AMBO UNIVERSITY WOLISO CAMPUS

SCHOOL OF BUSINESS & ECONOMICS

DEPARTMENT OF LOGISTIC AND SUPPLY CHAIN MANAGEMENT

ETHIOPIA SHIPPING AND LOGISTIC SERVICE ENTERPRISE (E.S.L.S.E)

DURATION OF 60 DAYS

PREPARED BY: ABDULFETTAH JEMAL

Submitted to; Mr. ALEMU A.

Submission date;

WOLISO,ETHIOPIA
 DECLARATION
I ABDULFETTAH JEMAL Declare that the report entitled A REPORT ON ETHIOPIAN
SHIPPING AND LOGISTIC SERVICE ENTERPRISE submitted to department of LSCM
AMBO UNIVERSITY WOLISO CAMPUS impartial fulfillment of the requirement for the
subject Internship and Seminar (LSCM4152) is a record of the original report work done by me
and that it has not formed before the basis for the award of any degree/diploma/associate ship /
fellowship or any other similar tittles.

25,Oct,2022 ABDULFETTAH JEMAL

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 ACKNOWLEDGEMENT

First of all I would like to thank my almighty ALLAH for giving me spiritual and moral strength
to complete my practical attachment.
Next I would like to Thank Ambo University; college of business and economics; department of
logistics and supply chain management for giving me the chance to practice purchasing
management at PORT & TERMINAL office outside university.
I also would like to Thank MR.FREZER MASRESHA FOR HIS KINDNESS & all employers in
ETHIOPIAN SHIPPING & LOGISTICS SERVICE ENTERPRISE(ESLSE) office for their
willing and close supervision while I practice my attachment.

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 ABSTRACT
This so called Practical and Seminar consist of two parts : The first part consist of three chapters
they are as follows chapter one : history of the organization, chapter two : overall knowledge
gained from practical and chapter three : overall benefit gained from the practice and The second
part consist of five chapter and they are as follow : chapter one : Introduction , chapter two :
literature review , chapter three: methodology, chapter four : data analysis and interpretation and
chapter five : conclusion.

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 ACRONOMY
o DDDPSE- Dire Dawa Dry Port Service Enterprise
o MDP- Dire Dawa Dry Port
o GDP- Gross Domestic Product
o SC- Supply Chain
o ILMP- Integrated Logistics management practice

List of Table
page
Table 1 Employees and manager characteristics…………………………………………..14

Table 2. Level of integrated logistics management in DDDP……………………………………….16

Table 3. Barriers integrated Logistics management………………………………………………...17

Table 4. Expected opportunities to reduce barriers…………………………………………………..18

Table 5. Current Integrated Logistics management practices for customer satisfaction…………….19

Table 6. Role of current integrated logistics management for customer satisfaction……………….20

Table 7. Information flow in dry Dire Dawa port………………………………………………….…21

Table 8. Roles and benefits information flow……………………………………….………………...22

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 TABLE OF CONTENTS

DECLARATION ............................................................................................................................................i
ACKNOWLEDGEMENT .............................................................................................................................ii
ABSTRACT ..................................................................................................................................................... iii
ACRONOMY ............................................................................................................................................... iv
List of Table ...................................iv
TABLE OF CONTENTS ..................................................................................................................................... v
PART ONE .................................................................................................................................................. 1
1.BACKGROUND OF THE ORGANIZATION ......................................................................................... 1
1.1 HISTORY OF THE ORGANIZATION ............................................................................................ 1
1.2 IT`S MAIN SERVICES ...................................................................................................................... 2
1.3 MAIN CUSTOMER OF ESLSE .........................................................................................................2
1.4 OVERALL ORGANIZATION & WORK FLOW ............................................................................. 3
UNIT TWO ................................................................................................................................................... 3
OVERALL INTERNSHIP EXPERIENCE ...................................................................................................3
2.1 HOW YOU GET INTO THE ORGANIZATION .............................................................................. 3
2.2 ACTIVITIES I HAVE BEEN PERFORMIN IN THE COMPANY .................................................. 3
2.3 ORGANIZIONAL WORK FLOW IN THE SECTION ..................................................................... 4
2.4 WORK PIECE OR WORK TASK THAT I HAVE BEEN EXECUTING ........................................ 4
2.5 What procedures you have been using while performing your work tasks .........................................4
2.6 How good you have been in performing your work tasks .................................................................. 4
2.7 What challenges you have been facing while performing your work tasks ........................................4
2.8 What measures you have taken in order to overcome these challenges, etc ....................................... 4
2.9 How do you see the design and construction in terms of safety and economy ...................................5
UNIT THREE ................................................................................................................................................5
Overall benefits gained from the internship .................................................................................................. 5
3.1 What you gained in terms of improving your practical skills ............................................................. 5

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 3.2 What you gained in terms of upgrading your theoretical knowledge ................................................. 5
3.3 What you gained in terms of improving your interpersonal communication skills ............................ 5
3.4 What you gained in terms of improving your team playing skills ...................................................... 5
3.5 What you gained in terms of improving your leadership skills .....................................................................5
PART TWO ...................................................................................................................................................6
UNIT ONE .................................................................................................................................................... 6
INTRODUCTION ........................................................................................................................................6
1.1. Background of the study ....................................................................................................................6
1.2. BACKGROUND OF THE ORGNIZATION .................................................................................... 6
1.3 Statement of the Problem .......................................................................................................... 6
1.4. Objective of the Study .......................................................................................................................7
1.4.1. General objectives ...................................................................................................................... 7
1.4.2. Specific Objectives .....................................................................................................................7
1.5. Significance of the Study .................................................................................................................. 8
1.6. Scope of the study ..............................................................................................................................8
CHAPTER TWO ...........................................................................................................................................9
REVIEW OF RELATED LITERATURE .................................................................................................... 9
2. Introduction ........................................................................................................................................... 9
2.1. Definition of Integrated Logistics management .................................................................................9
2.2. Logistics Environment, Development and Perspectives .................................................................... 9
2.3. Key activities of Logistics ..................................................................................................................9
2.4. Barriers to Internal Integration practice ........................................................................................... 12
2.5. Benefits of Integrated Logistics management .................................................................................. 13
2.6. Information flow in integrated Logistics management .................................................................... 13
CHAPTER THREE .................................................................................................................................... 14
RESEARCH METHODOLOGY ............................................................................................................... 14
3. Introduction .............................................................................................................................................14
3.1. Research Design .............................................................................................................................. 14
3.2. Source of Data ................................................................................................................................. 14
3.3. Data Collection Methods .................................................................................................................14
3.4 Target population ..............................................................................................................................14
3.5 Sample Size and Sampling Techniques ........................................................................................... 14

