BUSINESS ADMINISTRATION(MBA)

MASTER’S THESIS PROPOSAL

EFFECT OF SUPPLY CHAIN MANAGEMENT ON ORGANIZATION

PERFORMANCE

A CASE OF AMBO MINERAL WATER SHARE COMPANY

Prepared by: Kelemwork H/eyesus

ID NO:0528/15

Advisor: Abebe B(PhD)

February/2016 E.C
Ababa, Ethiopia
Table Of Contents
CHAPTER ONE.................................................................................................................................................................................1
1. INTRODUCTION.....................................................................................................................................................................1
1.1 Background of the Study....................................................................................................................................................1
1.2 Statement of the Problem...................................................................................................................................................2
1.3 Objectives of the Study......................................................................................................................................................4
1.4 Research Questions............................................................................................................................................................4
1.5 Significance of the Study...................................................................................................................................................5
1.6 Scope of the Study..............................................................................................................................................................5
1.7 Limitation of the Study......................................................................................................................................................5
1.8 Organization of the Paper...................................................................................................................................................5
1.9 Operational Definitions of the key terms...........................................................................................................................6
CHAPTER TWO.................................................................................................................................................................................7
2. LITERATURE REVIEW..........................................................................................................................................................7
2.1 Empirical Reviews.............................................................................................................................................................7
2.2 Theoretical Review............................................................................................................................................................9
CHAPTER THREE...........................................................................................................................................................................24
3. Methodology of the Study.......................................................................................................................................................24
3.1 Description of the study area...........................................................................................................................................24
3.2 Research Design...............................................................................................................................................................24
3.3 Research Approach..........................................................................................................................................................24
3.4 source of Data...................................................................................................................................................................25
3.5 Instruments of data collection..........................................................................................................................................25
3.6 Sample and Sampling Techniques...................................................................................................................................25
3.7 Method of Data Analysis..................................................................................................................................................27
3.8 Reliability and Validity analysis......................................................................................................................................28
3.9 Ethical Considerations......................................................................................................................................................28
CHAPTER FOUR.............................................................................................................................................................................29
4. Work Plan and Budget Breakdown.....................................................................................................................................29
4.1 Work plan.........................................................................................................................................................................29
REFERENCE....................................................................................................................................................................................32
APPENDIX.......................................................................................................................................................................................34
 CHAPTER ONE
1. INTRODUCTION
1.1 Background of the Study
Over the last decade the competitive landscape has shifted from lowest priced product, highest
quality or best-performing product to the ability to respond quickly to market needs and get the
right product to the right customer at the right time. This shift toward speed has pushed
organizations to compete with their entire supply chain. Consequently, understanding and
practicing supply chain management (SCM) has become a mandate to compete a n d improve
supply chain surplus in the global arena (Anderson & Gerbing, 2008).
Being able to create business relationships with customers, suppliers and other strategic
partners anchored on trust and long-term commitment then becomes a crucial competitive
parameter (Lazarevic, 2007). The understanding and practicing of supply chain management
practices has become an essential for staying competitive in the global market and for
enhancing profitability (Storey et al, 2015).
Tan, Lyman & Wisner (2002) have defined supply chain management practices as a set of
activities undertaken in an organization to promote effective management of its supply chain and
identified six aspects of supply chain management practice through factor analysis: supply
chain integration, information sharing, supply chain characteristics, customer service
management, geographical proximity and JIT capability.
Related practices are divided into five dimensions namely; strategic supplier partnership, internal
linkage, information communication technology, time Management and Customer relationship
management. A number of literatures show many different perspectives of supply chain
management practices (Tan, Kannan, & Handfield, 2008; Li, Bhanu, Ragu-Nathan, & Subba,
2006). These different writers’ perspectives suggested a multi dimensionality of supply chain
management that covers set of activities and processes from upstream, firm’s internal operations to
downstream of the supply chain.
Previous studies suggest that effective SCM practices have a direct impact on the overall financial
and marketing performance of an organization (Waller and Dabholkar, 2000 and Tata, 2000).
Indeed, SCM practices is expected to increase an organization’s market share, return on
investment and improve overall competitive positions.

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SCM practices impact not only overall organizational performance, but also competitive
advantage of an organization. They are expected to improve an organization’s competitive
advantage through price/cost, quality, delivery dependability, time to market, and product
innovation. Prior studies have indicated that the various components of SCM practices (such as
strategic supplier partnership) have an impact on various aspects of competitive
Ambo Mineral Water share company (AMWSC) has the mission to continually increase
profitability, sustainable unit case sales of Coca Cola products by satisfying new and existing
consumers through excellent market execution at an increasing return on investment. The
company is striving to meet its vision to be one of the best bottlers in the world in producing
quality product and packaging standard.
Now-a-days, stiff competition, the arrival of mineral and distilled water bottling factories, entrant
of multinational companies to the market, other beverage factories coupled with the economic
growth of the country has brought in big challenges and opportunities for the company on sales,
market share frontiers and reaping the benefits. Therefore, t h e researcher has intended to
empirically test the framework identifying the relationships among SCM practices and
organizational performance of the case company.

1.2 Statement of the Problem

Beaumont (2005) states that the supply chain is an integrated process that involves from
transformation of raw material in final product to customer delivery, being divided at least four
levels: - suppliers, producers, distributors and customers.
According to Li et al (2006) different organization have recognized effect of supply chain
management on building sustainable competitiveness of their goods and services in an
increasingly crowded market places and enhancing firm performance and overall supply chain
performance. This has resulted in increased attention of manager, consultants and business owners
towards proper supply chain management in business organizations (Tan et al, 2008).
The early attempts of empirical research in Supply chain management have been limited at
developing instruments capable of measuring SCM practices. Most recently, Gibson et al., (2006),
Alvarado et al., (2011) and Handfield, (2002) have focused their research efforts into exploring the
relationship between practices of SCM and organizational performance. They have used financial
and market criteria to operationalize organizational performance. Also they investigated the
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relationship among SCM practices, operational performance and SCM-related organizational
performance. These Studies and other have produced various results due to operationalizing the
performance of the organization subjectively and objectively. This has been attributed to the
interdisciplinary origin of SCM, conceptual confusion, the evolutionary nature of SCM concepts
and environmental difference where the organization operate.
According to Mentzer, et al., (2001), cultural, social and economic aspect of each country and
the organizations influence the relationship between Supply chain management practices and
its performance and organizational performance.
On the other hand, much of the current empirical studies in SCM focused on their either upstream
or downstream side of the supply chain or certain aspect of the SCM. On the supplier side;
Handfeild and Bechtel, (2002) identified role of relationship with Supplier in improving supplier
responsiveness and Chen and Paulraj, (2004) analyzed the antecedence and consequence of buyer
supplier relationship. Alvardo and Kotzab (2001), focus on downstream linkages between
manufacturers and retailers.
A few recent studies have considered both the upstream and downstream sides of supply chain
simultaneously and explore the relationships between supplier management practices customer
relation practices and organizational performance.
Tan et al., (1998) explore the relationship between supplier’s management practices, customer
relations practices and organizational performance; Frohilch and Westbrook (2001) investigate the
effects supplier-customer integration on organizational performance; Gyaneshwar, (2012) study
operational performance through SCM practices and Moslem (2013) study the impact of supply
chain management practices on competitive advantage.
Despite the increase of empirical research in the last few years, important differences in research
design undermine comparability: lack of consensus about the definition and dimensionality of the
SCM practices, use of different units of analysis and different approaches to performance
measurement.
Supply Chain Management (SCM) is the network of all the individuals, organizations, resources,
activities, and technologies involved in the creation and sale of a product from the suppliers to the
manufacturers, to the end users. The company Ambo Mineral Water share company (AMWSC)
faces some problems related to the supply chain management.

