Journal of Production, Operations Management and Economics

ISSN: 2799-1008
Vol: 04, No. 06, Oct-Nov 2024
http://journal.hmjournals.com/index.php/JPOME
DOI: https://doi.org/10.55529/jpome.46.10.23

The Effects of Logistics Management Practice on

Organizational Performance a Study of Win Water
Company Wolaita Zone, Boditi Town, Snnpr, Ethiopia

Balem Aguno1, Gedeno Gemeda2*

1,2*
Lecturer and Researcher, Arba Minch University, Sawla Campus, Department of Logistics
and Supply Chain Management Sawla, Ethiopia.

Corresponding Email: 2*[email protected]

Received: 02 June 2024 Accepted: 19 August 2024 Published: 03 October 2024

Abstract: Examining the impact of logistics management practices on organizational

performance in the context of Win Water Company Wolaita zone boditi town was the goal
of this study. Both quantitative and qualitative methods were applied to this investigation.
A likert scale-based questionnaire was used to gather primary data from 118 employees of
Win Water PLC in the Wolaita zone of Bodite Town in order to meet the study's purpose.
Every employee of the business was included in the study. The mean, standard deviation,
one-way ANOVA, Pearson correlation, regression analysis, and other important statistical
techniques were utilized to examine the gathered data using descriptive and inferential
statistics. SPSS was employed as a data analysis tool. All independent factors have
statistically significant positive connections with the dependent variable, which is the
variable of organizational performance, according to the correlation finding. Multiple
regression analysis revealed that all independent factors, including supply management,
procurement, transportation, inventory, and warehouse practices, had a statistically
significant effect on the dependent variable, which is organizational performance.
Organizational performance is more significantly impacted by transportation management
practices. This suggests that in order to increase organizational performance, Win Water
Company management should concentrate on enhancing logistics management
techniques.

Keywords: Logistics Management Practice, Supply Management Practice, Transportation

Management Practice, Organizational Performance.

1. INTRODUCTION

1.1 Background of the Study

In the modern world of varied economic circumstances and constantly shifting micro- and
macroeconomic factors affecting different firms, logistics is essential to helping such

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Journal of Production, Operations Management and Economics
ISSN: 2799-1008
Vol: 04, No. 06, Oct-Nov 2024
http://journal.hmjournals.com/index.php/JPOME
DOI: https://doi.org/10.55529/jpome.46.10.23

organizations achieve more effective management systems and improve performance.Many

academics and researchers contend that a country's wealth and ability to compete in the
global economy depend heavily on its ability to move commodities in a timely, safe,
affordable, and reliable manner. Haji Esmael et al. (2016) state that logistics is essential to
raising a company's profitability and competitiveness. Furthermore, as stated by Muslimin et
al. (2015), logistics is crucial in streamlining the movement of commodities into and out of
the business.
In comparison to other continents, the Africa continent was not doing well in logistics, as the
research revealed that the top four countries were all from Europe, the fifth was from Asia,
and the lowest five were all from Africa.Infrastructure was neglected, particularly in Sub-
Saharan African nations, and upkeep was insufficient. Consequently, one of the main
challenges to establishing effectively structured flows of commodities and services was poor
transportation and communication. According to Mwangi and Nyambura (2015),
Ethiopia's logistics system is also typified by a subpar logistics management system, a lack of
coordination in the transportation of goods, a low degree of infrastructure development, an
inadequate number and age of freight vehicles in the fleet, and damage and quality
degradation of the goods during handling, transportation, and storage. This, together with the
absence of a seaport, led to Ethiopian commodities being uncompetitive on the international
market and inadequate connections between producers (farmers) and consumers (market)
(Fekadu, 2013).An organization's operational performance is greatly impacted by its logistics
practices. For example, the introduction of information technology (IT) has revolutionized
logistics operations, and a company's information capabilities is reflected in its poor logistics
performance (Shang & Marlow, 2005).
Furthermore Additionally, procurement methods connect several business operations and
support services, coordinating manufacturing with new orders, purchasing with demand,
scheduling, and shipping in accordance with client specifications (Kiare, 2015).The
performance of the company is also impacted by inventory management since an excessive
amount of goods takes up space, costs money, and raises the risk of loss, damage, and
spoiling (Nyabwanga & Ojera, 2012). However, low inventory frequently causes operational
disruptions in businesses (Dimitrios, 2008).The success of the company is also impacted by
supply management strategies, which aim to reduce overall acquisition costs while satisfying
the availability, reaction time, and quality requirements outlined in the customer service
policy (Christopher 2013).
Finally, the effectiveness of product movement is determined by the way transportation
operates (Mwangi & Nyambura, 2015). Furthermore, inadequate goods acceptance and
receiving, storage, retrieval, or picking negatively impacts the operational performance of
manufacturing organizations, making warehousing a crucial component of business
operations (Emmett, 2005).On the other hand, it is unclear whether these factors have an
impact on an organization's performance.
In order to demonstrate gaps in current knowledge and practices regarding logistics
management practices, the researcher's most important task was to identify the major
challenges raised in various related literatures. These challenges were then compared to the
variables that currently influence the performance of the organization in the Wolaita Zone
Win Water PLC Company as it relates to logistics management practices.

