The Effect Of Material Management Practice On Organizational Performance In Case Of Ethio Telecom Head Office, Addis Ababa

Abstract

Efficient supply chain management has an effect on the overall internal performance of any organisation. This study was conducted on a population of sourcing and supply chain division and some user department of ethio telecom. The study adopted both qualitative and quantitative research approach to test the hypothesis. As data obtained from company’s oracle and human resource section the total number of employees working under the division is 362. From this, researcher distributed questionnaires for sample size of 191 respondents by using Likert scale measuring instrument for collection of the employees’ perception towards the variables. The numbers of questionnaires completed and returned were 173, Constituting 90.56% response rate. Secondary data were extracted from books; studies conducted the area, company’s work document, annual comprehensive reports, processes, and policies. The research study was conducted through causal (explanatory) research design. Data analysis was conducted with the aid of SPSS version 26 through which descriptive and inferential statistics was used. Result revealed that materials management dimensions jointly contribute significantly to organizational performance. The study further revealed that material management functions procurement and inventory management have an insignificant effect on organizational performance while material requirement plan and warehouse management have a significant effect on organizational performance. Subsequently, the study recommended that management should embrace effective materials management especially in the area of material requirement plan and warehouse management in order for the company to achieve its vision of being a world class telecom service provider.