Effects of Logistics Practices on Operational Performance: The Case of Habesha Cement Share Company
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Date
2022-06
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Addis Ababa University
Abstract
This study seeks to investigate the effect of logistic practice on operational performance of Habesha Cement Share Company. This research studied logistic practices in the area of internal logistics, inbound logistics and outbound logistics. Explanatory design and questioner used to collect necessary data. We used 118 employees of Habesha Cement who were working in logistic department of Habesha cement share Company. The study used questionnaire as primary data collection tool. The data collected was interpreted using descript analysis. In addition, correlation and multiple linear regressions were used. The result shows the logistics practice influenced organizational performance positively. The correlation result shows that there is positive and significant relationship between all logistic services (internal logistic, inbound logistic and outbound logistic) and organizational performance. The result of regression also revealed that all predictor variables (internal logistic, inbound logistic and outbound logistic) have statistically significant contribution on organizational performance. The adjusted R² of 0.502 indicates 50.2% of the variance in organizational performance can be predicted by logistic services of the company. From point of this, it can be concluded that improved logistics practices are significantly influencing operational performance. Therefore, the management of Habesha Cement Share Company should improve its internal logistics, inbound logistics and outbound logistics practices to speed up company performance.
Key Words: Internal Logistic, Inbound Logistic, Logistic Services, Outbound Logistic, Organizational Performance