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 3.5.1. Sample Size .............................................................................................................................. 14
3.5.2. Sampling Techniques ............................................................................................................... 15
3.6. Method of Data Analysis & Presentation ....................................................................................... 15
CHAPTER FOUR .......................................................................................................................................16
4. Data Analysis and Interpretation ............................................................................................................16
4.1 Introduction .......................................................................................................................................16
4.2 Preliminary and Descriptive Analysis ............................................................................................. 16
4.2.1 Preliminary Analysis ................................................................................................................. 16
4.2.2 Descriptive Analysis ..................................................................................................................17
4.3. Analysis of the Interview ................................................................................................................ 25
CHAPTER FIVE .........................................................................................................................................26
5. SUMMAREY, CONCLUTION AND RECOMMENDATIONS ...........................................................26
5.1 Summary of Major Findings ............................................................................................................ 26
5.2 Conclusions of the Findings .............................................................................................................27
5.3 Recommendation .............................................................................................................................. 28
References ...................................................................................................................................................30

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 PART ONE

UNIT ONE

1.BACKGROUND OF THE ORGANIZATION

1.1 HISTORY OF THE ORGANIZATION

Historical Development of the Ethiopian Shipping and Logistics Service Enterprise

The Ethiopian Shipping and Logistics Service Enterprise is a merger of four enterprises which
were working independently in the sea transport sector. These were Ethiopian Shipping Lines
Share Company, Ethiopian Maritime and Transit Service Enterprise, Dry Port Enterprise; and the
former Comet Transport Share Company which was consolidated in to the new company, August,
2016.

Establishment

To maintain the commendable economic growth that has been registered in the country over the
last several years, one of the strategic measures taken by the Federal Government of Ethiopia is
merging the former three public enterprises that have until recently been operating separately in a
rather similar and interdependent maritime sub-sector; namely, Ethiopian Shipping Lines S.C,
Maritime and Transit Services Enterprise and Dry Port Enterprise.

The Ethiopian Shipping and Logistics Services Enterprise (ESL for short) is the result of this
merger. This newly amalgamated enterprise came into being following the issuance of
Regulation by the Council of Ministers (Regulation No. 255/2011), and is vested with the huge
responsibility of rendering sea-transport & logistics services to the country’s importers, exporters,
and investors in a more effective and efficient way, by reducing transit time, cost and hand offs.
Besides, a truck operating company named Comet Transport SC has recently been transferred to
ESL following a government decree issued in the mid of 2014.

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ESL has a multitude of vessels, heavy duty trucks, sea and dry port facilities, chicaneries, etc that
enable it render efficient sea and land transport services as well as sea and dry port services.

ESL has its headquarters located in the heart of Addis Ababa, Ethiopia, with main branches at
Djibouti, Modjo, and Kality (the former Comet) and other branches in Mekelle, diredawa,
Kombolcha, Semera and Gelan towns. It also has a Maritime Training Institute at a place called
Babogaya in Bishoftu (former Debrezeit) Town.

The Enterprise is re-starting the building work of its Head Office, the process of which has been
interrupted for some years due to construction related problems. The giant building in Laghar
area is a 20 storey sky scraper that may accommodate all the enterprise’s functions at head office
level, upon finishing, as well as partially serving as an apartment.

Dire Dawa port and terminal was established in 2013. The dry port is located in Dire Dawa city
administration. Dire Dawa city is located approximately 550 km from Addis Ababa. The port
occupies a total area of 0.78 hectare while 0.78 hectare land area is used for container terminal
services. The port has the capacity to accommodate 368 TEU containers at a time and its annual
container handling capacity has reached up to 3852 TEU.

1.2 IT`S MAIN SERVICES

▪ Customs & Port Clearning

▪ Shipping

▪ Multimodal Delivery

▪Warehousing

▪Agency

▪Unimodal Delivery

1.3 MAIN CUSTOMER OF ESLSE

1. Government Offices Like Ethiopian Electric Utility, Dire Dawa Andhararwater And
Sanitation Etc
2. Big Companies Like Dire Dawa National Cement Share Comapny, Ture Cement Factory,
Dire Dawa Food Complex, Shemu, El Auto Enginering .. Etc

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 3. Private Importers ....
4. Exporters Like Aur Coffee Export, Ange Pro, Birra Coffee, Bashanfer Etc

1.4 OVERALL ORGANIZATION & WORK FLOW

The Organization Consist Of Many Departments Among This There Gate Control Team,The
Documentation Team ,The Talley Clerk Team ,The Operator Team ,The Finance Department Team , Etcs

Their Work Flow Also Vary From One Another.

As Of The Gate Control Team They Are The First Who Start The Process As The Cargos Arrive At Port.
They Prepare The Documents For The Cargos That Has Arrived From Djibouti By Their Paper Which
They Have Given From Djibouti Port By Entering Their Numbers To The System And Then Check It`S
Validity.From Gate Controler It Pass To The Documentation Team And Their Job Is To Prepare The
Necessary Document`S And Then Pass To The Finance Team But Before The Finance Team It Pass To
Operator So That They Prepare The Amount To Be Paid By The Customer.

UNIT TWO

OVERALL INTERNSHIP EXPERIENCE

2.1 HOW YOU GET INTO THE ORGANIZATION

First As We Have Been Guided By Our Department I Started To Look For Organization That
Fulfill The Objective We Have Been Told To Perfofm It.

