The Role of Strategic Sourcing in Operational Performance of the Organization: the Case of Ethiopian Airlines

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Addis Ababa University


. Title: The Role of Strategic Sourcing in Organization Operational Performance – A case study on Ethiopian Airlines. Background: Strategic sourcing and procurement is a critical challenge faced by many firms involved in the latest innovation of supply chain management. Organizations are operating in an environment characterized by countless economic and political disruptions to their sources of supplies and services. In order to survive in this turbulent market place, these organizations must continually monitor their competitive position as well as their internally controllable processes- especially the procurement process. Objective: The purpose of this paper is to critically analyze the role of strategic sourcing in organization performance of Ethiopian Airlines. Methodology: Descriptive research design was used in this study. Under this stage, the study fulfills the objectives of descriptive research by getting an in-depth knowledge of strategic sourcing determinants and sourcing current practices within Ethiopian airline and investigating the implications of these variables in the performance of Ethiopian. Result and conclusion: The study found out that strategic sourcing has a role to play in organization’s performance. The study established that strategic sourcing was affected by various factors which include Supply chain improvement, contract management, supplier relationship management and rationalization of supply base. Further research: However further research could investigate strategic sourcing in a different approach using additional variables like procurement plan, effective spend analysis, cost saving, supply chain risk management. Keywords: Strategic Sourcing, operational Performance, Suppliers, Strategic items. Competitive advantage .



Strategic Sourcing; operational Performance; Suppliers; Strategic items. Competitive advantage