THE EFFECT OF FLEET MANAGEMENT PRACTICE ON OPERATIONAL PERFORMANCE IN CASE OF TRANS ETHIOPIA PLC.

Abstract

The main purpose of the study was to investigate the effect of fleet management practice on operational performance; In case of TRANS Ethiopia PLC .this research develops four fleet management practices (Repair and Maintenance, Fuel Management, Vehicle tracking, Driver management) to test their effect on Operational performance. The study used both quantitative and qualitative research approach and both explanatory and descriptive research design. Using simple random sampling 130 employees were taken as sample to the study. Survey questionaries’ and interview was used to collect data. The quantitative data was analyzed using SPSS version 27. the demographic data were analyzed by descriptive statistics, the relationship proposed in the framework were tasted using Pearson correlation, and the casual relationship was analyzed using multiple regression analysis. The regression model indicates that the fleet management practice explians72.6% of the variation in operational performance, supported by ANOVA result (F=52.294, p<0.001). The vehicle tracking have strong correlation with operational performance followed by repair and maintenance and fuel management but driver management have weak relationship with operational performance. The researcher recommends that the driver management is not translating into measurable performance gains this is the company’s untapped potential for significant improvement .among these the company should give driver training in deep because training can lower accident rates leading to fewer vehicle repairs and reduced down time.