The effect of supply chain integration on operational performance of Ethiopian pharmaceuticals supply agency (epsa), jimma branch

Abstract

Supply chain integrationmechanisms may enhance interaction andcollaboration in the firm supply chain, especiallyin the buyer-supplier interface. Internal integrationbetween purchasing and manufacturing groupsalso played a significant role in suppliercollaboration at the problem solving process. The objective of this study is to assess the effect of supply chain integration on operational performance of Ethiopian Pharmaceutical Agency (EPSA) Jimma branch. The study qualitative and quantitative approach has employed.The design of the study was descriptive and explanatory research methods. The sample size for this study was 112 employees from EPSA Jimma branch. The target respondents who were included on this study are employees who worked on the supply chain operation of the agency. Census sampling technique was employed for this study. Therefore, all the target population, 112 were planned and the researcher could able to collect 103 (91.96%) questionnaires.Both primary and secondary data collection approaches were used to conduct this study.. Based on this the data were analyzed using descriptive and inferential statistical analysis techniques. The results from the regression model indicate that supplier integration, information integration, customer integration and internal integration The finding of this study showed that there was a positive and significant relationship between the integration of internal, information, customer and suppliers and the operational performance of EPSA Jimma branch. Currently the internal integration identified in the study area is good however to made it either better or best the agency should have to give a critical emphasis on alignment among departments through better data integration & creating continuous interdepartmental contact among internal functions. Besides, the agency should have to equip itself with modern technologies like enterprise resource planning systems which benefits the company through better integration.