“EFFECTS OF SUPPLY CHAIN MANAGEMENT STRATEGY ON ORGANIZATIONAL PERFORMANCE; THE CASE OF EAST AFRICA BOTTLING S.C”

Abstract

This study was conducted with an objective of identifying relationship between supply chain management and organizational performance of East Africa Bottling Company. It conceptualized and developed five dimensions of supply chain management practices: strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and internal lean practices and tests the relationships between supply chain management practices and organizational performance. This study used both descriptive and explanatory research designs. Purposive, stratified and random sampling methods were used. Stratified sampling method is used and a sample size of 59 was in study. Data were collected from primary sources through questionnaire and semi-structured interviews and analyzed through both descriptive and inferential methods. The descriptive analysis was conducted by using mean and standard deviation. On the other hand, inferential analysis was conducted by using Pearson correlation method and ordinary least square multiple regressions method. The result indicated that supply chain management has significant effect on organizational performance. Strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing and internal lean practices have significant positive relationship with organizational performance. Based on the findings it is recommended that management of the company has to improve supply chain management practices of the company.