Logistics Leverage for a Sustainable Competitive Advantage in Savings and Credit Cooperative Societies (SACCOs): Case of Wakenya Pamoja SACCO Society Ltd., Gusii Region, Kenya

Abstract

The paper focuses on Logistics Leverage for a Sustainable Competitive Advantage (SCA) in SACCOs, a survey of Wakenya Pamoja SACCO Society Ltd. (WPS). SACCO membership is on a declining trend,attributed to the stiff competition faced from mainstream commercial banks and MFIs who are perceived by clients to be more efficient and as having better operational and governance systems. SACCOs are now being prompted to rethink their overall strategies especially marketing, given the ever-shortening technology cycle as product, promotion or price strategies are quickly met with counter-moves from the competition. The general objective of the study was to determine how strategic logistics/marketing linkages can be utilized by WPS to achieve SCA. The specific objectives were to: establish the logistics capabilities that can create SCA for WPS; evaluate the key structural issues that need to be resolved to achieve strategic logistics/marketing integration and; assess the inherent benefits of logistics leverage for the organization. The survey research design was used, and the target population included 482 members. Stratified sampling procedure was employed to obtain a sample size of 220. Data was collected using questionnaires and the weighted mean, frequencies and percentages were used to analyze it. The study established that: strategic corporate relationships and alliances, and technology were resources that could be developed into logistical capabilities resulting in SCA; key infrastructural issues to be addressed included the development of a competitive philosophy, the introduction of an agent to manage the connection among the functions, and getting support of the high level managers; and that increased market share and profitability are the inherent benefits of logistics leverage. In view of these findings, the study concluded that logistics leverage is a viable strategy and that there are other ways of obtaining competitive advantage that do not primarily involve product, promotion or price based strategies.