Effect of Logistics Practices on Operational Performance of Sugar Manufacturing Industry in Ethiopia: A Case Study of Arjo Didesa Sugar Factory, Ethiopia


Authors : Desta Faltaso Mena; Legese Lemma Chuma

Volume/Issue : Volume 5 - 2020, Issue 12 - December

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/3huIKQU

The main objective of this study was to investigate the effect of logistics practice on operational performance of the Arjo Didesa Sugar Factory. Therefore, explanatory research design with both qualitative and quantitative approach was used in order to explain the effect of logistics practices on operational performance. The sample of 219 respondents from Arjo Didesa sugar factory working in factory operation and supply and facility management was taken for the study and data were collected from 186 respondents. A stratified random sampling was applied; in which the target population is stratified and then, sample was randomly selected from each stratum. Purposive sampling was used for the interview of the managers of respective department. Both primary and secondary sources of data were used for study. The questionnaire with closed ended questions and semi-structured interview were used to gather data. Mean is employed in order to summarize and describe quantitative information. From inferential statistics, multiple linear regression were used to analyze the effect of logistics practices on the operational performance and to determine the relationship between variables, correlation analysis was also used. The findings of the study revealed that transportation and inventory management have high significant positive effect on operational performance even though procurement practice, information flow and warehousing have positive significant effect on operational performance. In order to improve operational performance of the factory, researchers recommend to Arjo Didesa sugar factory to upgrade investment on infrastructure for transportation of raw materials within factory. Researchers also initiated to provide recommendation on using principle of economic order quantity that enable effective inventory management.

Keywords : Logistics, Logistics Practices, Operational Performance, Sugar Factory.

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