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ARBA MINCH UNIVERSITY

COLLEGE OF COMMERCES AND BUSINES ADMINSTRATION


DEPARTEMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Assessment Of The Factors Affecting Supply Chain Management


Practices; With Special Reference To Coca Cola Soft Drink Share
Company/A.A/

Senior Essay Submitted For The Partial Fulfillment Of The Requirement


Of The Bachelor Of Art (B.A) Degree In Logistics And Supply Chain
Management

PREPARED BY: Asmammaw Sisay

ID NO-: RBE/156/08

ADVISOR:BIJIGA K. (MA)

MAY, 2018

SAWLA, ETHIOPIA
TABLE OF CONTENT………………………………………………………………………PAGE

ACKNOWLEDGEMENT …………………………………………………………………………...II

ABSTRACT…………………………………………………………………………………………...III

ACRONYM……………………………………………………………………………………………IV

CHAPTER ONE…………………………………………………………………………1

1.1 Background of the study................................................................................................................ 1

1.2 Back ground of the organization ................................................................................................... 1

1.3 Statement of the problem.............................................................................................................. 2

1.4 Basic Research Questions.............................................................................................................. 3

This paper was try to address the following research question ........................................................... 3

1.5 Objectives of the Study ................................................................................................................. 3

1.5.1 General objective ........................................................................................................................ 3

1.5.2 Specific objectives .............................................................................................................. 3

1.6 Significance of the study ............................................................................................................... 4

1.6 Scope of the study ......................................................................................................................... 4

1.7 Limitation of the study .................................................................................................................. 5

CHAPTER TWO................................................................................................................................6

2 Review of Related Literature............................................................................................................ 6

2.1 Definition of supply chain management ........................................................................................ 6

2.2 Supply chain integrations and collaboration ................................................................................. 7

2.2.1 Supply chain integrations ................................................................................................... 7

2.2.2 Supply chain Integration practice ....................................................................................... 8

2.2..3 Supply chain collaboration ................................................................................................ 9

2.2.4 The types of supply chain collaboration ........................................................................... 10

2.3 Importance of supply chain integration. ...................................................................................... 11

2.4 Supply Relationship management ............................................................................................... 11


2.5 Designing customer relationship process .................................................................................... 14

2.6 Selecting network design ............................................................................................................. 15

2.7 Supply chain network structure ................................................................................................... 15


2.8 Factors influencing supply chain network ................................................................................... 17

CHAPTER THREE.........................................................................................................................17

3. Research design and methology.....................................................................................................20

3.1 Research Design .......................................................................................................................... 20

3.2 Source of data .............................................................................................................................. 20

3.3 Data collection method ................................................................................................................ 20

3.4 Sampling method and sampling size ........................................................................................... 20

3.5 Method of data analysis ............................................................................................................... 21

CHAPTER FOUR............................................................................................................................22

4. Data analysis and presentation ...................................................................................................... 22

4.1 analysis results of primary and secondary data ........................................................................... 24

4.2 The general process of supply chain management practice in ................................................... 24

4.3 The appropriate supply chain network practice (SCNP) ............................................................. 26

4.4 Customer satisfaction from supply chain practice ....................................................................... 29

4.5 Customers service from supply chain practice ............................................................................ 31

CHAPTER FIVE..............................................................................................................................34

5.Summary,Conclusion,and Recommendation ................................................................................. 35

5.1 Summary finding ........................................................................................................................ 35

5.2 Conclusions ................................................................................................................................. 35

5.3 Recommendations ....................................................................................................................... 36

Reference ........................................................................................................................................... 41
List of tables

Table 4.1 Employees background..........................................…………….......................18

Table 4.2 overall company's supply chain process………………………………….20

Table 4.3 supply chain network practice…………………………………………...22

Table 4.4 Customer Satisfaction……………………………………………….……24

Table 4.5 Customer service……………………………………………………………...26


Acknowledgment
First and for most I would like to thank the Almighty "GOD" who give me life ,health ,and
wisdom to reach this stage of my life and who always with me. Secondly, I would like to
express my deep appreciation and gratitude to my advisor Bijiga K. for his close
supervision, correction, comment and encouragement for successful completion of this
paper.

Thirdly, thanks must go to my family especially to my mother Aregu Fentaw and my


father Sisay Gedamu and all my friend those who supported me for this paper for their
moral, financial support and irreplaceable advice.

Lastly, highly grateful to the manager and employees of A.A coca cola soft drink share
company. I would like to thanks all those who helped me with their valuable wisdom in this
effort.

II
III
Abstract

Supply chain Management has been many components of competitive strategy to improve
organizational productivity and profitability. Firms are starting to be aware the importance
of network practice with links of supply chain. The supply chain management practice was
to facilitate the work within the company fast and with cost effective. The Researcher had
been focused on factors affecting supply chain management practice in case of Addis
Ababa coca cola Soft drink share Company. In order to achieve the supply chain
management practice in effectively and efficiently within the organization. The researcher
used descriptive research methods. The relevant data have been gathered from primary and
secondary through questionnaire by using non probability sampling technique particularly
purposive sampling. After the relevant data analysis tools collected the researcher used
quantitative data analysis tools.So, the findings that the organization assesses the criteria to
perform supply chain management practice and real information exchange within the
organization do perform accordingly. As a result there is a problem related to this activity
that the company must give attention.

Finally, after data collected and analyzed the researcher interpreted the data collected from
different respondents and give recommendation and conclusion for the problems observed
from the company.

IV
Acronyms
CCSDSC: Coca Cola Soft Drink Share Company

A.ACCSDSC: ADDIS ABABA Coca Cola Soft Drink Share Company

EABSC: East African Bottling Share Company

EDI: Electronic Data Interchange

SC: Supply Chain

SCC: Supply Chain Collaboration

SCI: Supply Chain Integration

SCM: Supply Chain Management

SCIP: Supply Chain Integration Practice

SCP: Supply Chain Practice

SCN: Supply Chain Network

SCNP: Supply Chain Network Practice

SRDM: Supply Relationship Data Management

V
CHAPTER ONE

1. INTRODUCTION

1.1 Background of the study


Supply chain management engaged in activities from raw material resource collection to
manufactured goods, order communication and management, product, ware housing and
the delivery path, and the final customer satisfaction hence firms seek the best way supply
chain practice for the cheapest and cost effective manner. In supply chain practice a
networks of supply chain are many factors obstacles. (I ummus and Vakurk, 1990).

According to (Kompstra et, al(2000) changes in the environmental (socio-political


changing demand) are the cause for increasing uncertainty in market place. In order to deal
with this flexibility in supply chain management as developed from the mid. 1960 to the
mid 1990 paid more attention to logistics and purchasing within supply chain channels.

Supply chain network refers to the steps taken to move and store product from suppliers
stage to customers stage. It occurs between every pair of stages overall profitability of a
firm because it affect both the supply chain and customer experience directly (Chopra etal,
2007).Among there responsive time, product variety and availability, customer experience
and market time. Therefore, the researcher is focus on supply chain management practice,
and also investigating the overall supply chain process. The reasons that the overall supply
chain assess the factors affecting the supply chain practice in the organization.