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As the chain goes through starting point to the end, it passes a serious of steps. This process faces
different kinds of challenges starting from the raw material suppliers to the end users.
Our research focuses on this gaps that can affect the organizational performance concerning
supply chain management.
Ambo Mineral Water share company (AMWSC) has the mission to continually increase
profitability, sustainable unit case sales of Ambo mineral water products by satisfying new and
existing consumers through excellent market execution at an increasing return on
investment. Therefore, this research is intended to identify the effects of supply chain management
on organization performance.

1.3 Objectives of the Study

1.3.1 General Objective of the Study
 The general Objective of this study is to identify effect of Supply Chain Management
on Organizational Performances.
1.3.2 Specific Objectives of the Study
 To identify the effect of Strategic alliance on Organizational Performance.
 To examine the effect of Time management on Organizational Performance.
 To explore the effect of Information Communication Technology on Organizational
Performance.
 To investigate the effect of Internal Linkage on Organizational Performance.
 To analyze the effect of Customer Relationship Management on
Organizational Performance.

1.4 Research Questions

 What is the effect of Strategic alliance on Organizational Performance?
 What is the effect of Time Management on Organizational Performance?
 What is the effect of Information Communication Technology on
Organizational Performance?
 What is the effect of Internal Linkage on Organizational Performance?
 What is the effect of Customer Relationship Management on Organizational
Performance?

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 1.5 Significance of the Study
This Study will help Ambo Mineral Water Share Company Supply chain department in solving
numerous operational and planning problems in the departments. It will help the Management to
identify Opportunities and threats in Ambo Mineral Water Share Company. Business can always
stay ahead of the Competition; to compete at the market using business research is mandatory. So
this study will help Ambo Mineral Water Share Company by reducing cost and by improving
market design solution. The study will provide extensive knowledge for the researcher on Supply
chain management practices and their impact on Organizational performance. The study will be
useful in building up ground work for further research on the same area and other related fields.

1.6 Scope of the Study

This Study focuses on assessing the effects of Supply chain Management Practices on
organizational Performance in Ambo Mineral Water share company. The study will be delimited
to only Supply chain management department practices on Organizational performance and
geographically to only Ambo Mineral Water Share Company, head office, Addis Ababa. The
supply chain Management practices that will be addressed in this study are Strategic alliance,
Time management, Information Communication Technology, Internal Linkage and Customer
relationship Management.

1.7 Limitation of the Study

While conducting this study the researcher will be experienced certain limitation. Ambo Mineral
Water Share Company has plants out of Addis Ababa at Ambo, Senkele plant but this study
address only Addis Ababa Plants so this study will be limited geographically.

1.8 Organization of the Paper

This Paper is organized in to three chapters: Chapter One: - Introduction contains background of
the study, the research problem, and objective of the study scope of the study, significance of the
study, limitation of the study, operational definition and organization of the paper. The second
chapter about literature review which include theoretical literature, empirical literature and
conceptual frame work. chapter three methodology of the study which includes description of the
study area, research design, and data source and collection method, sampling techniques and
sample size determination, method of data analysis, reliability and validity analysis and ethical
consideration.
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 1.9 Operational Definitions of the key terms
Operational Definition is practical definitions given by the researcher as per the context. For this
study Operational definition are described below: -
Supply Chain: - refers to those activities associated with the transformation and flow of
goods and services, including their attendant information flows from sources of raw
materials to end users (Ronald et al 2000 pp 9).
Supply Chain Management: - is the systematic, strategic coordination of the traditional
business function and the tactics across these business functions within a particular
company and across business within the supply chain, for the purpose of improving the
long- t e r m performance of the individual companies and the supply chain as a
whole (Mentzer et al 2001 pp 18).
Organizational Performance: - refers to how well an organization achieves its
market- oriented goals as well as its financial goals and it is common tool in any
organization for measuring financial aspect, non-financial aspect, or both financial and
non-financial measurement (Mira et al., 2014).
Strategic alliance: - is the relationship between two or more parties to pursue a set of
agreed upon objectives needed while remaining independent organization. A strategic
alliance will usually fall short of a legal partnership entity, agency or corporate affiliate
relationship. Typically, two companies form a strategic alliance when each possesses one
or more business assets. Strategic alliance can develop in outsourcing relationship where
the parties desire to achieve long term win-win benefits and innovation based on mutually
desired outcomes (Thompson, David S.; Twait, Steven (August 2011)).

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 CHAPTER TWO
2. LITERATURE REVIEW
The term supply chain management is usually unclear to some people. It is sometimes misused
with the term logistics and other managerial operation that is connected with material
management. Many scholars and professors defined supply chain management in different words.
According to James B. Ayers, in his Book called ‘Handbook of supply chain management’ defined
the term in raw words “Design, maintenance, and operation of supply chain processes for
satisfaction of end user needs” Also explain later in his book in detail. In this chapter we will see
the theoretical review, Empirical review and conceptual review of literatures concerning supply
chain management.

2.1 Empirical Reviews

Bangi, Selangor conducted a research in Malaysia on Information sharing in supply chain
management, in this study the significance of information integration in a supply chain has been
elaborated. The study shows how the manufacturing sector are required to make the best use of
advanced information technologies to share information within their supply chains in order to
increase their competitive advantages and hence survive in today’s global economy. He also
explained and listed out the works to do by using IT from the start of raw material to the hands of
the end use and beyond.
Vikas Kumara conducted a research on a food sector in 2017 UK. This study examined the linkage
between the Supply Chain Integration indicators and supply chain performance in the UK food
sector. All the hypotheses tested showed the constructs of integration positively and significantly
correlated to supply chain performance and the results from the interview further confirmed this.
A greater percentage of respondents agree that information integration is central to their supply
chain operations and a key driving force to achieve supply chain performance. This is not only in
the case of food sector but also in other sectors such as manufacturing where literature tends to
support the importance of information integration in achieving supply chain performance. A
comparison of the food sector findings with other sectors would perhaps highlight the key
differences and prominence of certain factors for specific industries. In our case beverage also has
a similar character to the food sectors.

