In National and International Supply Chain Management Systems, developing ideas that add value and solve logistics problems successfully when implemented is an important determinant of economic growth and competitiveness of business organizations. The development and the deployment of scientific yet business techniques in the field of Management Science that simplify processes will enhance the expansion of markets through the efficiency and effectiveness realized in the costs involved. This study sought to analyze challenges in the implementation of Operations Research techniques on value addition in the logistics industry in Kenya; A survey of Nakuru County-Based logistics Service providers. The study covered 92 respondents drawn from a population of 100 (staff and customers). Questionnaire was used to collect data after which descriptive and inferential statistics were used to analyze data.. The study concluded that the use of Operations Research techniques have been used but yet to be fully utilized by business firms involved in the logistics service provision in order to bring about value addition in their course of delivery of goods works and services. Inadequate Human Capital in Operations Research, absence of qualified Human Capital in Operations Research, lack of professional input, insufficient platform to develop and train professionals in the field of Operations Research and absence of motivation and recognition were some of the key challenges that deterred the implementation of operations research techniques as well as the absence of integration between the use of Operations Research techniques and organization's in value addition. The study recommends that organizations engaged in the logistics service provision should invest in the qualified and competent human capital in the area of management science (operations research) in order to attain optimization and meet customer requirements by way of value addition.
Keywords: Operations Research, Supply Chain Network, Supply Chain Management, Logistics, Value Addition, Human Capital, Organization Policy, Information Technology.