Abstract:
Efficient supply chain management has an effect on the overall internal
performance of any organisation. This study was conducted on a population of
sourcing and supply chain division and some user department of ethio telecom. The
study adopted both qualitative and quantitative research approach to test the
hypothesis. As data obtained from company’s oracle and human resource section
the total number of employees working under the division is 362. From this,
researcher distributed questionnaires for sample size of 191 respondents by using
Likert scale measuring instrument for collection of the employees’ perception
towards the variables. The numbers of questionnaires completed and returned
were 173, Constituting 90.56% response rate. Secondary data were extracted from
books; studies conducted the area, company’s work document, annual
comprehensive reports, processes, and policies. The research study was conducted
through causal (explanatory) research design. Data analysis was conducted with
the aid of SPSS version 26 through which descriptive and inferential statistics was
used. Result revealed that materials management dimensions jointly contribute
significantly to organizational performance. The study further revealed that
material management functions procurement and inventory management have an
insignificant effect on organizational performance while material requirement plan
and warehouse management have a significant effect on organizational
performance. Subsequently, the study recommended that management should
embrace effective materials management especially in the area of material
requirement plan and warehouse management in order for the company to achieve
its vision of being a world class telecom service provider.
