.0% 	100.0% 	
Source: Researcher’s data, 2013 
From table 4.14 above, majority 64.2 % revealed that procurement and disposal of company vehicles was rarely done while only 35.8% were in agreement that the company usually did procurement and disposal of its fleet. From the study results it implies that KUL’s old vehicles which are rarely replaced are responsible for the complaints and cargo delays as hence hindering the expected performance margin of the company.  
4.5 Bivariate analysis of the transport organization system on performance of logistics service providers.
4.5.1 Bivariate analysis of the effect transport organization system on performance of logistics service providers.
The hypotheses for the analysis are stated as follows;
Ho = Transport organization system does not have a positive significant effect on performance on logistics service providers.
H1 = Transport organization system has a positive significant effect on performance on logistics service providers.

Table 4.15 Bivariate analysis of the effect transport organization system on performance of logistic service providers 
	
	Level of transport organization at KUL	Level of performance of transport systems at KUL	
Level of transport organization at KUL	Pearson Correlation	1	.776**	
	Sig. (2-tailed)		.000	
	N	64	64	
Level of performance of transport systems at KUL	Pearson Correlation	.776**	1	
	Sig. (2-tailed)	.000		
	N	64	64	
**. Correlation is significant at the 0.01 level (2-tailed).	

According to the table above, the Correlation value r between level of transport organization and level of performance is 0.776. The correlation value is positive and high which means that the better the level of transport organization the higher the level of performance of KUL.

 The significance value for this correlation is less than 0.05 and this gave evidence for rejecting the null hypothesis and make conclusion with the alternative hypothesis. It therefore led to a conclusion that transport organization system affects performance.
4.5.2 Distribution of whether respondents had ever been trained in transport management
The distribution of whether respondents had ever been trained in transport management was observed and findings are presented in table 4.16 below.

Table 4.16 Distribution of whether respondents had ever been trained in transport management by the company.
	Frequency	Percent	Valid Percent	Cumulative Percent	
Valid		3	4.7	4.7	4.7	
	No	34	53.1	53.1	57.8	
	Yes	27	42.2	42.2	100.0	
	Total	64	100.0	100.0		
Source: Researcher’s data, 2013
From table 4.16 above, the majority 53.1% acknowledged that they had never been trained in transport management against 42.2% who revealed that they had had training by company. However, only 4.7% declined to respond to this question.
Asked to explain how staff’s training has influenced company performance, the respondent had this to say:
“It is not surprising that training is widely offered by most fleet companies, for example training and motivating drivers in fuel-efficient driving techniques is one of the most cost-effective approaches to fuel saving, as inappropriate driving can negate all fuel-saving measures and devices. The most effective time for extensive, systematic driver training is right after the driver is hired, before the driver is assigned to a vehicle.  This is particularly true for drivers of special equipment, heavy-duty vehicles and emergency-response vehicles.”
The qualitative findings seem to suggest that effort was undertaken by KUL to offer basic training to some its employees however the low levels of transport management systems training and professionalization constrains service delivery due to the inadequate knowledge and operational skills in the industry. 
4.5.2 Duration for training distribution 
The distribution for duration of training was observed and findings are presented in table 4.15 below.

Table 4.17 Duration for training distribution 
	Frequency	Percent	Valid Percent	Cumulative Percent	
Valid		38	59.4	59.4	59.4	
	1 to 6 months	13	20.3	20.3	79.7	
	6 to 12 months	2	3.1	3.1	82.8	
	Less than 1 month	11	17.2	17.2	100.0	
	Total	64	100.0	100.0		
Source: Researcher’s data, 2013
From table 4.17 above, 20.3% of the staff had been trained for a period of 1-6 months while 17.2% had been trained for less than 1 month and the least 3.1% had been trained for a period of 6 to 12 months. However the table also indicates that the majority 59.4% declined to respond to the question on the basis that the company had never given them any training on transport management. The study quantitative findings on the status of the trained staff agree with the interview findings where one driver member interviewee put it that:
“The company does not offer adequate training when there is chance yet vehicle life can be extended through a program that teaches drivers to improve their driving skills and fosters awareness of the differences in driving various types of vehicles (for example, van, pickup and tractor/trailer). Improvements in driver training, awareness and performance can lower maintenance costs as well as the costs associated with accidents.  To increase fleet safety, KUL should develop a process for tracking employees' driving performance and report the results throughout all levels of the company. An optimum driver-training program includes in-class instruction along with written examinations and, most importantly, hands-on exercises to improve and ensure driver proficiency.  For many logistic fleet operations, driver training should emphasize improvement in hazard recognition, vehicle handling, space management and speed management.  But programs that focus solely on communication of safe-driving habits (delivered by audio or video tapes, DVDs, or the Internet) can also be beneficial because they heighten awareness and can supply safe-driving tips’’.  
The qualitative findings seem to agree with the quantitative findings and point to the view that although the KUL had undertaken to train its employees, the company could not offer adequate training to its employees which led them to ineffectively execute their roles given the insufficient knowledge they have on transport management systems. 
4.6 Bivariate analysis of the transport cost control at KUL
4.6.1 Bivariate analysis of the effect transport cost control system   on performance of logistic service providers. 
Ho: Transport cost control system does not have a positive significant effect on performance on logistics service providers.

