CHAPTER ONE

INTRODUCTION

This chapter incorporate the background of the study, statement of the problem, objectives of the study, research questions, scope and limitation of the study, among others.

1.1 Background to the Study

Transportation plays a critical role in global supply chains. Superb supply chain performance isn’t just a goal but a necessity in today’s companies dealing with fleet management, most administrative institution are outsourcing transportation services from third party logistics companies to reduce major investment such as hiring and managing fleet personnel and purchasing fleet trucks. Outsourcing is advantageous but firms need to be cautious to prevent their supply chains from collapsing by outsourcing transportation from 3PLs who have an inefficient fleet management function, indeed poor transportation management can bring supply chain to its knees. As businesses increasingly operate on a global scale, the need for effective transportation management become even more crucial. According to Christopher, M. (2016) transportation is a key enabler of supply chain success, impacting factors such as lead times, responsiveness, and overall end users’ satisfaction. The background of this study is framed in the recognition that optimizing fleet management practices can lead to enhanced supply chain performance, ultimately influencing a company’s competitiveness and profit maximisation.

The quest to achieve operational performance has therefore put pressure on management to deliver faster and cheaper vehicle utilization fleet management resulting in lower operating cost through better planning (Gitahi and Ogollah, 2014: Jonsson, 2008; Waters, 2009). It is important to note that fleet management for most organizations is seen as having short term effect and short response periods (Martinez et al., 2010). There are varied services offered through transport and most of these services have been segmented into areas of expertise and specialty which aimed at offering valued services through effective fleet management practices (Bask et al., 2010).

Coyle et al (2015) argues that transportation is a critical ingredient for overall supply chain performance and in general, the fleet management function is viewed as the glue that holds the supply chain together. Supply chains may become transport driven as opposed to demand driven than they were during 1990s and early 21st century. Schorpp (2011) argues that there is need for dynamic replanning in fleet management to react in the short term on newly occurring requests and other changing information. The primary objectives are the minimization of empty travelled distance, the minimization of delay and high vehicle utilization. Over the years, different players in the supply chain have recognized the critical role played by the fleet management function which have been termed as a glue in the supply chain by Coyle et al (2015). In order to provide a more realistic route in fleet management, advanced planning also takes into account specific factors such as road and traffic conditions. Technological communication improvements in the business environment have allowed for better planning through the use of electronic data interchange (EDI), radio frequency identification (RFID), satellite navigation, and so on (Gitahi & Ogollah 2014). A sustainable fleet management strategy is one that aims to reduce environmental impacts through a combination of cleaner vehicles and fuels, fuel-efficient operation and driving; and by reducing the amount of road traffic it generates (Martinez & Wassenhove, 2012).

Li and Visich (2006) researched on Radio Frequency Identification (RFID): Impacts of SC and Challenges of Implementation. In their research they found that the RFID systems implementation has the potential of revolutionizing dynamics of SC through significant increase in transparency in SC by disseminating a large amount of accuracy and real time information. They added that the data could be applied in enhancing process of making decisions through SC with the aim of increasing efficiency in SC and lowering lead time and levels of inventory and at the same time minimize stock outs, overstocks and shrinkage. Through such improvements, there is increased level of customer satisfaction, increased sales and profitability and sustainable competitive advantage. Cheema (2011) studied the impact of RFID on performance of an organization: The Mediating Role of SC Performance. The focus of the study was examining the effect of RFID used on effectiveness and efficiency of manufacturing in organizations and its ultimate effect on performance of an organization using performance of SC. The findings pointed that the use of RFID results in improved effectiveness and efficiency in manufacturing, and therefore improving SC in the organization. It was also suggested that companies can embrace the technology of RFID in boosting up their performance in regard to effectiveness and efficiency of manufacturing and performance of SC. Therefore, the university of Bamenda can use RFID to effectively and efficiently smooth its SC giving clear and accurate data on how the deans, directors, schools and faculties in The University of Bamenda manage their fleet.

Michaelides (2010) did a case study on optimization of logistics operations using GPS technology solutions. The study found that the key to consignment sharing of information and confirmation of deliveries is Web-enablement and GPS mobile tracking. The study also found that efficiency is also improved by having daily automated vehicle checks. Automation of scheduling process is advantageous because it leads to fewer interventions by the management and therefore lowering any chances of delays. Managers in charge of transport get to focus on drivers and other business issues like performance of individuals, optimal procedures, and new services to customers rather that calling of the drivers manually to establish where they are located, their status and schedule. As a result of this, managers are able to run their supply chain in a more efficient manner.

