A Study of Supply Chain Management (SCM) Practices & Performance at Ambassador Garment & Trade PLC

Abstract

Supply chain management (SCM) is a key strate gic factor for increasing organizational effectiveness and for better realization of organizational goals such as enhanced competitiveness, better cust omer care and increased profit ability. Supply chain management practices (SCMP) are defined as the set of acti vities undertaken by an organization to promote effective management of its supply chain. This p aper develops a framework showing the effect of the four constructs of SCMP (strategic supplier partnership, customer relationship, level of information sharing and quality of information sharing) , and tests the relationships between SCM practices, competitive advant age and organizati onal performance. Data for the study were collected from the firm under study from its head office 51 and 39 respondents from branches within Addis Ababa. Sample sizes were determined by Krejcie, R & Morgan rule using purposive sampling technique. Questionnaires administered and we re coded and entered the SPSS. The relationships proposed in the framew ork were tested using Pearson correlation coefficient and casual relationships were analyz ed using regression analysis. Research findings indicate that SCM practices have positive effects on competit ive advantage and organizational performance. Further, SCM practices have ver y strong, positive relationship with competitive advantage, and weak, positive relationship with organiza tional performance. With respect to the relationship of competitive advant age with organizational perform ance, the study concluded that there is positive, but weak relationship is resulted. However, in various studies competitive advantage can have a direct, positiv e effect on organizational perfor mance. Hence, to strengthen and move ahead in marketing and financial perf ormance within a period of time through organizational performance, it is advisable fo r the firm to give more importance to develop strategic capabilities to link SCM practices to the dimensions of competitive advantage. Furthermore, It is highly recommended that a comprehensive research effort be undertaken having gone through the limita tions of this study.