The Effect of supply chain Management Practices on companies’ competitiveness: A case study of Mineral Water Factories in Dire Dawa City Administration

Abstract

Current Supply Chain Management brings valuable way of securing competitive advantage since the phase of competition is changed from company against company to supply chain against supply chain. The purpose of this study is to examine the supply chain management practices in mineral water factories. Specifically, the study investigated the effect of strategic supplier partnership, customer relationship management, quality of information sharing, and internal lean practice on companies’ competitiveness. To address this study both descriptive and explanatory research design was employed. The current total population of the study is 2,225. To achieve the objective of the study, both primary and secondary data source was utilized. Primary data was collected through a closed-ended questionnaire from a sample of 200 employees of the companies. Data obtained through the questionnaire was analyzed by using both descriptive statistics (mean and standard deviation) and inferential statics ((Pearson correlation and multiple linear regression were used to determine the significant effect of supply chain management practice on companies’ competitiveness). The major findings of the study indicated that most of the supply chain management practices such as strategic supplier partnership, customer relationship management, and quality of information sharing have a significant effect on companies’ competitiveness. Whereas internal lean practice has a positive and insignificance effect on companies’ competitiveness. This study, therefore, recommends that factors related with supply chain management practice need to be considered by firms in their performance strategic plans as they have a significant effect on companies’ competitiveness. And it’s better if the company gives special consideration to internal lean practice to improve its competitiveness.