The Effect of Supply Chain Management Practices on Operational Performances in Selected Wheat Flour Factories in Adama, Oromia Regional State, Ethiopia

Bogale Alemu Refu

doi:10.7176/iel/10-3-02

Abstract

The main purpose of this study was to investigate the effect of supply chain management practice and its effect on the operational performance of selected wheat flour factories in Adama city. Descriptive and explanatory research designs were used. The sample of the study was senior officers/executives in charge of SCM practice of the targeted factories who have rich experiences about the operation and management of supply chain practices in their respective factories. Those executives include general manager, production or technical manager, supply or purchasing manager, marketing manager, commercial manager, and inventory manager. The major data collection tools in this study were questionnaires and interviews. In the questionnaires, there are a set of questions included in each aspect of the SCM which were derived from extensive literature as well as the researcher’s discussion with supply chain professionals. The collected data were analyzed using both descriptive statistics and inferential statistics. Accordingly, the major analysis of the findings indicates that the practice of the factories regarding their relationship with suppliers was focused on helping them to meet the factory’s needs rather than building long term stable strategic partnership. In relation to the internal integration of the factories, the finding reveals that there is a strong internal operation within the factories. Key terms : Supply Chain Management, Supply Chain Management Practice, Operational Performance, Wheat flour factories. DOI: 10.7176/IEL/10-3-02 Publication date: November 30 th 2020

Highlights

In today’s highly competitive global business environment, there is an increased focus on to create value and deliver it to their customers
Efficient supply chain management practices have a greater impact on organizational performance when properly identified and implemented
The central objective of the study was to assess the level of practical implementation of supply chain management (SCM) practices and to analyze the effects of SCM practices on operational performance in wheat flour producing www.iiste.org factories in Adama city

Summary

Introduction

In today’s highly competitive global business environment, there is an increased focus on to create value and deliver it to their customers. The fast introduction of new products with shorter life cycle, growing customer satisfaction and ongoing development of information and communication technologies (ICT) and transportation infrastructure have forced business to invest in and give direct attention to their supply chain (Christopher,2005). A Supply chain (SC) consists of the whole activities associated with products and services movement from raw material stage to final products which are consumable by customers. This movement includes financial and information flow as well as material flow. Supply chain is all about individual, is a network consisting of downstream and upstream organizations which are involved in different processes and activities that create value for end customers in the form of products and services (Christopher, 1998)

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Conclusion