Effect of Logistics Activities on Operational Performance of Bedele Brewery Share Company

Abstract

Abstract Nowadays, the role of logistics is increasingly recognized worldwide & its management was vital for the competitiveness of any firms’ weather manufacturing or service. An overall logistics activity was crucial for the day to day activities of any firms. The purpose of this study was to investigate the effect of logistics activities on operational performance of Bedele Brewery Share Company. The study has used explanatory and descriptive research design with both qualitative and quantitative approach. The study used both probability and non- probability sampling techniques. From the total of 395 employees working in the company’s production (operation), sales and transportation management, materials management, quality assurance, and warehousing departments; primary source of data were used. Questionnaire was distributed for 195 employees out of them186 was returned and analyzed with the help of SPSS version-25. Reliability of the instrument was tested by using Cronbach Alpha coefficient and pilot testing. Correlation analysis was used to determine the relationship between operational performance and logistics activities. In addition, regression analysis was used to analyze the effect of logistics activities on operational performance. The findings of the study revealed that transportation and inventory management, procurement practice, information flow and warehousing have significant positive effect on operational performance. In order to improve operational performance of the company, Bedele Brewery Share Company should upgrade investment on infrastructure for transportation of raw materials within Company. Using principle of economic order quantity that enables effective inventory management is also recommendable.