The impact of operational cost containment strategies on financial performance of logistics companies in Zimbabwe: a case of Cargo Carriers International Haulers

Abstract

The research seeks to analyze the impact of operational cost containment strategies on financial performance of logistics companies in Zimbabwe. The research used Cargo Carriers International Haulers as a case study analyzing the impact of operational cost containment strategies implemented on financial performance, determining the motives behind Cargo Carriers cost containment strategies adoption, analyzing the factors that influence the successful implementation of operational cost containment strategies and ascertain the relationship that exists between operational cost containment strategies and financial performance ( return on equity) using Regression analysis. In collecting data, the study made use of interviews and questionnaires. The research had a targeted population of forty five Cargo Carriers staff members, a sample size of thirty two staff members who were selected using convenience and stratified sampling techniques. A total of thirty two questionnaires were distributed to Cargo Carriers staff and only twenty four were returned obtaining a 75% response rate and three management staff were interviewed and earned a 100% response rate. Charts, graphs and tables were used to present data and an analysis was made resulting in conclusions to be drawn. The research discover that operational cost containment strategies and financial performance have a positive relationship in logistics companies in Zimbabwe. The study recommended that logistics companies must implement effective short run operational cost containment strategies to upturn the financial performance of an organization (those that do not exceed a year). The study is new in Zimbabwe as no specific research has studied on the impact of operational cost containment strategies on financial performance of logistics companies in Zimbabwe and the researcher is optimistic that the study can upturn the financial performance of Cargo Carriers International Haulers.