Abstract:
Logistics as a business function plays important role in company’s effectiveness through
the planning, implementation and control of processes link to material, information and
financial flows. The main objective of this study was to examine the effect of logistics
management practices on organization effectiveness in the case of Limmu Coffee Farm
under HORIZON Coffee Plantation PLC with respect to logistics management practices
of Customer service, warehouse management, inventory management, transportation
management, information flow management and supply management. Descriptive and
explanatory research designs as well as quantitative research approach had been
employed in conducting the study. The population of the study were the employees of six
Limmu Coffee Farm Enterprise under HORIZON Coffee Plantation working in
departments of Logistics and Supply, Technique division, Farm operation, Plan and
Information service, Resource and personnel administration, Finance, Civil and
construction from which the sample was drawn. Stratified random sampling was used to
select the appropriate sample of the study. Data was collected using questionnaires and
analyzed using SPSS. Descriptive analysis namely percentage, mean and standard
deviation; and inferential analysis namely Pearson correlation and multiple linear
regression were employed. The study revealed that logistics management practice
contributes to the Coffee Farm Enterprise organizational effectiveness to a moderate
extent. The study also showed that there was significant relationship between logistics
management practices and organizational effectiveness of Limmu Coffee Farm under
HORIZON Coffee Plantation Enterprise. Also further reveals that information flow
management practices and supply management practices were predicted power on
organizational effectiveness of this Coffee farm Enterprise. The study also reveals that
Limmu Coffee under HORIZON Coffee Plantation Enterprise faced logistics management
challenges to a moderate extent. The study had been recommended to enhance all the
logistics management practices as well as to deal with mother plantation PLC. to make
them support overall organizational logistics and balance level of logistics service in
production delivery and cost. Improve internal customer service