H1: Transport cost control system has a positive significant effect on performance on logistics service providers.
Table 4.18 Bivariate analysis of the effect transport cost control on performance of logistic service providers.
	
	Level of transport cost control at KUL	Level of performance of transport systems at KUL	
Level of transport cost control at KUL	Pearson Correlation	1	.650**	
	Sig. (2-tailed)		.003	
	N	64	64	
Level of performance of transport systems at KUL	Pearson Correlation	.650**	1	
	Sig. (2-tailed)	.003		
	N	64	64	
**. Correlation is significant at the 0.01 level (2-tailed).	

According to the table above, the Correlation value r between level of transport cost control and level of performance is 0.65. The correlation value is positive and high which means that the higher the level of transport cost control the higher the level of performance of KUL.

 The significance value for this correlation is less than 0.05 and this gave evidence for rejecting the null hypothesis and make conclusion with the alternative hypothesis. It there led to a conclusion that transport cost control affects performance.
4.6.2 Distribution of whether KUL has an accounting package that provides information relating to each vehicle and overall fleet costs on a periodic basis.
The distribution of whether KUL has an accounting package that provides information relating to each vehicle and overall fleet costs on a periodic basis was observed and findings are presented in table 4.19 below.
Table 4.19 Distribution of whether KUL has an accounting package that provides information relating to each vehicle and overall fleet costs on a periodic basis.

	Frequency	Percent	Valid Percent	Cumulative Percent	
Valid		13	20.3	20.3	20.3	
	No	1	1.6	1.6	21.9	
	Yes	50	78.1	78.1	100.0	
	Total	64	100.0	100.0		
Source: Researcher’s data, 2013
From the table above, 78.1% revealed that KUL has a counting package that provides information relating to each vehicle and overall fleet costs on a periodic basis against 1.6% who indicated that the packages were not in place. However, only 20.3% had no response relating to the matter. 
4.7.2 Distribution of whether respondent agree that KUL has a package that provides detailed information relating to each vehicle and overall costs on a periodic basis.
The study further sought to establish whether the staff agrees with the idea that KUL has a package that provides detailed information relating to each vehicle and overall costs on a periodic basis.  The statements were ranked thus; 5= strongly Agree (SA); 4=Agree (A); 3= Strongly Disagree (SD); 2=Disagree (D) and 1= Not Sure (NS). The summary descriptive statistics for information relating to each vehicle and overall costs were presented in table below:
Table 4.20 Distribution of whether respondents agree that KUL has a package that provides detailed information relating to each vehicle and overall costs on a periodic basis
Items 	SA  No,%	A No,%	NS No,%	D No,%	SD No,%	
Revenue per vehicle  	14, (21.88)	17, (26.56)	10, (15.63)	10, (15.63)	13, (20.31)	
Cost relating to the crew 	16, (25)	22, (34.38)	06, (9.38)	03, (4.69)	17, (26.57)	
Cost relating to the individual 	08, (12.5)	19, (29.69)	07, (10.94)	19, (29.69)	11, (17.19)	
Profitability/loss per vehicle 	18, (28.13)	21, (32.81)	03, (4.69)	11, (17.19)	11, (17.19)	
Depreciation 	10, (15.62)	25, (39.06)	05, (7.81)	15,  (23.44)	9, (14.06)	
Source: Researcher’s data, 2013
From the findings, 26.56% strongly agreed that KUL has revenue per vehicle package that provides detailed information relating to each vehicle and overall costs on a periodic basis, 21.88% also agreed. However, 15.63% were not sure while 15.63% and 20.31% disagreed and strongly disagreed respectively.
A total of 25% of the respondents strongly agreed that KUL has a cost relating to the crew package that provides detailed information relating to each vehicle and overall costs on a periodic basis. 34.38% also agreed while 9.38% were not sure. 4.69% and 26.57% disagreed and strongly disagreed respectively.
From the table above, Cost relating to the individual package that KUL provides detailed information relating to each vehicle and overall costs on a periodic basis, 12.5% strongly agreed, 29.69% agreed. However, 10.94% of the respondents were not sure while 29.69% and 17.19% disagreed and strongly disagreed respectively. 
Profitability/loss per vehicle package that KUL that provides detailed information relating to each vehicle and overall costs on a periodic basis, 28.13% of the respondents strongly agreed against 32.81% agreed and 4.69% were not sure whether it was in place, however 17.19% of the respondents disagreed and strongly disagreed respectively.
Lastly, majority (39.06%) of the respondents agreed against 7.81% who strongly disagreed with the depreciation package that KUL that provides detailed information relating to each vehicle and overall costs on a periodic basis. 
In an interview with one staff accountant at KUL on cost control methods that the company should employ and how they apply were noted such as;
“Life-cycle costing is the method that fleet managers use to look into the future to project actual fleet costs throughout the life of the vehicles under consideration.  The method has the following objectives; to improve accuracy in analyzing total, projected costs of alternative vehicles, including new vehicle models, for the anticipated life of the vehicles; to obtain substantiated objectivity in vehicle selection decisions and lastly to estimate the operating costs over the life of the vehicle in the fleet. Life-cycle costing helps fleet managers identify when operating costs exceed replacement costs and is, therefore, a valuable tool for budget formulation and budget monitoring, as well as operating efficiently throughout the year.”

