Effect Of Supply Chain Integration On Lead Time: The Case Of Ethio-Nippon Technical Company S. C.
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Date
2017-06
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Addis Ababa University
Abstract
Over the years, the concept of Supply Chain Integration (SCI) and its effect on firm performance has been an essential topic of interest in the field of Supply Chain Management (SCM). Short Lead time is one of the contributor to improved organizational performance. The purpose of this paper is to assess the effect of supply chain integration on lead time in the case of Ethio-Nippon Technical Company S.C.. A conceptual framework is developed linking the three supply chain integration dimensions (Supplier, Customer and internal) with lead time.
An explanatory research design was employed to assess the current relationship between lead times and the three dimension of supply chain integration. By using non probability sampling technique i.e. purposive sampling technique from a total of 113 employees who are working in the company Procurement & Sales and After Sales Support Department 56 employees were selected whose educational status is diploma and above, who have a thorough knowledge and direct relation with the topic in discussion. Structured questionnaire was used as a research tool for collecting data. Interview was conducted with the Managers of Procurement & Sales and After Sales Support Departments.
From the total questionnaires distributed 53 were returned. The collected data was analyzed using both descriptive statistics and inferential statistics such as correlation and linear regression. Findings of the study shows that there is a poor Supply Chain Integration in the company. Majority of the respondents disagree in the availability of good supply chain integration in the company and short lead time for the provision of services required by customers by rating low in all the dimensions of supply chain integration and lead time. The Study concluded that the company has weak supply chain integration and extended lead time for the services provided to its customers. Supplier Integration, Customer Integration and Internal Integration have significant relationship with lead time of the company. But even if supplier integration has significant relationship with lead time it doesn’t have a significant effect on the company’s service lead time.
Based on the findings, the study also recommends a number of points that improves the integration between the various supply chain partners and the company in addition to the recommendation direction for future research are provided
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Supply Chain Integration, Lead Time, Customer Integration