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Internal integration was the study of Emma Toivo,2002 in the case of supply chain management.
This thesis has made such an effort by showing an indicative boundary framework for internal
integration. Internal integration spans from linking purchasing, manufacturing and logistics to
including marketing as well as including the supportive services and activities that are connected
with the chosen functions.
This linkage is done through teamwork that is facilitated by such a degree of open and available
collaboration and coordination that department borders become unclear or indistinct. In more
practical terms, elements like cross-functional teams and an internal IT system help create
visibility through communication throughout the processes, functions, or company. The key idea
is that internal integration in a supply chain has a constructive outcome on the overall organization
performance.
Priscila and Luiz (2011), On the research topic Supply Chain Management measurement and
its influence on Operational Performance: they showed SCM measurements were considered as
consists of information sharing, long term relations, cooperation and process integration as
independent variables influences operational performance in case of Brazilian
companies. The empirical results of this study provided evidence of a positive impact of SCM
measurements on operational performance.

According to Thatte, (2007) the sub-constructs for supply chain responsiveness includes
operation system responsiveness, logistic process responsiveness and supplier network
responsiveness. Operation system responsiveness is the ability of firm’s manufacturing
system to address changes in customer demand. It includes both manufacturing and service
operation. Duclos et al (2003); Lumnus et al (2003) emphasize that responsiveness at each
company of the chain is an integral component of supply chain responsiveness. Logistic
process responsiveness is the ability of company’s outbound transformation, distribution and
warehousing system to address changes in customer demand. Fawcett (1992) stated that the
responsive in logistic process is a crucial component in the supply of a responsive supply
chain strategy.

Logistics and distribution management encompasses the transformation activities of goods from
suppliers to manufacturer to distribution centers to final point of end users (Ricker and Kalakota,
1999; Duclos et al, 2003; Thatte, 2007).

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 The study has been motivated by Muhammed Kürşad Özlen and Nereida Hadžiahmetović
(2013) on the need of research combining supply chain, customer relationship and the
technological infrastructure of the companies.
Moreover, since the influence of social media has been growing, as a part of technological
infrastructure, it is also searched by this study. The results show the extent of customer
relationship management implementation in supply chain management of SMEs in Bosnia and
Herzegovina. From the results, we derived both positive and negative conclusions about those
companies. The main positive consideration is that almost all these companies and their workers
recognize customer relationship as an important component for their companies. However, they
are identified to have very limited set up systems. This study is expected to be useful company
managers by pointing their needs related to the issue and identifying their level when compared
to global markets and also increasing customer relationship culture for the organization.

2.2 Theoretical Review

2.2.1 Supply Chain Management
(Aziz & Sherzod, 2014) supply chain management stated as the integration activities taking place
among a network of facilities that procure raw material, transform them into intermediate goods
and then final products, & deliver products to customers through a distribution system. It is a task
of integrating organizational units along a supply chain and coordinating materials, information
and financial flows in order to fulfill customer demands with the purpose of improving
competitiveness and service of the supply chain as a whole.
According to the journal of SCRC SME, 2014 the concept of SCM is based on two core ideas that
is practically every product that reaches an end user represents effort of multiple organizations
referred collectively as the supply chain.
Physical flows involve the transformation, movement, and storage of goods and materials. They
are the most visible piece of the supply chain but just as important are information flows.
Information flows allow the various supply chain partners to coordinate their long-term plans, and
to control the day-to-day flow of goods and materials up and down the supply chain.
The above journal’s idea is related to David Weave’s 2016 idea of ‘The 4 Important T’s of Supply
Chain Transparency’ that described SCM in different terms.
The first term is traction, which stated that everyone must be on board and committed to shedding
more light on operating processes, both internal and external. The bottom line, the topic needs
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traction within the organization in order for a project to be successful. The second term was trust,
which deals about a great way to develop cross-functional trust are for management to ensure all
departments within the supply chain are working toward the same organizational goals.
Transparency can be increased if all parties involved are working together in one actionable plan.
A healthy team atmosphere will help pave a smooth road toward transparency. The third term that
he pointed out is training, which is a basis for managerial operations that serve as an excellent
method to increasing transparency within a supplier network.
Companies cannot expect their suppliers to act a certain way if they do not communicate these
desired and trained behaviors. However, training goes beyond simply communicating their
preferred actions and results. It is a hands-on approach to developing skills and best practice
processes. The last term is technology, which all are familiar with nowadays. With today’s
consumers demanding more information regarding the roots of their latest purchase, the answer
should be yes. For example, today’s connected society allows for a much more detailed screening
process during the supplier selection phase. Electronic databases allied with supplier data are
popping up in social media type settings where buyers can meet suppliers and obtain detailed
performance information
2.2.2 Supply Chain Management vs Logistics
These terminologies are always misunderstood by most people. The Council of Logistics
Management (CLM) defines “logistics” as follows: Logistics is that part of the supply chain
process that plans, implements, and controls the efficient, effective flow and storage of goods,
services, and related information from the point of origin to the point of consumption in order to
meet customers’ requirements. Supply chain management encompasses all the activities,
associated with the sourcing, procurement, conversion and logistics management. Above all, it
incorporates the coordination and collaboration with the parties like suppliers, intermediaries,
distributors and customers.
Differentiating both logistical management and supply chain management is an essential aspect
because one can have a conceptual picture of measuring the performance of each department in a
reasonable way. Moreover, understanding the role of each department prevents the conflict of
interest while at the same time creating boundaries between various departments within the
organization. Limits are efficient when determining the allocation of resources in each division.

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2.2.3 Supply Chain Management in manufacturing organization
In manufacturing organization supply chain management is nowadays observed as effective mean
for achieving successful supply chain competition. The understanding and practicing of Supply
Chain Management (SCM) has become an essential prerequisite for staying competitive in the
global race and for enhancing profitably. Supply chain is all activities involved directly or
indirectly in completing a customer’s order. A basic supply chain mainly consists of five
elements. These elements are pointed out by Vishal Parmar, H.G.Shah 2016.
Supplier: is an entity that supplies goods to another organization. This entity has a role of
providing high quality products from the manufacturer at a good price to a distributor or retailer
for resale.
Manufacturer: is a person or registered company, which makes finished products from raw
materials. In a large scale and later distribute to wholesalers and retailers who then sell to
customers.
Distributor: An entity that buys noncompeting products or product lines, warehouses them, and
resells them to retailors or directly to the end user customers.
Retailer: also called a merchant, which sells goods as individual items or small quantities to
general public or end user customers to gain profits.
Customer: is a person or a business company that purchases products to use the goods as end
consumers.
Through practical overview, the concept of supply chain management emerged from some
modification in the area of manufacturing such as increase of cost, decrease in inventory, product
life cycle and globalization of business. Manufacturing organization in recent years focus on
effective distribution service with physical product to gain competitive advantage. Supply
chain management reduce unnecessary inventory, accurate information sharing, and developed
trust among supply chain partners.