1.2 Back ground of the organization

Coca-Cola Soft Drink Share Company is the most valuable brand name and world's largest
non-alcoholic beverage company. This company was founded in 1886 in United State of
America. Now it operates in more than 200 countries. Coca-Cola also distributes juice,
energy drinks, water, and coffee.

Coca-Cola was first bottled in Ethiopia's capital Addis Ababa in 1959 by Ethiopian bottling
share company, which later opened a second branch in Dire Dawa in 1965. The two plants
were nationalized in 1975 and ran as public companies until 1996 when they were bought

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by Ethiopian entrepreneurs. Just prior to this, in 1995, Coca-Cola Sabco bought shares in
the business and, in 1999, signed a joint venture agreement with the plants. With its
leadership working hand in hand, the business has seen significant growth over the years.
Process and functions have been improved, resulting in considerable sales increases. The
company changed its name to East Africa Bottling Share Company (EABSC). The EABSC
continues to run the two plants and Addis Ababa Coca- cola soft drink share Company has
518 Male and 112 Female in total 630 employees. In 2011 Coca Cola sabco again started
expanding the business at Addis Ababa by installing a new bottling line that has a capacity
of producing 36,000 bottles per hour to increasing the production volume by 100% and
started production February 2012. Ethiopians enjoy a range of beverages from EABSC,
including those from the Schweppes group, Sprite, Fanta, Coca-Cola Light and Fanta
Strawberry.

1.3 Statement of the problem

The organization which has recognized opportunity wants to develop and use the existence
of supply chain management based on speed, flexibility, innovation, quality and
responsiveness in improving customer services and productivity. In current business world
supply chain does not lies with an individual company. Conversely supply chain would not
be managed separately. So, firms are required to combine along with others supply chain
networks partners in a way that enables them to be mutually benefited and enhance
customers service (Kim 2006).

The supply chain management practice mostly provided the “bull whip” affect exist in the
stages of supply chain, if they would responded to market demanded and customer service
the above problems occurred due to the shortage of raw materials, Bottle neck, between the
stages of supply chain in adequate channels members, fulfilment of their division purpose
instead of organization purpose and break down of machineries. By exploring current
practice in supply chain practice insight way gain in to the development of success full
supply chain management practice and the issue that may present them from reaching their
potential in delivering benefits to all partners (Simatugang & Sridharan 2007)

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1.4 Basic Research Questions

This paper was try to address the following research question

1. How supply chain integration and collaboration affects supply chain management
practice of the company?

2. Does the organization supply chain network practice affects the company's supply
chain practice?

3. Does the customers satisfied from the organizations supply chain management
practice?

4. What is the relation between organization and its customers as well as suppliers?

1.5 Objectives of the Study

1.5.1 General objective

The general objective of the study is to assess the factors that affect supply chain
management practice of the company.

1.5.2 Specific objectives

Specifically, the study was aimed to achieves the following objectives

1. To assess how supply chain integration and collaboration affects supply chain
management practice of the company.

2. To identify the supply chain network practices affects the company's supply chain
practice?

3. .To investigates how customers satisfied from organizations supply chain


management practice.

4. To examine the interaction of the company with its customers and suppliers.

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1.6 Significance of the study

This paper has many significance for the organization for the researcher, for the societies,
as well as for other person who wants to conduct the research.

- For the organization: if this research paper is submitted to the organization it would
help the company to know its weakness and strength with regarding to supply chain
practice and to take the corrective measure on the side of their weaknesses.
Especially, for the manager of the company help as the directive to show the
problems.

- For the societies: if the paper was published it can provide the customers or the
societies about full information of the company SWOT analysis and their
production as a result this can create long term relation of the company which result
in high satisfaction of customer requirements.

- For the researcher: this paper was help the researcher to get BA degree in logistics
and supply chain management.

- For other person: the research was used as a reference for other persons who want
to conduct the research on similar topic for his/her further study.

1.6 Scope of the study

- In fact conducting the research on the all-area of supply chain on single research
paper is impossible due to it is a very vast concept because of many constraints like
budget, time and unavailability of data by considering these and other problems the
researcher delimits the study specifically only the major factors that affects supply
chain management practice, the appropriate supply chain management practices,
customers satisfaction through appropriate supply practices and the study also
depend on one company that is coca-cola soft drink share company in case of Addis
Ababa branch.

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1.7 Limitation of the study

Because of broad nature of the field the researcher use a particular frame work to evaluate
the study. While conducting the study the researcher may face error or bias. The researcher
may also face faulty information about respondents didn’t answer the questionnaire.

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CHAPTER TWO

2 Review of Related Literature

2.1 Definition of supply chain management

Different scholars defined the supply chain management in different ways. Among that
Dafee and Stank (2005) defined supply chain management according to the council supply
chain management professionals formally the council of logistics management as follow as
“supply management encompasses the planning and management of all activities involved
in souring and procurement, conservation and logistics management activities.

Supply chain management involves many organizations in the integration of raw material
the transformation of goods and services and delivery of final product to customer in order
to support all section of the organizations to create an efficiency supply chain channels.
Supply chain management is defined as “all the activities involving in delivering a product
from raw materials and parts manufacturing and assembly, were house and inventory
tracking order management distribution across all channels delivering to the customers and
the information system necessary to monitor all of the activities (I, ummus and Vokurks
1999).

A supply chain management is a network consisting of suppliers manufacturing,


distributors, retailers and customers. The network supports three types of flows that require
careful planning and close coordination.

I. Material flows:- which represent physical product flow from suppliers to


customers well reveres flow for product returns, servicing and recycling.

II. Information flow:-which represents order transformation and order tracking, and
which coordinate the physical flows.

III. Financial flows: which represent credit terms, payment schedules and
consignments arrangements. The network in turn is supported by three pillars;
process, organizational structure and enabling technologies (Fisher, 1997).

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2.2 Supply chain integrations and collaboration

2.2.1 Supply chain integrations

The term of often heard in the popular press, is in many cases not well defined. In this text,
we define integration as the process integrating or building together different groups,
functions, or organizations either formally or informally physically or by information
technology, to work jointly and often concurrently on common business related assignment
or purpose. It is not surprise that “two heads are better than one” when it comes to
developing creative strategy or solving problem but many enterprise do not apply the idea
of bringing together people with different point of view to develop supply chain strategy or
solve common problems (Robert B. Hand field etal, 2011)

(James B. Ayers, 2006) noted for his supply chain, defines supply chain integration as
having three common components in common (information, organizational linkage,
coordination). Information refers to the sharing of skill and knowledge. Organizational
linkage encompasses the means to communicate whether by EDI internet or face to face
meeting. Coordination refers to decision right, work and resource in supply chain that is
acting on information.

