Abstract:
The study was evaluating the effect of physical distribution on organizational performance for
parastatal organization – TANESCO Arusha. The study employed randomly sampling technique
selected 115 respondents as a sample of the study. The questionnaire was used to collect primary
data from the field. The sample size in the study was 115 respondents. Data were analyzed through
descriptive statistics and using ordinal regression model. The study found that, organization was
using the sub-contract to provide the service to customers, provided the public service to customer
as requested on time. uses the agreement to secure the logistics, used the strategic plan to deliver
the logistic, uses the budget for purchasing of resource for operational activities and used the
regulation to distribute the material resource to customers. The study further empirically found that,
if TANESCO used tender to acquire resources, its performance likely to increases by 2.575%.
However, study revealed that TANESCO is less likely that to attain its performance goal if supplies
the logistics to sub-contracted. Similarly, if TANESCO uses the vehicle that purchased many years
ago, its performance is reduced by 1.612%. The study also found that, if TANESCO purchased the
poles from abroad its performance declined by 7.362%. The study found that TANESCO received
customers order manually despite of the potential information technology, Also, it was noted that
organization had limited number of divers. The study recommends that TANESCO should use
tender approach, purchase new vehicle, employ drivers and discouraged to import raw materials
from abroad while available locally.
