Road Freight Transportation Performance In Ethiopian Shipping And Logistics Service Enterprise: The Case Of Addis Ababa – Djibouti Corridor
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Date
2020-06
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Addis Ababa University
Abstract
Effective Transportation management practices have become a potentially valuable way
of securing competitive advantage through enhancing operational and improving
organizational performances. By considering this fact and the central role of road freight
transportation at every logistics activity, the studies was conducted with main objectives
of assessing transportation management practices, identifying major factors affecting the
performance and assess the overall performance of road freight transportation service
using performance dimensions of cost, reliability, responsiveness, and flexibility. The
study applied an explanatory type of research design. Data was collected through a
questionnaire and distributed to 115 selected Ethiopian Shipping and Logistics Service
Enterprise staffs of the Kality land Transport branch office. Out of the 115 distributed
questionnaires, only 102 were used for the analysis. The data collected were analyzed
using software SPSS version 25 and presented using descriptive texts, frequency tables,
means, standard deviations, coefficient of correlation, multiple linear regression analysis,
and sample T-test. The assessment of the study revealed that transportation management
practices were perceived to be well practiced by Ethiopian shipping and logistics service
enterprise except for the enterprise considers environmental and energy concerns of
transport providers when selecting carriers, considers consolidation opportunities to
reduce transport costs, submits transport instructions to carriers online paperless and
time-saving, considers specialized training of drivers and operators in handling special
cargo like dangerous or perishable cargo to reduce damages to goods in transit, and
arranges for regular performance reviews with drivers and agree on areas of
improvement. The study revealed that shortage of foreign exchange, lack of genuine
spare parts and lack government support from the external factors and failure to use of
automated systems or mechanisms to increase road freight transportation performance
and failure to use information technology as a tool for helping in decision making as well
as lack of sufficient skilled manpower in vehicle maintenance from internal factors are
found to be the main factors affecting the performances of the road freight transportation
in Ethiopian Shipping and Logistics Service Enterprise. Performance measured in terms
of cost and reliability is perceived performing fair while performance measured in terms
of responsiveness and flexibility is perceived to be not performing well. The hypothesis
testing and regression analysis of the study variables revealed that Leadership
Commitment, Coordination & Information Flow, Internal Process and Procedures, Legal
& Political Factors, and Technological Factors were found positively related at
significant value p<0.05 with the overall performance of road freight transportation.
Factors affecting transportation performance should be seriously considered and need to
be dealt with for those factors in the control of the enterprise, and discussion with
stakeholders and the responsible government bodies are required for those beyond
control
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Keywords
Management Practices, Transportation Performance, Freight Transportation