Scadler (2004) summed up the many definition of SCI by various authors and researchers
as < the task of integrating organizational units alone a supply chain and coordinating
materials, information and financial flows in order to fulfil ultimate customer demands with
aim of improving competitiveness of supply chain as a whole>. Thus, in the end produce
value whether in the form of product or services to the end users. The key elements of
supply chain and its management from these definitions are therefore, the upstream parts,
the downstream parts and integration of all the organizations involved to gather with the
internal function of an organization itself.

The upstream parties, as being described by hand field and Nicholas (1999) consists of an
organizations function, process and networks of suppliers while the downstream function
on the other hand concerns the distribution channels, process and functions where the
product passes through to the end users or customers. Where external downstream and

7
upstream function are concerned the managers involving in each upstream and downstream
suppliers and functions are responsible in making sure that the delivery of products and
services are done as scheduled to their destination. If there cases where delays are enviable,
the managers are to ensure that the impact of delay to the supply chain and value it carries
will be minimal.

While managers in supply chain involving external organization have to be deal with the
people outside of its own company. In this situation mutual understandings have to be
reached between the managers in departments inside the company itself. However, the term
SCI has been used to describe planning, coordinating integrating and control of materials
and information flows as well as logistics activities, not only internally within a company
but also externally between companies. (Cooper et el, 1997)

Integration is an externally major action with supply chain management (Beles et al 2004)
normally the integration is a <<vertical line>> in the supply chain channels to link supplier
to customers vertical integration may also facilitate stabilization of production quality or
quantity and management process flow of costly or risk technology, promoting a more
efficient, standardized and high volume output. The output is the form of the efficient
standardized and high volume output. The output is the form the efficient supply chain
operation reflects in the supply chain integration flows (Stone Braker and Liao, 2004).

2.2.2 Supply chain Integration practice


Supply chain integration practice has defined as a set of activities under taken in
organization to promote effective integration of its supply chain.

(Tan et el, 2002) identifies six aspects of SCIP through factor analysis. SCI, information
sharing supply chain characteristics, customer service management, and geographical
proximity and just in time. In their seminal work, Lawrence and Lorsch 19 defined
integration as “the quality of the state of collaboration that exists among departments that
are required to achieve unity of effort by the (Bowersox, 2005), have classified integration
in a supply chain context in six different types. These are customer integration, internal

8
integration, material and service supplier integration, technology and planning integration,
measurement integration and relationship integration.

Stevens (2011) identified four stages of supply chain integration, where stage I represents
the fragmented operations within the individual company. Stage II Focused on limited
integration between adjustment functions, eexample, purchasing and materials control stage
III required the internal truce supply chain integration including upstream to suppliers and
downstream to customer.

Lee (2002) out lines three dimension of supply chain integration i.e. information
integration, coordination and resource sharing and organizational relationship linkage.
Information integration refers to the sharing of information and knowledge among the
members in the supply chain including sales for casts, production plans. Coordination and
resource sharing refers to the realignment of decisions and responsibility in the supply
chain capacity.

2.2..3 Supply chain collaboration


According to Simatupang and Sridharan (2002) “ A collaborative supply chain simply
means two or more chain members working together to create a competitive advantage
through sharing information, making joint decision and sharing benefits which result from
greater profitability of satisfying and customer needs than acting alone. Therefore,
collaboration, in the context of the supply chain, means sharing commitment, trust and
respect, skills and knowledge, and intellectual agility between supply chain partners, all of
the members in supply chain have to integrate and act as a homogeneous unit. In addition
to this the value is enhanced throughout the chain and the matching of supply and demand
profits. Consequently, supply chain members joint decision making is profitable to create
competitive advantage through mechanisms such as increased market access, better
material sources, and cost effective transportations.

In order to achieve this, the supply chain members must have a very close relationship. The
strategy is to focus on the collaborative partners’ relationship and improvement in supply
chain process. Relationship orientation includes constraints such as trust and power,
because most collaborative partners are not equivalent in terms of bargaining power and, if

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a partner is to be trusted, that partners cannot taken advantage of a relatively stronger
situation or behave opportunistically (Sahay, 2003 and Cox, 1999)

Min et el (2005) point out that collaborative processes include information sharing, joint
planning, joint problem solving, joint performance measurement, and the leveraging of
resources and skills. Information sharing becomes a regular norm that encompasses
multiple levels across firms. In addition to this, he seated the integration technologies
include electronic data interchange (EGI), database, data ware house and data mini
techniques, and the internet to illustrate the collaboration channels. Joint planning relies on
the fact that collaborative partners must work together to solve supply chain problems.

The success collaborative efforts cannot be guaranteed until performance is correctly


monitored and measured. This often involves jointly leveraging each others resource and
skills the leveraging made possible by specialization.

2.2.4 The types of supply chain collaboration

The types of supply chain collaboration, requiring differing degrees of commitment


Kantar, (1994) indicated that the creative relationships achieve five types of integration in
collaboration.

I. Strategic integration: - this involves continuing contact among the top leaders
to discuss board goals or changes in each company.

II. Tactical integration: - this bring middle professionals together to develop plans
for specific projects.

III. Operational integration:- this provides ways for carrying out day – to – day
work.

IV. Interpersonal Integration:- this builds a necessary foundation for building and
sustaining the future of relationship.

V. Cultural integration:- this requires the people involved in re awareness to bring


inter – organizational and interpersonal differences.

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2.3 Importance of supply chain integration.

Integration is an extremely major action within the supply chain management normally the
integration is “Vertical line” in the supply chain channels the supplies to customers. This is
including all of the partners and operational activities within the whole supply chain
management vertical integration may also facilitate stabilization of product quality or
quantity and management of the processes flow of costly or risky volume output. The
output is the value from the efficient supply chain operation reflects in the supply chain
management flow (Stone Braker and Liao)

Furthermore, Chander and Kumar (2000) said that, it is important to employ across
channels coordination when sharing same of the common resource among different supply
chain. The main job in coordination is to let all of the firms within supply chain channels
run very effectively. This is expecting to a development more competitive ability from the
whole supply chain when the supply chain partners coordinate with each other.

Strictly speaking, this is one of the values of supply chain to have successful coordination
processes within supply chain management. The integration whole supply chain not only
modifies the processes of manufacturer of the product but can also lead to innovative
products. This trend also forces firms to make strategic planning of its resources as well as
the regime approximately of the innovation with respect to market and competition.

The appropriate distribution network can be used to achieve variety of supply chain regions
from low cost to high responsiveness. A result companies in the industry often select very
different distribution network. As a result a poor distribution network can hurt the level of
service that customers receive increase the cost. In appropriate network can have a
significant negative effect in the profitability of the firm as evident in the failure of much
business to customers companies (Bales et al, 2004).

2.4 Supply Relationship management

Supplier relationship management (SRM) is a set of principles, processes, templates, and


tools that help companies overhead over the entire supplier relationship lifecycle, SRM
enables organizations to effectively : (www.ensuring wiki.com)

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 Stratify supplier based on importance and defined relationship expectations.

