ASSESSMENT ON SUPPLY CHAIN PERFORMANCE MANAGEMENT PRACTICES (THE CASE OF HAWASSA TEXTILE SHARE COMPANY)

Abstract

Supply Chain Management has emerged as one of the most powerful tools for business improvement because it is the means by which companies are engaged in creating, distributing, and selling products, and can join forces to establish a supply network with a supreme competitive advantage. Companies are pursuing supply chain as the latest methodology to reduce costs, increase customer satisfaction, better utilize assets, and make new revenues. The purpose of this paper is to study the supply chain performance management practices of Hawassa Textile Share company (HTSC) from the six Supply Chain Performance Management (SCPM) practices perspectives: Supplier and customer relationship practices, inventory management practices, internal operation practices, information sharing and information technology practices, supply chain performance and employee performance. For the completion of this, the study was employed through descriptive design in which the selections of the respondents were carried out by using stratified simple random sampling technique. The total target population of employees is 920 among which 181 employees were selected as a sample with stratified simple random sampling. Both primary and secondary sources of data were used for this study. Likert scaled questionnaire as well as interviews were used as instruments for data collection. The data was analyzed by using descriptive statistics and presented in figures and tables. The major findings indicate that most SCPM practices are moderately practiced within the HTSC, whereas information sharing and information technology and supply chain performance practices are poorly applied which represented with group mean value of 2.43 and 2.49 respectively. Based on both quantitative and qualitative analysis it is found that the case company has moderate relationship with its customers and suppliers, good inventory management practice, moderate internal operation practice, and moderate employee performance. In terms of the result HTSC supply chain performance management practices is at moderate performance level.