The Influence of Supply Chain Risk Management Practices on Supply Chain Performance: The Case of Selected Pharmaceutical Manufacturing Firms in Ethiopia.
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Date
2019-06
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Addis Ababa University
Abstract
The study is sought to explore the influence of supply chain risk management practices adopted by the pharmaceutical manufacturing firms (East African Pharmaceuticals PLC, Cadila Pharmaceuticals Ethiopia PLC and Julphar Pharmaceuticals) on supply chain performance. The population included all supply chain, marketing employees and plant managers of the three firms. The research data was collected through a structured questionnaire with two open ended and all the rest closed ended supported by semi-structured interview questions. The questionnaire was administered by a five-point Likert scale method. The collected data was analyzed using both descriptive and inferential statistics by SPSS 23 to find out the influence of SCRM practices on supply chain performance of those firms. The study found out that the pharmaceutical manufacturing firms were using SCRM practices: supply chain flexibility, supply chain collaboration, supply base rationalization, supply chain control and supply chain avoidance in varying extent. Among the five SCRM practices, SC Collaboration was practiced highly followed by SC Avoidance and SC Control practices respectively while SC Flexibility and Supply Base Rationalization were least practiced. The major finding of the study indicated that among SCRM practices, SC Flexibility, SC Collaboration and SC Control have significantly affected the supply chain performance of the manufacturing firms. The study recommended that, firms should have contingency planning in response to demand fluctuation, develop SCRM procedure manual. Finally, firms should have proactive SCRM strategies which mitigate the supply chain disruptions rather than dealing with all risks simply by supply chain management.
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Keywords
Supply Chain Risk, Management Practice,, Supply chain performance