2.2.4 Tasks and variables of Supply Chain Management

Tasks of Supply Chain Management
The application of supply chain management can be a tangible action through its tasks. It is the
way supply chains works and applied to the respective activities involving all chains in material

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management operations. James B. Ayers explained in his two books (handbook of SCM 2001 and
SUPPLY CHAIN Project Management 2010): the five tasks of SCM.
Task 1: Designing Supply Chains for Strategic Advantage
Supply chain design embodies strategic choices and customer requirements. The scope covers
existing products and services as well as new products or customer segments. This concept
maintains that, in the longer term, physical product features will be insufficient for
competitiveness. Features associated with the supply chain will determine competitiveness.
Marketplace success requires supply chain innovation. Supply chain design should support the
company’s strategy for competing. This design can be applied by building a framework for a
sustainable advantage based on a unique set of well-linked activities and matching supply chains
to product types recognizing that supply chains should be designed with different objectives based
on the products they support. Other design approach is coordinating new-product development and
supply chain management covering both existing and new product pipelines. Through all these
design process we should keep in mind the application of an analysis tool, Quality Function
Deployment (QFD), to supply chain design which is the basis for all steps.
Task 2: Implementing Collaborative Relationships
Collaboration needed within the organization and outside the organization. People are responsible
for any changes, consequences and accomplishments of any type in the supply chain. Our
experience is that change fails to be effective due to rejection of the change by people in the
organization. Therefore, we begin this section with a description of the functions that must support
different sides of the supply chain process. The task also addresses garnering top management
involvement, implementation project structures, and organization of both the change effort and the
ongoing management of supply chain functions.
These collaborative relationships are achieved by organizing the change effort and functional
roles in supply chain transformation, Participative process for redesigning supply chains,
Performance measures and their role, placing the supply chain management function within the
organization.
Task 3: Forging Supply Chain Partnerships
The supply chain pattern needs effective partnering outside the enterprise. The basis for
competition shifts to the supply chain, there will be an increase in collaborating arrangements of

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 all kinds. Outside partners must participate to be successful and old patterns must be discarded.
Effective project management requires an organized, multi company approach.
The core tasks concerning foreign partnership chains are core competency, motivations for
partnerships and forming Partnership structures that smoothens the relationship between partners.
Task 4: Managing Supply Chain Information
The role of information systems in functioning supply chains should have the greatest place in the
process. The part technology will play in supply chain change is the highest that argues systems
changes should support process changes that, in turn, support enterprise strategies. The possible
components of a fully functioning supply chain information system are described along with the
alternatives for their implementation. Globalization plays a great role in managing supply chain
information, as the world is becoming one village.
Task 5: Removing Cost from the Supply Chain
Every company has aim of decreasing cost and increasing profits. In case of supply chain cost
removing is always be a focus of supply chain improvement efforts for both strategic and tactical
advantage. The root causes for unnecessary supply chain cost are: lack of clarity regarding what
is happening in the supply chain, variability in operations from both external and internal factors,
shortcomings in product design, inadequate information for decision making, weak links between
partners in the supply chain, unintended circumstances arising from traditional mindsets. All
these can cost as additional resources, which is a mal-functionality of the supply chain process.
variables of supply chain management
According to Ashish Agarwal and Ravi Shankar, In order to understand the behavior of the
variables that can play a major role in the performance improvement of an organization in a supply
chain, a System Dynamics-based model is proposed. The model provides an effective framework
for analyzing different variables of supply chain affecting the performance of the organization.
Among different variables, a causal relationship among different variables has been identified.
Variables emanating from performance measures in this research case are Strategic alliance,
Customer Relationship management, Information communication technology, time management,
internal linkage. These are the independent variables, which affect the level of organization
performance in supply chain management. We will see in detail how they have an effect on
performance and allover the company.

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 A. Strategic Supplier Partnership

A strategic supplier partnership is a deliberate relationship between two or more organizations that
is formed based on the common need of the involved organizations like suppliers, manufacturers,
distributors and retailers without being constrained by ownership, control, and equity investment
(Devlin and Bleackley, 1988; Varadarajan and Cunningham, 1995). In a strategic alliance,
business decisions are made jointly to achieve the agreed goals of aligned organizations that share
resources, information, profits, knowledge, and risk. Those goals are to gain access to new
customer bases, offer more product/service offerings for the customers, pool resources in light of
the large outlay required, to learn new knowledge from the alliance partners, utilize the existing
personal network to reach new supplier bases, enhance the market position in present markets, and
add credibility to the business.
Lambert et al. (1998) classify supply chain partners into two distinctive types: primary and
secondary partners. In general, primary partners (focal companies) are autonomous channel
captains or strategic business units that actually perform operational and/or managerial activities
designed to create a specific product or service for a particular customer or market. These primary
partners can be manufacturers. The supporting partners are partners that does not involve to the
production of the product but participate in facilitating activities. These can be transportation
carriers, consulting firms, third-party logistics providers, IT service providers, online brokers, and
educational institutions.
The categories are not exclusive, however, because a firm can be both a primary partner and a
supportive partner of the supply chain, performing primary activities related to one process and
supportive activities related to another process. An article by Essays business UK 2018; A typical
strategic alliance formation consists of some steps
Strategy Development: development involves feasibility of alliance, objectives and goals,
decisions, focus on critical issues, technology and people with their challenges and resources.
Partner Assessment: In this assessment partner’s strength, potential, developing managing styles,
preparing criteria for partner selection and understanding their motives for joining alliances.
Contract Negotiation: It is the development of realistic objectives among the group and
forming the high caliber or developing synergy. Consideration on security of information,
termination clauses, and penalties for poor performance is formulated.

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Alliance Operation: it is linking of budgets and resources to fulfill the strategic priorities,
measuring the performance etc.
Alliance Termination: It is the winding down of partnership due to failure or not meeting the
clauses decided before.
On Essays of UK the advantages and types of strategic alliance are listed briefly. The advantages
of Strategic Alliance are: each partner can concentrate on different stages of the supply,
developing competences and learning form the partners, suitability and protection of resources is
maintained, developing low cost models hence financial benefit.
Types of strategic alliances
Joint venture: In this type of alliance two or more firms create legally independent company to
develop competitive advantage
Equity Strategic Alliance: There is sharing of different percentages of the company.
Non-equity Strategic Alliance: It is alliance on a contractual- relationship to share the unique
resources.
Global Strategic Alliances: It is formed between a company and foreign company.

