Assessment of fleet management practices in bottled water companies and its implication for operational performance: case of Aqua Addis bottled water company - Asku Plc
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Date
2019-09
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Addis Ababa University
Abstract
Fleet management concerns with the management of a company’s vehicles which
includes the purchase, maintenance, inventory, disposal and work scheduling with
the main objective of to achieve efficiency and productivity for the organization. The
main purpose of this study was to assess the effect of fleet management practices
on operational performance of Asku Plc, the ‘aqua addis’ bottled Water Company.
This study attempts to see the impact of maintenance and repair, vehicles fuel
management, vehicles tracking system and driver management and training on the
operational performance of the company. The study has incorporated both primary
and secondary source of data. The primary data was collected using questionnaire.
Secondary data was collected from journal articles, internet website, annual report
and magazines. Out of 117 total populations and 67 samples size 54 valid
responses were collected. Descriptive data analysis method through the use of
Statistical packages for social science (SPSS) version 20.0 software was used to
analyze the data. Inferential statistics such as ordered logit model were employed
in order to answers the basic questions. The study incorporates four independent
variables in which all of them were measured on a 5-point Likert-Scale. Apparently,
mean was used as a measure of central tendency. The results indicate that,
operational performance of Asku Plc is strong by improving the fleet management
practices. The study also found that all variables except drivers’ management and
training have significant effect on operational performance of the business
company. Fuel management and vehicle tracking system has positive impact on
operational performance whereas vehicles maintenance and repair has a negative
impact. Finally, the results on the conclusion entails us that the four research
questions developed in this study were considerably rated all above average mean
by the employees which actually indicates the organization fleet management
practices are in a good manner. And also, the study recommends proper
maintenance and repair, fuel management, vehicle tracking and drivers
management practices in order to bring effective operational performance
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Keywords
Fleet management., Maintenance and Repair,, Vehicles tracking,, fuel management,, Operational performance,