Effect of Logistics Management Practices on Organizational Effectiveness: A Case of Horizon Coffee Plantation Enterprises

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