The Way I Got Into The Organization Is That Somebody From Other Organization Guided Me
To This Organization And Then I Directly Go And Asked Them Why Am Here After That They
Took My Paper And Reviewed And Accepted Me Without Any Hesitation. That`S How I Get
Into This Organization.The Next Day They Introduced Me To The Employer By Telling Them
Who I Am And The Purpose Am There And Told Them To Support Me With The Necessary
Object`S By Guiding Me From The First And Last Activities Performed In The Organization.

2.2 ACTIVITIES I HAVE BEEN PERFORMIN IN THE COMPANY

There Are Many Activities Involved In The Company Regarding To Their Service Type. As Of
Me I Have Been Performing Some Of This Activities Regarding To The Activities And It`S
Availability Due To Time And Condition Of The Country So

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2.3 ORGANIZIONAL WORK FLOW IN THE SECTION

The Work In The Section Interrelated It Cannot Completed Before One Another Thus By
Performing The First Task You Go To Another One It Has There Own Procedure To Be
Followed In Order To Accomplish Them Successfully With Out Any Mistake.

The Work Flow In The Section Begin With Gate Control Then Pass To Documentaation After
That The Cargo Will Be Reviewed And The Decided Wether The Cargo Will Be Loaded To
Warehouse Or To The Owners Warehouse And Then According To This It Will Measured And
The Cost Included While Delivering It Is Deducted Accordingly As Per Agreed On By Them.

2.4 WORK PIECE OR WORK TASK THAT I HAVE BEEN EXECUTING

The Work Task That I Have Been Exuciting Is Firstly I Have Tried Some System But It Was Not An
Easy Task To Perform At Time And With Gate Control Team I Have Looked For The Criteria It Has To
Fulfill When Coming To The Organization Before Entering The Gate There Is Physical And Systematic
Check The Physical Part Include Whether The Container Has A Damage On Its Body Or Not And Will
Check The Seal If It Has Cutted On The Road Or It’s The Original That Come From The Manufacturer
And So On.

2.5 What procedures you have been using while performing your work tasks
The Procedure Is Clear Before Doing The Task Or Any Thing You Must Learn From Your Elder Or
Senior One And Then Do It As He Done Accordingly As For Me I Have Observed The Worker And
Then Understand It And Finally Did It But At First It Is Difficult And Also Not Easy To Save All The
Information At Once.

2.6 How good you have been in performing your work tasks
At First I Was Not Good B/C It Was Not Easy And Also Am Not Familiar Whith This Work But
With Time My Performance Have Increased And I Became So Good At Performing This Tasks.

2.7 What challenges you have been facing while performing your work tasks
While Performing This Task I Have Faced Some Challenges That Ties Me Up, And Also Some
Of Them Make Me Feel Weak B/C Of Their Necessary For Doing This Task But Finally I Did It
With The Help Of God And Here I Am Moving Forward Not Giving Up.

2.8 What measures you have taken in order to overcome these challenges, etc
The Measure I Have Taken To Overcome This Challenge Is That First No Matter What Don’t Give Up
B/C If You Give Up Then You Lose, Try And Fail But Never Fail To Try, And Secondly No Matter
What You Have To Move Forward That’s When You Will Get Succed In Your Life.

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2.9 How do you see the design and construction in terms of safety and economy
The D.D DP Is One Of The Most Secured And One Of The Most Kind In Africa As They Have Told Me
And As I Have Seen It The Security Of The Port Is Protected With Screen Sensor That Detects If
Somebody Smokes Secretly It Will Expose Him By Detecting Him And Also Interms Of Cost It Have
Used Large Amount Of Investment When Building But With Their Income If Compared It Is Not As
High As It Looks.

UNIT THREE

Overall benefits gained from the internship

3.1 What you gained in terms of improving your practical skills

Inspection skill, data entering, customer serving, etc

3.2 What you gained in terms of upgrading your theoretical knowledge

Warehousing and th theory are now clear due practical visit and so on

3.3 What you gained in terms of improving your interpersonal communication skills
As of communication it is now improved from zero to some point

3.4 What you gained in terms of improving your team playing skills
It is necessary to have communication within the organization for better performance and development of
the organization

3.5 What you gained in terms of improving your leadership skills

Being a leader is not an easy task cause it needs more knowledge of work ethics , peoples behavior and
organizational work flow.

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 PART TWO

UNIT ONE

INTRODUCTION

1.1. Background of the study

Logistics was originally used in a military context which means all the support activities
necessary to keep an army in the field, fighting a war. Fifty years ago manufacturing and
service companies did not have a logistics function. Generally, customer service was handled
by the sales department. Inventory was managed by manufacturing or sales according to
location. Suppliers arranged inbound transport and outbound transport was booked by someone
in the sales department. In the intervening period, many companies have created a logistics
function to look after an increasing proportion of movement and storage functions typically to
manage the logistics activity. (Lane Sadler, 2007)

In general the focus of the study is to assess and investigate problems related with the above
issues as a result of analyzed interpreted reports in the Dire Dawa Dry Port company has not
well integrated the functional departments which would enhance the overall logistics integration
of the Dire Dawa Dry Port.

1.2. BACKGROUND OF THE ORGNIZATION

Dire Dawa port and terminal was established in 2013. The dry port is located in Dire Dawa city
administration. Dire Dawa city is located approximately 550 km from Addis Ababa. The port occupies a
total area of 0.78 hectare while 0.78 hectare land area is used for container terminal services. The port has
the capacity to accommodate 368 TEU containers at a time and its annual container handling capacity has
reached up to 3852 TEU.

1.3Statement of the Problem

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Every Logistics organizations have on comply with the integrated logistics management across
the supply chain. The implementation of logistics activities in integrated and managing them
properly is very crucial to organization to achieve the mission, vision and goals and even for
the development of one nation. So these integrated logistics activities play a great role for
customer responsiveness that of what they need and want at the right time and place with a
least cost.

Effective managing of logistics process plays a great role by reducing the total cost of the
organization. A technological information system is a critical resource to sharing and integrating
any data within the organization or out of the organization. The poorly integrated and managed
logistic activities cannot deliver better service to the customer of the organization or companies.

