Determinants of Efficient Supply Chain Management: The Case of National Tobacco Enterprise (Ethiopia)

Abstract

Supply chain management is a backbone of manufacturing companies; it enables them to manage all tasks throughout the business process. Both business strategy and specialized software are used in these endeavors to create a competitive advantage. The main objective of this research is to identify determinants of efficient supply chain management in National Tobacco Enterprise (Ethiopia) Sc (NTE). More specifically to identify determinants from Suppliers, Employees and Cigarette distributors (Wholesalers) perspective. The method employed was Mixed research method where by 154 structured questionnaires were sent to input suppliers, employees and cigarette distributors while semi-structured interview was conducted with two of NTE managers who have proven experience on supply chain roles. Samples were drawn using sampling techniques; random sampling, purposive sampling and census from target population of suppliers, Employees and cigarette distributors respectively. But the data were collected only from suppliers, employees and cigarette distributors located in Addis Ababa. The research framework was tested in SPSS version 20 using both descriptive statistics and linear correlations. The empirical analysis on feedback from the questionnaire results in commonly information sharing with stake holders and supply chain integration are requirements which have significant impact on supply chain management practices .On the other hand from analysis of the interview feedback, mainly regulatory frame work specific to the industry has strong impact on the supply chain management practices of NTE. Furthermore, cultural factors are also one of the determinants of the supply chain management practices. The case company is advised to extensively practice supply chain management requirements mainly Information sharing practices and supply chain integration. Furthermore, the company must work to minimize the impacts of the regulatory framework and Cultural factors which are outputs of the qualitative analysis This study was conducted in one organization with a relatively small sample size of respondents. However, being the first study to assess the impacts of supply chain requirements on supply chain management practices, in tobacco industry in Ethiopia, this research will serve as a spark light for future researches.