The Effect of Floriculture Global Supply Chain Cost Reduction Strategies on Organizational Performance: The Case of Margin Par Ethiopia P.L.C.
No Thumbnail Available
Date
2022-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The thesis examines the effect of floriculture global supply chain cost reduction strategies in Margin par Ethiopia P.L.C. Effective supply chain management has become a potentially valuable way of securing competitive advantage through enhancing supply chain cost and improving organizational performances since competition is no longer between organizations, but among supply chains. This research conceptualizes and develops on five building blocks of supply chain cost reduction strategy (Diversifying carriers and modes, Transport services, demand forecasting, packaging materials, and supply chain professionals) and evaluates the practices of supply chain cost reduction strategy on supply chain performance. The data for the study was collected from 131 employees of Margin par P.L.C Ethiopia. The score mean of supply chain cost reduction strategy strategies was computed and the result of the findings indicated that the practices of supply chain strategies such as carriers and modes and packaging materials has moderated practices while, transport services, demand forecasting and supply professionals has a limited practices in Margin par Ethiopia P.L.C which in turn affects the supply chain performance of the firm. The relationships proposed in the framework were tested using Pearson correlation, and the causal relations were analyzed using regression analysis. From the result of the analysis, it is concluded that there is strong relationship between supply chain cost reduction strategy, and supply chain performance. Besides, supply chain cost reduction strategy has an influence on supply chain performance. Therefore, to achieve advancement in market share and profitability in the long run through enhancing supply chain performance, it is better for the organization to give due emphasis to the constructs of supply chain cost reduction strategy and the measures of supply chain performance.
Keyword: Floriculture, Supply Chain, Supply chain management, Supply chain cost, Supply chain cost reduction Strategy, Supply Chain performance