The effect of Physical Distribution on Organization Performance in Tanzania:

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.