Challenge Of Logistics Management And Its Effect On Operational Performance In The Case Of Unilever Manufacturing Plc

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Date

2019-05

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Addis Ababa University

Abstract

Logistics management is that part of supply chain management that plans, implements, and controls the effective flow and storage of goods, services and information between point of origin and the point of consumption. Outbound logistics is a logistics that is concerned with the movement of finished goods and necessary related information from the firm to the customer. The general objective of the study was to examine the challenges of logistics management and its impact on operational performance of Unilever Manufacturing PLC. The specific objectives for study were: to establish logistics management activities employed in Unilever Manufacturing, to examine the challenges of logistics management in Unilever Manufacturing and to determine the effects of logistics management on the operational performance of Unilever Manufacturing. The study adopted both descriptive and explanatory research designs. Descriptive research design was used to describe various variables & explanatory research design has been used to establish the magnitude, direction and effect that logistics management activities have on the operational performance of the company. The population of this study consisted of all of the 115 clerical employees of Unilever Manufacturing based at the head office and factory at Dukem eastern industrial zone & no sampling technique was used. The questionnaire included open and closed ended questions for ease of administration. The data collected was inputted in and analyzed with the aid of SPSS version 23.Descriptive statistics was used for the first and second objectives as it enable the researcher to meaningfully describe the distribution of scores. For the third objective, inferential data analysis was done using multiple regression analysis to show the effect of the independent variable on the dependent variable. The research findings has shown that Unilever Manufacturing faces challenges on the its practiced outbound logistics management activities of order processing management, inventory management, transportation management, information flow, warehousing and packaging. Finding also revealed that logistics management activities have an impact on operational performance which is in a positive trend. The study recommended that company must optimally manage all of its logistics activities in order to gain increased flexibility, quality of product and service, reduce its cost and also gain shortest delivery time.

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Keywords

Logistics Management Activities,, Operational Performance, transportation management

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