THE EFFECT OF SUPPLY CHAIN MANAGEMENT PRACTICE ONFIRM PERFROMANCE: (THE CASE OF KALITY METAL PRODUCT FACTORY)

Abstract

The main objective of this study was to examine the effect of supply chain management (SCM) practices on Firm performance the case of Kality Metal Factory. The population of the study 317 employees of Kality Metal Factory who are direct relationship with research subject matter and 192 of them selected as a target sample size. In this study, both primary and secondary data used. The primary data were gather through questionnaire from 189 respondents of Kality Metal Factory. Journal, books, internet and other references used as a secondary source of data. The researcher used explanatory research design and quantitative research approach. Data was using descriptive and inferential statistics that include correlation and multiple liner regressions to analysis the SCM practices on Firm performance in Kality Metal Factory. In this study, a multiple regression analysis was conducted to test effect of supply chain management (SCM) practices on Operational firm, the finding shows that a low quality of information’s sharing of supply chain activities is leading to a negatively decrease the Firm performanceby17.1% per annual. Another result shows that there is low Operation system responsiveness of supply chain Activities that leads to a 7.7% negatively decrease the Firm performance per annual. As a result low Logistic process responsiveness of supply chain activities that lead to a 77.7% negatively decrease the Firm performance. Logistic process responsiveness in supply chain activity shows negatively affected the ability of Kality Metal Factory outbound transformation, distribution and warehousing system to address changes in customer demand. The findings also shows that there is low Supplier network responsiveness of supply chain Activities will lead to a 13.4 % negatively decrease the Firm performance per annual. The finding indicated that, Supplier network responsiveness have low ability to the kality metal product factories major suppliers to address changes in the firm’s demand. Finally, the study suggests that Kality metal product factories performance should develop their supply chain in order to get customer responses.