The Effect of Logistic Management Practice on the Performance of Food Manufacturing Industry: the Case of Fafa Food Share Company

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Addis Abeba University


In this paper, the effect of logistic management practice on performance of fafa foods Share Company is investigated. Logistic management practice is one of the functions accomplished in the company among the other practice. The specific objective of this research is to investigate individual logistics practices such as product quality, logistic responsiveness, product variety, delivery time and logistic cost on performance. To check whether these variable practices affect or not, 241 samples were selected from kolfe keraniyo and Gulele sub cities from the existing 610 registered lists. To determine the sample size, total distribution route are listed in the table and the sample size is computed proportionally from each rout using systematic sampling. Only quantitative data was used in this research. Data analysis was performed with the use of stepwise regression analysis using SPSS 20 statistical software. To check the internal consistency of the data cronbach alpha test was conducted. Finding showed that Product quality has statistically significant effect on performance from the point of view of customer satisfaction followed by product variety, delivery time and responsiveness. The study recommends that there should be dedication and apparent motivation on the parts the company and of all agents who distribute the company’s products with respect to the product quality and responsiveness of the logistic function for the better performance of the company and better profit. The company as much as possible should work for further enhancement of the management of the logistic function



Food Manufacturing Industry; Food Share Company