THE EFFECT OF SUPPLY CHAIN MANAGEMENT PRACTICES ON PERFORMANCE OF ORGANIZATION: THE CASE OF ZAK INDUSTRIAL

Abstract

The interest in managing supply chains had grown rapidly among companies around the world. Many companies had moved aggressively to implement and improve on supply chain management practices with the hope of enhancing revenue, profitability, control costs and asset utilization, as well as lead to market share growth. However, these companies had not been able to formulate the right strategies required to achieve this task and this had affected negatively the performance of most organizations, therefore, the study investigated the impact of supply chain management practices on performance with reference to Zak Industrial PLC. The objectives of the study is to establish the impact of Level of Information Sharing, Strategic supplier partnership, customer relationship, material flow management and corporate culture Practices on performance at Zak Industrial PLC. A survey was conducted by drawing a sample size of 75 employees from a target population of 100 employees using the Fisher‘s model through stratified sampling technique. A structured questionnaire is used to collect data. The relationships proposed in the framework were tested using Pearson correlation, and the causal relations were analyzed using regression analysis. From the result of the analysis, it is concluded that four supply Chain Management Practice (strategic supplier partnership, customer relationship, material flow management and corporate culture) have positive and significant influence on Organizational Performance whereas; level of information sharing is not statistically significant to influence Organizational Performance. Therefore to achieve advancement in marketing and financial performance in the long run through enhancing organizational performance, it is better for the organization to give due emphasis on Supply Chain Management Practices.