The following basic questions regarding the role of integrated logistics management will guide
the study:

1. What the roles of integrations of logistics management practice are there in Dire Dawa
Dry Port?

2. What are the major barriers of logistics management that affect integrated logistics
management performance?

3. What are the current integrated logistics management activities in Dire Dawa Dry Port
for satisfaction of customer?

4. How information flows for integrated logistics management practice in Dire Dawa Dry
Port?

1.4. Objective of the Study

Different studies have been conducted to achieve certain objective. So the researcher
conducted this study to meet both general and specific objective.

1.4.1. General objectives

The main objective of the study is to assess the role of integrated logistics management
practice in Dire Dawa Dry Port that located around Dire Dawa City of Ethiopia at east of
capital city Addis Ababa.

1.4.2. Specific Objectives

Furthermore, the study was tried to address the following specific objectives

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 1) To investigate the levels of the integration of logistics management in dry port of Dire
Dawa.
2) To identify the barriers associated with integrated logistics management Dire Dawa Dry
Port.
3) To assess the current logistics activities for customer satisfaction in Dire Dawa Dry
Port.
4) To investigate information flows for integrated logistics management practice in Dire
Dawa Dry Port.

1.5. Significance of the Study

This research was a great significance for the researcher and organization. For the researcher, it
was create awareness about the way of conducting research to arrive at something useful for the
people, and develop the researchers experience for future study. For the organization it helps to
discover the role of integrated logistics management practice and helps to make the production
effective. For other researchers it helps to prepare their own research so as to discover something
new to study further

1.6. Scope of the study

Conducting a research somehow it was difficult because it consumes much more
finance/money, time and knowhow skill. Even though, DDDP plays plenty of roles to the
community and there were also many problems associated to the integrated logistics
management activity while they are serving their customer. In the integrated logistics
management issues of logistics performance, factors affecting logistics, the qualities of service
delivery, strategies and techniques of logistics, etc. are core issues to rise. But it was
impossible to conduct in all of these areas. Therefore, this study was limited to the role of
integrated logistics management in Dire Dawa dry port because of research methodology and
shortage of time was available and the time constraints since the time allocated is not run as
planned because of covid -19virus &internal political crisis.

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CHAPTER TWO

REVIEW OF RELATED LITERATURE

2. Introduction
This chapter deals with definition of logistics and related issues which helps to analysis the role
of integrated logistics management in generally

2.1. Definition of Integrated Logistics management

Integrated Logistics management is defined as “ the process of anticipating customer needs and
wants; acquiring the capital, materials, people , technologies and information necessary to meet
those needs and wants; optimizing the goods-or-service-producing a network to fulfil customer
requests; and utilizing the network to fulfil customer request in a timely way.”

Integrated logistics is a service-oriented process. It incorporates actions that help move the
product from the raw material source to the final customer.(GianpaoloGhiani, GilbertoLaporte&
Roberto Musmanno, 2015)

2.2. Logistics Environment, Development and Perspectives

Logistics from the very beginning was a concept which is related to military activities. Logistics
activity is literally thousands of years old, dating back to the earliest form of organized trade. As
an area of study however, it first began to gain attention in the early 1900’s in the distribution of
farm products, as a way to support the organization’s business strategy, and as a way of
providing time and place utility. (Douglas M. Lambert, James R Stock & Lisa M. Ell ram, 1998)

2.3. Key activities of Logistics

1. Customer service: Customer service is the output of the logistics system. It involves getting
the right product to the right customer at the right place, in the right condition and at the right
time, at the lowest total cost possible, Good customer service supports customer satisfaction,
which is the output of the entire marketing process.

2. Demand forecasting/planning: There are many types of demand forecasts. Marketing

forecasts customer demand based on promotions, pricing, competition, and so on. Manufacturing

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forecasts production requirements based on marketing's sales demand forecasts and current
inventory levels.

3. Inventory management: Inventory management involves trading off the level of inventory
held to achieve high customer service levels with the cost of holding inventory, including capital
tied up in inventory, variable storage costs, and obsolescence

4. Warehousing management-Warehousing refers to the storing and assorting products in order

to create time utility. The basic purpose of the warehousing activity is to arrange placement of
goods, provide storage facility to store them, consolidate them with other similar products, divide
them into smaller quantities and build up assortment of products.

5. Logistics communications: Communication is a key to the efficient functioning of any

system, whether it is the distribution system of an organization or the wider supply chain.
Communications are becoming increasingly automated, complex, and rapid. Logistics interfaces
with a wide array of functions and organizations in its communication processes.

6. Material handling: Materials handling is a broad area that encompasses virtually all aspects
of all movements of raw materials, work in process, or finished goods within a plant or
warehouse. Because an organization incurs costs without adding value each time an item moves
or is handled, a primary objective of materials management is to eliminate handling wherever
possible. That includes minimizing travel distance, bottlenecks, inventory levels, and loss due to
waste, miss handling, pilferage, and damage. Thus, by carefully analyzing material flows,
materials management can save the organization significant amounts of money.

7. Order processing: Order processing entails the systems that an organization has for getting
orders from customers, checking on the status of orders and communicating to customers about
them, and actually filling the order and making it available to the customer. Part of the order
processing includes checking inventory status, customer credit, invoicing, and accounts
receivable.

8. Packaging: Packaging is valuable both as a form of advertising in marketing, and for

protection and storage from a logistical perspective. Packaging can convey important

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information to inform the consumer. Aesthetically pleasing packaging also can attract the
consumer's attention. Logistically, packaging provides protection during storage and transport.

9. Parts and service support: In addition to supporting production through the movement of
materials, work in process and finished goods, logistics also is responsible for providing after-
sale service support. This may include delivery of repair parts to dealers, stocking adequate
spares, picking up defective or malfunctioning products from customers, and responding quickly
to demands for repairs.

10. Traffic and transportation Transportation involves selection of the mode (e.g., air, rail,
water, truck, or pipeline), the routing of the shipment, assuring of compliance with regulations in
the region of the country where shipment is occurring, and selection of the carrier. It is
frequently the largest single cost among logistics activities.

