This research investigates the pivotal role of logistics practices in enhancing business
operational effectiveness, focusing on Africa Global Logistics (AGL) in Rwanda. In a region
where logistics inefficiencies can significantly hinder economic growth, the study highlights
critical challenges such as prolonged delivery times, elevated operational costs, and customer
dissatisfaction. Historically, companies have faced severe losses due to logistical delays, with
Kenya Breweries Limited reporting a staggering KES 2.5 billion loss in 2017 alone. Although
recent advancements have reduced delivery times to under three days, persistent inefficiencies
continue to undermine these gains.
Utilizing a case study and descriptive research design, data were gathered from a
representative sample of 90 employees at AGL. Key findings reveal three primary obstacles
affecting operational efficiency: 83.3% argued on limited logistics knowledge and developmentt,
66.7% inefficient supplier relationship management to be a problem while the third problem
identified is limited transportation equipment which is represented by 61.1%.
The study emphasizes the contribution of logistics practices on business operation
effectiveness such as modern ordering systems, diversified transportation methods, inventory
management as essential for improving service quality and customer satisfaction. Additionally,
fostering effective communication with customers is identified as crucial, with 66.67% of
respondents advocating for enhanced engagement through social media and regular feedback
meetings.
The research offers strategic recommendations for stakeholders: include prioritizing
employee training and development to address logistics knowledge gaps, exploring innovative
strategies to improve transportation and supplier efficiency, and advocating for government
support through flexible logistics policies and industry summits. Moreover, this study underscores
the indispensable contribution of effective logistics practices to business success, illuminating
pathways for continuous improvement in operational performance and customer satisfaction.