Abstract:
The main goal of supply chain practice was to produce the right product or service, in the right
quantity, at the right time and at minimal cost with the purpose of satisfying customer
requirement and internal target as efficiently as possible. Supply chain management practices
were initiatives that influence the whole supply chain. Even though, this practices have great
influence on the organizational performance of any organization and it was affected by factors
such as type of industry, firm size, and length of supply chain. Therefore, the general objective of
this study was assessed and investigated the effects of supply chain management practices on the
organization performance of Yiyi pharmaceuticals, Farees pharmaceuticals, Bama
pharmaceuticals, Shanan Gibe pharmaceuticals, Badrug pharmaceutical, Jiren Pharmaceuticals,
Tropical pharmaceutical and Oliyad pharmaceuticals. To meet the objectives of this research, the
study adopted quantitative method and the relationships were tested using descriptive research
method. The primary data was collected from 77 employees of pharmaceutical companies by
using Likert scale type questioner as measuring instrument for collection of the employees‟
perception towards the variables then, the collected data were analyzed using descriptive
statistics, correlational and multiple regression analysis and the study was used statistical
package for social sciences (SPSS Version 21) to analyzed the quantitative data. The major
finding of the study indicated that supply chain management practices (i.e. strategic supplier
partnership, customer relationship, information sharing, information quality and lean practices)
have positively and significantly related to the organizational performance of pharmaceutical
companies. It can be concluded that there was a positive correlation between supply chain
management practice and organizational performance of pharmaceutical companies. Therefore,
pharmaceutical companies conceder the implementation of these supply chain management
practices to take a proactive role in the management of their supply chain in establishing a strong
position over its competitors and achieving its goals.