11. Facility of location & Network design: Facility of location & network design refers to the
design of the geographical structure of logistics facilities from where logistics operations are
carried out. The number, size, location of logistics facilities like manufacturing plants,
warehouse, cross dock operation, wholesaler & retail outlets affects to the aspects of other
logistical function.

12. Procurement:. Procurement is the purchase of materials and service from outside
organization to support the firm’s operation from production to sales, and logistics. Procurement
also referred to as purchasing, supply management, and by a number of other names, includes
activities such as supplier selection, negotiation of price, terms and quantities and supplier
quality assessment.

13. Return goods handling: Return goods handling is complex because it involves moving of
small quantities of goods back from the customer rather than to the customer as the firm is
accustomed. Many logistics systems have a difficult time handling of this type of movement.
Costs tend to be high. Thus, this significant cost and service area is beginning to receive more
attention.

14. Reverse logistics: Logistics is also involved in removal and disposal of waste materials left
over firm the production, distribution, or packing processes. There could be temporary storage

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followed by transportation to the disposal, reuse, reprocessing, or recycling location. As the
concern of for recycling and reusable packaging grows, this issue will increase in importance.
(Douglas M. et al, 1998).

2.4. Barriers to Internal Integration practice

Implementing internal logistics integration is not possible in a vacuum. There are certain barriers
to integration, which are as follows:

a) Organization Structure: The traditional organization structure prevents implementation of

any cross-functional process being implemented. Traditional structure is to divide authority and
responsibility according to functional work. Organizations are generally concerned with
achievement of functional excellence and this structure can hinder success of the goal of
integration – which is co-operation among functional areas.

b) Ownership of Inventory: Inventory can facilitate a specific function to achieve its mission.
A traditional approach to ownership of inventory is to maintain adequate supply for gaining ease
against demand and operational uncertainty. Availability of inventory also results in economy of
scale. While such practices create benefits, they also have a related cost.

c) Measurement systems: Traditional measurement systems make cross-functional co-

ordination difficult. A new scorecard needs to be developed for facilitating integration of
logistics functions. The measurement system must facilitate logistics managers to view their
specific functions as part of a process and not just stand-alone activities.

d) Transfer of knowledge: Ability to share experience is an additional barrier. Failure to

transfer information or knowledge tends to nurture functional orientation by development of
specialized employees. Many firms also fail to develop procedures and systems to transfer cross-
functional knowledge. When work is done in a series of processes and involves many employees,
transfer of this type of knowledge and experience is difficult.

e) Information Technology: IT acts as a key resource to achieve integration. IT applications

need to be designed along organizational lines. Databases are mostly limited to specific functions
are not easily accessed on a cross-functional basis. Data warehouses have emerged due to the
need to share information. Schemes to transfer information are required to be developed as

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existing applications can serve as a barrier to process integration as critical data cannot be shared
readily. (D. J. Bowersox, et al, 2010)

2.5. Benefits of Integrated Logistics management

• Genuine co-operation between all parts of the SC, with shared information and resources

• Lower costs – due to balanced operations, lower stocks, less expediting, economies of
scale, elimination of activities that waste time or do not add value, and so on

• Improved performance – due to more accurate forecasts, better planning, higher

productivity of resources, rational priorities, and so on

• Improved material flow with co-ordination of faster and reliable movements.

• Better customer service, with shorter lead times, faster deliveries and more customization

• More flexibility, with organizations reacting faster to changing conditions

• Standardized procedures, becoming routine and well-practiced with less duplication of

effort, information, planning, and so on.(Donald Walters, 2003)

2.6. Information flow in integrated Logistics management

• Logistics information systems are the threads that ink logistics activities in to an
integrated process. The integration builds on four revels of functionality.

• Transaction: -include at order entry, inventory assignment order selection, shipping

pricing, and customer inquiry.

• Management control: -Focus on performance measurement and reporting performance

measurement is necessary to provide management feedback regarding service level.

• Decision analysis: -Focus on decision application to assist manger in identifying

evaluating and companying logistics strategic and factual alternative

• Strategic planning: -Focus on information support to develop and refine logistics

strategy it often extensions of the decision analysis level but are typically more abstract,
less structured and log term in focus. (Donald’s and DeVito D.J 1996)

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 CHAPTER THREE

RESEARCH METHODOLOGY

3. Introduction
In this chapter, a detailed description of research methods and techniques was used in the study
for the collection, analysis and presentation of data.

3.1. Research Design

In order to get relevant data or information on the research problem descriptive research was
used. This descriptive research helps to source of information as it occurs and to explain the
studies in terms of conditions

3.2. Source of Data

In this study used primary. The primary source of data was collected with the help of personal
interviews and structured questionnaires from the employees of Dire Dawa dry port.

3.3. Data Collection Methods

Of the data gathering tools, this study used interview and written questionnaires administration
approaches because in order to gather relevant data. Both close ended and open ended type of
questions will be prepared to collect data for the research work. The secondary data was
collected from various documents, Journals and Articles related to integrated logistics from
published and unpublished documents

3.4 Target population

The target population of studies was 300 employees of the Dire Dawa dry port organization.

3.5 Sample Size and Sampling Techniques

3.5.1. Sample Size

Even though almost all employees in the dry port are part of the organizations to perform their
responsibility, because of cost and time constraints the sample was selected from employees of
14
the dry port of Dire Dawa. Thus, the sample size is 40 from the total population of 300 or
(300x 13.5/100) =40). The researcher was using the following sampling formula which is
developed by Michael solving.

n=N/ 1+N (e) ^2

• were, n -the number of sample sizes taken

N -the number of total populations

e -confidence interval= (2.72) mathematical expression.

The following illustration shows how the above samples are taken for the study.

n= 300/ 1+300(2.72) ^2 n=13.5%of the total population

n=300/110.2 =0.135 n=0.135*300 n=40

3.5.2. Sampling Techniques

To select the needed number of individuals from the total population that means from
employees of Dire Dawa dry port, judgmental non probability sampling technique was used.

