The Effect of Logistics Management Practices on Organizational Performance: The Case of National Tobacco Enterprise (NTE)
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Date
2023-06
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Addis Ababa University
Abstract
Global academicians attempt to convince us that supply chains now compete with one another rather than with enterprises. However, logistics practices have emerged as a potentially advantageous way to get a competitive edge by enhancing organizational performances. The major objective of this study was to ascertain how organizational performance of the National Tobacco Enterprise (NTE) was impacted by logistics operations. This research conceptualizes and has built five logistics practices (transportation management, inventory management, warehouse management, supply Management, and distribution management) to evaluate their impact on organizational performance. A descriptive and explanatory research technique was used to analyze the performance of the NTE in regard to the effects of logistics operations. Using stratified purposive sampling, the appropriate samples for the inquiry were selected. It is deduced that a positive and substantial correlation exists between organizational performance, and logistics practices. The ANOVA test result demonstrated the statistical significance of the values of R and R2 obtained under the model summary. A total number of respondents were 46 NTE workers selected by using purposive stratified sampling methods to collect the study data. To ascertain their causal linkages, the postulated ties from the framework were put to the test using descriptive statistics, Pearson Correlation, and regression analysis. The results of the investigation show a strong relationship between logistics operations and organizational success. It is crucial for the NTE to give emphasis on the structures of logistics practices to be profitable, satisfy customer needs and be competent over the long term and bring sustainable organizational performance
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Keywords
Logistics, Logistics practices