Assessing Logistics Practices In Textile and Apparel Industry The Case Of Industry Parks Around Addis Ababa Area
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Date
2019-06
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Addis Ababa University
Abstract
Logistics performance is significant in the textile and apparel industry because it is a valuable way of securing competitive advantage through enhancing operational performances since the sector is more complex, demanding and predicting changing styles and consumer demands is impossible to do. The purpose of this study is to assess and identify the current logistics practices in the textile and apparel industry in the case of industry Parks around Addis Ababa area. For the accomplishment of this study, the study was employed through descriptive design and quantitative and qualitative data was collected related with the extent of factories logistics practices using structured questionnaires and different secondary documents. The target population covers all the fourteen factories around Addis Ababa because the total population is small and seventy questionnaires were distributed but 61 respondents fully filled and return the questionnaire. The collected data was analyzed using descriptive statistics, and secondary document analysis is done for confirming the findings. The result indicates almost all the modern logistics infrastructures like usage of automated system in warehouse activities, wastage free utilization of materials system and using organized marketing research team to find new and potential suppliers are not applied by these factories for ease of logistics operation, and commonly logistics is practiced at the lesser extent. Even though the factories practiced the logistics activities in their day to day operations, most of the factories have no logistics department in their organizational structure. Foreign currency shortages, low efficiency of customs, lack of integrated system and low quantity of vehicles are found to be the critical challenges for industry parks. Finally, the researcher recommends, In order to have a good supply as well as customer integration factories should not accept orders which are above their capacity, familiarize measuring customer satisfaction level by continuous assessment, apply inventory control software and better design of warehouse to handle and manage their inventory and warehouse management generally it would be better for all stakeholders to work with equal commitment and sense of urgency to strengthen the logistics practice of textile and apparel industry and to improve the competitiveness of the sector in the international market level.
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Keywords
Logistics, Logistics Practices, Textile, Apparel