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Journal of Production, Operations Management and Economics
ISSN: 2799-1008
Vol: 04, No. 06, Oct-Nov 2024
http://journal.hmjournals.com/index.php/JPOME
DOI: https://doi.org/10.55529/jpome.46.10.23

In order to fill this research gap and address these issues, the researcher was driven to carry
out a study at Win Water PLC in the Wolita Zone, Bobite Town. This study aimed to fill in
the gaps in the literature by analyzing supply management practices, procurement
management practices, transportation management practices, inventory management, and
warehouse management practices.

1.2 Statement of the Problem

Logistics management may be one of the tactics required for businesses to achieve improved
performance, claims Bagshaw (2017).These days, businesses must contend with escalating
competition, erratic market fluctuations, and constantly shifting rules (Roth et al., 2013). In
today's globalized business environment, companies seek to address the obstacles preventing
them from becoming market leaders by utilizing a variety of options, including opportunities
and tactics. Organizations are using a variety of tactics, according to Mundia et al. (2015), to
make sure they stay competitive in the market. Improving internal costs and competitiveness
in the market and globally can be achieved by improving logistics service capabilities
(Boonpattarakan, 2012).
According to a 2017 study by Natasha and Vladimir titled "The Impact of Logistics
Management Practices on Organizational Performance," timely and correct decision-making
is facilitated by information that is timely, relevant, and accurate, both inside and outside the
company.The findings of the study by Mokagi, Mairura, and Ombui (2015) demonstrate the
impact of logistics methods on the performance of organizations. For example, the analysis
showed that the procedure primarily led to the inclusion of generic and non-specialized
suppliers, or "briefcase suppliers," which significantly impacted subpar performance.
The study's conclusions also showed that ineffective management of the planning,
budgeting, time commitment, utilization of quotes, and subcontracting aspects of the
procurement process directly contributed to inefficiencies, which in turn caused missed
deadlines and ultimately subpar performance. According to the study results presented in this
article on buyer-supplier relationships, these businesses' low performance was caused by a
lack of coordination between the two sides, which resulted in delayed customer deliveries and
production schedules.
Ineffective logistics increase operating costs and limit the possibility of both domestic and
international integration.
However, the impact of certain elements on the overall efficiency of the sector as well as
their influence on the logistics management techniques in the Bodite woreda's Wolaita Zone
Win Water PLCWolita zone have been the subject of discussion for years. The following
factors—a lack of supply practices, a lack of procurement procedures, the unavailability of
transportation techniques, and a poorly organized warehouse management system—all
require attention because they have the potential to affect logistics management practices.
Furthermore, the study aims to fill in the identified research gaps by investigating
independent variables related to organization performance, research design, sampling
strategies, geography, time, and target population, as opposed to
Due to the aforementioned issues, the researcher was inspired to investigate how Win Water
PLC's logistics management techniques affected the Wolaita zone, Bodite woreda, and
SNNPR Ethiopia.

