The Effect of Supply Chain Management Practices on Operational Performance in the Case of the Ambo Mineral Water Share Company

Abstract

The primary purpose of this study was to examine the effect of SCM practices on Ambo Mineral Water Share Company operational performance. Strategic supplier partnerships, customer relationship management, level of information sharing, quality of information sharing and internal lean practices were the five independent variables included in the study, along with the dependent variable (operational performance). The metrics for measuring the company’s operational performance were the delivery dependability, product quality, supply chain cost and operational flexibility. By this intention the study employed both quantitative and qualitative approaches that are considered necessary for this kind of research, which deals with underlying issues that usually can be understood in a both manner, and the proposed conceptual framework of the study was tested using descriptive and explanatory research design. Probability sampling of stratified and simple random sampling techniques was used in selecting samples from the target population. Using a total of 175 survey questionnaires, the primary data was collected from employees and eight management bodies for interviews of the case company. The data was collected by using 5-point Likert Scale type questionnaire and interview, and interviews then the collected data were analysed using SPSS Version 26. As the significant findings of the study it has been observed that there was a significant correlation between SCM practices and the overall operational performance of the company since the SCM practices explained 64.3% of the variability of the company operational performance. From the analysis, it can be concluded that all Supply Chain Management Practice Practices have positive and significant effects on Operational Performance. Therefore, the study recommends that the case company strive to improve the effectiveness and comprehensiveness of its SCM practices to enhance its operational performance in particular; and overall performance in general.

Keywords: Supply Chain Management Practices, Operational Performance

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