Effects Of Sourcing Strategy On Outbound Logistics Performance, In The Case Of Ethiopian Airlines

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Addis Ababa University


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



CEP sourcing strategy, out bound, logistics performance