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Journal of Production, Operations Management and Economics
ISSN: 2799-1008
Vol: 04, No. 06, Oct-Nov 2024
http://journal.hmjournals.com/index.php/JPOME
DOI: https://doi.org/10.55529/jpome.46.10.23

1.3 The Research's Objectives.

1.3.1 The Overall Goal
The primary objective of the study is to investigate how logistics management methods affect
organizational performance in the context of Win Water PLC in the Wolaita zone, Bodite
Town, SNNPR, Ethiopia.

1.3.2 Particular Goals

1. To look into how supply management practices affect the functioning of organizations.
2. To determine how procurement management practices affect the performance of
organizations
3. To ascertain how organizational performance is impacted by transportation management
practices.
4. To investigate how inventory management practices impact the effectiveness of organiz
ations.
5. To examine how warehouse management techniques affect the effectiveness of
organizations.

1.4 Research Conjectures

For this investigation, the following five hypotheses have been established as follows:
H1: The practice of supply management affects organizational performance in a statistically
meaningful way.
H2: The practice of procurement management affects organizational performance in a
statistically meaningful way.
H3: The application of transportation management practices affects organizational
performance in a statistically meaningful way.
H4: The practice of inventory management affects organizational performance in a
statistically meaningful way.
H5: The application of warehouse management techniques affects organizational
performance in a statistically meaningful way.

1.5 Limitations of the Study

The fact that the Win Water Company in Boditi Town was the sole subject of the study may
have limited the applicability of the findings to other small water bottling enterprises. The
five logistics management strategies found in this study might not be appropriate for all
small-scale water bottling businesses operating in various cultural contexts or in other
manufacturing and service sectors outside the bottling industry. Therefore, before being
implemented to different cultures and businesses, the logistics management methods found in
this study need to be evaluated and verified.

2. RELATED WORKS

The impact of logistics management methods on organizational performance was the subject
of a 2017 study by Natasha and Vladimir. The study's findings show that timely and suitable
decision making is made possible by accurate, pertinent, and timely information from both
inside and outside the company. In order to do this, comprehensive management information

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Journal of Production, Operations Management and Economics
ISSN: 2799-1008
Vol: 04, No. 06, Oct-Nov 2024
http://journal.hmjournals.com/index.php/JPOME
DOI: https://doi.org/10.55529/jpome.46.10.23

is required, along with appropriate utilization, quick transmission, and relevant data selection
and control. The accuracy of the data keeps one strategically away from making ill-advised
decisions and unnecessary expenditures. If the data is selected in meaningful ways, the
preparation time for such information will be shortened, enabling quick decision-making.
Electronic databases enable data access at any time and the potential to be used in any
location when strategic decisions are essential to the business. As a result, they reduce
expenses while increasing profitability. As a result, logistics operations are vital to
contemporary businesses, giving them greater value in relation to their expenses. The areas
that businesses need to focus on and advance in order to position themselves among the most
successful businesses available are in the logistics management sector.
In their 2015 study, Ruto and Datche examine the computed variables that affect port
performance, using Kenya Port Specialist as an example. In accordance with their findings,
they analyze the following factors when analyzing the plan, study, and expressive
measurements. These factors include: long-standing clearing practices; rapid holder exchange
development; visit breakdowns by Kenya Income Specialist and Kenya Ports 18 Specialist;
IT Frameworks; moderate entryway out handle; and moderate holder off-take to Holder
Cargo and other logistics activity.

2.1 Conceptual Frame Work

Source: Developed by Researcher, 2022

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Journal of Production, Operations Management and Economics
ISSN: 2799-1008
Vol: 04, No. 06, Oct-Nov 2024
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DOI: https://doi.org/10.55529/jpome.46.10.23

3. RESEARCH APPROACHES

3.1 Design of the Research

Mostly The research design used in the study was explanatory. Because its goal was to
investigate how logistics and organizational performance relate to one other as dependent
variablesupply, transportation, procurement, inventory, and warehouse management are
examples of management processes that function as independent variables. to ascertain the
relationship between each independent variable and the dependent variable.

