The Determinants of supply chain management performance: the case of Arjo Dedessa Sugar Factory

Abstract

Supply Chain Performance measures clearly show not only how well an institution meets the needs of its customers but also how it handles its customers in terms of quality and efficiency to add customer value for goods and services. This has triggered the need for performance measures, or metrics, for global supply chain performance improvements. Nevertheless, no study has been conducted to identify or assess the determinants of supply chain management performance in sugar factories. This study mainly tries to examine the determinants of supply chain management performance in Arjo Dedessa Sugar Factory. The study problem was answered through a combination of quantitative approach in order to reduce the limitation and an explanatory design was employed in the current study to assess the determinants of supply chain management performance. The populations of the study were consisted of 1,100 employees and suppliers of the factory. Sampling size 293 employees and suppliers was select randomly. The researcher used primary and secondary data for further analysis. Linear Regression Model was applied in explaining the relationship between dependent and independent variables since the outcome variable is continuous variable that ranges from strongly disagree to strongly agree. Furthermore, the value of regression analysis shows that supplier buyer relation, human metrics, external supply chain, environmental factor and information sharing have a statistical significant effect on supply chain management performance. All the independent variables in the study influenced supply chain performance and with the highest influence were being the external supply chain and environmental factors and the least being information sharing and Supplier-Buyer relations. In order to improve the supply chain management performance, the factory needs to create a long-term strategic approach.