THE EFFECT OF SUPPLY CHAIN MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE: A CASE OF TABOR CERAMIC PRODUCTS S.C.

Abstract

Supply Chain Management (SCM) practices are crucial for an organization to promote the effective management of its supply chain. These practices are initiatives that influence the whole supply chain. Therefore, this practice has great influence on the operational performance of any organization. In Tabor Ceramic Products S.C, the operational performance of the company is highly impacted by the problem in information sharing across the internal/external customers, by planning problems of the company which lead to unnecessary inventory and inefficient use of inventories. The study examines the role of supply chain management practices and the organizational performance at Tabor Ceramic Products S.C. by employing descriptive and explanatory research design with this study mix of qualitative and quantitative research approach. The required data were collected through a systematic random sampling technique from 236 employees of Tabor Ceramic Products S.C. The data collected through questionnaire were analyzed using SPSS software version 21. Descriptive statistics (frequency, percentage, mean and standard deviation) and inferential statistics (correlation and multiple linear regressions) were applied for analyzing the data. The findings show that the companies not well perform in strategic partnerships, customer relationship, high level of information sharing, information quality, as well as internal lean practices. Moreover, the findings show that there is a significant effect on organizational performance. If companies follow the proposed solutions, sustainable supply chain management (SCM) practices can be achieved and recommended that Tabor Ceramic Products S.C should take aggressive action on improving the supply chain management practice to improve its performance. This study contributes some part to the improving the supply chain management practice and to propose framework by describing to improve its performance in Tabor Ceramic Products S.C.