“Effect of Integrated Logistics Management Practices on Organizational Performance: The Case of Dangote Cement Factory, Ethiopia”

Abstract

This study examines the impact of key logistics functions on organizational performance in a competitive business environment. A quantitative research design were employed to assess the relationship between various operational functions inventory management, warehouse management, information management systems, customer response, order processing, and transportation management and organizational performance. Data was collected through structural questionnaire, Key Informant Interviews and Focus Group Discussions with managers, employees, and experts, providing insights into operational practices, challenges, and performance outcomes. The analysis, utilizing multiple linear regressions and the result indicate that the variation of logistic management was approximately about 96.4% explained by the incorporated explanatory variables. For particular independent variables, the result revealed significant positive relationships between these logistics functions and organizational performance. Notably, warehouse management, information systems, customer response, order processing, and transportation management showed strong correlations with improved performance indicators such as on-time delivery rates, inventory turnover, and cost savings. The findings suggest that the integration of these logistics functions, especially through technologies like Information Management Systems enhances communication, resource utilization, and decision-making, ultimately improving efficiency and customer satisfaction. Companies that optimize these areas are better positioned to reduce costs, increase productivity, and enhance their competitive edge. The study concludes that effective management of logistics functions is critical for operational success and long-term growth. Based on the findings, recommendations include optimizing key logistics functions, investing in advanced information systems, enhancing transportation management, focusing on customer response practices, streamlining order processing, and integrating logistics functions across departments. Further research is recommended to explore the long-term effects of advanced technologies, external factors influencing logistics performance, and the broader impact of logistics optimization on employee satisfaction and sustainability.