The Effect of Logistics Management Practices on Organizational Performance In The Case Of Ethiopian Commodity Exchange

Abstract

Therefore logistics as a business function plays important role in company’s performance through the planning, implementation and control processes linked to material, information and financial flows. The main objective of this study was to examine the effect of logistics management practices on organization performance in the case of Ethiopian commodity exchange. Specifically the paper was focused towards the logistics management practices such as; Strategies and policies, transport management, inventory management and Order processing management. During conducting this study the researcher has been applied descriptive and explanatory research designs as well as quantitative research approach. The populations of the study were consisted of 81 employee’s union members and transportation stakeholders were participated under this study. The operational areas include the workers working in forecasting and market shaping, warehouse and inventory management, procurement, distribution and fleet management, capacity building and Fund administration from which the sample will draw by stratified random sampling method. In the study both primary and secondary data were used. The primary data’s collected using a survey method and applying questionnaire as a tool. Correlation and regression methods on SPSS version 21.0.The inferential analysis including Pearson correlation and multiple linear regressions will also employed. Especially during these years there was a wide gap in case of promoting awareness creating Medias regarding the opportunities of modern markets serving for trading partners as well as for the economy as a whole. The study concluded that through improvement in Strategies and policies, transport management, inventory management and order processing management, the ECX can improve the effectiveness of the system so that effectiveness of organizational operations will be improved. On the other hand failure to properly implement the above practices is likely to weaken the effectiveness of organization.