B. Customer Relationship management

Customer relationship management (CRM) is an approach to manage a company’s interaction

with current and potential customers, as defined by Wikipedia. According to Bullington (2005),
supply chain management is the marriage with customer supplier relationships. They aim to apply
results of research on successful families to supply chain management in order to develop the
serious business relationships.
According to handbook of SCM, The CRM category includes a large number of functions for both
e-commerce and traditional interfaces between customers and product suppliers. CRM is likely, in
our opinion, to be an important enabler of supply chain strategy execution. Once a customer
demand enters the supply chain through a CRM application, it can be dispersed rapidly throughout
the chain. Rule-based decisions can then support both planning and execution systems in response.
Functionality of CRM Applications are contact management, Customer history tracking,
Account/territory management, Field sales, Customer service systems, Order entry, Data “mining
“to understand, customer trends, Decision support for sales campaigns, market segmentation, and
so forth.

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James B. Ayers discussed the reality of CRM is a “bundling of customer strategy and processes,”
supported by software. The author recommend to avoiding the following four perils in executing
CRM, the risks we won’t take in building customer relationships are:
No customer strategy: This strategy focuses on attractive customers only. Less attractive
segments will have alternative strategies depending on the prospects for making them
profitable to serve. The company may assume that they don’t need CRM software to
impress the attractive customers. They prefer to use other methods like.
Implementing CRM without the environment needed to make it work: Without
needing any CRM, we do not have to draw the whole structure of the management.
Before applying any measure we have to study what kind and how to create relationship
with the customers. If we do that, it would be a waste of time, energy and resources.
assuming more technology is better: CRM, in its management context, doesn’t require
technology to be implemented. Proper responses can range from low tech to high tech,
depending on the needs and wants of the targeted segment. One can also ramp technology
use as the change process proceeds, starting with low-tech, easy-to-implement CRM
measures for short-term gains and proceeding to hard-to-implement, higher-technology
solutions.
Stalking customers: “Just because managers can contact a customer doesn’t mean they
should.” This quote from the authors demonstrates the fine line between zealous customer
care and stalking. Any investment in CRM techniques should reflect what that customer
would like to see, and that may not be and most likely will not be irritating from sales
people. It is best if we use technological means to contact our customers.

Customer Response Systems (CRS) as reviewed by (Edward Frazelle 2002) is a modern language
for customer relationship management (CRM). CRM software is one of the newest software
market spaces. CRS is a strategic concept that involves understanding and managing the sequence
of activities from customer to supplier or the organization.

The functionality in a customer response system includes: Order entry, Order processing, Contact
management, Customer activity profiling, Order pattern recognition, Customer transaction
databases, Open order databases, Customer service policy maintenance, Customer service
performance measurement, Call/customer transaction management systems, Customer satisfaction
monitoring
16
 C. Information communication technology
The sharing of information among supply chain networks allows the supply chain teams to work
together with the goal of integrated and coordinated supply chains for effective supply chain
management. It also maximizes the performance of the organization and reduces the risks of
supply chains because it provides processes executed transactions and creates opportunity for
decision makers. This is where IT comes into role and it consists of hardware and software
applications. IT also plays an important role in integrating suppliers, manufactures, distributors
and customers to satisfy the quantity and quality of products. Organizations can gather vital
information along the entire supply chain and react quickly to any predictable market changes,
thereby gaining competitive advantage by effectively utilizing SCM (Tummala & Schoenherr,
2008). There are different kinds of IT outputs that facilitate the SCM. The following list is
explained by T. N. Varma, D. A. Khan, 2014. Some of them are listed below:
Electronic Records Management
Paperless business transactions through Enterprises Resource Planning (ERP) Systems,
Automatic Identification (Auto ID) and Electronic Data Interchange (EDI) are collectively
known as Electronic Records Management (ERM). The objective of ERM implementation in
SCM is to ensure the accountability of process flow, which is fruitful to reduce cybercrime risks
(e-risks) generate during the e-communication.
Bar code and Scanner

Bar codes consists of ladder orientation (width lines in a horizontal order) or picket fence
orientation (width lines in a vertical order), where data is stored in magnetic or optical form as a
part of communication system. The organizations are using it in supply chain networks to
automate tracings and tracking products and services at each process flows. It also provides
necessary accurate and timeliness of information which is useful to reduce errors (Ellram et
al., 1999) because it is the representation of a number or code in a form suitable for reading
by machines.
Radio Frequency Identification on (RFID)
Radio Frequency Identification (RFID) is a technology which is based on the use of tags that
emit and receive the identity in the form unique serial number of an object through wireless using
radio signals and on readers that collect the data transmitted by the tags and forward them
into the company’s information system for further evaluation and analysis.
17
 Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI) is the computer to computer interchange of business
documents and/or information in standard, structured, machine retrievable data format without
human assistance (Sanchez & Perez, 2003) between trading partners and commonly referring
specifically to the application of EDI communication.

Distribution Requirement Planning (DRP)

Distribution Requirement Planning (DRP) is a management process that provides a linkage

between warehouse operations (store, distribution center, or warehouse that carries product
for sale) and transportation requirement that ensures that supply sources (third party supplier, a
regional distribution point, or a factory) which be able to meet the demand. DRP applies the time-
phased logic to replenish inventories in multiechelon warehousing systems. DRP include
the planning of key resources in a distribution system warehouse spaces, work force levels,
transport capacity and financial flows.
Electronic Supply Chains
Electronic Supply Chain (ESC) is a supply chain that is electronically managed in form of EDI-
based or Internet based between or among participating organizations. Basically it is a Virtual
Supply Chain, which links organizations to allow them to buy, sell and move products,
services and cash by using Internet-based applications to transact and exchange information
with their downstream or upstream.
Electronic Commerce (e-Commerce)
Electronic Commerce (e-commerce) means tools and techniques to manage business in a
paperless environment. E-commerce includes electronic data interchange (EDI), email, electronic
funds transfers, electronic publishing, image processing, electronic bulletin boards, shared
databases, and magnetic/optical data capture (such as bar coding), the Internet, and websites
in form of B2B (Business to Business) as Covisint, B2C (Business to Customer) as
Amazon.com, Wal-mart.com, C2B (Customer to Business) as priceline.com, C2C (Customer to
Customer) as e-Bay auction, P2P (Peer to Peer) and Mobile, or m-Commerce.

Spread Sheet (Microsoft Excel)

Organizations are using Microsoft Excel as standard desktop software and decision making

18
tools in their supply chains, because in comparison to the total cost of ownership with

19
commercial software-based decision making supporting tool, it is less. It is also useful to apply
in Supply Chain Networks (SCN), because it has many build-in capabilities to perform and
execute quantitative modeling techniques. Microsoft Excel is an ever-present tool and easily use
for data analysis because spreadsheets are easy to navigate and flexible enough.
Data Warehouse and Data Mining
Data Warehouse (DW), which provides a combination of many different databases across an entire
enterprise, aids management in the decision-making process with specific characteristic as subject-
oriented, integrated, non-volatile, time variant, accessible and process oriented. Data mining
combines data analysis techniques such as statistical analysis and modeling to uncover
hidden patterns and subtle relationships in data and to infer rules that allow for the prediction of
future results.

