THE EFFECT OF SUPPLY CHAIN MANAGEMENT STRATEGIES ON OPERATIONAL PERFORMANCE IN THE CASE OF LARGE MANUFACTURING FIRMS OF DEBRE BERHAN TOWN

Abstract

The purpose of this study is to examine the effects of supply chain strategies on the operational performance of large manufacturing firms in Debre Berhan town. The study employed an explanatory research design in which the selection of respondents was done using a stratified proportional sampling technique. To determine the sample size Yamane, 1973 sample size determination formula was employed and based on the result 283 samples were taken from 9 large manufacturing firms. A questionnaire was used as a research tool for collecting data. The analysis was made using descriptive and inferential statistics. Descriptive statistics utilized for analyzing demographic characteristics of the respondents while inferential statistics was utilized to test significant relationship between variables and to test the hypotheses.. From the correlation analysis result, there were significant positive correlations between all variables (vendor-managed inventory; Enterprise resource planning; Collaborative Planning, Forecasting, and Replenishment (CPFR); Warehouse management system; and outsourcing) with firms’ operational performance at (p<0.005). Finally, according to the regression analysis result, all five supply chain strategies have a positive and significant effect on operational performance. As a result, the study has managerial implications that large manufacturing firms can increase their operational performance by implementing Supply chain strategies.