The Effects of Logistics Activities on Organizational Performance: A Case Study of Modjo Dry Port, Ethiopia

Abstract

Ethiopian logistics system is coupled with lack of sea port resulted in poor linkage of producers to the consumers and non-competitiveness of Ethiopian goods on global market, which compromised livelihood of the people and economy of the country. This research conceptualizes and develops on efficient and effective logistics system needs to be put in place to solve these socio-economic problems. The main objective of the study was to examine the effects of logistics activities on organizational performance in the case of Modjo dry port concerning to the four main logistics activities (transportation management, inventory management, warehouse management, and customer response). Both primary (questionnaires) and secondary sources of data were used. To achieve the objectives of this study descriptive and explanatory research design was used, and also this study applies a mixed research approach. Stratified Simple random sampling was used to select the respondents for the study and accordingly 133 sample size was taken for the study. The descriptive and inferential statistical tools such as; mean, standard deviation, percentage, correlation and multiple regressions were used to analyse collected data with the aid of SPSS. From finding, it is that there is average relationship between Logistics management and organizational performance. Based on the result of regression analysis all variables i.e. Transportation management, Inventory management, Warehouse management and Customer Response are significant effect on organizational performance. Therefore, in order to achieve advancement in profitability and customer satisfaction in the long-run through enhancing organizational performance, it is better for the organization to give due emphasis to the point recommended under recommendation and infrastructures of logistics activities and organizational performance