The Outcome of Supply chain management practice on organizational performance on pharmaceutical companies In the case of Jimma

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.