The Effect Of Supply Chain Management Practices On Competitive Advantage: In The Case Of National Alcohol And Liquor Factory, Ethiopia

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Addis Ababa University


Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage since competition is no longer between organizations, but among supply chains. This study conceptualized and develops six dimensions of SCM practice (strategic supplier partnership, quality of information sharing, level of information sharing, customer relationship, internal integration, and postponement) and tested the relationships between SCM practices and competitive advantage. The purpose of this study is to show the effect of supply chain management practices on competitive advantage. The target population consisted of 273 respondents. The study utilized 61% of the target population which was selected using a stratified random sampling technique giving a sample size of 166 respondents. Questionnaires and semi structured interview were used as the main data collection instrument and a pilot study was subsequently carried out to pretest questionnaires for validity and reliability. The gathered data was analyzed using descriptive studies aided by Statistical Package for Social Sciences version 16 and findings presented on frequency tables, figures and inferences drawn from the data obtained. Correlational analysis and multiple linear regressions were carried out to establish the relationship between the research variables. The main findings of the study revealed that there is a practical implementation of supply chain management practices in National Alcohol and Liquor Factory, Ethiopia and that the four supply chain management practice; strategic supplier partnership, level of information sharing, internal integration, and postponement positively and significantly affect competitive advantage of the organization. Even if the impact of quality of information sharing and customer relation management significant for factory’s competitive advantage, due to low application in the factory their effect was found inverse. Hence, the researcher recommended that the management of the case factory should play a significant role to ensure the application of all the supply chain management practices and their significance also reviewed thoroughly



supply chain management, Supply chain management practice, Competitive advantage