The Effect Of Logistics Management On The Performance Of Garment Factories: The Case Of Bole Lemi Industrial Park

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Addis Ababa University


Not surprisingly, an effective logistics sector is now recognized almost everywhere as one of the core enablers of development. The role of logistics in the global economy is better recognized today than it was 10 years ago. Good logistics services reduce the cost of trade. Logistics performance is about how efficiently supply chains connect firms to domestic and international opportunities. The purpose of this thesis was to examine the effect of logistics management on the performance of garment factories in Bole Lemi Industy Park. The study covers all the manufacturing factories in the park. The study used deductive approach and quantitative design to evaluate the magnitude, direction and significance of the various logistics management factors on performance. In the study both primary and secondary data were used. The primary data were collected using a survey method and applying questionnaire as a tool. 61 questionnaires were distributed and a response of 54 were analyzed using correlation and regression methods on SPSS version 20.0. Accordingly, the findings of the analysis confirmed the positive correlation between the independent variables (transport management, inventory management, order processing management and information flow management) and the dependent variable of the study (performance). On the other hand, the regression analysis outcome showed that 59.4% of the variance on performance is accounted for independent variables. Based on the findings of the study, the researcher recommends the factories to work on transport management system, to monitory the inventory level, to have accurate order fulfilment process to shortened order lead time and also to have smooth information flow along all logistics functions.



Logistics management, transportation management, inventory management,, order processing management,