The effect of logistics practice on organizational performance: In case of Kombolcha textile share company

Abstract

Logistics is in charge of managing supply through serving customers from which a firm obtains cash. The purpose of this study was to assess the logistics practices and its effect on organizational performance in the case of kombolcha textile Share Company. This research is cross sectional and associational in design. So as to attain the objectives of the study, stratified sampling method were employed in order to get a precise sample size. Quantitative data gathered through Questionnaire were employed as a research instrument to collect primary data. The data was collected from 128 employees of the Company who are directly or indirectly involved in logistics activities. The data were analyzed using statistical package for social science version 20. Descriptive and Inferential statistics were made to describe each of the variables and to test the relationship and influence between independent and dependent variables. The result revealed that logistics dimensions: customer service, inventory management, supply management, transportation management, and warehouse management have highly practiced in the company. The identifying logistics practice dimensions have positive association with organizational performance and have significant influence on organizational performance in this research data set. Therefore; KTSC should take improvement actions in its way of managing logistics process to benefit from best logistics system.