The Effect of Supply Chain Management Practice on Organizational Performance: the case of BGI Ethiopia
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Date
2017-06
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Addis Ababa University
Abstract
One of the most significant changes in the paradigm of modern business
management is that individual businesses no longer compete as solely autonomous
entities, but rather as supply chains. In this emerging competitive environment, the
ultimate success of the business will depend on management’s ability to integrate
the company’s intricate network of business relationships. Effective supply chain
management (SCM) has become a potentially valuable way of securing competitive
advantage and improving organizational performance since competition is no
longer between organizations, but among supply chains. Supply chain management
(SCM) is one of the most important tools that companies use to develop their
performances. The basic objectives of this research was to study the relationship
between supply chain management practices and organizational performance of
BGI Ethiopia, four key dimensions of SCM practices (strategic supplier partnership,
customer relationship, level of information sharing and quality of information
sharing) were used as independent variables. A sample of 47 employees and 6
distribution agents taken. A questionnaire was used as a research tool for the
collection of data. Baseline data was gotten from employees and agents of the
company and also from secondary data. Collected data were analyzed through SPSS
version 23. Main findings of the study revealed that there is a low level of practical
implementation of SCM practices in BGI Ethiopia and that only Customer
relationship has strong significant influence on competitive advantage. Strategic
supplier partnership, Level of information sharing and Level of information quality
on competitive advantage has no significant influences on competitive advantage of
the case company. Quality, Delivery dependability and time to market have strong
significant influences on organizational performance.
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Keywords
Organizational performance, Supply chain management, management practices