3.6. Method of Data Analysis & Presentation

The study used both qualitative and quantitative method of data analysis. Quantitative data
analysis was used in order to discover inherent facts to explore new facts and is simple and
easily understood by users of the study while qualitative data analysis was used to provide
detail answer to research questions through direct quotation and careful description to explore
new facts or interpret already known existing problems/facts.

Finally, the outcome of the research data was presented and explained through simple
descriptive statics such as table and percentage.

15
 CHAPTER FOUR

4. Data Analysis and Interpretation

4.1 Introduction
This chapter broadly describes and analyses the data gathered from DDDPSE employees by
distributing a questionnaire to 40 operational levels of Dire Dawa Dry Port employees.
Basically, a structured questionnaire was distributed to the employees and unstructured
interviews for the management levels of Dire Dawa dry port were interviewed. Accordingly, of
40 respondents, 25 respondents gave a response. From this respondent 8 made errors when
responding questionnaires. Finally, the correct result was collected and analyzed using a
simple tabulation form along with a percentage.

4.2 Preliminary and Descriptive Analysis

4.2.1 Preliminary Analysis

Preliminary analysis describes about the personal information which are got from the
respondents of the research questionnaire.

Table 1 Employees and manager characteristics

1 Educational background Certificate 3 5.9%

Diploma 15 29.4%
BA/SC degree 29 56.9%

MBA/SC and above 4 7.8%

Total 51 100%

2 Experience Less than 2 year 8 15.7%

Between 3-5 year 25 49%

Between 6-8 year 11 21.6%

More than 9 year 7 13.7%
Total 51 100%

(Source: Researcher Survey, 2021)

16
According to the above table, majority of the respondent 56.9% were degree holders while
29.4% of the respondents are diploma and 7.8% are master’s holders. In the final question of
the above table indicated that 49% of the respondents are in the range 3-5 year, 21.6% of them
are between 6-8 years, and 13.7% of the respondents are more than 9 year. Finally 15.7% of
the respondents are less than two year.

4.2.2 Descriptive Analysis

This part of analysis analyzes about the basic research questions that are obtained from
distribution of questionnaires to the Dire Dawa dry port managers and employees in generally.

17
 No Questions Options Respondent in

No Percentage

What is the level High 7 13.7%

1 of integrated
logistics Medium 33 64.7%
management
practice in Dire
Low 11 21.6%
Dawa Dry Port?

Total 51 100%

2 The level of Between the department 21 41.2%

integrated
logistics Across the supply chain 4 7.8%
management
practice in Dire
With few departments and suppliers 15 29.4%
Dawa dry port is
highly
coordinated: With all of the departments and suppliers 11 21.6%

Total 51 100%

3 The integration It improves both profitability and 12 23.5%

of logistics competitive performance of firms
management
practice in all Highly drives customer satisfaction 8 15.7%
department and
supplier sin the Helps to have effective balance in overall 5 9.8%
DDDP total logistic cost

It contributes development DDDP's as well 26 51.0%

as country economy.

Total 51 100%

(Source: Researcher Survey, 2021)

As the above table showed that 64.7% of the respondents replied that the level of integrated
logistics management in organization is medium and 21.6% replied that the level of integrated
logistics management is low and finally 13.7% of the respondents said that the level of
integrated logistics management is high. On other hand, 41.2% of the respondent replied the

18
level of integrated logistics management is highly coordinated between the departments where
as 29.4% of responded that it highly coordinated between few departments and suppliers and
finally 21.6% believe that it highly coordinated between all of the departments and suppliers.
Furthermore, if integrated logistics management is highly coordinated between all of the
department and supplier, 51% of respondents generalized that it contributes economic
development to DDDP’s and country and 23.5% generalized that it improves both profitability
and competitive performance of the firms where as 15.7% of the respondent generalized that
high customer satisfaction is derived. Therefore, the researcher concludes that the level of
integrated logistics management is medium in the organization and it is highly coordinated
between departments as well as it contributes economic development the DDDP’s and country.

Table 3. Barriers integrated Logistics management

No Questions Options Respondent in

No Percentage

4 Do you think that there is Yes 45 88.2%

a barrier of integrated
logistics management No 6 11.8%
which affects
organization
Total 51 100%
performance?

5 If your answer for Absence of experienced employees 11 21.6%

question No“4” is “yes”,
what is the factor do you Weak integration between departments 21 41.2%
think?
Poor management 19 37.2%

Total 51 100%

(Source: Researcher Survey, 2021)

As the above table indicated 88.2% of the total respondents replied that there were barriers of
integrated logistics management which affects the organization performance and 7.8% of the
respondents said that there was no barriers of integrated logistics management which affects
the organization performance. In addition to this 41.2 % of the respondent said that the factor
behind this is weak integration between departments. The rest respondents, 37.2% and 21.6%,
replied that the factor is related to poor management and absence of experienced employees
respectively. Finally the researcher concludes based on the above table result there is barriers
of integrated logistics management which affects the organization performance and the factor
is weak integration between departments

19
Table 4.Expected opportunities to reduce barriers.
No Questions Options Respondent in

No Percentage

6 Do you think that there is anything that is expected Yes 31 60.8%

opportunities to reduce these barriers within short period of
time? in order to improve integrated logistics management No 20 39.2%
practice in your organization.
Total 51 100%

7 If your answer is “yes” for question No 6 above, do you Yes 32 62.7%

think that the expected opportunities will remove or reduce
complains of customer? No 19 37.3%

Total 51 100%

(Source: Researcher Survey, 2021)

As above table 60.8% of the respondents responded that there is an expected opportunity to
reduce barriers of integrated logistics management within a short period of time in Dire Dawa
Dry Port’s and replied “Yes”. But the rest of the respondents which account around 39.2%
replied that there is no expected opportunity to reduce barriers of integrated logistics
management within a short period of time and replied “No”. Additionally, 62.7% of
respondents say “Yes” that the expected opportunities will avoids complains raised by
customers and some, 37.3% replied option “No” which means the complains of the customer
may continue even if
solutions are provided. The researcher concludes that there is an expected opportunity to
reduce barriers of integrated logistics management within a short period of time and it avoids
complains raised by customers.

