The effect of supply chain management on organizational performance, a case study on BGI ETHIOPIA

Abstract

The main purpose of the study is to examine the effects supply chain management practices on organizational performance of BGI ETHIOPIA. Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance since competition is no longer between organizations, but among supply chains. So, this research paper tried to assess the gap in between the SCMP and organizational performance and evaluate the role of supply chain management practice on organizational performance and determine the relationship between supply chain management practices with competitive advantage and organizational performance of the company. Data for the study is collected from employee of the company and from different distributor agents by using questioner and also from primary and secondary sources. And for this study probability sampling particularly stratified sampling technique is used and the target population is divided in different strata. Correlation findings of the study were that supply chain management practices had a positive effect on various parameters of performance. Like (strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, postponement) have significant and positive impact on organizational performance and from Regression Analysis between SCM practices with organization performance of the company three variables, customer relationship, level of information sharing, and level of information quality had strong significant influence on organizational performance of BGI Ethiopia. Strategic supplier partnership, and lean practice had no significant influences on organizational performance of the case company. And this paper recommends that BGI Ethiopia must improve the involvement of its suppliers in solving the problems, company is expected to evaluate and determine its customer expectation and encourage its customers to seek pertinent assistance and the company to be competitive enough and to sustain in a changing market and remain profitable, BGI Ethiopia would need to re-evaluate their supply chain practices such that they keep pace on the market.