THE EFFECT OF LOGISTICS ACTIVITIES ON SALES VOLUME: The Case of Heineken Breweries S.C, Ethiopia
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Date
2019-05
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Addis Ababa University
Abstract
The paper has made a study with the objective assessing the effects of logistics activities on sales
volume under the five interdependent activities: customer service, inventory management,
supply, transportation and warehousing on the level of sales volume in a set up where Heineken
Breweries S.C was considered as a population. Accordingly the study raised five hypothesis
parallel with the five specific objectives. In order for the study to be able to answer the raised
hypothesis quantitative data were collected from secondary data sources from the company data
base called Heilite, system data base designed by International Business Machines Corporation
and Brewery Comparison System, a system which is used by around 200 global manufacturing
companies. Explanatory and descriptive research design were used along with data analysis tool
called Statistical package for Social Science with version 24. Regression and correlation
analyses were used to investigate the relationship between dependent and independent variables
and magnitude of the impact of logistics activities on sales volume. The study found out of a total
of five dimensions under examination all except warehouse are statistically significantly affect
the sales volume with a 0.05 level of significance. Among those dimensions inventory planning
and management has a higher impact therefore the research recommended to give a due
attention for inventory planning and management on forecasting accuracy to be based on the
trend and current market scenario at the same time the company could also decide whether the
three month stock is required or not. The company should also use automated ordering and
replenishment software which could also show stock out level. At the same time the company
should also consider customer response, supply and transportation in order to improve sales
volume.
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Keywords
Logistics activities, Inventory planning and management, Sales Volume