3.2. Data Sources and Types

In order to effectively accomplish the study's goals, the researcher employed primary and
secondary data sources. The core data came from Win Bottled Water PLC employees through
a questionnaire. Secondary data are information that has been collected secondhand. For the
purpose of the study, secondary data were accessed from previous studies, such as journals,
articles, the internet, and other relevant references. In addition, the annual report and
magazines of the company were used to support the data that was gathered through
questionnaires.

3.3. Data Collection Method

Employees were asked to indicate their agreement or disagreement on a five-point Likert
scale (1 being strongly disagreed, 2 disagreed, 3 neutral, 4 agreeing, and 5 strongly agreeing).
The questions were self-administered and structured, and the researcher was supervising the
respondents.

3.4. Method of Data Analysis

In addition to analyzing the data's central tendency in the form of the mean and standard
deviation, descriptive statistics were utilized to identify the key characteristics of the obtained
data in quantitative terms. The data was analyzed using SPSS version 22, which is the
statistical tool for social research. The primary features of the sample were presented using
descriptive statistics, which comprise frequencies and percentages. The cause and effect
relationship between the predictor variable (procurement management, inventory
management, transportation management, and warehouse management) and the outcome

3.5. Model Development and Specification

The model illustrates how the five independent (explanatory) factors relate to the dependent
variable, organizational performance.

Dependent Variable
The study's dependent variable was the organizational performance of Win Water PLC in the
Wolaita zone, Bodite Town, and its outcome variable was the organization's performance in
terms of inventory, transportation, and warehouse management.

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Journal of Production, Operations Management and Economics
ISSN: 2799-1008
Vol: 04, No. 06, Oct-Nov 2024
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DOI: https://doi.org/10.55529/jpome.46.10.23

Independent Variables
The practices of supply management, procurement management, transportation management,
inventory management, and warehouse management were the independent variables that
were meant to have an impact on the dependent variable.

As a result, the regression equation took the following form:

OP =β+ β1X1+ β2X 2+ β3 X3+ β4X4+ β5X5+ Ei
Where:
Y= Performance of the organization
X1 = Practice of supply management
X2=the practice of procurement management
Transportation management technique (X3)
X4= Practice of inventory management
X5= Warehouse Operations Procedure In conclusion, the model's functional form was as
follows.
β = Constant Intercept
Coefficient of slope parameters: β1 to β5.
X1, X2, X3, X4, and X5 are the explanatory variables, and Y is the dependent variable.
Error term = E (error)

4. RESULT AND DISCUSION

4.1 Analysis of Correlation

To find out if there were any meaningful correlations between the variables, a set of Pearson
correlations was created. The general relationship between the dependent and independent
variables in the above table is the main topic of this section.The Pearson correlation
coefficient is used to look at the relationship between the constructs.(Burns & Burns, 2008)
state that correlationValues between 0 and 0.3 (or -0.3) indicate weak positive (negative)
linear relationships based on a wobbling linear rule.According to a strict linear rule, there is a
moderately positive (negative) linear relationship suggested by values between 0.3 and 0.7 (-
0.7 and -0.7) and a strong positive (negative) linear relationship indicated by values between
0.7 and 1.0 (-0.7 and -1.0).As a result, this criteria is used to examine all correlation data in
this study.Was:

Table 4.11: Coorelation matrix among independent variables and organizational Performance
Pearson
SMP CMP TMP IMP WMP OPE
Correlation
Supply Pearson Correlation 1
Management
Sig.(2-tailed) .000
practice
Procurement Pearson Correlation .800** 1
management
Sig.(2-tailed) .000
practice
Transportation Pearson Correlation .682** .707** 1

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Journal of Production, Operations Management and Economics
ISSN: 2799-1008
Vol: 04, No. 06, Oct-Nov 2024
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management
Sig. (2-tailed) .000 .000
practice
Inventory Pearson Correlation .645** .653** .646** 1
Mnagement
Sig. (2-tailed) .000 .000 .000
practice
Warehouse Pearson Correlation .455** .420** .421** .520** 1
management
Sig. (2-tailed) .000 .000 .000 .000
practice
Organizational Pearson Correlation .522** .719** .690** .699** .705** 1
Performance
Sig. (2-tailed) .000 .000 .000 .000 .000

