The Effect of Supply Chain Management Practice On Operational Performance; A Case of East Africa Bottling Share Company Dire Dawa Plant

The purpose of this study was to examine the effect of supply chain management practice on operational performance in EABSC Dire Dawa Plant. This study was employed a both descriptive and explanatory research design to examine the effect of supply chain management practice. This study used a mixed research approach and the study used a self-administered questionnaire instrument that was distributed to employees of EABSC Dire Dawa plant to meet the main objectives. The study was used simple random and stratified sampling method. From the total population of 481 employees of EBSC the study was selected 357 respondents who currently working in EBSC. Using SPSS software version 25 for data analysis, descriptive statistics such as frequency, percentage, mean, and standard deviation were used and Spearman’s correlation and Ordinal logistic regression was used to analyze the relationship between dependent and independent variables. In this study SSP: strategic supplier partnership, CR: customer relationship, LI: level of information sharing, LIQ: quality of information sharing, ILP: internal lean practice, as independent variables and OP: operational performance treated as dependent variable. The result of the findings shows that strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, internal lean practice has positive and significant effect on operational performance. The study recommended according to the result supply chain management practice has positive effect on operational performance therefore the company should focus to enhance supply chain management intended to improve operational performance of the company.