The Effect of Supply Chain Management Practices on Operational Performances: The Case of HEINEKEN Kilinto Brewery
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Date
2018-05-10
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Addis Ababa University
Abstract
Now days, Supply Chain and its management practices have become critical for securing competitive advantage and improving organizational performance because, competition is no longer between organizations, but among supply chains. This study is conducted with an objective of identifying effect of supply chain management practices on operational performance of Heineken Kilinto Brewery. Among different supply Chain practices, the study conducted on strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and internal lean practices and tests the relationships between supply chain management practices and operational performance. The study used both descriptive and explanatory research designs. The descriptive analysis is conducted by using mean and standard deviation. Whereas, inferential analysis was conducted by using Pearson correlation method and ordinary least square multiple regressions (OLS) method. The result indicated that supply chain management has significant effect on operational performance of HBSC Kilinto Factory. Strategic supplier partnership, customer relationship and internal lean practices have significant positive effect on operational performance of the company. But effects of level of information sharing and information sharing quality have no statistically significant effect on operational performance. Based on the findings the researcher recommends that management of the company has to improve strategic supplier partnership, customer relationship and internal lean practice of the company.
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Supply chain management practices, Operational performance, Strategic supplier partnership