Assessement Of Factors Affecting The Performance Of Integrated Logistics System Of Armauer Hansen Research Institute (Ahri)
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Date
2020-06
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Addis Ababa University
Abstract
If supply chain management system to be successful, it must fulfill all the six rights of supply
chain management which are right type of item, of the right quality, in the right quantity, at the
right place, at the right time and with the right cost. The lengthy procurement process,
specification problem, inadequate number of procurement staff, poor information technology
infrastructure, lack of transportation and inventory management problems are internal
bottlenecks and besides, custom, bank and pre import permit processes and suppliers incomplete
import documentation are also another challenges that hinder the timely delivery of items. The
objectives of the study is to assess the Integrated Logistics System practice of Armauer Hannson
Research Institute, to identify internal and external factors affecting Integrated Logistics System
performance and to measure the performance of Integrated Logistics System of Armauer
Hannson Research Institute. This research is used explanatory research design and mixed
approach. The sources of data were employees of Armauer Hannson Research Institute. The data
were passed through validity and reliability test. The data is analyzed by using descriptive and
statistics and further correlational tests were conducted to know the association of dependent and
independent variables. Data analysis was done using SPSS version 25. The practices of Inventory
management, information technology integration and transportation management in Armauer
Hannson Research Institute were not in a position to support the Integrated Logistics System
performance. Inventory management, information technology integration, transportation
management, procurement management process, Custom procedure and Food, Medicine
&Health Care Administration and Control Authority’s pre-import permit approval were the
factors which were significantly affecting the Integrated Logistics System performance of the
organization. From the efficiency perspective, the performance of the integrated Logistics System
of the organization is weak due to low practicability the integrated logistics system of the
organization. Top management of the Armauer Hannson Research Institute should address the
internal factors and take corrective measures to improve the ILS performance of the organization.
Besides, the management also has to work on aligning its documentation with the country’s
custom procedure documentation requirements so as to enhance responsiveness and quality of
ILS performance the Food, Medicine &Health Care Administration and Control Authority’s preimport permit approval must be improved.
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Keywords
inventory management, transportation management, Information technology