Assessment of factors affecting the performance of outsourced logistics activities, in the case of Ethiopian airlines Prepared

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Addis Ababa University


The general objective of this study is to assess factors affecting the performance of outsourced logistics activities, in the case of Ethiopian airlines. The study employed explanatory type of research design. The target population for this study was all employees of Ethiopian Airlines who work in the logistics department. Both primary and secondary data is used for this study. Collected data is analyzed by using inferential and descriptive statistics technique with a computer program called the statistical package for social science (SPSS), version 23. Finding of this study indicates that Ethiopian airlines has outsource logistics service that is not maximized as desired due to factors such as loss of control over the logistics service providers, higher cost and longer time taken to select third party logistics provider, high level delay of customer order delivery, and ineffective relationship between management and third party logistics provider performance evaluation. The correlation result indicates that there are relationships between the measures of impact on the performance of outsourced activities and reasons for outsourcing logistics activities that have direct implication to all factors. The researcher acknowledges that the existing outsourcing of logistics services is benefiting the Ethiopian airlines. Recommendations of the researcher mainly focus on how the Ethiopian airlines could maximize its outsourcing activity for more effective profitability. Particularly, it is recommended that Ethiopian airlines should outsource only necessary aspects of business to avoid reduction in profitability. Also; the department of logistics should avoid adoption of inappropriate outsourcing strategies that negatively affects corporate profitability. These concerns indicate that there is need for future research study which may bridge the gap in these limitations.



outsourcing, logistics, performance, Core Competencies, Profitability, Flexibility