THE PRACTICE OF SUPPLY CHAIN MANAGEMENT AND ITS RELATIONSHIP WITH ORGANAZATIONAL PERFORMANCE THE CASE OF ETHIOPIAN MARBLE PROCESSING ENTERPRISE

Abstract

To be successful, organizations must look into their performance in supply chain management. Much emphasis on strategic supplier partnership, customer relationship, level of information sharing and internal lean practice are important for effective organizational performance, because many researchers have shown that supply chain management has a positive effect on organization’s performance. The study was conducted on the supply chain management practices and challenges in the case of Ethiopian Marble Processing Enterprise, Addis Ababa. The general objective of this study was to examine supply chain management practices and challenges. The design of the study was descriptive in nature. Primary data and secondary data were used in this study. Since the total populations of employees were known, the student researcher used stratified random sampling techniques for the study. The student researcher conducted the research by taking the sample determination method developed by Carvalho (1984).Accordingly fifty employees were selected and presented them with closed-ended questions. However unfortunately, seven employees hadn’t returned the questionnaires. And an interview was conducted with the manager. The techniques of analysis used in this study are descriptive (frequency, percentage, mean and standard deviation) and inferential analysis (regression& correlation). The finding of the study shows that there is strong relationship between SCM practices and organizational performance. Besides, SCM practices and challenges have an influence on organizational performance. Therefore, in order to enhance organizational performance, it is better for the organization to give due emphasis to the SCM practices and challenges.