The Effect Of Supply Chain Management Practices On Performance Of Ethio Agri Ceft P.L.C. Tea Processing And Packaging Factory By
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Date
2019-06
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Addis Ababa University
Abstract
Supply chain management is a means by which firms engage in creating, distributing and selling
products to establish supply chain networks with unbeatable competitive advantage has developed
as one of the most powerful business improvement tools to reduce cost, increase customer
satisfaction, better utilization of resource & increase revenue. The purpose of this study is to
assess the effect of supply chain management practice towards organizational performance of
Ethio Agri CEFT tea processing and packaging factory. The study used four independent variables
(strategic supplier partnership, customer relationship practice, internal operation and
information sharing) with the dependent variable (organizational performance). Primary data
were collected through questionnaires from respondents by Likert scale type questionnaires as
measuring instruments from 94 selected respondents by purposive sampling technique and from
those 94 questioners 81 questioners were collected which is 86% of response rate. The research
used explanatory (Casual) research method to conduct this study and the collected data were
analyzed to descriptive statistics by software called statistical package for social science students.
Inferential statistic was calculated by Pearson correlation and multiple regression analysis
technique & the reliability of data checked by Cronbach’s Alpha with the result of 0.891. The
result of descriptive statics shows majority of respondents disagreed and the correlation result
shows there is positive relationship between dependent & independent variables. The regression
analysis result indicates customer relationship practice, internal operation and Information
sharing have significant influence on organizational performance. Whereas the influence of
strategic supplier partnership on organizational performance is insignificance. The overall result
of the study indicate that effective supply chain management practice has an effect on
organizational performance of tea processing and packaging factory (TPPF) and the practice of
strategic supplier partnership is very poor, customer relationship practice, internal operation and
information sharing also needs improvement. To sustain in the dynamics business world the
factory develops multi-skill working capacity, replace outdated machineries by the modern one,
create collaboration with business partners and relocate the resource in proper manner.
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Keywords
Supply Chain Management Practice, Organizational, Performance