 Establishes the governance structure and process for internal and supplier
interactions across the life cycles of the supplier relationship.

 Defined formal processes for management involvement in the relationship

 Clarify internal roles and responsibilities, and required skills.

 Put in place processes to effectively manage performance and develop supplier


capabilities to continuously improve value.

Supply relationship management is comprised of five key

Supplier stratification: - Effective SRM requires a clear companywide understanding of


which suppliers are the most strategic to the organization and which are less important.
However, in the absence of balanced formal criteria for supplier strategic action, suppliers
on which the organization spends the most are inevitability viewed as the most important
and tend to capture the greatest relationship focus and effort. Factors such as business
critically, operational /technical integration, and long term fit with the organizations
supplier management effectiveness. In addition, effective stratification requires a set of
common definition of how suppliers in strategic and non – strategic tiers should be
managed. This common set of definitions enables to

 Optimize resource allocation across a board supplier base.

 Establish and mange relationship expectations by supplier tier, providing a


common reference point for what it means for a supplier to be strategic.

 Provide functional and business groups with consistent partnering strategies within
their supply bases.

 Provide functional and business groups with a fresh view of their supplier
portfolios based on relationship value, enabling improved decisions on further
supplier

 Motivate suppliers to strive for advancement across supplier tiers.

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 Governance and organization once the importance of individuals supplier to the
organizational is established via suppliers stratification, the step is for the organization
to define required to manage the suppliers on a day – to – day basics as well as the
roles involved in table across the organizations typically results in a dramatic ration
alizations of vender management. Once the team structure with roles and
responsibilities is defined, the next step is to formalize the ongoing governance
processes to make supplier management repeatable, governance practices lays out.

 Schedules, attitude lists, and agendas for key supplier relationship review meetings.

 Templates for supplier relation review

 Detailed designs of day-to-day supplier management activities such as contract


management, financial management, and issue resolution

 Triggers and a selection paths for supplier issue resolution

Supplier development due to increasing supply consolidations a company is overall


performance and efficiency is more and more dependent on the capabilities of its supplier
dramatically reduce costs, introduce new services designed to address the organization
needs, expand their foot print to provide seam less coverage in multiple regions, and work
the organization to stream line joint process.

Service level and performance management, effective management of supplier services


levels and performance is a critical element of SRM organizations that measures the
supplier impaction business value drivers, hold supplier accountable for poor performance
and provide incentives for outstanding performance, benefit by;

 Enabling continuous improvement in supply performance and efficiency.

 Providing improved visibility and documentation to supplier performance issues

 added to the organization

To enable truly effective performance management the resulting relationship agreement


elements must be captured and presented in an integrated fashion. This is typically

13
accomplished by creating a ‘performance map’’ that outlines what the supplier is truly
accountable for, what specific steps must occur as consequences of the suppliers non-
perform

Supplier relationship management systems while successful supplier relationship


management enabler, systems play three key roles in enabling SRM; providing
standardized tools and lates, enabling supplier relationship data management, enabling
relationship visibility.

2.5 Designing customer relationship process

The customer’s relationship process addresses the interface between firms and its customer
downstream in the supply chain. The purpose of the customer relationship process is to
identify, attract, and build relationship with customers and facilitate transmission and
tracking of order (chopra et al, 2004).

Key nested process includes

 Marketing process; focuses on such issue as deterring the customers to target,


how to target them, what service, or product to offer and how to manage
promotional campaigns

 Order placement process; involves the activates required to execute a sale


register the specific of the order request, confirm the acceptance of the order and
track visits prospective and current customer to encourage a sale

 Cost reduction:- using the internet can reduce cost of processing orders because
it allows for greater participation by customers

 Revenue flow increase:- the firm webpage can allow to inter credit card
information or purchase order number as part of the order placement process

 Global assess:- another advantage of the order placement process

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 Pricing flexibility:- firms with their service and products posted on the web can
easily changes as the need arises thereby avoiding the cost and publishing new
catalogue.

2.6 Selecting network design

A network designer needs to consider product characteristic as well as network requirement


when designing on the appropriate delivery network. Only which companies will end up
using a single distribution network. Most companies are best serves by combination of
delivery network. The combination used will depend on product characteristic of the
product or the nee. Fast moving and emergence items are stoked locally and customers
can either pick them up directly or have them shipped on the urgency (chopra et al, 2004).

Logistics and supply chain management are often faced with decision regarding the
strategic and operational the network and process design. Supply chain network,
warehouse, consolidation plant, service provider, and retailer to bring product from raw
materials stage to the end customer. The broad decisions include commodity and product
flow as well where specific value added activities should take place with supply chain.
Increased materials sourcing alternative production economics of sale reduced
transportation and need to regularly and more comprehensively evaluate supply chain
design alternative (BWersox et al 2010).

2.7 Supply chain network structure

One key element of managing the supply chain is to have an explicit knowledge and
understanding of how the supply chain network structure is configured. The three primary
structural of a company’s network structure are:-

a. The members of supply chain


b. The creature dimensions of the network and
c. The different type presses link’s caress the supply chain
I. Identifying supply chain management
When determining the network structure it is necessary to identify who the members of the
supply chain are including all types of members may cause the total network to became

15
highly complex since it may explore and manage all process links with all members across
supply chain would, in most case be counterproductive, if not impossible. The key is to sort
out some basis for determining which members are critical to the success of the company
and thus should be allocated managerial attention and resources.

The members of supply chain include all companies or organization with whom the focal
companies interact directly or directly through its supplier or customer from point of origin
to point of consumption. However to make every complex network more manageable it
seems appropriate to distinguish between primary and supportive members primary
members of supply chain are all these autonomous company or strategic business unit
who actually perform operation or managerial activities in the business process designed to
produces specific output for particular customer or market. In contrast, the supporting
members of supply chain are companies that simply provide resource know ledge, utility
asset, for the primary members of the supply chain. The same company both perform
primary and supportive activities likewise the same company can per farm activities related
to one process and supporting activates related to another process. (Chopra et al, 2004).

II. The structural dimension of network


Three structural dimension of network are essential when describing, managing the supply
chain. The horizontal structures, the vertical structures, and horizontal position of the focal
company are within the end point of supply chain. The term horizontal structure refers to
the members of tires across the supply chain. The supply chain man belongs with numerous
tires or short with tem tires. The vertical structure refers to the number of suppliers or
customers represent within each tires. A company can have a narrow vertical structure with
little company at each tire level or a wide vertical structure with many supplies or
customers at each tire level. The third structural dimension is the company can be
positioned at or near the initial source of supply at near to the ultimate customer or some
which are between these end points of the supply chain.

