Determinants of supply chain management performance: a study on Ethiopian commodity exchange (ecx) jimma district

Abstract

In the current competitive scenario supply chain management assumes a significant importance and calls for serious research attention, as companies are challenged with finding ways to meet ever-rising customer expectations at a manageable cost. To do so, businesses must search out which parts of their supply-chain process are not competitive, understand which customer needs are not being met, establish improvement goals, and rapidly implement necessary improvements. The main objective of this study was to examine the determinants of supply chain management performance in Ethiopian commodity exchange Jimma district. Information sharing, supplier buyer relationships, environmental factors and human metrics were the selected factors to determine the supply chain performance. The study used descriptive survey design together explanatory design with representative sample of 107 respondents from the targeted population using both non-probability of purpose sampling and probability sampling of simple random sampling. Both primary and secondary data were collected using questionnaire and interview. The collected data was analyzed using both descriptive statistics (frequency, mean and standard deviation) and inferential statistics (correlation and liner regression). The main findings of the study show that, the supply chain management performance is determined by the information sharing, supplier buyer relationships, environmental factors and human metrics. However, the degree in which they determine the supply chain management performance of the organization is not the same, for instance the information sharing was moderately correlated with supply chain management performance, whereas there was weak positive correlation between environmental factors, human metrics and information sharing respectively. This implies that all of the factors can determine the performance of supply chain management to some extent. Therefore, it can recommended that due attention should be given to these factors in planning or design supply chain performance management.