World Wide Web

The World Wide Web (WWW) is the Internet system for hypertext linking of multimedia
documents, allowing users to move from one Internet site to another and to inspect the
information available without having to use complicated commands and protocols.
Information Sharing in Supply Chain Management
(Zahra Lotfi et al.2013) Information sharing means distributing useful information for systems,
people or organizational units. To enhance the results of information sharing, organizations should
answer four main questions: First we ask what to share, then whom to share it with, then how to
share, and finally when to share. The quality of answers will help to avoid redundancy, reduce
sharing costs and improve responses. The term ‘Information Sharing’ can also be referred to as
‘Knowledge Sharing’ or ‘Information Integration’. There exists a myriad of information in a
supply chain, such as, logistic, business, strategic, tactical and many more.
D. Time management
We are more familiar with the concept of time management.in the concept of supple chain we
study the major effect of time management in the organizational performance. (Shuan Snapp2017)
described lead time as the time required to complete a supply chain process required to provide
the product to a customer. The overall lead time is made up of the following sub-lead times from
the supply side:
1. Supplier Lead Time or Supply Lead Time
2. Manufacturing Lead Time
20
 3. Purchasing Lead Time
4. Shipping Lead Time
(Martin Christopher, 2011) quoted ‘Time is money’ in his book. It is perhaps an over-worked
cliché in common parlance, but in logistics management it goes to the heart of the matter.
Does time not only represent cost to the logistics manager but extended lead times also imply a
customer service penalty? As far as cost is concerned, there is a direct relationship between the
length of the logistics pipeline and the inventory that is locked up in it; every day that the product
is in the pipeline, it incurs an inventory holding cost. Secondly, long lead times mean a slower
response to customer requirements, and, given the increased importance of delivery speed in
today’s internationally competitive environment, this combination of high costs and lack of
responsiveness provides a recipe for decline and decay.
Lead-time view points
Martin viewed lead time in two perspectives. These are from the supplier’s perspective and the
customer’s perspective. Suring the life cycle of the produce we can examine both concepts of lead
time management and its effect on organizational performance.
1. The order-to-delivery cycle
From a marketing point of view the time taken from receipt of a customer’s order through to
delivery (sometimes referred to as order cycle time (OCT)) is critical. In today’s just-in-time
environment short lead times are a major source of competitive advantage. Equally important,
however, is the reliability or consistency of that lead time. It can actually be argued that reliability
of delivery is more important than the length of the order cycle at least up to a point because the
impact of a failure to deliver on time is more severe than the need to order further in advance.
However, because, as we have seen, long lead times require longer-term forecasts, then the
pressure from the customer will continue to be for deliveries to be made in ever shorter time-
frames. The order cycle goes through: customer places order, order entry, order processing, order
assembly, transport, and lastly order received.

2. The cash-to-cash cycle

From the moment when decisions are taken on the sourcing and procurement of materials and
components, through the manufacturing and assembly process to final distribution, time is being
consumed.

21
That time is represented by the number of days of inventory in the pipeline, whether as raw
materials, work-in-progress, goods in transit, or time taken to process orders, issue replenishment
orders, as well as time spent in manufacturing, time in queues or bottlenecks and so on. The
control of this total pipeline is the true scope of logistics lead-time management.
E. Internal linkage

Linkages can be formed internally within the organization and externally with other companies.
The internal linkage can be within branches or departments to enhance information sharing. This
improves the knowledge about required and in stock amount of finished goods inventory. It also
leads to a better physical movement within supply chains.
F. Organization Performance

Organizational performance is a key variable that is dependent on the above points we discussed
in the literature review. Jamal Ahmed Al-Doori (2019) explained the aim of every organization is
to enhance a good performance but for improvement, they must need to measure it accurately first.
Previously performance was measured by cost with the passage of time more financial indicator
were added like return on asset, return on investment, sale and etc. Only financial indicators are
not enough for measure overall and accurate performance, consequently, with the intent of balance
scorecard approach some operational indicators were added.
Other approaches also added values in measuring supply chain like quantitative or qualitative
measures, strategic, tactical and operational measures and etc. A comprehensive review and
revealed that for the good performance measure all the members should be considered,
performance measure should consider both financial and non-financial items, all the levels of
supply chain must be considered and all process of supply chain should be included so the
performance should be measured by operational performance.
Measurements of Organizational Performance
The term “performance measurement” according to Cantens, T. and Yasui, T. (2011) usually
refers to the continuous gathering of data from specific functional areas. It monitoring and
reporting the ongoing concerns of a Customs administration’s progress towards reaching its
organizational goals. It is made up of an internal system that collects, orders and reports on
workflows, outputs and outcomes. The purpose of performance measurement is to assist making
decisions and to understand progress towards meeting the outcomes of the Strategic Plan and
Action Plans.
22
According to (Sommer Kehrli, 2012) there are 5 steps to effectively measure organizational
performance:
Be clear on the direction:Answers the question of “why” your department or
organization exists? An organization’s vision, mission, values, and strategic plan can be helpful in
understanding the purpose of the organization the key to organizational performance is to first be
crystal clear on where you are trying to go.
Set SMART goals: Once you know the direction of the organization, it’s time to set some goals to
strive to achieve in order to meet the purpose of the organization. Goals should be set to assure
they meet these five basic criteria: Specific Measurable Actionable Relevant Timely.
Determine what is critical to measure: To assess performance or create a meaningful measure
for critical determinants to get to the desired destination and not wasting resources on insignificant
factors of the performance indicators.
Implement changes and measure outcomes: When the appropriate measurement
components are in place, you can move quickly with finding changes that work because you can
assess the performance each step of the way and make rapid adjustments to the changes to
improve performance.
Ensure everything that is measured ties back to the overarching organizational goals.
Adjust measures as needed: Measures should be looked at regularly and adjusted as appropriate.

23
 2.1Conceptual Framework

Strategic supplier partnership

Time management
Information communication technology
Internal linkage
Customer Relationship management

Source: Ambo Mineral water s.c (2022)

24
 CHAPTER THREE
3. Methodology of the Study
Research methodology is the path of finding answers for research question (Woldemichael, 2012). In
this chapter the researcher provided brief explanation on how the study will be conducted it includes;
the study design, area of the study, sample size, sampling techniques, data collection methods, data
analysis, data reliability, data validity and ethical issues.

