THE EFFECTS OF PHYSICAL DISTRIBUTION PRACTICE ON SERVICE QUALITY, IN THE CASE OF ETHIOPIAN PHARAMACEUTICAL MANUFACTURING SHARE COMPANY

Abstract

The purpose of this research paper is to investigate the effects of physical distribution practice on service quality in the case of Ethiopian pharmaceutical share company. The objectives of this study were to examine the effect of product availability, warehouse management, inventory control, transportation, customer service on service quality. The service quality dimensions were assessed by serqual models which are reliability, responsiveness, assurance, empathy, and tangibility. To investigate and assess the objectives of this study, both descriptive and explanatory research designs with a quantitative research approach has been employed. For data collection, both primary and secondary sources of data have been used. With regard, questionnaires were distributed to 53 customers of the company, and from those 48 were properly filled and returned to the researcher. The questionnaires were tested and analyzed by using a software package called statistical package for social science version 24. The test includes a one-sample t-test, ANOVA, correlation, normality, and regression. The researcher has found out that the service quality is affected and explained by the practice of physical distribution. Likewise, the customers are not satisfied with the customer service, timeliness, product availability, and transportation service. Besides, warehouse management, inventory control, had a positive and significant effect on service quality; as the location of the warehouse is good and accessible to the customers. Based on the findings the researcher recommends the management of the company to observe its customer service, product availability, timeliness, empathy, transportation service, and stock availability.