The qualitative findings seem to suggest that effort was undertaken by the management of KUL to control costs; however it was constrained by lack of updated cost control systems to improve on accuracy among others and this could fundamentally affect the future performance of KUL.

4.7.3 Cross tabulations of the complaints raised by the respondents and period of partnership with KUL.
Table 4.21 Cross tabulation of the complaints raised the respondents and period of partnership with KUL.	
	
	Period of partnership with KUL	Total	
	2-5 years	6-10 years	11-14 years		
The complaints raised the clients concerning KUL		5	2	0	7	
	Cargo delivery delays	1	1	0	2	
	Clearance delays and wrong invoicing	0	1	0	1	
	Delayed cargo deliveries	1	0	0	1	
	Delayed payments	3	1	0	4	
	Delayed payments for supplied spare parts	1	0	0	1	
	Delays	0	1	0	1	
	Delays in cargo delivery	0	1	0	1	
	Delays in clearance	0	1	0	1	
	Inconsistent payments	1	0	0	1	
	Lack of communication	1	0	0	1	
	Late payment of debts	0	0	1	1	
	missing items	0	1	0	1	
	None payment	1	0	0	1	
	Overcharging me for storage	0	1	0	1	
	Still uses faulty trucks for transportation.	0	1	0	1	
	Truck detention charges	1	0	0	1	
	Uncoordinated supply request	0	1	0	1	
	wrong bills	1	0	0	1	
	Wrong Invoices and Cargo delays	0	1	0	1	
Total	16	13	1	30	
Source: Researcher’s data, 2013
From the table above, it indicated that most complaints came from clients/customers who had been in partnership with KUL for 2 to 5 years, these were followed by those clients who had been in partnership with KUL for 6-10 years and lastly the least complaints came from clients who had dealt with KUL for more than 11 years. The long term partnership of most clients with KUL implies that aggregate performance of the company is attributed to good clientele relationships. 
4.8 Distribution of Institutions/companies in business partnership with KUL
The Distribution of Institutions/companies in business partnership with KUL was observed and findings are presented in table 4.22 below.
Table 4.22 Distribution of Institutions/companies that are in business partnership with KUL
	Frequency	Percent	Valid Percent	Cumulative Percent	
Valid		8	24.2	24.2	24.2	
	African Oils	1	3.0	3.0	27.3	
	Amarjaro coffee	1	3.0	3.0	30.3	
	Computer Suppliers	1	3.0	3.0	33.3	
	Dama consult	1	3.0	3.0	36.4	
	Devis& Sheriff	1	3.0	3.0	39.4	
	East African Packaging	1	3.0	3.0	42.4	
	Fontana Auto parts	1	3.0	3.0	45.5	
	Future Development	1	3.0	3.0	48.5	
	JM Technical services	1	3.0	3.0	51.5	
	Kakiira Sugar	1	3.0	3.0	54.5	
	Kenjoy supermarket	1	3.0	3.0	57.6	
	KK Supplies & Consults	1	3.0	3.0	60.6	
	Makepasi Match Tech	1	3.0	3.0	63.6	
	Musa Body Suppliers	1	3.0	3.0	66.7	
	Musa Body Works	1	3.0	3.0	69.7	
	NAKUMATT	1	3.0	3.0	72.7	
	Nikei Technical Services	1	3.0	3.0	75.8	
	Rio Estate	1	3.0	3.0	78.8	
	SBI International	1	3.0	3.0	81.8	
	Shoprite Checkers 	1	3.0	3.0	84.8	
	SPIL Logistics	1	3.0	3.0	87.9	
	Tyres & Tubes Limited	1	3.0	3.0	90.9	
	Upstream Bonded Warehouse.	1	3.0	3.0	93.9	
	VIVO Energy	1	3.0	3.0	97.0	
	Wakabi Technical Services	1	3.0	3.0	100.0	
	Total	33	100.0	100.0		
Source: Researcher’s data, 2013
From the table above, listed are the different companies/institutions that business partnership with Kenfreight Uganda Limited. The different companies deal with KUL in different nature of businesses on a weekly, monthly and annual basis as stipulated by some contacted clients/customers. This also implies that KUL has the ability to relate with many organizations/companies on a good reputation hence maintaining them as customers which also spurs its performance towards achieving the set goals/objectives. 
4.9 Distribution of the response rate on the main strengths and weaknesses of KUL
The distribution of the response rate on the main strengths and weaknesses of KUL was observed and findings are presented in table 4.23 below.
Table 4.23 Distribution of the response rate on the main strengths and weaknesses of KUL
	Responses	Percent of Cases	
	N	Percent		
Weaknesses and Strengths of KULa	Strength	165	63.0%	500.0%	
	Weakness	97	37.0%	293.9%	
Total	262	100.0%	793.9%	
a. Group	
From the table above 63.0% of the clients/customers revealed that management attitude, fleet maintenance, financial ability, timely delivery, delivery of L.P.Os for purchase, delay of clearing creditor bills, immediate answer to phone calls and complete cargo delivery (without loss) were the main strengths of KUL while 37.0% argued that the above stated were the major weaknesses of the company.
In an interview, one client noted:
“KUL’s strong weakness is replacement and disposal of old vehicles, companies replace their vehicles and equipment at various age or accumulated-usage intervals, depending on the type of vehicle and the nature and intensity of its use.  Timely replacement is an important best practice because it affects vehicle availability, safety, reliability, and operating costs.”  
The interviewee’s findings seem to point to failure to attain effectiveness in the delivery of the cargo a problem which could be attributed to the use of old trucks which the company is reluctant to replace or dispose-off. 