20
Table 5. Current Integrated Logistics management practices for customer satisfaction
No Questions Options Respondent in

No Percentage

8 How do you describe the current Very satisfied 7 13.7%

integrated logistics management practices
with satisfaction of customers of Dire Satisfied 24 47.1%
Dawa Dry Port?
unsatisfied 12 23.5%

Very unsatisfied 8 15.7%

Total 51 100%

9 How integrated logistics management can Rapid response 23 45.1%

be measured in your organizations related
Minimum variance 3 5.9%
with satisfaction of customer?
Minimum inventory 6 11.8%

Movement 19 37.2%
consolidation

Total 51 100%

(Source: Researcher Survey, 2021)

As the above table demonstrates 47.1% of the respondents said that customers are satisfied
with current integrated logistics management practices and 23.5% of respondent are replied
that customer are unsatisfied with current practices of the organization and 15.7% is the one
who said that customer are very unsatisfied with the practices. On other hand 45.1% of the
respondent replied that the current integrated logistics management practices for customer
satisfaction is measured by minimum variance. But 37.2% and 11.8% of respondent are
responded that the practices are measured through movement consolidation and minimum
inventory respectively.
Finally, the researcher concludes that customers are satisfied with the integrated logistics
management practices of DDDP and rapid response is measurement of the practices.

21
Table 6.Role of current integrated logistics management for customer satisfaction.
No Questions Options Respondent in

No Percentage

10 What do you think the role of It creates real coordination between 4 7.8%
current integrated logistics
all parts of supply chain.
management activities in
Dire Dawa dry port?
It brings down logistic cost 2 3.9%

It improves performance of logistics 3 5.9%

All are critical roles of integrated 42 82.4%

logistics management

Total 51 100%

11 presently, the role of It is at peak point 4 7.8%

integrated logistics
It is growing well 41 80.4%
management practice playing
in Dire Dawa dry port for It is an infant levels 6 11.8%
satisfaction of customer is:
Others - -

Total 51 100%

12 What do you think that the Effective material handling 7 13.7%

integrated logistics
management activities that Faster delivery 16 31.4%
your organization works for
better customer satisfaction?
Minimization of cost of logistic 20 39.2%
service

Shorter lead time 8 15.7%

Total 51 100%

(Source:Researcher Survey, 2021)

22
Table 5 indicates that 82.4% of the respondent believe that all the options given are the role of
current integrated logistics management activities for customer satisfaction and 7.8% of the
respondent are responded that the role of current integrated logistics management is critical
because it creates real coordination between all parts of the supply chain with shared
information and resources and whereas again 5.9% of them responded that it improves
performance of logistics. In addition, 80.4% of the respondent is responded that the role of
integrated logistics management playing in DDDP is growth well and 11.8% & 7.8% of
respondent replied that it is an infant level and at the peak point respectively. On other hand
39.2% of the total respondent said that organization uses minimization of cost of logistics
service and 31.4% said faster delivery for better customer satisfaction. But 15.7% replied that
shorter lead time is the activities of company for better customer satisfaction respectively.
Finally from the above table, the researcher concludes that the given all options in question 12
are the roles of the current integrated logistics management and current integrated logistics
management is growing well as well as minimization of cost of service is the activity of
company for better customer satisfaction in generally.
Table 7. Information flow in Dire Dawa dry port
No Questions Option Respondent in

No Percentage

13 Do you think that their good information flow in Dire Yes 36 70.6%
Dawa dry port?
No 15 29.4%

Total 28 100%

14 If your answer is “yes” for question No. “13” by what High 12 23.5%
range the information flow are lives within and across
supply chain? Medium 29 56.9%

Low 10 19.6%

Total 51 100%

(Source: Researcher Survey, 2021)

As the above table shows that 70.6% of the respondent are responded that there is good
information flow in DDDP and replied the option “yes” while 29.4 of the respondents said that
there is no good information flow in DDDP and responded the option “No”. Regarding to the

23
next question 56.9% of the respondent are responded that the information flow are lives in
medium range while 23.5% of the respondent are responded that information flow in DDDP
are lives in high range. The rest 19.6% of the respondent are responded that information flow
in DDDP are lives in low range. The researcher concludes that there is good information flow
and the flow of information lives in medium range.
Table 8.Roles and benefits information flow.
No Questions Options Respondent in

No Percentage

15 What do you Improves internal and external relation 4 7.8%

think the benefits
of good Improves customer serves 7 13.7%
information flow
Reduced operation cost 5 9.8%
to your company
It capable to manage logistic activities 4 7.8%

All are benefits of information flow 31 60.9%

Total 51 100%

16 What do you It creates smart coordination between department 6 11.8%

think that the
role of good flow It deserves fast customer services and 10 19.6%
of information to communication
your
It helps to have effective and efficient controlling 14 27.4%
organization
system
performance?
All are the roles of information flow 21 41.2%

Total 51 100%

(Source: Researcher Survey, 2021)

As the above table result shows that majority of the respondent 60.9% is replied that all the
option are benefits good information flow and 13.7 % of the respondent is responded that good
information flow improves customer services.
While 9.8% of the total respondents are replied as it reduces operating cost. On the other hand
41.2% of respondent are responded that the option all are the roles of information flow to the
organization and 27.4% replied as it plays role in helping to have effective and efficient
controlling system where as 19.6% said that it play role in deserving fast customer services and

24
communication. Therefore, the researcher concludes that benefits of good information flow to
company are improved internal and external relation of company, improved customer services,
reduces operating cost and capable to mange’s logistics activity and it plays role to the
organization in creating smart Coordination between department, deserving fast customer
services and communication and helping to have effective and efficient controlling system.

