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