CHAPTER FIVE

DISCUSSION, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
This chapter gives a summary of the findings, discussions, conclusions and recommendations based on the findings in accordance to the objectives. It is subdivided into three sections; the first section focuses on the discussion of the study variables that are transport planning, transport organization, transport cost control systems and performance.  The second and third sections constitute the conclusion and recommendations, limitations of the study and areas for further study respectively.  
5.1 DISCUSSION
5.1.1 The effect of transport planning system on performance of KUL
The bivariate correlation analysis reveals a significant positive relationship between transport planning system and performance of the company.  The findings confirm to assertions by Crainic (2002) which states that planning is more pronounced in Logistics structure and service network and operations of a long distance freight transport systems. It is further affirmed that the ultimate aim is to respond to demand and ensure the profitability of the firm, consequently, one of the major objectives of tactical planning is to achieve the best trade-off between operating costs and firm profitability and service performance measured (cost efficiency and responsiveness), such that total logistics cost will be reduced and firms revenue and profit could be enhanced (Chopra and Meindl, 2001).
5.1.1.1 The effect of maintenance and repair on performance of KUL
From table.9 in chapter Four, out of 64 KUL staff, only 68.8% indicated that KUL has a maintenance program for its vehicles against 25.0% who confirmed that KUL has never had a maintenance program for its fleet. However, 6.2% of the staff never indicated their side about the matter. According Fouzia, (1995) he affirmed that the vehicles are subject to breakdowns and deterioration, which explains that a preventive maintenance policy can be beneficial in order to prevent failures during operation. Besides, it also reduces costs since we can legitimately assess that a repair upon failure costs more than a preventive repair.
5.1.1.2 The effect of scheduling and routing on performance of KUL
From the study findings, majority 74.1% also mentioned that KUL does not carry out route scheduling study prior deployment of its fleet for operation while only 25.9% indicated that routing and scheduling is always done prior to deployment of its fleet although no specific method was identified by the respondents.
5.1.1.3 The effect of procurement and disposal on performance of KUL
According to the study findings, majority 64.2 % revealed that procurement and disposal was rarely done especially for the trucks at KUL while only 35.8% were in agreement that the company usually did procurement and disposal of its vehicles. The results clearly indicate that since procurement and disposal is singled out by most respondents as shortfall in the company, therefore performance is negatively affected by this variable.
Further implications from Concern Logistics Manual (Dec, 2004) indicate that Running old vehicles may lead to high costs of maintenance and uneconomical fuel consumption. To avoid this, organizations should have approved and clearly stipulated policies and procedures on how and when to replace and dispose of vehicles/assets. Therefore, the need to dispose may arise due to as a result of extensive un-repairable damage, or cost-prohibitive repairs; when the vehicle attains the stipulated mileage or years for disposal; when the vehicle is no longer economically sustainable; when the vehicle is no-longer required and when programs downscale or shut down.
5.1.1.4 The effect of insurance and licensing on performance of KUL
The study findings indicate that almost all the respondents (96.9%) agree that KUL insures and licenses all its company vehicles before set for use and against (3.9%) who also revealed that this was not done for some vehicles which led them to use those vehicles at times.
According to Gilbert 1998 noted that adopting insurance policy is another method of proper fleet management. He also asserted that though vehicle insurance is a requirement of the law and whereas it is emphasized, the literature did not explain the expenditure element born in paying the insurance premium for all the trucks for case of comprehensive insurance policy. 
According to Fawcett, et al (1992), he also asserts that a standard license and Insurance is required by an operator who carries cargo for hire or road haulers.
5.2 The effect of transport management organization system on performance of KUL
The bivariate correlation analysis revealed a significant positive relationship between transport management organization system and performance of the company. 
5.2.1 The effect staff recruitment and training on performance of KUL
From study, the majority 53.1% acknowledged that they had never been trained in transport management after recruitment in the company against 42.2% who revealed that they had had training by company. According to Berger and Ghei (1995) it is confirmed in their study on a facet of transport management that the success of the transport industry depends on the quality of its employees and their effective management in order to assist the organization to achieve its objectives. 

