The Effect Of Material Management Practices On Organizational Performance: The Case Of Ethiopian National Defense Force Logistics Main Department

Abstract

This study examines the impact of material management practices on the organizational performance of the Ethiopian National Defense Force (ENDF) Logistics Department. Material management, including procurement, inventory control, storage, and interdepartmental collaboration, is essential for efficient resource flow, cost reduction, and operational effectiveness. In military logistics, timely material availability is critical for mission success, making effective material management indispensable. Using a mixed-methods approach, data was collected through structured questionnaires (345 employees) and semi-structured interviews across four departments: Supply, Ordnance, Maintenance, and Transport. Quantitative data was analyzed using descriptive and inferential statistics, including regression analysis. Results show a strong positive relationship between material management practices and organizational performance, with procurement, inventory, storage, and collaboration explaining 79.2% of performance variance. Procurement (regression coefficient: 0.268), inventory (0.292), storage (0.262), and interdepartmental collaboration (0.282) were key drivers. Collaboration emerged as the most influential factor, emphasizing the importance of teamwork and communication. Challenges such as inadequate infrastructure, outdated systems, and poor coordination were identified. Recommendations include adopting advanced technologies, modernizing storage facilities, and enhancing training. This study underscores the importance of material management in military logistics and offers actionable insights for improving ENDF Logistics Department performance. By addressing challenges and implementing best practices, the department can enhance operational efficiency, reduce costs, and improve mission readiness.