The Effect Of Supply Chain Integration On Operational Performance (The Case Of Mw Plastic Products Manufacturing Company In Sebeta)
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Date
2018-06-05
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Addis Ababa University
Abstract
Supply chain integration is a crucial approach to improve the different dimensions of operational performance. The focus of the study is to investigate the effects of supply chain integration on operational performance in MW Plastic Products Manufacturing Company in Sebeta. In order to give better performance to the company and services to the customer, integration as a process has many touch points with multiple functions within the company and these functions need to be integrated. In order to conduct the research, problems related to lack of alignment among departments, cross-functional management, Strategic partnership and sharing of production capacity, awareness about the strategic plans of the company and Joint decision making on the issues of procurement, inventory management, production, distribution,extended lead times ,quick ordering systems, the occurrence of missed sales due to out of stock generated by problem of demand forecasting and logjam delay related with use of Enterprise Resource Planning, storage space utilization, poor supplier involvement on the development of firm values, and stability of procurement with suppliers and with major customers.
An explanatory (causal) research design was employed with a sample of 176 employees through stratified sampling. A questionnaire was used as a research tool for collecting data. Baseline data were captured from some informants and from secondary data. The collected data was analyzed using both descriptive statistics (mean & standard deviation) and inferential statistics (correlation and linear regression). Regarding the correlation, it is possible to conclude that there is a strong and positive relationship among the four supply chain integration dimensions which this study was relied on. TheMain findings of the study showed that, there was better existence of integration along the supply chain as the mean values of internal integration,information integration, and customer integration were above the minimum requirement, which is 3 except supplier integration as its mean value was below the limit. Moreover, internal integration, customer integration, and information dimensions of supply chain integration has a positive and significant effect on operational performance of the enterprise in which supplier integration dimension had failed to signify the effect and needs to include other supply chain variables. And also, the study recommends proper internal integration, information integration, supplier integration and customer integration strategies in order to bring effective operational performance.
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Customer integration, information integration, internal integration