**.Correlation is significant at the 0.01 level (2-tailed).

*.Correlation is significant at the 0.05 level (2-tailed).
Source: Own Survey, 2022
Practice of supply management: The association between organizational performance and
practice of supply management is seen in table 4.6 above. Correlation has a value of 0.522
and is significant at the 0.01 level. This demonstrates that the performance of organizations
and supply management practices have a somewhat favorable linear relationship.
Procurement management practice: The transportation management practice and
organizational performance are strongly positively correlated, as shown in table 4.6 above. At
the 0.01 significance level, the correlations have a value of 0.800 and are considered
significant.
Practice of transportation management .There is a correlation between organizational success
and transportation management practice, as the accompanying table indicates. At the 0.01
significance level, the correlation is significant with a value of 0.690.
Practices for inventory management: According to table 4.6 above, inventory management
practices and organizational performance have a somewhat positive linear association. The
correlation coefficient is 0.699, and it is significant at the 0.01 level.
Warehouse management practice: Table 4.10 demonstrates that location and MSE
performance have a 0.705 correlation value, which is significant at the 0.01 level. This
demonstrates that the performance of organizations and warehouse management practices
have a strong, positive linear relationship.

4.2 Analysis of Multiple Regression Outcome

In a typical multiple regression analysis, the dependent variable was organization
performance, and the independent variables were supply management practice, transportation
management practice, procurement management practice, inventory management practice,
and warehouse management practice.
The underlying assumptions are confirmed in order to guarantee the accuracy of the
regression analysis results. Only once the fundamental assumptions of the analysis have been
validated through testing and demonstrated to be trustworthy can conclusions and
generalizations about the theory be made. Prior to beginning, the researcher verified that the
data met the requirements needed for the multiple regression analysis to be legitimate and
trustworthy. We looked into the various linear regression presumptions discussed before.

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Journal of Production, Operations Management and Economics
ISSN: 2799-1008
Vol: 04, No. 06, Oct-Nov 2024
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DOI: https://doi.org/10.55529/jpome.46.10.23

Table 4.12: Multi-collinearity Test Result

Procurement
Model Supply Transportation Inventory Warehouse
management
Tolerance .315 .300 .421 .445 .703
VIF 3.171 3.335 2.373 2.246 1.422
Source: Own Survey, 2022

Normality assumption: The normality test is used to assess whether a given set of data is
well-modeled by a normal distribution and to estimate the likelihood that an underlying
random variable will be distributed normally. The study employed Skewness and Kurtosis to
assess the degree of normalcy in the collected data.

Table 4.13: Normality test using Sleekness and Kurtosis

Skewness Kurtosis
Statistic Std.Error Statistic Std.Error
Supply management practice .235 .161 .546 .321
Procurement management
-.510 .161 .946 .321
practice
Transportationmanagement
-.769 .161 .096 .321
practice
Inventory management practice -.325 .161 .171 .321
PlaceWarehouse management
.216 .161 -.509 .321
practice
Orgazizational performance -.288 .161 .609 .321
Source: Own Survey, 2022

Table 4.14: Model Summary

Adjusted R Std. Error of the
Model R R Square Durbin-Watson
Square Estimate
1 .813a .662 .657 .37714 2.068

a. Predictors: (Constant), supply management practice, transportation management practice,

procurement management practice, inventory management practice and warehouse
management practice

B. Dependent Variable: Organizational Performance

Source: Own Survey, 2022
The multiple regression results presented in Table 4.9 Model Summary reveal that there is a
highly significant (p<.001) relationship (multiple R = 0.813) between the predictor
components and the dependent variable. The coefficient of determination, or R Square,
indicates how much the criterion variable may be selected with the aid of the predictor
variables. Therefore, 66.2% of the variation in the dependent variable could be explained by
the set of given independent factors. R-squared determines the portion of the dependent
variable's variance that can be accounted for by the independent variables, regardless of how

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Journal of Production, Operations Management and Economics
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strongly they are linked to the dependent variable. This is not the ideal property of a
goodness-of-fits statistic.
However, modified R-squared alters the R-squared statistic in such a way that each
independent variable that has a connection with the dependent variable boosts adjusted R-
squared and any variable without a significant association causes adjusted R-squared to
decrease.

