Abstract:
Nowadays, the role of logistics is increasingly recognized worldwide & its management was vital
for the competitiveness of any firms’ weather manufacturing or service. Those manufacturing as
well as service firms perform logistical operations in one or other way to meet the needs of their
customers. Overall logistics management was crucial for the day to day activities of any firms.
The purpose of this study was to investigate the effect of logistics management practice on
operational performance of Bahir Dar textile Share Company. Specifically, the study sought to
address the effect of procurement practice, inventory management practice, transportation
management practice, information flow, and warehousing on operational performance of the
company. The study used a positivism paradigm with a deductive research approach and
explanatory research design was used to investigate the significance level and the direction of
the effect of those logistics management practices on operational performance. In this study,
both probability (proportional stratified sampling) and non-probability (purposive sampling)
was used to select the sample size. Primary source of data were used. This Primary data were
gathered from survey questionnaire, 205 questionnaires were distributed and 195 were returned
and analyzed with the use of both descriptive and inferential statics on STATA/SE 14. And the
reliability of the instrument was tested by using Cronbach’s Alpha coefficient and further data
analysis would be performed with the help of SPSS Software version 26. From the spearman’s
correlation test of association, it was founded that procurement practice and transportation
management practice have statistically substantial/ strong and positive association with
operational performance, information flow have statistically moderate and positive association,
and also the remaining inventory management practice and warehousing have statistically weak
association with the outcome variable. To analyze the result, ordinal logistic regression model
would apply. In accordance, the finding of this study revealed that except warehousing which
was insignificant or does not have an effect based on the finding of the regression model, all
independent variables (procurement practice, inventory management practice, transportation
management practice, and information flows) have strong positive effect on operational
performance of Bahir Dar textile Share Company.