Factors Affecting Cash Supply Chain Management: In the Case of Coop Bank of Oromia S.C
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Date
2024-06
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Addis Ababa University
Abstract
This study examines the factors affecting cash supply chain management at Cooperative Bank of Oromia S.C., identifying key factors and proposing strategic improvements. The total population comprises 68 employees, with 60 respondents addressing major issues such as inefficiencies in cash transport and storage, weak deposit mobilization, suboptimal lending practices, underutilization of e-banking, inadequate security during cash-in-transit, and inaccurate cash demand forecasting. The research employs a quantitative approach with an exploratory design, collecting data from both primary and secondary sources. Questionnaires were used to gather data, which was then analyzed using regression analysis, frequency, and percentile measures, and correlation analysis to test the hypothesis relationships. The study reveals thatthe Durbin-Watson statistic of 1.266 suggests no autocorrelation in the residuals, supporting the model's validity. The normality of residuals is confirmed, indicating that the assumptions of the regression analysis are reasonably met, all the hypotheses significantly affect the dependent variable, with p-values below 0.05, and coefficient results confirm that there is a directrelationship between each independent variable and the dependent variablesand the relationships between all variables are strong and positive based on the correlation test. Most respondents (65% to 80%) agree on improving these independent variables: enhancing cash transport and storage systems, improving security measures, optimizing resource mobilization and lending practices, promoting e-banking, and implementing accurate cash forecasting to improve cash supply chain management. The findings indicate inefficiencies in the transport and storage of cash, weak performance in deposit mobilization and lending, suboptimal utilization of e-banking services, failures to establish strong security systems during cash-in-transit, and inaccuracies or a complete absence of accurate cash demand forecasting. Recommendations include improving cash transport and storage systems, enhancing security measures, optimizing resource mobilization and lending practices, promoting e-banking, implementing accurate cash forecasting, providing regular employee training, monitoring performance, and fostering better inter-departmental communication.Thus, by adopting strategies, the bank can enhance the efficiency, and reliability of its cash supply chain management, ultimately improving its goodwill and customer satisfaction.
Keywords; Cash supply chain, Cash in transit, Customer satisfaction