4.3. Analysis of the Interview

According to the interviewee’ response (employees of the DDDP), they believe that integrated
logistics is the most important aspects of any business especially to make the customer delight.
However, they added it is hard to get everything smooth. It is full of a barrier that needs careful
management system starting from strategic formulation to operational levels of implementation.
The company have problems of HR related, slow document processing, congestion of cargoes
in the port. But if integrated logistics management were well designed and well recognized by
the suppliers, distributors, wholesaler along with a strong strategic government it will be a top-
class customer service can be delivered as a result customer complain will be avoided, if not at
least to the minimum.
About customer satisfaction they replied saying “to be honest, complains are there by the
customers since there is a gap which needs to be filled”. Ones you established a good
integrated logistics, you are going to be benefited from improved performance, it lowers cost
due to balanced operation and economies of scale, information can be easily shared among the
SC, material can flow smoothly with fast document processing with less lead time. On the
other hand they responded that the main objective of implementing integrated logistics
management in organization is to have better integration across all supply chain. Finally for
last asked question which is overall recommendation/comment with regard to integrated
logistics management they replied that integrated Logistics management, though have
objective to mange logistic activities and to reduce total logistic cost prioritizing the customer
requirements in order to give better satisfaction, it has drawbacks related to the quick service
as need and wanted by customers. Inside the organization also there is careless about
integration of logistics activities but it can be reduced by giving training from experienced
person.

25
CHAPTER FIVE

5. SUMMAREY, CONCLUTION AND RECOMMENDATIONS

5.1 Summary of Major Findings

• Most of the respondents are males i.e. 62.5% out of total respondents and 41.2% of
them live in age between 26-32 years.

• 56.9% of the respondents are degree holders and 49% of the respondents have
experience between in the range of 3-5 year.

• 74.5% of respondents have awareness about integrated logistics management and

56.8% respondents got awareness because they trained with this and related area.

• 64.7% of respondent replied that the level of integrated logistics management is

medium in the organization and 41.2% of respondent replied that it is highly
coordinated between departments.

• 51.6%of respondents said that integrated logistics management contributes to the

economic development of DDDP’s and country.

• 88.2% of the total respondents replied that there were barriers of integrated logistics
management which affects the organization performance.

• 41.2 % of the respondent said that the factor behind to the barrier is weak integration
between departments.

• 60.8% of the respondents responded that there is an expected opportunity to reduce

barriers of integrated logistics management within a short period of time in company.

• 41.2% of respondents said that the expected opportunities will avoids complains raised
by customers.

• 47.1% of the respondents said that customers are satisfied with current integrated
logistics management practices.

26
 • 45.1% of the respondent replied that the current integrated logistics management
practice for customer satisfaction is measured by rapid response.

• 82.4% of the respondent believes that all the options given are the role of current
integrated logistics management activities for customer satisfaction.
• 80.4% of the respondent is responded that the role of integrated logistics management
playing in DDDP is growth well.
• 39.2% of the total respondent said that organization uses minimization of cost of
logistics service to deliver satisfaction to customers.
• 70.6% of the respondent is responded that there is good information flow in DDDP.
• 56.9% of the respondent are responded that the information flow are lives in medium
range and 60.9% is replied that all the given option are benefits good information flow.
• 41.2% of respondent are responded that the option all are the roles of information flow
to the organization.

5.2 Conclusions of the Findings

Based on the findings obtained from the research surveys and analysis of the data collected, the
role of integrated logistics management is very important since it creates smart co-ordination
between all parts of the supply chain with shared information and resources which results in
the reduction of total logistics cost and improves material flow with a reliable and fast lead
time performance. Even though, there is no as such a top ranked integrated logistics
management in Dire Dawa Dry Port, it is very helpful to integrate and manage the logistics
activities. DDDP’s integrated logistics management activities are at an average level and the
integration is between the departments but it has to go beyond this to coordinate with
customers. Therefore, DDDP can achieve an appreciated logistics service if there is a high
coordination with the entire department. Hence, through logistics efficiency it maintained
effective customer service. However, to perform such a big work is full of barriers which
include absence of experienced persons, weak integration between departments and poor
management affects the DDDP performance. These integrated logistics management related
barriers may take a long period to be reduced.

27
In fact some can be resolved soon within a short period of time and the expected opportunities
avoid complains raised by the customer. Rapid response is mostly the measurement of the
integrated logistics management in organization which is related with customer satisfaction.
Fact that it has to be given a due attention since the role of current integrated logistics
management activities in creating real coordination between all parts of supply chain, bringing
down total logistic cost and improving logistics performance. However, currently the role of
integrated logistics management playing in DDDP is growing well and the company works
minimization of cost of logistics service for better customer satisfaction.
The DDDP has a good information flow but these good information flows are available in the
medium range. A good information flow benefits company in improving internal and external
relation improves customer service, reduced operating cost and capable to mange logistic
activities.

5.3 Recommendation
Based on the above findings the researcher for wards the following recommendation to the
Dire Dawa dry port:

• The most of respondents have awareness about integrated logistics management but
they are not fully specialized in logistic area. Therefore the researcher recommends the
company to employee workers who have better awareness about integrated logistics
management and recommends to give training for employee’s who have no awareness.
• The level of integrated logistics management is medium in the company. Therefore the
company advisable to increase the level from medium to high in order to have better
customer’s service.
• As strategies the dry port mostly uses rapid response to measure the integrated logistics
management activities but it is not enough to measure their performance. Therefore the
Dire Dawa dry port advisable to use all measurement methods of logistic performance.
• The DDDP to integrate all the logistics activities and also recommends coordinate and
integrate departments one with the other in order to remove barriers that affect
integrated logistics management and to come up with solutions for coming and existing
barriers.

28
• The company has good information flow between departments and across supply chain
but these good information flows are available in the medium range. A good
information flow is one of the important tools for the achievement of company
objective. So this information flow must run in high range in order to achieve the
company objective.
• Finally the researcher recommends that the factory better to keep and develop the good
information flow from mediums to high range in order to prevent factors and barriers
that affect their performance. So that the company recommends also provide a daily
follow up the customer order, enjoy a new technology that makes the information flow
more accurate than old technology.
• Generally speaking, avoiding a fragmented logistics and establishing an integrated
logistics management has to be developed to make the total logistics cost to the
minimum and a well appreciated customer has to be served.

29
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