Similarly, training that focuses on transportation-related issues can help address the demographic changes, technology advances, and greater demands that this industry faces. Much attention has been paid to the need for training within transportation as a whole, as well as available training resources for the industry (Warne, 2003, Warne, 2005, Shiplett, 2007, Spy Pond Partners et al., 2009; and TRB, 2003).
5.3 The effect of transport cost control system on performance of KUL
The bivariate correlation analysis further revealed a significant positive relationship between transport cost control system and performance of the company.  As affirmed by Brandy (2002), the opinion that great saving can be made in the area of critical logistics planning of outbound transportation, inventory management, production planning, warehousing distribution and purchasing are needed to reduce static inventory. 

Considering the result from the analysis that KUL has cost relating to the individual package that provides detailed information relating to each vehicle and overall costs on a periodic basis, 12.5% strongly agreed, 29.69% agreed. However, 10.94% of the respondents were not sure while 29.69% and 17.19% disagreed and strongly disagreed respectively. In a related development, Transport management systems should be integrated with external cost control systems that will assist to achieve a more optimized supply chain, as well as, lower transport and total logistics/ supply chain costs. In other words, company that is more effective in transport function will also be more efficient in providing better customer service which will in turn earn more profits. 
As indicated in the findings, profitability/loss per vehicle package that KUL that provides detailed information relating to each vehicle and overall costs on a periodic basis, 28.13% of the respondents strongly agreed against 32.81% agreed and 4.69% were not sure whether it was in place, however 17.19% of the respondents disagreed and strongly disagreed respectively.
Similarly, according to Franceshin and Rafele (2000) total logistics cost control has been proven to be the key to managing the transportation; consequently, it is important that management considers the total of all logistics costs. Controls are expected to be instituted to minimize the total costs of logistics rather than to minimize the cost of each component. 
5.4 Conclusion
The purpose of the study was to investigate into the relationship between transport management systems and performance of logistics service providers in Uganda.
1-	The study confirmed a positive effect between transport planning system and performance of logistics service providers.  The variables of transport planning system which are; maintenance and repair, Scheduling and routing and procurement and disposal confirm a positive effect on investment (profitability), efficiency (reliability) and effectiveness of the company.  This means that when the above variables of planning system are well managed, there are fewer obstacles to performance logistics service providers.
2-	The study further indicated a positive effect between transport organization system and performance of logistics service providers.  The variables of transport organization system which are; staff recruitment and training, insurance and licensing confirm a positive effect on profitability, reliability and effectiveness.  This indicates that when these variables of organization system are well managed, there are fewer obstacles to performance logistics service providers.
3-	The study also confirmed a positive effect between transport cost control system and performance of logistics service providers.  The variables of transport cost control system which are; crew cost analysis, individual motor /vehicle cost analysis and general cost and profitability confirm a positive effect on returns on investment (profitability), efficiency (reliability) and effectiveness. Therefore it implies that when the above variables of transport cost control system are well managed, there are fewer obstacles to performance logistics service providers.

The results from this study has shown  that transport management systems have a significant positive impact on the performance Logistic services providers as was measured using planning, organization and cost control systems. As earlier indicated, having performance measures is not an end in itself , but a means to effective and efficient control and monitoring of any function (Neely, 1999; Amaratunga & Baldry, 2002 and Waal, 2007). Therefore, organizations with established performance measures for their procedures, processes, and plans experience lower customer dissatisfaction and employee turnover than those which do not have. The issue is to ensure that measures are being implemented and measure what they were intended to measure. 
Implementing planning, organization and cost control measures is not as easy as it may sound. It requires preparation, coordination, team work, constant communication and feedback. To ensure logistics companies maximize profitability, vehicle efficiency and effectiveness planning, organization and cost control should be checked thoroughly. This can be done through establishing clear roles and procedures within the transportation processes. As much as planning, organization and cost control system of transportation featured the most preferred measure of transport management and performance, other intangible measures like timely delivery of orders, customer satisfaction, dependability, flexibility and quality of employees should not be ignored.
5.5 Recommendations;
The recommendations of the study are derived from conclusions drawn from research findings and in line with the study objectives. The researcher recommended implementation of below   in order to improve the performance of logistics service providers in Uganda.
5.5.1 Relationship between transport planning system and performance 
The study identified lack of proper planning for its fleet, fleet scheduling and routing has never been heard of at Kenfreight and yet it is very critical area. The management of KUL should emphasize routing and scheduling as part of planning for their fleet. In addition to this KUL should consider Overall Vehicle Effectiveness (OVE) for it to improve performance and quality of delivery.
5.5.2 Relationship between transport organization system and performance.
The study identified need for improved driver efficiency. Management of KUL should ensure improved driver efficiency through training schemes which play a big role in equipping drivers with fuel-efficient driving techniques as one of the most cost-effective approaches to fuel saving.  
5.5.3 Relationship between transport cost control system and performance
In a related development, KUL management should consider integration of Transport management information systems with external enterprise systems that will assist to achieve a more optimized supply chain, as well as, lower transport and total logistics/ supply chain costs. In other words, company that is more effective in transport function will also be more efficient in providing better customer service which will in turn earn more profits.
5.6   Limitations to the Study
 Conscious of their job security, some respondents like KUL staff may have provided the researcher with inaccurate information as they are duty bound not to provide any negative information.  
Due to a busy setting, timing was a serious challenge especially for KUL staff interviews such as company truck drivers.  Most of the time drivers are either in the field or on long safari trips, thus making it difficult to collect their ideas   and if they happen to be around they are preparing for the next trip thus inadequate time available for the interviews. The researcher ensured that most of the interviews were held early mornings before most of them set off for field and the long distance driver were given one-to-one interviews during the short time available. 
The researcher further found the study very costly.
5.7 Contributions of the Study 
In addition to achieving the primary objectives, the findings are expected to contribute immensely to achievement of a more optimized supply chain, as well as, lower transport and total logistics/ supply chain costs. Through improved and effective transport function, logistics service providers will be more efficient in providing better customer service which will in turn earn more profits and improved service delivery.
Lastly this study has established new findings hence adding to the body of knowledge and offers empirical evidence that shows the extent to which transport as a functional unit in logistics contributes to the performance in the logistics industry. 
5.8 Likely areas of further study
More research could be carried out on the effectiveness of transport management systems on organizational performance as a whole. 
I would like to propose for more research to be carried out on the effectiveness of employee attitude on performance of transport organizations.  

