Effect Of Supply Chain Management Practices On Operational Performance Of Bishoftu Automotive Engineering Industry
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Date
2019-01
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Addis Ababa University
Abstract
The main purpose of this study was to assess the effect of SCM practices on operational performance of Bishoftu Automotive Engineering Industry (BAI). Effective SCM practice has become a valuable way of improving organizational performance and acquiring competitive advantage since today’s competition is no longer between organizations however it is among supply chains. The dimensions of SCM practices examined in this study were strategic supplier partnership management, customer relationship management, level of information sharing, quality of information sharing and postponement. The metrics for measuring the company’s operational performance were the delivery dependability, quality of product, supply chain cost and operational flexibility. The study adopted quantitative method and the proposed conceptual framework of the study were tested using descriptive and explanatory research method. Non-probability sampling that is purposive technique was used as this technique enables the researcher to use his discretion in selecting samples from the target population. Using a total of 49 survey questionnaires, the primary data was collected from 32 employees and managers of BAEI as well as 17 management bodies of five major customers of the case company. The data was collected by using 5 point Likert Scale type questionnaire and then the collected data were analysed using SPSS Version 20. The data analysis, thus, indicated that most commonly implemented SCM practice in the case company was strategic supplier partnership, followed by customer relationship management, level of information sharing, and quality of information sharing practices consecutively. As the major findings of the study it has been observed also that there was a significant correlation between SCM practices and the overall operational performance of the company since the SCM practices explained 69.6% of the variability of the operational performance of the company. The study recommends, therefore, that the case company should strive to improve the effectiveness and comprehensiveness of its SCM practices in order to enhance its operational performance in particular; overall performance in general
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Keywords
SCM practices, Operational, Performance