The Effects Of Outsourcing Logistics Activities Of Ethiopian Airlines On Its Logistics Performance

The impracticality of excelling at every task force companies to outsource some of their activitiesrnespecially logistics activities mostly considered as support activities by many companies. Thernpurpose of this study is to learn the rationale of Ethiopian Airlines behind outsourcing of its logisticsrnactivities and study the impact of outsourcing Logistics activities of Ethiopian airlines on logisticsrnperformance. The study is carried out using descriptive survey method. The researcher included 42rnrespondents using census. Data was gathered from the respondents by using questionnaires andrninterview, respectively. Frequency, percentage and mean were used to analyze data collected throughrnquestionnaire while the data obtained through interview was analyzed qualitatively. The studyrndiscovered that the main reasons of Ethiopian Airlines for outsourcing its logistics activities is needrnto access outside expertise, efficient utilization of company’s asset and saving in capital investment.rnFurther, the result indicated that Ethiopian Airlines benefited in the form of access to outsidernexpertise, saving in capital investment and efficient utilization of company’s asset. The study revealedrnthat the main challenge faced by Ethiopian Airlines is inefficient management of outsourced freightrnforwarding activities. The major performance metrics Ethiopian uses to value the freight forwardingrnservice providers is based on time delivery of their shipments, responsiveness and flexibility to thernneeds of Ethiopian by the service providers and overall quality respectively.rnFinally, it isrnrecommended that, in collaboration with the Ethiopian Customs and Revenue authority EthiopianrnAirlines should avail customs clearance training to its employees so that they could be licensed as itrnwill help them control and support the TPL providers and it is also one step forward for their longrnrun plan of performing freight forwarding and customs clearance activities in house. Building up itsrnemployees’ ability to enable them to monitor outside service providers and strict application ofrnperformance metrics on the freight forwarding service providers are the other recommendationsrnforwarded. rnKey words: Logistics, Freight forwarding, Logistics Outsourcing, Logistics Performance,rnPerformance metrics

Get Full Work

Report copyright infringement or plagiarism