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APPENDIX (I): QUESTIONNAIRE

I am Mr. Albert Kansiime Kategaya a student of Uganda Management Institute   pursuing a Master’s degree in Management Studies (Logistics and Transport Management). It is a requirement for completion of my course that I carry out research under the topic Transport Management systems and Performance of Logistics Service providers, a case study of Kenfreight Ltd. You are therefore kindly requested to answer all the questions as objectively as possible. 
Note that the questionnaire is purely for academic purposes and that your response shall be treated with maximum confidentiality.
You are requested to fill in your response in the blank spaces and indicate by ticking the appropriate response that best represents your opinion on the scale provided.  
Thank you.
Questionnaire (Part 1)
Section A. – Demographic Data 
(1)	Respondent No……….

(2)	Age Group of the respondent 
Below 19	20-29	30-39	40-49	50-59	

(3)	Gender of the respondent 
Female		Male		

(4)	Level of Education of the respondent 
Primary	Secondary	Tertiary 	Other specify	

(5)	Position held by respondent at KUL
Director 		
Manager		
Supervisor 		
Foreman (Technician)		
Mechanic		
Fitter		
Electrician		
Driver (Crew)		
Turn-boy		
Accountant 		
Others ( specify) 		
(6)	Employment period at KUL
<1yr	1-5yrs	6-10yrs	11-15yrs	>15yrs	

(7)	How do you describe the working environment at KUL?
5	4	3	2	1	
Excellent  	Very good 	Good 	Fair 	Poor	

(8)	How do you rate the condition of the following items at KUL?
	5	4	3	2	1	
Item 	Excellent 	Very Good  	Good 	Fair 	Poor 	
W/shop cleanliness						
Machine maintenance 						
Safety measures						
S/shop arrangement						
Toilet facilities						
Drainage system						
Canteen space & cleanliness						
Fire extinguisher 						
Health facilitations						
Office space						

Section B: General transport management at KUL
(9)Do you understand the transport management system at KUL?
Yes		
No		
If yes, what is the role of this system at the KUL?
-------------------------------------------------------------------------------------------
(10)  Do you think transport is well managed at KUL?
Yes		
No		
Give reason(s) for your answer in No.10 above? ---------------------------------------------------------------------------------------------------------------------------------------------
How do you rate the transport management systems at KUL?
Poor	Fair	Good	Very good	
				
Section C:  Transport planning system
How do you rate the transport planning system at KUL?
Poor	Fair	Good	Very good	
				
(11) Does KUL have a maintenance program of its vehicles?
Yes		
No		
 If yes, when is routine vehicle servicing expected to be done? 
After covering 5000 kms.		
After covering 1000 kms.		
On the advice of mechanic preview		
When oil level is black & sticky		
Subjective		

Others specify …………………………………………………………………….................
(12)KUL has a schedule of routine maintenance.
5	4	3	2	1	
Strongly Agree	Agree	Disagree	Strongly disagree 	Not sure 	

(13)   Does KUL use its fleet of vehicles in accordance to vehicle maintenance?
Yes		
No		
(14)  Are the routine maintenance & repairs carried out timely and when unexpected events occur such as breakdown or accidents?
5	4	3	2	1	
Always  	Most of the time	Sometimes 	Rarely 	Never	
					
(15) Are you guided by the things listed here below for the maintenance of KUL fleet?	
	5	4	3	2	1	
Item	Strongly  agree	Agree	Disagree 	Strongly disagree	Never 	
Level of spare parts purchased						
No. of breakdowns on the way						
Signing financial  position  of the company						
Delay of vehicles in w/shop after breakdown.						
A lot of breakdown on the way						
Prior Management of tyres						
Drivers discipline						

Others specify ………………………………………………………………………
(16)  Does KUL carry out route scheduling study prior deployment of its fleet for operation? 
Yes 	No.	
		
