Effects of Logistics Services on Company Non-Financial Performance: The Case of Soap and Detergent Industries in Addis Ababa
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Date
2024-06
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Addis Ababa University
Abstract
This study examines the influence of logistics services on the organizational performance of soap and detergent manufacturing companies in Addis Ababa, focusing on internal logistics, inbound logistics, and outbound logistics. Employing an explanatory survey design, primary data was gathered using a questionnaire distributed using census approach to managers of 62 companies in the area. Descriptive and inferential statistical analyses were conducted to explore the relationships between logistics services and organizational performance. Results indicate a positive and significant correlation between all logistics services and organizational performance, with regression analysis revealing their statistically significant contribution. The adjusted R² of 0.581 suggests that 58.1% of the variance in organizational performance can be predicted by logistics services. Improved logistics services significantly affect organizational performance, emphasizing the importance of managing internal, inbound, and outbound logistics services for enhancing company performance. This research contributes to understanding the pivotal role of logistics in organizational success and offers practical insights for the industry.
Keywords: Internal Logistics, Inbound Logistics, Logistics Services, Outbound Logistics, Organizational Performance