Table 4.15: Analysis of Variance (ANOVA) result

Model Sum of Squares Df Mean Square F Sig.
Regression 98.399 5 19.680 138.360 .000b
1 Residual 50.351 113 .142
Total 148.750 118

a. Predictors: (Constant), supply management practice, transportationmanagement practice,

procurement management practice, inventory management practice and warehouse
management practice
b. Dependent Variable: organizational performance
Source: Own Survey, 2022
The ANOVA statistics suggest that 98.399 of the total observation value of (148.750) can be
explained by the regression model. The remaining 50.351 is not explained by the model. This
shows that regression explains most of the observations, whereas other unrelated variables
account for a lesser portion of the data. The mean square, which is 19.680, is the average
amount of variation described by the model, or regression. The mean square of the residual,
or 0.142, is the average amount of variance explained by extraneous factors, or unsystematic
fluctuation. The ratio of variation explained by unrelated variables to variation described by
the model, or F-ratio, is 138.360.
To evaluate the overall fit of the model, ANOVA has been used. A significant F value of
138.360 with a p-value less than.001 is shown in the ANOVA table. This demonstrates that
the dependent variable and the five independent factors considered together have a significant
relationship. The F critical value at the 5% level of significance is 0.142. The bigger
computed F value indicates that the model fits the data quite well.

Table 4.16: Regression Coefficients

Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
(Constant) .174 .156 1.114 .266
Supply management practice .105 .028 .137 3.718 .000
Procurement management
1 .213 .050 .205 4.305 .000
practice
Transportation management
.252 .048 .242 5.215 .000
practice
Inventory management practice .244 .057 .238 4.315 .000

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Journal of Production, Operations Management and Economics
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Warehouse management
.150 .055 .154 2.728 .003
practice
Source: Own Survey, 2022

5. SYNOPSIS, CONCLUSION, AND SUGGESTIONS

5.1. Synopsis
The aim of this study was to investigate the effects of Win Water Company's usage of
logistics management strategies on organizational performance. Additionally, the study
showed how Win Water Company's organizational performance is linked to logistics
management techniques, such as inventory, warehouse management, supply, procurement,
and transportation. This study's main goal was to examine how Win Water PLC in Botiti
Town's organizational performance was impacted by logistics management techniques.
When comparing respondents by gender, the results indicate that men made up the majority
of the sample.
 The bulk of responders fall between the age range of 1 to 5 years in terms of job
experience. When it comes to education, the majority of responders have a degree.
 When it comes to the employment category, transportation departments employ the
majority of the respondents.
 According to the results of the descriptive statistics, Win Water Company could benefit
from all logistics management practices, including supply management, procurement
management, transportation management, inventory management, and warehouse
management.
 The correlation analysis reveals a significant positive relationship between the dependent
variable of organizational performance and all independent variables of logistics
management practices, including supply management, procurement, transportation,
inventory, and warehouse management.
 All independent variables, including supply management, procurement, transportation,
inventory, and warehouse management practices, have a statistically significant impact on
the dependent variable of organizational performance, according to the results of multiple
linear regression analysis. Consequently, the other theories are acknowledged.
 The practice of transportation management has the greatest beta coefficient value
(B=0.252) among logistics management techniques. This is followed by supply
management (0.105), procurement management (B=0.150), inventory management
(B=0.244), and warehouse management (0.213).