If yes in (16), which method is employed? …………………………………………

(17) Does KUL, has a vehicle disposal policy?
Yes	No	Not sure	
			
If yes, how is the policy observed?
5	4	3	2	1	
Most of the times 	Sometimes	Rarely 	Never	Not sure 	

(18) In your view, do you think procurement and disposal of the trucks has a bearing on measuring performance of vehicles?
Yes	No	

If  yes, why?  --------------------------------------------------------------------------
(19) How often does KUL replace its fleet? -----------------------------------------------
(20) Motor vehicle selection and replacement has a bearing on performance .How does it affect performance of KUL? --------------------------------------------------------

Section C - Transport Organization 
How do you rate the transport organization at KUL?
				
5- Poor	4-Fair	3 -Good	2-Very good	1-None	

(21)  Have you been trained in transport management?
Yes		
No		
If yes, for how long was it done?
< 1 month		
1-6 months 		
6-12months 		
>1 year 		

If yes in No.21 was the training of any importance to you?
Yes		No		
If yes, in which way? -------------------------------------------------------------------------
How often?    .............................................................................................................
(22)  Were all KUL trucks licensed on time?
Yes		
No		
If no, what could be the reason?  ………………………………………………..

(23)  Does management of KUL at times allow unlicensed trucks to carry any cargo?   
Yes		
No		

If yes, how often does it do it?
5	4	3	2	1	
Always	Sometimes	Rarely 	Never	Not sure	

(24) Third party insurance is mandatory.  Do all vehicles have it?
5	4	3	2	1	
Most times 	Sometimes 	Rarely 	Never	Not sure 	

(25)  Are the Insurance Policies always up to date ?
5	4	3	2	1	
Most times 	Sometimes 	Rarely 	Never	Not sure 	

(26) KUL trucks/fleet are road worthy as regards to insurance policies?
5	4	3	2	1	
Strongly agree	Agree	Disagree	strongly disagree	Never 	

(27)	Do you feel bothered if vehicle move without 3rd Party insurance?	
Yes	No	

 If your answer is yes, explain why. --------------------------------------------------------

Section D: Transport cost control at KUL
(28) How do you rate the transport cost control at KUL
Very low	Low 	High 	Very high	
				
(28)  Does KUL have a counting package that provides detailed information relating to each vehicle and overall fleet costs on a periodic basis, say monthly.
Yes 		
No		

(29) KUL has a package that provides detailed information relating to each vehicle and overall fleet costs on a periodic basis if yes in No.29  does the package include the following?
	5	4	3	2	1	
Item	S / agree	Agree	Disagree	S/ disagree	Not sure	
Revenue  per vehicle or						
cost relating to the crew or						
cost relating to individual vehicle						
Profitability/loss per vehicle 						
Depreciation 						
(30) Do you think there is any other cost control method KUL could use other than No.30 above.
Yes 		
No		

If Yes specify; …………………………………………………………………….
(31)  KUL has standard costs in these areas.

	5	4	3	2	1	
Item	S/ agree	Agree	Disagree	S/disagree	Not sure	
Fuel per km/trip/month						
Drivers salary per month/ year						
Service per  						
Insurance per year						
License per month/ year						
Vehicle replacement 						
Annual Depreciation 						
Calculated Running cost per KM						
Parts spend per year						

Section F - Performance of the transport sector at KUL

(32) Why is it important for KUL to manage its fleet?
a).-------------------------------------------------------------------------------------------------
b). ------------------------------------------------------------------------------------------------
c). ------------------------------------------------------------------------------------------------
(33) Do you think the transport management systems at KUL are adequate?
Yes	No	

If no, what are the reasons? --------------------------------------------------------------- 
(34) Do you think that KUL has been performing to its expectation for the last ten years?
Yes	No	
		
	Give reasons for your answer in 34 above. --------------------------------------- 
(35) Does truck breakdown affect performance of KUL fleet? ------------------------
---------------------------------------------------------------------------------------------------
(36) Do you receive customer complaints? 
Yes	No	
		
If yes, how often and usually what is the nature of the complaints? -----------------------------------------------------------------------------------------------------------------------
Questionnaire Part 2
Interview questions given to KUL’s clients and consumers
(A)	Client’s bio-data 
1.	Client/Customer No. ------------------------
2.	Client’s company/institution--------------------------------------------------------
3.	Age group (years)
Below 19	20-29	30-39	40-49	50-59	Above 60	
						
4.	Gender		
Male 	Female	
		
5.	Level of Education
Primary	Secondary	Tertiary	Others	
				
6.	For How long have you been in business partnership with KUL (years)
Below 1 yr. 	2-5 yrs.	6-10 yrs.	11-14 yrs.	Over 15 yrs.	

