Abstract:
Internal Supply chain integration is part of supply chain integration; coordinating and
synchronizing the internal functions and interdependent departments to address product and
services to end consumer to enhance common benefits. The main objective of the study was to
examine the effect of internal supply chain functional On operational performance in
BedeleBrewery which is located in Bedele town. The level and practice of information
integration, coordination and resource sharing, organizational relationship linkage,
perceived benefits of supply chain integration and information technology tools
implementation practice were analyzed. The main drivers of this study was those Critical
factors of the Internal supply chain integration including; Poor internal information
integration and traditional way of communication and lack of trust among internal partners.
The studydeployed descriptive research design with representative sample of 175 respondents
from the employees and process owners selected through simple random sampling. A self developed questionnairewas adopted from related literatures as well as semi structured
interview was used as a research tool for collecting data. The collected data wasanalyze
using statistical package for social science version.21 (SPSS) software, descriptive statistics
(mean standard deviation and correlation) were the main analysis method.Based on the
analysis, the research comes up with the following findings. All independent variables
internal integration, customer integration and supplier integration have significant positive
impact on operational performance. Finally based on the finding the recommendations
forwarded as follow. Beadle Brewery Share Company is better to enhance the extents of
integration of the three variables (Internal Integration, ICT/Information Technology,
Collaboration& Resource Sharing and Challenges) since these variables help to the
improvement of organizational performance.
