The Effect of Supply Chain Management Practices on Organizational Performance: a Case Study of BGI Ethiopia (Addis Ababa, Kombolcha, and Hawassa)
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Date
2025-05-19
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A.A.U
Abstract
The study is titled “The Effect of Supply Chain Management Practices on Organizational Performance: A Case Study of BGI Ethiopia (Addis Ababa, Kombolcha, and Hawassa).” To enhance the long-term performance of individual organizations and the overall supply chain, supply chain management involves the systematic and strategic coordination of all parties involved both directly and indirectly in meeting customer requests. This research paper explores the relationship between the company's organizational success and supply chain management practices. It assesses how competitive advantages influence BGI Ethiopia's performance and examines the implementation of supply chain management within the organization. Data for the study was gathered from the company's employees and various distributor agents through questionnaires, as well as from both primary and secondary sources. The sample respondents were selected with the help of probability random sampling particularly the stratified random sampling technique by applying proportional allocation to randomly selected branches (the strata). The questionnaire was developed based on the key variables identified as essential for achieving the study's objectives and was subsequently entered into SPSS analysis software for evaluation. The correlation Analysis indicated that supply chain management practices (customer relationship, strategic supplier partnership, level of information sharing, quality of information sharing) have significant and positive Relation with organizational performance and also the competitive advantage of product quality and competitive advantage of delivery dependability had a positive relationship with performance of the organization. The regression model analysis indicated that customer relationship, strategic partnerships with suppliers, of information sharing, and competitive advantages related to price/cost, product quality, and delivery dependability significantly impact the organizational performance of BGI Ethiopia. Based on these findings, the researcher recommends that BGI Ethiopia collaborate with suppliers in areas such as new product development, planning, goal-setting activities, problem-solving, and product improvement to enhance performance and gain a competitive edge.
Material flow is closely dependent on information flow, so it is better to share the information timely and accurately. Since only production will not lead to good performance the company should produce the kind of product needed and delivering it to end user timely.
Key words: Competitive advantage, Customer relationship, Organization performance, supply chain management practice