The Effect Of Supply Chain Management Practices On Organizational Performance: In The Case Of Awash Wine S.C, Ethiopia

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Date

2018-06

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Addis Ababa University

Abstract

The interest in managing supply chains had grown rapidly among companies around the world. Many companies had moved aggressively to implement and improve on supply chain management practices with the hope of enhancing revenue, profitability, control costs and asset utilization, as well as lead to market share growth. However, these companies had not been able to formulate the right strategies required to achieve this task and this had affected negatively the performance of most organizations, therefore, the study investigated the effect of supply chain management practices on performance with reference to Awash Wine. The objectives of the study were to establish the effects of Strategic Supplier Partnership, Customer relationship, Level of Information Sharing, Quality of Information Sharing and Internal Lean Practices on performance at Awash Wine S.c. A survey was conducted by drawing a sample size of 75 employees from a target population of 100 employees using the Fisher’s model through stratified sampling technique. The researcher used structured questionnaires to collect data. The relationships proposed in the framework were tested using Pearson correlation, and the causal relations were analyzed using regression analysis. From the result of the analysis, it is concluded that four Supply Chain Management Practice constructs (Customer relationship, Level of Information Sharing, Quality of Information Sharing and Internal Lean Practices) have positive and significant influence on Organizational Performance. Whereas, Strategic Supplier Partnership has not statistically significant to influence Organizational Performance. Therefore to achieve advancement in marketing and financial performance in the long run through enhancing organizational performance, it is better for the organization to give due emphasis on Supply Chain Management practices

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Keywords

Supply Chain Management practices, Organizational, Performance

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