III. Types of business process links

Integrated and managing all business process links throughout entry supply chain is as well
as not appropriate. Since, the drivers for integration are situational and therefore different

16
process link to process links. The integration also will vary from to link and over time. As a
consequence, curtail task is to allocate scare the supply chain four fundamentally different
types of business process links can be identified between members of supply chain. These
are

 Managing process link are links that focal company finds important to integrate and
manage. This might be in collaboration with other members of companies of supply
chain.
 Monitoring process link compared to managed process link, monitored process link
are not as critical to the focal company. However, it is important to the focal
company that process links be integrated and managed these appropriately between
the other members of the company.
 Not managed process link; are links in which the focal company is not activity
involved nor are they critical enough to use resource for monitoring in other words,
the focal company either fully trust the other members to manage the process link
appropriately or because of limited resource leaved it up to them.

2.8 Factors influencing supply chain network

At the highest level performance of supply chain network should be evaluated


along two dimensions. These are

1. Customers need that are met

2. Cost of customers’ needs meeting

Also customer’s services consist of many components; use focus on these measures that are
influenced by the structure of the dimensional network. These include; responsive time,
product variety, product availability, customer’s experience, time to markets, order
visibility, and return ability.

I. Responsive time
Is the length of time it takes for a customer to receive and order. In selling physical
products that cannot down loaded, an e-business without a physical retail out let takes

17
longer to fulfil a customer request than a retail store because of the shipping time involved.
Thus customers who requires a short responsive time may not use internet to order product.
There is no such delay, however, for products that can be down loaded. Going on line may
offer a time advantage in many cases. For example, a mutual fund prophets us or music can
be production or even making a trip to a music can be production or even making a trip to a
music store takes much longer (chopra et al 2004).

II. PRODUCT VARIETY


In the member of different product or configuration that offered by the distribution
network. An E-business finds it easier to offer a large selection than a bricks and mortars
store. For example, amazon.com offers a much larger selection of books than typical
bookstore. Offering the same selection at retail store would require a huge location with a
corresponding large amount of inventory (chopra et al 2004).

III. Product availability


Is this probability of having a product in stock when customer’s orders arrive? An a
business can greatly increases the speed with which information on customers the speed
with which information on customers demand is disseminated through the supply chain
giving, rise to more accurate forecast these improved for castes and the more accurate view
of customers demand leads to a better much between supply and demand. On the inventory
they do not. An e-business also allows for aggregation of inventory that improved product
availability (chopra et al 2004).

IV. Customer experience


Is the easy with which customers can place and receive order as well as the extent to which
this experience was customized? An e-business affects customers experience in terms of
across customization and convenience. Unlike most retail store that is open during hours,
an e-business allows access to customers who may not be able to place orders during
regular business hours (chopra et al 2004).

V.TIME TO MARKET

Is the time it takes to bring a new product to the market? A firm can use e-business to
introduce new products much more quickly than a firm that use physical channels. A firm
that sells personal computer through physical channels must produce enough units to stock

18
the shelves at its distribution and retailers before it start to see revenue from the product.
An e-business in contrast, introduces a new product by making it available on the website
distribution log if the physical channels are not present (chopra et al 2004).

VI. Order visibility

Is the ease with the ability of the customers to track their orders from placement to
delivery? The internet makes it possible to provide visibility of order status from a
customer’s perspective, it is crucial to provide this visibility because an online order has no
physical equivalent to a customer’s shipping for an item at retail store (chopra et al 2004).

VII.Return ability

Is the ease with which customers can return unsatisfactory merchandise and the ability of
the network to handle such returns? Return ability is harder with on line orders, which
typically arrived from centralized location it is much easier to return a product purchase at
a retail store, the proportion of returns is also likely to be much higher for on line order
because customers are unable to touch and feel increase in the cost of reverse costs (chopra
et al 2004).

19
CHAPTER THREE

3. RESEARCH DESIGN AND METHODOLOGY

3.1 Research Design

The researcher used descriptive type of research with helps to use quantitative data
analysis. This descriptive research helps to describe information at it occurs and it helps
that to explain the studies in terms of the condition and also it is suitable for the availability
of secondary data information sources. The intention of the paper is simply to describe the
factors that affect supply chain management practice.

3.2 Source of data

There are two types of data that the researcher have been used. These are primary and
secondary data. Primary data are data which gathered by the researcher himself for the first
time. These data are obtained by means of questionnaires, which are used to get more
information about the organizations supply chain management practice, while secondary
data are obtained from different written materials available in the organization and different
books.

3.3 Data collection method

Data collection is the process of gathering data and information to address questions of
paper. In order to conduct qualified research the pertinent data would be collected.
Accordingly, the researcher used questionnaire. The researcher choose questionnaire due to
its simplicity and clear to analysis.

3.4 Sampling method and sampling size

Since collecting data from all employees of the organization would be difficult for it was
cost and unmanageable in the given short period of time, for the reason to avoid this
problems 25 employees was selected from 630 total populations’ of different department of

20
the organization by using nonprobability sampling techniques. The researcher selected 9
respondents from production department, 7 from marketing department, 5 from purchasing
department, and 4 from store department. From nonprobability sampling the researcher
used judgmental sampling because this types of sampling techniques was essential for
researcher would select any that may fit to the questions and researcher would ask
employees who is to get information from experienced employees of organization.

In addition, this method is simple and easy, low cost, convenient to use less time
consuming and as good as probability sampling.

3.5 Method of data analysis

This study used quantitative method of data analysis numerically using tables through
frequency and percentage. The researcher chooses quantitative data analysis because
quantitative data analysis provides precise numerical information in consistent and
reproducible ways. It also allows comparison of scale of developments in various
circumstances. Quantitative data analysis was used in order to discover inherent facts to
explore new facts and relatively quick and easy to understand by users of the study.

21
Chapter Four

4. Data analysis and presentation

The data were collected from Addis Ababa coca cola soft drink share company (S.C) by the
use of questionnaire. Questionnaire data were analysed in descriptive statistics by using
judgmental sampling technique. A total of 25 questionnaires were distributed to employees.
Out of these 18 (72%) questionnaires were returned back with adequate information. Thus
the data that were collected by questionnaires has been clearly analysed using alternative
close ended questions.

22
Table 4.1 demography of reapondents

No Item Frequency Present

Male Female Total

1 Age - 18-25 2 1 3 16.67

- 26-30 4 2 6 33.33

- 31-36 2 1 3 16.67

- 36-41 3 1 4 22.22

>41 1 1 2 11.11

Total 12 6 18 100%

2 Education level

Certificate 3 1 4 22.22

Diploma 3 2 5 27.78

Degree 4 3 7 38.89

Master and above 2 0 2 11.11

Total 12 6 18 100%

3 Work experience

1-5 1 3 4 22.22

6-8 4 2 6 33.33

9 and above 7 1 8 44.44

Total 12 6 18 100%

Source: Questionnaires (2018)

Sex:

Table 4.1 above presented the sex categories of the respondents from total number of
respondents 12 respondents are male 66.67% are male and 6 respondents 33.33% are
female from the table the researcher analysis that the number of male employees of the
company is greater than the number of female employee.

