The Effect of Supply Chain Management Practice on Organizational Performance in Case of Shemu Soap and Detergent P.L.C, Dire Dawa

Mikiyas Birahanu

doi:10.7176/iel/11-1-02

Abstract

The purpose of this paper is to examine the effect of supply chain management practice on organizational performance in the context of shemu soap and detergent factory p.l.c. Data were collected from 80 employees using closed ended questionnaires and analyzed using the ‘descriptive statistics and correlation and ordinal logistic regression’ methods. Analysis of the result revealed that the supply chain management practice (strategic supplier partnership, customer relationship, level of information sharing and quality of information sharing and internal lean practice) and organizational performance is causally correlated. Thus, the contribution of this study for academics and practitioners is that supply chain management practices will affect organizational performance as measured by supply chain management practice elements i.e. strategic supplier partnership, customer relationship, level of information sharing and quality of information sharing and internal lean practice. Keywords: supply chain management practice, shemu soap and detergent factory, organizational performance DOI: 10.7176/IEL/11-1-02 Publication date: May 31 st 2021

Highlights

IntroductionA Supply Chain can be described as a network connecting different entities, from the customer to the supplier, through manufacturing and services, so that the flow of materials, money and information can be effectively managed to meet the business requirements (Zigiaris, 2000)
This study tried to examine the effect of supply chain management practice on organizational performance of shemu soap and detergent factory p.l.c
The model given in the logistic regression model deals with the relationship between the predictor and response variables is not a linear function in logistic regression; instead, the logarithmic transformation of equation yields the linear relationship between the predictor and response variables

Summary

Introduction

A Supply Chain can be described as a network connecting different entities, from the customer to the supplier, through manufacturing and services, so that the flow of materials, money and information can be effectively managed to meet the business requirements (Zigiaris, 2000). From the literature review it is clear that researchers have varies views on the supply chain management practices that are fundamental to organizational performance. It is an indication that different organizations rank these practices differently whereby one supply chain management practice can be widely adopted by an organization but minimally adopted or even not at all used by another organization. The researcher had scarcely found any prior studies which were conducted to study the practical implementation of supply chain management practices as well as their impact on the organizational performance in Ethiopia soap industry

Methods

Results

Conclusion