This study assessed the effect of IPLS on user satisfaction and logistics performance of HIV/AIDS commodities. Data were collected from 155 respondents in 13 public and private hospitals using questionnaires. The study employed explanatory design with quantitative research approach. The findings indicated that IPLS enhances user satisfaction, which improves job performance. IPLS resulted in big improvements in the accuracy of logistics, by enhancing planning, decision making, and logistics objectives. The regression analysis indicated that all independent variables, except system quality, had a strong and positive effect on user satisfaction, and thereby on logistics performance of HIV/AIDS commodities. System quality did not have a strong and positive effect due to factors specific to the Ethiopian environment, such as turnover of trained staff, lack of training, and other factors identified indirectly. Future research may be conducted by incorporating other variables that affect IPLS, covering a wider geographic area (incorporating hospitals in the regions).