Effect of Supply Chain Management Practices on Customer Satisfaction: in Case of Ethiopian Sugar Corporation
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Date
2016-05
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Addis Ababa University
Abstract
Effective supply chain management practices has become a potentially valuable way of securing
competitive advantage through customer satisfaction since competition is no longer between
organizations, but among supply chains. This research used three dimensions of SCM practice
(collaboration, information sharing and logistics design) tests the effect of SCM practices on
customer satisfaction. The data for the study was collected from 68 employees of Ethiopian Sugar
Corporation. In addition, interview with department team leaders was done and a questionnaire also
has been distributed for 50 customers for supporting data .The relationships proposed in the
framework were tested using Pearson correlation, and the causal relations were analysed using
regression analysis. From the result of the analysis it is concluded that there is strong relationship
between each SCM practices (Collaboration, Information sharing and Logistics design) and customer
satisfaction. Therefore, in order to achieve advancement in marketing and financial performance in
the long-run through enhancing customer satisfaction, it is better for the organization to give due
emphasis to the constructs of those SCM practices
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Keywords
Customer satisfaction, Ethiopian sugar corporation