The Effect of Supply Chain Management on Operational Performance the case of selected Water Bottling companies operating in and the nearby areas of Finfinnee, Ethiopia

Abstract

Companies are generally expected to improve operational performance when they implement effective supply chain management. The main objective of this study was to investigate the Effect of Supply Chain Management on Operational Performance of selected Water Bottling Companies operating in and the nearby areas of Finfinnee, Ethiopia. This thesis had employed both descriptive and explanatory research design. Questionnaire method, and key informant interview methods were employed to collect important data there were 112 employees, to whom the questionnaires were administered. The data was analyzed by using a descriptive and inferential method. The data was analyzed by using SPSS version 20 (Statistical Package for the Social Sciences) and presented in the form of tables. The research found that operational performance was dependent on internal practices, integration with suppliers, and integration with customers, internal practices is the most determinant of operational performance followed by interaction with suppliers and interaction with consumers. . The regression model indicates that 86.5 % of operational performance was affected by the independent variables. Internal practices of supply chain like: effective Inventory management system, perform lean transportation method, reduces process set-up time, have transparent Purchasing practices are performed in its best manner by firms. However the firms in the sector have poor implementation of production planning. Finally it is recommended that companies in the Bottled Water sector should have Production planning to create an efficient process for production according to customer and organizational needs. It optimizes both customer-dependent processes -- such as on-time delivery -- and customer-independent processes, such as production cycle time.