EFFECT OF PHYSICAL DISTRIBUTION PRACTICE ON CUSTOMER SATISFACTION IN ETHIOPIA PHARMACEUTICAL COMPANY (EPHARM)

Abstract

The purpose of this study was to analyze the effect of physical distribution practice on customer satisfaction. The objectives of the study were to investigate effect of transportation on customer satisfaction, to examine to what extent ware housing management determines customer satisfaction, to investigate effect of inventory management on customer satisfaction, to analyze the effect of order processing on customer satisfaction and to evaluate effect of packaging on customer satisfaction. For the purpose of analyzing the above mentioned objectives explanatory research design was employed and Questionnaires were collected from 212 pharmaceuticals retail outlet respondents. For the purpose of data collection both primary and secondary data were also used. Apparently, in order to analyze the collected data descriptive statistics and ordinary least square model were employed. The findings of the study revealed that comparatively customers are well satisfied with the company’s packaging system, convenient warehouse location and its ordering process. On the other hand customers are less satisfied with the company’s inventory control and management system. Furthermore, the correlation and regression analysis shows that transportation, inventory, order processing and warehouse location had a positive and significant effect on customer satisfaction whereas, packaging didn’t show a significant effect on customer satisfaction. In considering the findings the study, the organization better work more on improving its inventory management and control system.