THE EFFECT OF SUPPLY CHAIN MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE: THE CASE OF DIEGO- META ABO BREWERY ETHIOPIA.

Abstract

A supply chain is a sequence of processes and flows that aim to meet final customer requirements and take place within and between different supply chain stages. It includes coordination and collaboration with channel partners, suppliers, third-party service providers, and customers. Due to the number of rival companies expanding both locally and globally, organizations are facing different kinds of challenges in today’s dynamic global markets. To remain competitive, organizations must recognize the importance of supply chain practices that improve not only their organizational performance. The objective of the study is to investigate the effect of supply chain management practices on organizational performance in Diageo- Meta Abo Brewery Ethiopia. The study was used a descriptive research design in which selection of respondents was done using a purposive, stratified and simple random sampling technique. The analysis was made using descriptive statistics and the significant relationship of the independent variables with the dependent variable was made using inferential statistics (correlation and regression analysis). The descriptive analysis result shows, the majority of the respondents were male (54.1%). Most (57.6%) of the respondents during data collection were under 26 to 35 years old. 71.5% of them have bachelor’s degrees. The correlation analysis result shows that supply chain management practices i.e. strategic supplier Partnership, Customer relationship, Level of Information Sharing, and Quality of Information Sharing have a positive and significant relationship with organizational performance. Finally, according to the regression analysis result, that all the constructs SCMPs have a positive and significant influence on Organizational Performance. Hence, all the hypotheses that support the positive and significant relationship were accepted. i.e, the researcher accepts all the null hypotheses. Therefore, Due to the organization’s strong supply chain management, customer relations, and information sharing system, its performance was found to be high.