23
Age:

The table 4.1 above presented that the different age groups of respondents working in the
factory. from total respondents 16.67% covers whose age groups is from 18 – 25, 33.33%
covers age groups between 26-30, 16.67% covers age groups between 31-35, 22.22%
covers who age group between 36-40 and 11.11% covered by age group 41 and above.
From this the researcher concluded that most of the organizations employees were found
within the productive age group that means the age group between 26-35 which is 72.22%.
Age has its own implication in the working environment which means the employers those
who are age between 18-25 and 41 and above are not punctual to their work on the other
side an employer those who are all most between 26-40 ages are punctual to their work.

Educational background

As depicted table 4.1 22.22% of respondents were certificate and 27.78%, 38.89%, 11.11%
were diploma, degree and master and above respectively

Work experience:

As depicted in the table 4.1 above the largest portion of respondents 44.44% indicated that
they had been working in the organization for more than 9 and above the remaining
33.33% and 22.22% were 6 -8 and under 5 year work experience respectively.

4.1 analysis results of primary and secondary data

In this section the researcher presents each question results and dimensions with summary.
The results were presented by the use of frequency and percentage.

4.2 The general process of supply chain management practice in the


company

The aim of every SCMP is to minimize system wide costs while satisfying customer
service level requirements. Indeed, it is a customer oriented process for integrating business
planning and balancing supply and demand across the entire value chain system.

24
Table 4.2

No Question Excelle Very Good Poor


nt good
1 How do you see the organization with the 0 4 8 6
recognition of the factors that affects the
companys' supply chain management
practice?

In % - 22.22% 44.44% 33.33%

2 How do you observe the supply chain 0 1 6 11


Integration of the company?

In % 5.56% 11.11% 33.33% 50%

3 How do you observe the supply chain 0 1 6 11


collaboration of the company?

In % - 5.56% 33.33% 61.11%

4 How do you consider the overall supply 2 4 5 7


chain management practice in your
organization?
In % 11.11% 22.22% 27.78% 38.89%
Source: Questionnaires (2018)

The above table 4.2 shows that the companies supply chain management practices. 4
(22.22%) of the respondents replied that as there is very good recognition of factors affects
supply chain practices in the company 8 (44.44%) of respondents reply that there is good
recognition for the factors affects 5cmp, and 6 (33.33%) respondents reply that there is no
or poor recognition for the factors that affects SCMP. From the question on the above table
the researcher concluded that as there is no efficient recognitions of the factors affects the
SCMP of the company.

25
From question 2 of the above table which indicates the phase of the companys' SCI. 1
(5.56%) of the respondents reply that there is excellent SCI in the company, 2 (11.11%) of
the respondents reply that there is very good SCI in the company, 6 (33.33%) of
respondents reply there is good SCI and 9 (50%) of the respondents reply that there is poor
SCI in the company. Therefore, the researcher concluded that as there is no or poor supply
chain integration in the company.

Question 3 of the above table 4.2 indicates the supply chain collaboration 1 (5.56%) of
respondents replied that there is very good supply chain collaboration in the company, 6
(33.33%) of respondents reply that there is good supply chain collaboration and the
remaining 11 (61.11%) of the respondents reply that there is poor supply chain
collaboration from the table the researcher concluded that the company’s supply chain
collaboration was poor.

Question 4 of the above table which indicates the overall supply chain management
practice (SCMP) of the organization 2 (11.11%) of respondents replied that the company’s
overall supply chain management practice was excellent, 4 (22.22%) of respondents reply
that there is good overall supply chain management practice, 5 (27.78%) of the respondents
reply that there is good overall SCMP in the company and the remaining, 7 (38.89%) of the
respondents reply that there is poor overall SCMP in the company. Therefore, the
researcher concluded that there is poor overall supply chain management practice.

4.3 The appropriate supply chain network practice (SCNP)

The information’s that the organization flow with each other supply chain network in their
effective and efficient performance work were very important. The recent work of (Bowers
ox et al, 2007) shows that the company should investigate the critical factor before
selecting the network.

26
Table 4.3

No Question Strongly Agree Moderate Disagree Strongly


agree disagree
1 The organization have 0 0 2 6 10
continuous process
information sharing with each
supply chain networks

In % - - 11.11% 33.33% 55.56%

2 The supply chain network 0 2 1 6 9


practice of the organization
satisfies the employees and the
customer
In % - 11.11% 5.56% 33.33% 50%

3 The supply chain network 0 1 1 5 11


practice can visible to all
employees and customers of
the organization
In % - 5.56% 5.56% 27.78% 61.11%

4 The supply chain management 1 1 4 4 8


practices of the company can
be easily changed with the
expansion of the company
In % 5.56% 5.56% 22.22% 22.22% 44.44%

Source: Questionnaires (2018)

As depicted from the table 4.3 above four items used to measure the respondents response
on the supply chain network practice 2 (11.11%) of the respondents are moderately agree
that the company have continuous process information sharing with each supply chain

27
network, 6 (33.33%) of respondents disagree with the statements and the remaining 10
(55.56%) of the respondents are strongly disagree with the statement. Therefore, it can be
understood that the company have no continuous process information sharing with each
supply chain network.

From question 2 of table 4.3 above 2 (11.11%) of respondents are agree with the statement,
1 (5.56%) of respondents are moderately agree that the companies supply chain network
practice (SNCP) of satisfies the employees and the customers, 6 (33.33%) of respondents
are disagree with the statement and 9 (50%) of respondents are strongly disagree with the
statement. Therefore, the researcher concluded that the supply chain network practice of
the organization do not satisfies the employees and the customers as needed.

Question 3, above shows the visibility of supply chain network practice to all employees
and customers of the organization 1 (5.56%) of respondents are agree that the supply chain
network practice the company’s is visible to all employees and customers of the
organization, 1 (5.56%) respondent is moderately agree with the statement on the question
3 of the above table, 5 (27.78%) of respondents are disagree with the statement, and 11
(61.11%) of the respondents are strongly disagree with the statement which shows that the
greatest percentage of the respondents. From this it can understand that the supply chain
network practice of the company is not visible to almost all employees and customers of
the company question 4 of table 4.3 above indicates that the supply chain management
practices of the company can be easily changed with the expansion of the company. 1
(5.56%) of respondent replied that as strongly agree with the statement, 1 (5.56%) of
respondent also agree with statement, 4 (22.22%) of respondents are moderately agree with
the statement, 4 (22.22%) of respondents also disagree with the statement and lastly, 8
(44.44%) of respondents are strongly disagree with the statements. Therefore the researcher
concluded that as the supply chain management practices of the company is difficult to be
changed with the expansion of the company.

28
4.4 Customer satisfaction from supply chain practice

Customer satisfaction means, meeting fulfilling the customer wants and needs. Customer
are satisfied when the product or service the organization provide is based on product
availability, variety, quick response or short lead time and quick return ability (Bower sox
et al 2007). So, satisfying the customer needs and wants are not an easy task. Considering
the customer satisfaction, the organization evaluates the logistical cost including
warehouse, transportation and human resource management costs is effective and efficient
way of one the organization.