Globalization of supply chains has exposed myriad of challenges and complexities for the university of Bamenda and other business platform in managing their fleets. Issues such as varying regulations, diverse infrastructures, and geopolitical uncertainties add layers of complexity to fleet management. According to Chopra and Meindl (2016) the interconnected nature of today’s supply chains necessitates a holistic understanding of the impact of fleet management on overall supply chain performance. The only activity providing time and place utilities through inbound and outbound logistics are transportation. If the company does not have an efficient system of transport, it might incur high costs in delivering products to their customers and therefore result to losses; and it is important for the transport system used in an organization to have the ability of addressing major issues of selection mode and routine and size of the fleet because it is the vital competition force for companies (Goldsby, 2014). With the aim of maximizing efficiencies in term of cost and timeliness, a company needs to consider the modes that are most effective, uses equipment efficiently in routing, packaging and containerization techniques (Cozzolino, 2012).

Organization performance is described as the way in which a firm accomplishes its market-based objectives and additionally its financial objectives (Chesire & Kombo, 2015). Performance is an ongoing process and flexible procedure which includes manager and those they manage. They take a role of partners in a system created to empower them accomplish the required outcomes. Practicing strategic management can be supported as long as it enhances the firm’s performance. Performance in itself is the final product of the activities that it incorporates and the actual outcome of the strategic administration process. Organizational performance is attainment of ultimate goals of the organization as set out in the key Organizational plans (Wheelen & Hunger, 2013).

Organization performance is a multidimensional construct operationalized by a variety of financial measures (which include sales, value of net assets and profit) and non-financial measures which include number of workers, market share and overall customer satisfaction. In addition, factors such as overall satisfaction and non-financial goals of the firms are also very important in evaluating performance. Organization performance cannot be adequately determined without considering both financial and nonfinancial measures (Alder, 2012).

To the Cameroon perspective, it is rooted in the critical role that efficient transportation plays in optimizing supply chain operations. Transportation and fleet management are integral components of supply chain. Effect of fleet management on supply chain performance: case of The University of Bamenda in logistics, influencing the timely and cost-effective movement of services from person to person. According to Christopher (2016), effective fleet management not only ensure the physical movement of products but also impact inventory level, order fulfilment, and overall supply chain responsiveness. In the context of Cameroon, a country with diverse geographical and infrastructural challenges, understanding the specific dynamics of fleet management becomes crucial for enhancing supply chain performance.

Cameroon’s unique geographical features, including varied terrains and transportation infrastructure disparities, present distinctive context for studying the impact of fleet management on supply chain performance. The transportation network in Cameroon is characterized by a mix of road, rail, and maritime routes, making it essential to assess how well-coordinated fleet management strategies contribute to overcoming logistical challenges. As highlighted by Mafini and Shoko (2017), the performance of supply in African countries, including Cameroon, is influenced by factors such as road condition, vehicle maintenance practices, and regulatory framework. Examining the relationship between fleet management practices and supply chain performance in the specific context of Cameroon can offer valuable insights into addressing operational inefficiencies and enhancing the overall effectiveness of the supply chain in the region.

1.2 Statement of the Problem

This study investigates the intricate relationship between fleet management practices and supply chain performance within the University of Bamenda. Efficient fleet management is crucial for ensuring timely and cost-effective operations across various departments and establishments of the university. However, the extent to which current fleet management strategies contribute to enhancing overall supply chain efficiency and effectiveness in UBa remains unclear. Challenges such as vehicle maintenance, route optimization, and logistical coordination which appears to prevail in UBa impact the university’s ability to meet operational demands and deliver services promptly. Understanding these dynamics is essential for identifying potential gaps in fleet management practices and proposing strategies to optimize resource allocation and operational processes to enhance the university’s supply chain resilience.

This study aims to delve into the specific factors influencing fleet management effectiveness at the University of Bamenda and their implications for supply chain operations. By examining how fleet management decisions impact operations, the research seeks to uncover critical insights into the interconnectedness of transportation logistics and supply chain management within an academic institution. Addressing these issues will provide actionable recommendations for improving fleet management practices, streamlining operational workflows, and ultimately fostering a more robust and responsive supply chain framework that supports the diverse needs of the university community.

1.3 Research Questions

This study is guided by the following major and specific research questions

1.3.1 Main Research Question

What is the effect of fleet management on supply chain performance in The University of Bamenda?

1.3.2 Specific Research Questions

1. What is the state of fleets managed by The University of Bamenda?
2. How are the fleets of the University of Bamenda managed by the administrators and drivers?
3. What difficulties do the authorities encounter in managing their fleets and the role of Information Communication Technology on supply chain performance in The University of Bamenda?

1.4 Research Objectives

1.4.1 Main Research Objective

This study aims to examine the effect of fleet management on supply chain performance by The University of Bamenda

1.4.2 Specific Research Objectives

1. To assess the state of fleets in The University of Bamenda.
2. To investigate the strategies of fleet management in the University of Bamenda.
3. To examine the difficulties faced in the management of fleet and the use of information communication technology in The University of Bamenda.