Effects Of Sourcing Strategy On Outbound Logistics Performance, In The Case Of Ethiopian Airlines
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Date
2017-03
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Addis Ababa University
Abstract
Ethiopian airlines is getting its part and component requirement through component exchange
program service providers. However, due to lack of integration among stakeholders and poor
execution of component exchange program agreement Ethiopian airlines being paying hundred
thousands of dollars. Consequently, the objective of this research is to identify and examine the in
component exchange program sourcing and to draw their effect on the performance of outbound
logistics. A lot of literatures were reviewed empirically to produce a set of concepts and factors about
sourcing and logistics integration and its effect on the performance of outbound logistics. From the
total of 180 populations 153 participants selected and a total of 153 questionnaires were distributed
to Aircraft mechanics, Procurement and Logistics officers, and section team leaders. The raw data
captured by questionnaire in word format were then converted into statistical software package for
Social Science version 10 and analyzed quantitatively. The research finding shows despite the fact that
component exchange program sourcing strategy is one of the best sourcing strategy in aviation
industry, there is a significant disintegration between sourcing and logistics department which result
poor execution. It also disclosed that the 7 days agreed lead time for core return and different terms
and conditions stipulated on the agreement doesn’t consider the competency and capability of
outbound logistics section. To bring the required level of operational efficiency all component
exchange program stakeholders should work together. In particular utmost collaboration and
integration required among sourcing and logistics section from the inception of component exchange
program agreement through execution
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Keywords
CEP sourcing strategy, out bound, logistics performance