Table 4.4

No Question Strongly Agree Moderate Disagree Strongly


agree disagree
1 Customers returned 2 1 3 7 5
unsatisfactory product within a
short period of time

In % 11.11% 5.56% 16.67% 38.89% 27.78%

2 The returned product replaced 8 6 4 0 0

In % 44.44% 33.33% 22.22% 0 0

3 The organization applies mass 0 3 8 5 2


production based on customer
request
In % - 16.67% 44.44% 27.78% 11.11%

4 The organization provides the 5 7 3 2 1


product to the customer with
the right quality
In % 27.78% 38.89% 16.67% 11.11% 5.56%

29
Source: Questionnaires (2018)

As depicted from the table 4.3 above four items used to measure the respondents response
on the supply chain network practice 2 (11.11%) of the respondents are moderately agree
that the company have continuous process information sharing with each supply chain
network, 6 (33.33%) of respondents disagree with the statements and the remaining 10
(55.56%) of the respondents are strongly disagree with the statement. Therefore, it can be
understood that the company have no continuous process information sharing with each
supply chain network.

From question 2 of table 4.3 above 2 (11.11%) of respondents are agree with the statement,
1 (5.56%) of respondents are moderately agree that the companies supply chain network
practice (SNCP) of satisfies the employees and the customers, 6 (33.33%) of respondents
are disagree with the statement and 9 (50%) of respondents are strongly disagree with the
statement. Therefore, the researcher concluded that the supply chain network practice of
the organization do not satisfies the employees and the customers as needed.

Question 3, above shows the visibility of supply chain network practice to all employees
and customers of the organization 1 (5.56%) of respondents are agree that the supply chain
network practice the company’s is visible to all employees and customers of the
organization, 1 (5.56%) respondent is moderately agree with the statement on the question
3 of the above table, 5 (27.78%) of respondents are disagree with the statement, and 11
(61.11%) of the respondents are strongly disagree with the statement which shows that the
greatest percentage of the respondents. From this it can understand that the supply chain
network practice of the company is not visible to almost all employees and customers of
the company question 4 of table 4.3 above indicates that the supply chain management
practices of the company can be easily changed with the expansion of the company. 1
(5.56%) of respondent replied that as strongly agree with the statement, 1 (5.56%) of
respondent also agree with statement, 4 (22.22%) of respondents are moderately agree with
the statement, 4 (22.22%) of respondents also disagree with the statement and lastly, 8
(44.44%) of respondents are strongly disagree with the statements. Therefore the researcher
concluded that as the supply chain management practices of the company is difficult to be
changed with the expansion of the company.

30
The above table 4.4 shows the customer satisfaction from supply chain management
practice. Accordingly 2 (11.11%), 1 (5.56%), 3 (16.67%), 7 (38.89%), 5 (27.78%) of the
respondents reply that customers returned unsatisfactory product within a short period of
time is strongly agree, agree, disagree, moderately agree, disagree, and strongly disagree
respectively from the table it can concluded that the greater percentage of the respondents
are disagree with the statement.

Question 2 of the above table shows the returned product replaced easily. 8 (44.44%) of
respondents are strongly agree with the statement, 6 (33.33%) of respondents are agree
with the statement and the remaining 4 (22.22%) of respondents are moderately agree with
the statement that the returned product replaced easily. Therefore, the researcher concluded
that the returned product can easily replaced.

Question 3 of the table 4.4 shows the organization applies mass production based on
customer request 3 (16.67%) of respondents are agree with the statements, 8 (44.44%) of
respondents are moderately agree with the statement, 5 (27.78%) of respondents are
disagree with statements and the remaining 2 (11.11%) of respondents are strongly
disagree. Therefore it can be concluded that the organization somewhat applies mass
production based on customer request.

Question 4 of the table shows the organization provides the product to the customer with
the right quality 5 (27.78%) of respondents are strongly agree with the above statement, 7
(38.89%) of respondents are agree with statement, 3 (16.67%), 2 (11.11%), 1 (5.56%) of
respondents are respond moderately, disagree and strongly disagree respectively, therefore
this indicate that the organization provides the product to the customer with right quality

4.5 Customers service from supply chain practice

According to Lambert and Sterling (1994), customer service can be viewed as, a process
that takes place between buyers, sellers, and third parties the elements of basic customer
services were identified as product availability, variety, customer experience,
responsiveness to market, return ability and order visibility (which is reflected, profit for
customers, the existence of requirement product, the uniqueness of product, the time

31
requirements between order place the customer easy the count act with their supplier, the
fair and visible exchange commodity and ability return the defected material shortly)
suggested by (Chopra et al 2004)

The ultimate goal of an integrated, efficient and effective system is superior customer
service: short lead time, quick response to requirements, accurate delivery, treatment of
charges in due date and order quantity and many post sales services, like follow up,
complaint handling, installation, transportation and etc.

(Kinneth 2002, Christ Holfer, 1998, Eyoug 2009 and Russell, 2006) In the same manner
conceptual frame work of this study has tried to depicted effect of network designed supply
chain practice on customer service.

32
Table 4.5

No Question Low Medium High

1 How you see the relation of your company 3 5 10


with its customers?

In % 16.67% 27.78% 55.56%

2 How you observe the relationship between 0 6 12


your organization and its other distribution
centre?

In % - 33.33% 66.67%

3 What is the effort of the organization in order 2 7 9


to satisfy the needs and wants of its
customers?
In % 11.11% 38.89% 50%

4 What do you think the lead time of your 11 4 3


company meet customers’ needs and wants?
In % 61.11% 22.22% 16.67%

5 How you get the relation of your company 0 5 13


with its raw material suppliers?
In % - 27.78% 72.22%

Source: Questionnaires (2018)

According to the above table 4.5 of question one 3 (16.67%) of respondents replied that the
relation of the company with its customers was low, 5 (27.78%) of respondents reply that
there is medium level of relation between the company and the customers of the company

33
10 (55.56%) replies that there is high level relation of the company with its customers
based on the above table the majority of respondents replied that, the company has high
relation with its customers.

According to the table above 4.5 question two 6 (33.33%) of respondents replied that the
relationship between the organization and its other distribution centre was medium and the
remaining 12 (66.67%) of respondents replies that there is high interrelationship between
the organization and its other distribution centre. Based on the data given on the above
table the researcher concluded that the majority of respondents replied that there is high
interrelationship between the organization and its other distribution centre.

From the above table 4.5 question three 2 (11.11%) of the respondents replied that the
effort of the organization to satisfy customer needs and wants was low, 7 (38.89%) of
respondents says that the effort of the organization to satisfy customer needs and wants was
medium and the remaining 9 (50%) of respondents replies that the company have high
effort to satisfy customer needs and wants.

From above table, question four 11 (61.11%) of the respondents replied that the company
meet customer needs and wants within low or short period of time, 4 (22.22%) of
respondents reply that the companys lead time to meet customer needs and wants was
medium, 3 (16.67%) of respondents reply there is high lead time to the company to meet
customer needs and wants. As indicated in the above table the majority of respondents
replied that there is short lead time to the company to meet customers’ needs and wants.

