Abstract:
In today’s fierce competitive global markets, customers are demanding adjustable lot sizes, shorter
lead times, higher quality and flexibility; in short, they want it all. In order to stay competitive in the
market, companies need to attain both customer satisfaction and cost reduction in all operations. The
purpose of this study was to examine factors affecting material handling practices at Ethiopian
Pharmaceutical Fund Agency (EPFA) Southwest Region Jimma, Ethiopia. Implementing material
handling systems poses the challenge of solving the silo type of operations usually found in large
organizations such as EPFA. The study employed descriptive method with a cross sectional study
design. The target populations were all professional staffs working under stock and distribution
directorate and all of them were include in the study. Questionnaires are the main data collection
instruments. The study was employed both quantitative and qualitative analysis techniques. Data was
presented using tables, pie charts and bar graphs. Inferential statistics includes correlation and
regression analysis. The collected data was analyzed SPSS and the expected out or results of this
study was descriptive statistics, such as mean, frequency and standard-deviation and inferential
statistics, regression analysis results. The finding of this research, in which, information technology,
warehouse management and employee involvement have positive significant relationship with
material handling practices in accordance with the results of different statistical tests conducted
using SPSS version 20. In addition to this, information technology, warehouse management and
employee involvement significantly explain the variations (69.5%) in material handling practices. It
can be concluded from this study that material handling practices is significantly positively affected
by information technology, warehouse management and employee involvement. Finally, further
research is recommended to examine factors affecting material handling practices at Ethiopian
Pharmaceutical Fund Agency (EPFA) Southwest Region Jimma