Freight Forwarding Outsourcing and Supply Chain Efficiency among Manufacturing Firms in Uganda: The Case of Mukwano Industries Ltd.

This article examines the influence of freight forwarding outsourcing on supply chain efficiency. Specifically, the paper analyses the influence of freight forwarding outsourcing decision making, planning and administration on supply chain efficiency in Mukwano Group of Companies. The researchers employed case study and cross sectional designs, which used the researchers’ made questionnaire and interview guide for data collection. Data was analyzed using means, correlations and regression models computed using the Statistical Package for Social Scientist (SPSS). Finding revealed that freight forwarding outsourcing does not influence supply chain efficiency, owing to supplier profit margins, supplier deficiencies in the human resource composition, and neglect of the strategic dimension in outsourcing, among others. The researchers therefore recommend that, outsourcing initiatives should emphasize outsourcing planning and administration in a strategic dimension and consider inter-organizational mapping to identify areas of complementation and cohesion within the outsourcing relationship. Strategies like partnerships and outright acquisitions can also be explored.