7.	Your nature of business:	
Customs	Type of supply	Spare supplies	Full supplier 	
				
8.	How often do you deal with KUL?	
Weekly	Monthly 	Annually	
			
(B) 	Satisfaction:
9.	Have you ever complained to KUL since your partnership started?
Yes	No	
		
10.	If your answer in No.9 is yes, what was/were your complaints?
	-------------------------------------------------------------------------------------------
11.	How long did it take to rectify such complaints?
Never 	Immediately 	A week	Fortnight	Quarter	A year 	
						
12.	In your view, how do you rate the services provided by KUL?	
5	4	3	2	1	
Excellent 	very good	Good 	Fair 	Poor 	
					
	Give reason(s) for your response above.
	-------------------------------------------------------------------------------------------
		 (C)	General
13.	What are the main strengths and weaknesses of KUL e.g. regarding your partnership with it?
Item 	Strength	Weakness	
Management attitude			
W/shop (fleet maintenance)			
Financial ability			
Timely delivery			
Delivery of L.P.O.s for purchase			
Delay of clearing creditor bills			
Immediate answer to phone calls			
Complete cargo delivering (delivery without loss)			
14.	Do you think KUL could improve her relationship with her partners for a better performance?
Yes		
No		
If yes, give your views on how KUL could improve her relationship with her partners for a better performance……………………………………………......

Thank you.

Appendix (II): Interview Guide for KUL Staff 
1.	How do you understand the term transport management system?

2.	What transport management systems does Kenfreight have?

3.	Are the transport management systems in place effective?

4.	Is transport planning, organizing and cost control systems part of the management systems used in management of transport at KUL?

5.	Does KUL has a maintenance and repair program?

6.	Is the maintenance and repair programme being implemented?

7.	Does KUL carry out scheduling and routing prior deployment of its fleet?

8.	Does KUL have a procurement disposal and replacement policy?

9.	How often does KUL replace its fleet?

10.	Does KUL have any staff development program in place?

11.	What are the procedures of recruiting new staff at KUL?

12.	Does KUL have any cost control program in place?

13.	How effective is the cost control program?

Appendix (III): Interview Guide for KUL Clients/Customers
1.	What is your relationship with KUL?

2.	What is your nature of business with KUL?

3.	For how long have your been in business partnership with KUL?

4.	How often do you deal with KUL?

5.	How do you rate services provided by KUL?

6.	Have you ever had any complaint towards KUL services?

7.	What type of complaint was it?

8.	Was your complaint addressed?

9.	How long did it take KUL to rectify your problem?

10.	What are the strengths and weaknesses of KUL?

11.	What do you think KUL should put rights to improve their service?

Appendix (II): Kreijcie& Morgan tables for determining sample size from given population
N	S	N	S	N	S	N	S	N	S	
10	10	100	80	280	162	800	260	2800	338	
15	14	110	86	290	165	850	265	3000	341	
20	19	120	92	300	169	900	269	3500	246	
25	24	130	97	320	175	950	274	4000	351	
30	28	140	103	340	181	1000	278	4500	351	
35	32	150	108	360	186	1100	285	5000	357	
40	36	160	113	380	181	1200	291	6000	361	
45	40	180	118	400	196	1300	297	7000	364	
50	44	190	123	420	201	1400	302	8000	367	
55	48	200	127	440	205	1500	306	9000	368	
60	52	210	132	460	210	1600	310	10000	373	
65	56	220	136	480	214	1700	313	15000	375	
70	59	230	140	500	217	1800	317	20000	377	
75	63	240	144	550	225	1900	320	30000	379	
80	66	250	148	600	234	2000	322	40000	380	
85	70	260	152	650	242	2200	327	50000	381	
90	73	270	155	700	248	2400	331	75000	382	
95	76	270	159	750	256	2600	335	100000	384	
Note    : N- is population Size
              S - is sample size
Source: R.V Krejcie and Morgan, “Determination of Sample Size for Research activities “Educational and Psychological Measurement, Vol.30 No.31970, p.608

Appendix (III): Shows KUL’s Annual Truck Net Income Analysis for the Period of 2007-2012 (Local and International Haulage trucks): 
Financial Year	Haulage Details	Gross Income	Total Expenses	Net Income	Budgeted Income	Budget Position 	
2007	Local  	 400,740,634	 393,818,371	
6,922,264	
90,030,214	
(83,107,950)	
	International 	 691,950,873 	 200,248,427	
491,702,446	
395,107,212	
96,595,234	
2008	Local 	 356,158,469	361,597,122 	
(5,438,654)	
10,333,800	
(15,772,454)	
	International 	 824,289,479	 355,748,089	
468,541,390	
443,721,910	
24,819,480	
2009	Local 	 245,714,416	 290,330,240	
(446,615,824)	
203,339,820	
(247,955,644)	
	International 	 790,536,854	 177,985,118	
612,551,736	
529,617,612	
82,934,124	
2010	Local 	 718,152,303	 695,397,262	
22,755,041	
110,466,049	
(87,711,008)	
	International 	547,480,604	189,647,883	
357,832,721	
554,240,372	
(196,407,651)	
2011	Local 	1,191,538,797	
1,013,529,420	

178,009,377	

383,439,408	

(205,430,031)	
	International 	 796,280,646	168,855,802 	
400,424,844	
455,072,441	
54,647,597	
2012	Local 	1,365,503,931	1,015,127,202	
350,376,729	
331,708,632	
(18,668,097)	
	International 	76,887,832	90,444,375	
(13,556,543)	
(30,318,417)	
16,761,873	
Source: KUL account records

Appendix (iv): Introduction letter from the Uganda Management Institiute to collect data