The Effect of Supply Chain Integration Practices on Supply Chain Performance: The Case of Unilever Manufacturing Plc Ethiopia
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Date
2025
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Addis Ababa University
Abstract
Supply chain integration (SCI) practices are widely recognized as a strategic approach to improving organizational performance. This study investigates the impact of six key SCI dimensions internal, external, supplier, customer, information, and measurement integration on the supply chain performance of Unilever Manufacturing PLC in Ethiopia. The research was prompted by persistent challenges within the company’s supply chain, including a lack of trust and coordination among stakeholders, extended lead times, limited visibility of real-time information, high inventory levels, and operational inefficiencies.
An explanatory research design was adopted to explore these relationships. Data was collected through a structured questionnaire distributed to 141 employees across various supply chain functions, including Planning, Logistics, Procurement, Manufacturing, Warehousing, Customer Service, and Distribution. A total of 120 valid responses were received, yielding a response rate of 85.11%. Responses were measured using a five-point Likert scale.
The study employed Pearson correlation analysis to assess the relationships between the SCI dimensions and supply chain performance, followed by multiple linear regression to determine the extent of their impact. The results revealed that the six SCI dimensions collectively explained approximately 59.7% of the variance in supply chain performance. Among these, external, supplier, customer, and measurement integration showed statistically significant positive effects (p < 0.05), while internal and information integration did not demonstrate a meaningful impact (p > 0.05). These findings suggest that Unilever’s supply chain performance is strongly influenced by its external partnerships, supplier and customer relationships, and the effectiveness of its performance measurement systems. Conversely, the limited impact of internal and information integration highlights areas for improvement. The study concludes by recommending that the company enhances its internal coordination and information-sharing mechanisms to further optimize supply chain performance.
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Internal integration, External integration, Supplier integration, Customer integration, Information integration, Measurement integration, Supply Chain Performance