5.2. Conclusion
Examining the impact of logistics management practices on Win Water PLC's organizational
performance in the Wolaita zone of Bodite Town, SNNPR, Ethiopia, was the goal of this
study.
 It was determined that procurement management procedures had a substantial impact on
the organization performance of the Wolait Soddo Win Water PLC company in Botiti
Town. In terms of the multi-collinearity test by tolerance and variance inflation factors,
procurement management practice is distant from the existence of multi-collinearity;
instead, it is highly connected with organization performance rather than the four

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DOI: https://doi.org/10.55529/jpome.46.10.23

variables. It was the best guess in terms of standardization and strong influence on
organizational performance, according to model regression coefficients. Procurement
management techniques, however, had a statistically significant and favorable impact on
organizational performance according to the hypothesis test.
 The influence of supply management practices on organization performance in in wolait
soddo win water PLC company in boditi town was statistically identified as it has a
positive effect on organization performance
 Regarding to correlation, supply management practices was the third rank of correlated
with organization performance and in terms of multi collinearity test by tolerance and
variance inflation factors; supply management practices was far from the presence of
multi-collinearity. Regarding to model regression coefficients, it was the last level of bet
standardizes coefficient and the low effect on organization performance in in wolait soddo
win water PLC company in boditi town.However, in hypothesis test, supply management
practices was statistically significant and positive ieffect t on organization performance.
 Thirdly, the trends of Transportation management practices on organization performance
in in wolait soddo win water PLC company in boditi town was identify and statistically
concluded as significant. The study concludes that the in wolait soddo win water PLC
company in boditi town department provides different modes of transportation for all
customers. Further, the study concludes that a proper arranging transportation practice
determines the success of service delivery. However, the study concludes that poor
transportation practices are a major setback in cost estimation for services and works.
Further, the study concludes that failure to adhere to transportation practices enhances
making of irregular and biased decisions. The study also concludes that the company has
not efficiently enabled use of available resources. Regarding to correlation, Transportation
practices the is the moderate correlated with organization performance and in terms of
multi collinearity test by tolerance and variance inflation factors, transportation practices
is far from the presence of multi-collinearity. Regarding to model regression coefficients,
transportation a practice was the high bet standardizes next to procurement management
practice and the high impact on organization performance in in wolait soddo win water
PLC company in boditi town next to procurement practice. However, in terms of
hypothesis test, a transportation practice was statistically significant and positive impact
on organization performance in in wolait soddo win water PLC company in boditi town.
 Regarding on Inverntory management practices on organization performance, the finding
has shown that it was statistically significant. Regarding to correlation. The researcher
concludes that, there was poor Inverntory management practices in in wolait soddo win
water PLC company in boditi town
 Regarding on warehouse management practices on organization performance, the finding
has shown that it was statistically significant. Regarding to correlation. The researcher
concludes that, there was poor warehouse management practices in in wolait soddo win
water PLC company in boditi town

5.3 Recommendations
This study was attempted to examine the effects of logistics management practice on
organizational performance of Win Water PLC Wolita zone, Bodite Town.Based on the

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license. (http://creativecommons.org/licenses/by/4.0/) 21
Journal of Production, Operations Management and Economics
ISSN: 2799-1008
Vol: 04, No. 06, Oct-Nov 2024
http://journal.hmjournals.com/index.php/JPOME
DOI: https://doi.org/10.55529/jpome.46.10.23

findings, summaries and conclusions of the study, the following recommendations are
forwarded to stakeholders.
 The study concluded that all predictors supply management practice, procurement
management practice, transportation management practice, inventory management
practice and warehouse management were greatly influence the performance of Win
water company.Therefore, managements of Win water company better to focused on
improving logistics management practices in order to enhance profit and market share of
the company.
 According to the findings of the study, the most significant impact on organizational
performance comes from transportation management practices. Transport management is
at the heart of logistics due to the requirement for material movement along a supply
chain as a result, the company needs to pay close attention to improving transportation
management.
 The management of inventories and warehouses plays a significant role in productivity
within an organization. Therefore, the company needs to create an inventory and
warehouse management strategy that puts an emphasis on inventory control, inventory
records, periodic inventory counting, storage location, guideline of storage, and
maintaining warehouse safety standards.
 The company better to give more emphasis for the development of procurement
management strategies that include order management, put them into practice, and be
more responsive to customer needs. To benefit from the beneficial effects of procurement
practices on organizational performance, engage customers and simplify the ordering
process.
 The company better to improve supply chain management (inbound and out bound
logistics) to minimize acquisition and logistics cost.

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Journal of Production, Operations Management and Economics
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license. (http://creativecommons.org/licenses/by/4.0/) 23