The Effect of Supply Chain Management Practices on the Operational Performance: The Case of ethio telecom
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Date
2017-06
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Addis Ababa University
Abstract
The main goal of supply chain practice is to produce the right product or service, in the right quantity, at the right time and at minimal cost with the purpose of satisfying customer requirement and internal target as efficiently as possible. Supply chain practices are initiatives that influence the whole supply chain. Even though, this practices have great influence on the operational performance of any organization, it is affected by contextual factors such as type of industry, firm size, and length of supply chain. Therefore, the general objective of this study was to assess and investigate the effects of supply chain management practices on the operational performance of ethio telecom. In order to meet the objectives of this research, the study adopted quantitative method and the relationships proposed in the framework were tested using descriptive and explanatory research method. The primary data was collected from 134 employees of ethio telecom by using Likert scale type questioner as measuring instrument for collection of the employees’ perception towards the variables then, the collected data were analyzed using descriptive statistics, correlational and multiple regression analysis. The major finding of the study indicated that supply chain management practices i.e. strategic supplier partnership, customer relationship, information sharing, information quality and lean practices have significantly affected the operational performance of ethio telecom. However, the organization has to improve its supply chain practices in order to improve the operational performance even further. Specifically, ethio telecom has to improve involvement of suppliers in planning and goal setting as well as on new product development, the company should also provide on time and accurate information to its suppliers’. In addition, the company should improve its determination to meet the customer needs and demands
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Keywords
Supply chain management, SCM Practice, Operational Performance