The Effect Of Strategic Sourcing On The Organizational Performance Of The Ethiopian Shipping And Logistics Service Enterprise
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Date
2020-06
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Addis Ababa University
Abstract
The objective of this study was the effect of strategic sourcing on the organizational performance
which as operational performance in Ethiopian Shipping and Logistics Service Enterprise. The
study used descriptive research design that was used to achieve the purpose of the study. The
study had employed census survey to quantitatively assess the supposed relationship between the
independent and dependent variables. Questionnaires were used to the formal instrument of data
collection. Totally 75 questionnaires were distributed and 60 of them filled and returned to make
the response rate about 80 percent. The collected data were analyzed using descriptive statistics
(Mean and standard deviation) and inferential statistics (correlation and regression). Finally,
the study revealed that there was a statically significant positive correlation between strategic
sourcing (measured in terms of supplier selection, Buyer supplier relationship, and contract
management) and operational performance. The Ethiopian Shipping and Logistics Service
Enterprise need to maximize its performance by establishing a long term relation with key
suppliers and made a long term contracts and supplying partnership with suppliers. The
organization must maximize its operational performance by relying on timely communication
with partners and by working closely with partners to build a good and long –term relationship.
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Keywords
Strategic sourcing, Organizational Performance, operational performance