According to the table above 4.5 question five 5 (27.78%) of respondents says that there is
medium relation of the company with its raw material suppliers, 13 (72.22%) respondents
replies that there is strong relation between the organization and its raw material suppliers.
Therefore, it can be concluded that the company has strong relation with its raw material
suppliers.

34
CHAPTER FIVE

5. Summary, Conclusion, and Recommendation

5.1 Summary finding

The purpose of this research was investigating the effective Supply chain management
practice (SCMP) with regard to Addis Ababa Coca Cola Soft Drink share
company(AACCSDSC).In this study, it was necessary to discuss the effect of supply chain
practice(SCP) to address the research objectives as the key point of the study. Out of
25questionnaires distributed to the target respondents from the case organization, 18 (72%)
of respondents were returned back filled and used a valid base of quantitative analysis.

Based on quantitative data analysis , the discussion question was related to basic research
questionnaire was presented. The following were the summary of major find of the study.
With respect to the general process of SCMP of the organization, the quantitative revealed
that the organization SCMP process was poor, with respect to the appropriate supply chain
network practice(SCNP),that was the core drivers of the organization the analyzed data
indicates that the organization application was poor. which result in poor supply chain
collaboration and integration.

In relation to network practice for serving and satisfying the customer, quantitative analysis
convey that the organization has moderate relation with its customers satisfaction.

5.2 Conclusions

In conclusion at the start of this research, the aim of this study was to analysis the supply
chain management practice in actual setting. Accordingly, Addis Ababa Coca Cola Soft

35
Drink Share company, orientation of supply chain management practice is little successful.
However, the organization poor of successful supply chain practice; the organization didn't
recognizes the factors that affects company's SCMP, poor supply chain integration and
collaboration.

The organization has some reasons regarding to this matter. In the first one, the effective
supply chain practice network does not apply in the organization which enables the overall
work performance and interlink the top manager with the operational level one. In other
words, the lack of this supply chain network practice can affect the organization
integrations, customer service, information sharing, and reliability of customer satisfaction.
Secondly, the absence of boosted demand and strategic demand planning, forecasting and
replenishment has significantly affected the organizations performance in relation to
customer service.

Finally, as the organization applies little supply chain practice in the case of organizations
information sharing technology and information systems which are the heart of supply
chain management are not given due attention and organization is poorly performing this
regard.

5.3 Recommendations

Based on the findings of the study and the conclusion reached, the following
recommendation made by the researcher;

It was clearly explained that, the network practices is the key driver of the organization to
successful the supply chain management in accordingly. Hence, the Addis Ababa coca cola
Soft Drink Share Company is recommended that, supply chain practice both internally and
externally for bringing flexible, high responsive, high customer experience and short lead
time. This can be organized through networking the functional units of the organization
with appropriate information sharing and information technology.

In relation to the general process of supply chain management practices of the


organization the organization recommended that first of all the company must gives
recognitions for the factors affects the company supply chain management practice in order

36
to have integrated and collaborated supply chain practice to accomplish its supplying
process effectively and efficiently.

With respect to appropriate supply chain network practice the company recommended that
to have continuous process information sharing and supply chain network practice that
satisfies the employees and the customers which can be visible to all employees and
customers of the company and can be easily changed with expansion of the company.

In relation to customer satisfaction and customer services the company is somewhat in a


good performance but it isn't satisfactory. Therefore the company recommended to
increases the level of customer satisfaction as well as customer service

37
ARBA MINCH UNIVERSTY

COLLEGEA Of COMMERCE AND BUSSINESS ADMINISTRATION

Department Of Logistics And Supply Chain Management

To: Respondants

Introduction

Dear respondent this questionnaires are developed to asseess the factors that affects supply
chain management practices by the researcher in order to accomplish Bachelor degree( BA)
degree in logistics and supply chain management. I believe that You answer the questions
independently.

Instruction

Do not write Your name put a right on the response category that best describes Your
feeling redacted to a specific question.

Primary information

1, Sex: Male Female

2, Age: 18-25 26-30 31-36 36-40 41 and above

3, Qualification: Certificate Diploma Degree Master and above

4, Work experience:1-5 years 6-8 years 9 and above

Questionnaires

1. How do you see the organization with the recognition of the factors that affects the
company's supply chain management practices?

Excellent Very good Good Poor

38
2. What do you think about supply chain integration of the company?

Excellent Very good Good Poor

3.How do you observe the supply chain collaboration in the organization?

Excellent Very good Good Poor

4.How do you consider the over all supply chain management practices in your
organization

Excellent very good good poor

5.The Organization have continuous process information sharing with each supply chain
stages.

strongly agree agree moderate disagree strongly disagree

6.The supply chain network practices of the company satisfies the employees and the
customers of the company

Strongly agree Agree Moderate disagree Strongly


disagree

7.The supply chain network practice can visible to all employees and customers of the
organizations.

Strongly agree Agree Moderate Disagree Strongly disagree

8.The supply chain management practices of the company can be easily changed with the
expansion of the company.

Strongly agree Agree Moderate Disagree Strongly


disagree.

9.customers returned unsatisfactory product within a short period of time.

Strongly agree Agree Moderate Disagree Strongly


disagree

10.The returned product replaced easily.

Strongly agree Agree Moderate Disagree strongly disagree

11.The organization applies mass production based on customer request.

39
Strongly agree Agree Moderate Disagree Strongly disagree

12. The organization provides the product to the customers with the right quality

Strongly agree Agree Moderate Disagree Strongly disagree

13. How you see the organizations relation with its raw material suppliers

Low Medium High

14. How you see the relation of your organization with its customers?

Low Medium High

15. How you observe the relationship between your organization and its other distribution
center?

Low Medium High

16. What is the effort of your organization in order to satisfy the needs and wants of its
customer?

Low Medium High

17. What do you think the lead time of your company to meet customers' needs and wants

Low Medium High

40
Reference

 Ayers, James B., 2004 handbook of supply chain project management; A


structured collaborative and measurable approach 2nd ed , Lucie press.
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p.100.
 Chopra, Mendl and kalra (2007) Supply chain management, strategy, planning,
and operation. Third edition p.93.
 Dafee C.C and Stank T.P (2005) Applying the strategy- structure
performanceparadigms to the suppy chain environment. The international journal
of logistic management.
 I, Ummus, R, R and Vakurk R.J (1999) Defining supply chain
management'shistorical perspective and practical guideline. Industry management
and data system. Vol.p. 11-20
 Heizer, J, and Render, B. (1999) Principle of operation management 3rd edition.
Prentice Hall.
 Li, X and Wang, Q. 2007. Coordination mechanism of supply chain systems.
European journal research .1-6
 Robinson and Malhotra, (2005), Strategic supply chain management
andimplementation of supply chain, 2nded. New York. Vol, 345-360

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