3.1 Description of the study area

The study will be conducted in Ambo Mineral Water factory located in Ambo Senkelle located in the
West Shewa Zone in the Oromia region 115 KM far from Capital City of Ethiopia. The Head office of
the company is located to Akaki Kality woreda 05 near to vehicle training center square

3.2 Research Design

Designing a study helps the researcher to plan and implement the study in a way that will help the
researcher to obtain intended results, thus increase the chances of obtaining information that could be
associated with the real situation (Burns & Grove, 2001). This study will apply applied research which
follows both descriptive and explanatory designs in order to address the aforementioned Objectives. It
will be conducted on Supply chain management in Ambo Mineral Water Share Company in Addis
Ababa Office. The data for the study will be quantitative in nature which will be collected from
Primary sources. The researcher will use the cross sectional field survey method to assess the
relationship between supply chain and firm performance. In the cross sectional field survey,
independent and dependent variables where measured at the same point in time by using single
questionnaire. The researcher will select total population in study area by applying Census survey
method. The researcher will be used descriptive design in order to identify practices of supply chain in
the case company. Correlational research is aim to ascertain if there is a significant association
between two variables (Reid, 1987). Hence, after the data are collected, the researcher analyzes the
data by using correlation, particularly Pearson’s coefficient of correlation and regression analysis
technique to show the effect of independent variables on dependent variable.

3.3 Research Approach

Research approach is selected by researcher based on the research purpose, nature of the research, the
problem area and research questions (Alhamdani et al 2006).

25
The purpose of the research is to find out the relationship and effects of independent variables, Supply
chain management practices on organizational performance by collecting data from the employees of
supply chain department.
Hence, in order to achieve the objective of this study and to answer the research question, the
researcher will adopt quantitative data from primary sources that will be collected from questionnaire.
Therefore this study will be used quantitative approach.

3.4 source of Data

This study will be used both primary and secondary sources to undertake the study. Primary data will
be collected from respondents and secondary data from dissertations, reports and books with relevant
literature and the internet. Primary data will be used for the purposes of identifying Effect of supply
chain management on firm performance. The researcher will collect primary data from employees.

3.5 Instruments of data collection

In order to achieve the objectives of this study, the researcher will be used quantitative research
methods. The study will be used questionnaire as a data collection instrument that helps to cover
larger target groups than the interview, given the quality and chance of no response.
The questionnaire has three parts; the first part explains the purpose of the questionnaire; the second
part comprises of profile of respondents while the third part comprises of research questions. The
questionnaire was prepared using 5 Point Likert-Scale approaches (i.e., from “Strongly Disagree to
Strongly Agree”). In order to encourage respondents and maximize the chances of obtaining adequate
responses, the length of the questionnaire will be taken into consideration. Accordingly, respondents
were asked to indicate their level of agreement on 5 point Likert scale with the following
ratings; Strongly Disagree (1), Disagree (2), neutral (3), Agree (4) and Strongly Agree (5) . The
numbers were indicated in the questionnaires to provide a feel of ordinal scale measurement and to
generate data suitable for quantitative analysis.

3.6 Sample and Sampling Techniques

According to Hair et al (2010), target population is aid to be a specified group of people or object for
which questions can be asked or observed made to develop required data structures and information.
To collect data about the practices of supply chain management, employees of the company that have
direct relationship with supply chain management and which have diploma and above academic level.
According to Ambo Mineral Water Share Company (2020) there are 182 employees including
26
managerial and non-managerial positions in the Supply chain department located at Addis Ababa

27
Office. There are 9 Departments that involve in supply chain management activities. These
departments include; Distribution, Sales and Marketing, Warehouse, Store, Depot Management,
Procurement, Fleet and Trade Service. According to Alreck & Settle (2005) the choice of Sample size
is normally made after considering statistical precision, practical issue and availability of resources.
Target Population of the study is presented in the table 1 below.

No. Departments Population

1 Distribution 21
2 Warehouse 23
3 Depot Management 15
4 Fleet Management 9
5 Sales and Marketing 39
6 Store 12
7 Procurement 18
8 Trade service 11
Total population 150
Source: AMWSC, (2022)
Total population for this study is 150. The researcher will select total population in study area by
applying Census survey method. Therefore, total targeted population for the study is 150.
The study will use stratified, purposive and census sampling technique. This was because stratified
sampling technique will be appropriate to select respondents from all components of the SC
department of AMWSC. On the other hand, purposive sampling method is used when elements are
selected due to a specific purpose, usually because of their unique position (Schutt, 2011).

3.7 Method of Data Analysis

After the data are collected both descriptive and inferential statistical techniques will be
employed to analyze the data. The data will be analyzed using SPSS version 20. The statistical tools
will aligned with the objectives of the research. Inferential statistics is particularly the Pearson’s
correlation will used to show the relationship and the strength/degree as well as direction of
associations between variables. The other inferential statistics will be used are regression
analysis that shows interdependence of independent variables and dependent variable. Thus, both the
strength of the relationship between variables and the influence of independent on dependent
variable and statistical significance will be assessed.

28
3.8 Reliability and Validity analysis
3.8.1 Validity Test
Bryman & Bell (2007) defined validity as how much any measuring instrument measures what it is
intended to measure. The important issue of measurement validity relates to whether measures of
concepts really measure the concept or not. There are several ways of establishing validity such as
content validity; concurrent; predictive validity; construct validity; and convergent validity. This study
addressed content validity through the review of literature and adapting instruments used in previous
studies.
3.8.2 Reliability test
Nunnaly (1978) stated that reliability is the consistency of a test, survey, observation, or another
measuring device. The level of reliability of the instrument indicates the consistency of the variables.
Cronbach‘s alpha is an index of reliability associated with the variation accounted for the true score of
the underlying construct and it can only be measured for variables which have more than one
measurement question. 0.5 is a sufficient value, while 0.7 is a more reasonable value. The reliability
of the questionnaire is analyzed by using Cronbach’s alpha statistics.

3.9 Ethical Considerations

During the distribution of the questionnaire, respondents will be informed about the purpose and
the benefit of the study along with their full right to accept or completely reject the participation.
The respondents will be told their response will be kept confidential and their identity shall not be
exposed. Every person involved in the study will entitled to the right of privacy and dignity of
treatment, and no personal harm will cause to subjects in the research. Information obtained is held in
strict confidentiality by the researcher. All assistance, collaboration of others and sources from which
information will draw is acknowledged.

29
 CHAPTER FOUR
4. Work Plan and Budget Breakdown
4.1 Work plan
This time will be allocated to different phase of the research project based on the range of the
research proposal.
NO Activities Months
Jan Feb Mar April May Jun July Aug Sept
1 Topic selection
2 Proposal writing
3 Proposal approval
4 Questionnaire design
5 Literature Review
6 Data Collection
7 Write-up
8 Presentation
9 Final submission

30
4.1.1 Budget Breakdown
Stationery and related expenses

No Item Quantity Measurement unit

UOM Unit Total Price Cent
Price
1 Paper 100 Pcs 2 200 00
2 Pen 5 pcs 15 75 00
3 Ruler 1 pcs 25 25 00
4 Flash disk 8GB 2 450 900 00
5 Typing cost 70 pages 70 pages 3 210 00
6 Printing cost 70 page 70 page 2 140 00
7 Transportation 2000 00
8 Miscellaneous 2000 00
9 Total 5,550 00

