| Abstract: | The purpose of this research is to study the effect of supply chain management practices on product quality in Awash wine SC. In supply chain management practice six relevant drivers were studied. These are Facility, Inventory, Transportation, Information sharing and its quality, Sourcing and supplier partnership and Customer relationship. From product quality perspective three dimensions were selected in which the researcher believed can be affected by supply chain management practices; these dimensions are consistency, fitness for use and variety. A survey questioner and interview is used to collect data. The study is explanatory in addition purposive and stratified sampling is used. Descriptive statistics is used to evaluate the level of success on supply chain management practices in the company and to examine product quality. Correlation and regression model is used to evaluate the overall association between supply chain management practices and product quality. The result from the study shows that the success of supply chain management practices in the company is varied mainly between poor, good and very good. Inventory, Transportation and Customer relation in the company is good; the analysis result on institutional facility is neutral. Information sharing and its quality of the company is good; whereas sourcing and supplier partnership practice of the company is poor. The correlation analysis shows supply chain management practice has strong and significant association with product quality. The regression analysis shows five supply chain management practices has significant and positive influence on product quality. These practices are inventory, transportation, information sharing and its quality, sourcing and supplier partnership and customer relationship. However facility has negative insignificant influence. This study has provided insight about the nexus between supply chain management practices and product quality and the effect of supply chain management practices on product quality. |
