Impact of supply chain Practices on organizational performance: The case of Alle Bejimla

Abstract

Supply chain practices form the core part of organizational success. This paper aimed to examine the effects of Supply chain practices on the organizational performance of Alle Bejimlaa. The research used descriptive and quantitative statistical analysis methods and employed questionnaires and structured in-depth interviews employeed for data collection. The findings indicated that supplier segmentation was practiced to a great extent while supplier performance management practices were practiced to a moderate extent. The other three elements, SRM governance , supplier development practices and information sharing were found to be practiced to a small extent. The model developed using multiple linear regression to estimate the effect of supply chain practices on organizational performance resulted in only two significant variables Supplier Performance Management and Information Sharing. The results suggest that at Alle, the supply chain strategies/practices are very weak and are not considered a strong determinant of organizational performance. The findings indicated that only a few of the elements of supply chain practices are considered to be practiced to a great extent. It is, therefore, recommended that Alle start with a strong supplier segmentation, set-up a clear responsibility and guide to govern SRM, improve its performance management practice to make sure Alle and its supplier partners benefit from the partnership, and take advantage of current state of technology to collaborate and information sharing with its supply partne