Business Process Reengineering and Organizational Performance of Third Party Logistics Service Providers in Ethiopia: The Case Of Comet Transport S.C.

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Date

2015-07

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Addis Ababa University

Abstract

This study is about Business Process Reengineering and Organizational Performance of Third Party Logistics Service Providers in Ethiopia a case study of Comet transport. The research aimed to identify the impact of implementing BPR on the efficiency and effectiveness of 3PLS providers to be assessed by evaluating presence of significant increase on firm level performance. As BPR promises to bring about dramatic changes in firm performance outcomes, specific operational and financial performance indicators were selected for evaluation. As the study was a case study, Comet Transport Share Company was selected as a study unit and 12 years of performance data was compiled along with other pertinent information gathered through interview. Besides, BPR implementation report and other relevant documents were analyzed. Extensive literature survey was undertaken to underpin relevant performance indicators appropriate and fit to evaluate the performances of third party logistics service providers. The performance data compiled for the study was analyzed by SPSS statistical package and student t test comparisons was made pre and post BPR performance indexes. On the bases of performance data in between (2002 and 2014) E.C. Key operational and financial performance measure indexes namely Average truck turnaround time, Average Tariff per ton per km, Load factor, Labor productivity, Return on assets, profitability ratio ,cost to revenue ratio, Km travelled per year, freight ton per km, number of trucks available for operation throughout the year, truck down time throughout the year, Actual capacity utilization and other drive indexes ; Comet has exhibited significant improvement both on operational efficiencies and effectiveness as asserted by increase financial index. With 95% certainty, the study asserted the dramatic increase in all mean performances especially in revenue, profitability, reduction in cost to revenue ratio, truck availability, tone KM coverage, tonnage lifting , load factor and other indexes utilized to measure performances. Poor performance was observed with regard to reducing truck down time, and employee turnover indicating area of improvement works to be further investigated by the management of Comet.Based on strong findings of the study, the researcher concludes positive outcome of implementing BPR to have resulted enhanced performance increasing operational and financial efficiency and effectiveness and advices other companies to follow suits to reap of gains achieved by Comet Transport Company. Key words: BPR,Revenue,profitability ratio,Km travelled per year, load factor, freight ton per km, number of trucks available for operation throughout the year, truck down time, actual capacity utilization.

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Keywords

BPR, Revenue, profitability, ratio, Km travelled per year, freight ton per km

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