31
REFERENCE

Alreck, & Settle, R, (2005). The survey research handbook (2nd ed), Chicago: Irwin
Ambo Mineral Water S.C. (2020). Human Resource Structure, Addis Ababa.
Al-Doori, J.A. (2019). The impact of supply chain collaboration on performance in
automotive industry: Empirical evidence. Journal of Industrial Engineering and Management,
12(2), 241-253.
Alvarado. Y.and Kotzab, H. (2011). Supply Chain Management: The Integration of Logistics in
Marketing. Industrial Marketing Management, 183-198.
Ashish Agarwal and Ravi Shankar, Modeling supply chain performance variables, Asian
Academy of Management Journal, Vol. 10, No. 2, 47–68, July 2005.
Aziz Muysinaliyev, Sherzod Aktamov, Supply chain management concepts: literature review,
IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-
7668. Volume 15, Issue 6 (Jan. 2014), PP 60-66)
Burns, N., & Grove, S. (2001). . (2001). the Practice of Nursing Research Conduct, Critique and
Utilization (4th ed.). Philadelphia: W.B. Sounders Company.
Christopher, Martin. Logistics and supply chain management Book: creating value-adding
networks / Martin Christopher. 4th ed.2011
Chen, I.J. and Paulraj, A.(2014). Towards A Theory of Supply Chain Management: The
Constructs and Measurements Journal of Operations Management, 143-161.
David Weaver, All things supply chain, The 4 Important T’s of Supply Chain Transparency,
February 23, 2016.
James B. Ayers, Supply Chain Project Management: A Structured Collaborative and Measurable
Approach (9781574443509) Books. Second edition (August 26, 2003); ISBN-10: 157444350X;
ISBN-13: 978-1574443509.
T. N. Varma*, D. A. Khan**, Information Technology in Supply Chain Management, 2013, the
4th International Conference on Electrical Engineering and Informatics (ICEEI 2013)

Christopher. (2003), Logistics and Supply Chain Management, Financial Times Professional
Christopher, M. & Towill.D (2002). Developing Market Specific Supply Chain Strategies, the
international Journal of Logistics Management, 1-14

31
Muhammad, B. (2004). Supply chain management: Practices, performance and its impact on
business performance, Unpublished M. SC Thesis of the University of Utara, Malaysia.
Li Suhong, Bhanu Ragu-Nathan, T.S. Ragu-Nathan, S. Subba Rao. (2006). the impact of supply
chain management practices on competitive advantage and organ performance. International
Journal of Management Science, 107-124.
Goldman, S.Nagel, R., & Preiss, K.(2005). Agile Competitors and Virtual Organizations:
Strategies for Enriching the Customer. New York: Van No strand Reinhold
Lee chang Won, Kwon Ik-Whan and Serverance Dennis; Relationship Between supply chain
performance and degree of linkage among supplier, internal integration and customer: October
2007
Sommer Kehrli, Measuring and Evaluating Organizational Performance, May 2012, the
Development Compendium, Organizational Performance Measurement
Hair, Joseph, F., William,C., Black, S., Barry, J., & Babin, A. (2010). Multivariate Data Analysis:
Seventh Edition, Pearson Education.
MARTIN CHRISTOPHER Logistics & Supply Chain Management Book Fourth edition 2011
Vikas Kumara*, Impact of Supply Chain Integration on Performance: Evidence from the UK Food
Sector, 27th International Conference on Flexible Automation and Intelligent Manufacturing,
FAIM2017, 27-30 June 2017, Modena, Italy,
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Emma Toivo, The Integration Within: What is internal integration in SCM, An indicative study of
the definition of internal integration, Master’s Thesis Fall 2009.
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practices: September 2005.
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32
APPENDIX
Annex I: Questionnaire

Dear Sir/Madam
RE: REQUEST FOR PARTICIPATION IN A RESEARCH STUDY
I am a Postgraduate student at Gage University college. As a partial fulfillment for the
Masters of Business Administration. I am conducting a research study on “Effect of Supply Chain
Management in Company Performance: in the case of Ambo Mineral Water S.C.”
Therefore, I would appreciate if you could spare a few minutes of your time to answer the
following questions in regard to how supply chain management (SCM) practices influence
company performance in your organization. All the information provided will be purely used for
academic purposes and your identity will be treated with utmost confidentiality. Your assistance
will be highly appreciated and thank you in advance.

Yours faithfully,
Part I: Demographic Information
1. Gender: Male: Female:

2. Age:

Less than 30: 31-40: 41-50: above 51:

3. Your current Position in the Company:

Top Management: Middle Management Staff:

4. Level of Education:

Diploma: Bachelor Degree: Masters: PHD:

5. For how long have you worked in the company (in years):

Less than 2: 2-5: 6-10: Above 10:

33
Part two: Supply chain management practices in the Organization
Part A: Supply chain management practices in the Organization

34
1. To what extent do you agree about practices of strategic supplier partnership which are stated
in following statements? (Please mark X in appropriate box to your opinion)

Where; SD = strongly disagree, D = disagree, N = neutral A=agree and SA = strongly agree

Strategic Supplier alliance: SD (1) D(2) N(3) A(4) SA(5)

The company considers quality as main criterion

in selecting suppliers.

The company strive to establish long-term

relationship with its suppliers.

The company solves Problems jointly with

suppliers.

The company actively involves its key suppliers

in new product development processes.

The company have continuous strategical

improvement programs with key suppliers.

Customer Relationship Management:

The company frequent interact with customers

to set reliability, responsiveness and other

Standards.

The company has frequent follow up with its

customers for quality/service feedback

35
The company frequently determine future
customer expectations.

The company periodically evaluates the

importance of its relationship with its customers.

The company frequently evaluate formal and

informal complaints of its customers.

Information communication technology:

The company uses information technology as a

medium of communication.

The company uses up to date technologies for

information sharing.

The company uses information technology for

evaluating and feedback on customer satisfaction.

The company uses IT as important role in

integrating suppliers, manufactures, distributors
and customers.

The company uses information communication

technology as a competitive advantage.

Time management:

The company attempt to reduce time wastage in

delivery.

The company losses money frequently due to

weak time management in warehousing.

35
The company has a formal time schedule for
suppliers.

The company doesn’t deliver products to

customers on time.

The company has effective manufacturing

process to avoid late supply.

Internal linkage:

The company exchange reliable information

among supply chain departments.

The company fully inform issues affecting its

performance in business within the company.

The company has effective workflow

coordination within departments.

The company’s internal linkage supports the

organization to create new business chain.

The company exchange information within

departments on time.

36
2. Organizational performance:

Regarding how well an organization achieves, its market oriented goals as well as its
financial goals in the past five years?

To what extent do you agree on the organizational performance of the company based on the
following parameters? (Please mark X in appropriate box to your opinion)

Where; SD = strongly disagree, D = disagree, N = neutral A=agree and SA = strongly agree

Organizational performance: SD (1) D(2) N(3) A(4) SA(5)

Market share

Return on investment

The growth of sales

Growth in return on investment

Profit margin on sales

Overall competitive position

37