Determinants of the Effectiveness of the Distribution System: The Case of Repi-Wilmar Soap and Detergent SC
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Date
2018-09-26
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Addis Ababa University
Abstract
In today’s business environment, the developing of effective distribution system becomes one of the major challenges in manufacturing firms. The general objective of this study is to investigate the effect of different factors that influence the effectiveness of distribution system in the case of Repi-Wilmar Soap and Detergent SC. The study has four main objectives: (1) to examine the effect of distribution strategy on the effectiveness of the distribution system of Repi-Wilmar, (2) to assess the influence of wholesaler motivation on the effectiveness of distribution system of Repi-Wilmar, (3) to analyze the influence of logistic capability on the effectiveness of the distribution system of Repi-Wilmar, (4) to identify the effect of government factors on the effectiveness of distribution system of Repi-Wilmar. This research has taken explanatory research design. The researcher used both primary and secondary data to get more relevant information. Data was collected from 355 respondents. Quantitative data was gathered through questionnaires and qualitative data was collected through observation and interviews due to this reason, the researcher used mixed research approach. Sample has been determined based on probability sampling and stratified sampling technique. The result findings indicated the distribution strategy, the logistic capability, the government’s factor and the wholesaler motivation have positive and significant relations with the effectiveness of distribution system of the company. Based on the regression analysis, 39.6% of the variation of the output was explained by the distribution strategy, 28.4% of the variation of the output was explained by logistic capability, 13.0% of the variants of the output was explained by government factors and 11.0% of the variation of the output was explained by wholesaler motivation. Thus, the result revealed that 50.3% the variant of the effectiveness of distribution system has been responsible due to the influence of distribution strategy, logistic capability, government factors and wholesaler motivation. Therefore, study recommended that the company should give more attention about distribution strategy, logistic factor, government’s factor and wholesaler motivation to enhance the effectiveness of distribution system of the company.
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Distribution strategy, logistic capability, government‟s factor