ANALYSIS OF FACTORS AFFECTING SUPPLY CHAIN MANAGEMENT EFFICIENCY: A CASE STUDY ON ETHIOPIAN CONSTRUCTION WORKS CORPORATION

Abstract

The efficiency of supply chain management is very important for the competitiveness and profitability of any organization. Therefore, the purpose of this study was to analyze the factors affecting supply chain management efficiency at Ethiopian Construction Works Corporation. It also aimed at finding out the extent to which the corporation gives focus on such issue in order to enhance its employees' skills to reach its goals and visions as one national organization working on huge and giant projects. Besides, the major problems that hinder the achievement on supply chain management in the company were explored. In this study, mainly explanatory research design and quantitative research approaches were employed as it focused on identifying casual relationship and finding facts. For this purpose, purposively simple random sampling techniques and structured likert scale data collection instruments and interview were used. Self-administrative questionnaires were used to gather data. Out of the total 125 questionnaires distributed to the respondents 104 (83.2%) were filled out properly and returned. Quantitative data obtained through questionnaire were analyzed by using both inferential and descriptive statistical data analysis methods, processed through SPSS. A significant regression model were formulated at F((7,96) = 196.977, P ˂ 0.000), the coefficient of determination(R square) value of the model was 0.935 and its adjusted R2 was 0.930. The regression results showed that it was found that the first and the most influencing variables were distribution channel, the second supplier selection, the third procurement process, the fourth information sharing, the fifth inventory management, the sixth information technology and finally staff training.