Abstract:
Logistics is a vital area of management within most firms, whether they are manufacturing or
service firms. Logistics is important because it creates value-value for customers and suppliers
of the firm, and value for the firm’s stakeholders. The purpose of this study was to assess
Practices and Challenges of Logistics Management in Ethio telecom. The study used descriptive
research design accompanied by mixed method approach to the research. Data for the study
was collected using a self-administered questionnaire procedure, where the questionnaires were
administered to the selected respondents through drop and pick later technique. A sample size of
138 respondents was drawn from the sample frame using simple stratified random sampling
technique to promote the needs for efficiency and representativeness from various departments.
Data was analyzed by aid of Statistical Package for Social Sciences (SPSS) version 20. The
study will be useful in the academic circles as it will contribute immensely towards filling the
gaps in knowledge in the area of service industry particularly in telecom as well it can be used
as a base for future study. The logistics practices of the company were assessed using the five
basic logistics practices; situation assessment, procurement, transportation, warehouse and
distribution management practices. Besides, both internal and external challenges faced by the
company during its business operations were identified. The findings of the study indicate that
situation assessment, warehouse and distribution management are practiced to moderate and
greater extents whereas the procurement and transportation practices need more emphasis.
Challenges related to infrastructural condition, accessibility, security and restricted use of
technology were identified. The researcher recommends provision of training and experience
sharing platforms for employees, using various transportation optimization models, encouraging
collaboration among various agent’s actors and organizations, working with government to
improve infrastructural condition in remote areas and using reliable means of transport.
