Effect of Supply Chain Management Practices on Operational Performance in Selected Wheat Flour Factories in Adama

Abstract

The purpose of this study was to investigate supply chain management practices and its effect on operational performance of the selected wheat flour factories found in Adama City. Descriptive and explanatory research designs were employed in this study. Both primary and secondary source of data were collected using questioners. The questioner was used to collect data from sample respondents which were selected using purposive sampling technique considering their job position and responsibility related to SCM. Initially the questionnaires were distributed to 62 respondents selected from 13 flour factories. Out of this 59 (95.16%) of them were correctly filled and returned. The data collected was analyzed using both descriptive statistics (tables, mean and standard deviation) and inferential statistics (correlation and multiple regression analysis). The results of the data analysis showed that, SCM practices were found below satisfactory level in the study factories; the relationship of the factories internal integration with suppliers and customers was positive but weak. Almost similar relationship of the factories with customers and suppliers was observed. Concerning the effects of SCM practices on operation performance, except ICT the remaining variables of SCM practices have a positive effect on operation performances of the factories. From this it is concluded that the factories are doing business as usual and no attention was given to modern SCM theories and practices in the sector yet.