ADDIS ABABA UNIVERSITY

SCHOOL OF COMMERCE
GRADUATE STUDIES DEPARTMENT OF
LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Effect of supply chain management practices on customer satisfaction: In case

of Ethiopian Sugar Corporation

A Thesis Submitted to the School of Graduate studies of Addis Ababa University

School of Commerce in Partial Fulfilment of the Requirements for the Degree of
Master of Arts degree in Logistics & supply chain management

By -Hana Feleke

To

Advisor: Tariku Jebena (PhD.)

Addis Ababa, Ethiopia

May, 2016
Acknowledgement

I am very grateful to my advisor Dr. Tariku Jebena for guiding my project. Especially I would like
to thank him for the advice he gave me and the excellent and invaluable support he provided during
the course of preparing this case study. It also gives me pleasure to extend my gratitude to Ethiopian
Sugar Corporation; working in the sales and marketing department, procurement and supply
department, Human resource an communication section and in addition to this, customers’ of the
company for the support they showed during the preparation of this project.

I
Table of Content
Acknowledgement……………………………………………………………………………………………….…..I
Table of contents………………………………………………………………………………………………...…II
List of tables……………………………………………………………………………………………………… III
Acronyms…………………………………………………………………………………………………………...IV
Abstract……………………………………………………………………………………………………….........V
1. CHAPTER ONE: INTRODUCTION ................................................................................................................ 1
[Link] of the study ......................................................................................................................... 1
1.2. Company Background………………………………………………………………….………….. 2
[Link] Statement ................................................................................................................................ 3
[Link] Questions ............................................................................................................................... 6
[Link] of the study .......................................................................................................................... 6
[Link](s) of the Study .................................................................................................................. 6
[Link] and limitation of the study .......................................................................................................... 7
1.8. Organization of the Study……………………………………………………………..………....….9
2. CHAPTER TWO: LITERATURE REVIEW ............................................................................................... 10
[Link] of supply chain mangemnt ...................................................................................................... 10
2.1.2. Challenges/Barriers of SCM…………………………………………………………………….11
2.2. Supply chain management practice…………………………………………….……………………...11
2.2.1. Supplier& customer relationship………………………………………………..……………...11
2.2.2. Internal Operation……………………………………………...……………………………….12
2.2.3. Information Sharing………………………………………………………..…………………..12
[Link]. Level of information sharing…………………………………………………………..13
[Link]. Quality of information sharing………………………….……………………………...13
2.2.4. Information Technology……………..………………………………………………………....14
2.2.5. Trainings……………………………………………….…………………………………….....14
2.3. Concept of customer satisfaction ........................................................................................................... 15
2.4. Literature on supply chain mangement practices ................................................................................... 16
2.5. Literature Customer satisfaction ............................................................................................................ 17
2.6. Literature onthe relationshio b/n SCM practices & customer satisfaction............................................. 18
2.7. Conceptual framework of the study ....................................................................................................... 20
3. CAPTER THREE:RESEARCH METHODOLOGY ...................................................................................... 21
3.1 .Research Design .................................................................................................................................... 21
[Link] of analysis ....................................................................................................................................... 21
II
 3.3. Target Population………...…………………………………..………………………………..………..22
3.4. Sampling and Sampling Technique ....................................................................................................... 22
3.5. Data Collection & Instrument ................................................................................................................ 23
3.6. Data Anlaysis technique ....................................................................................................................... 24
[Link] & Reliablity…………………….……………………………………………………………. 24
3.7.1. Assessing Reliablity……………………………………………………………………………..24
3.7.2. Assessing Validity…………………………………………………………………………….….25
3.8. Ethical consideration………………………..………………………………………………………..25
4. CAPTER FOUR:DATA PRESENTATION,ANALYSIS AND DISCUSSION…………..............................26
4.1 Introduction .......................................................................................................... ................................26
[Link] statistics………………………………………………………………………..………....26
4.2.1 Frequency Analysis of the Respondents’ Profile………………………………………..26
4.2.2. Supply Chain Management Practices …………………………………………………..29
[Link]. Collaboration With suppliers………………………………….……………...29
[Link]. Collaboration with customers………………………………………………...30
[Link]. Information Sharing………………………………………………….……....32
[Link]. Logistics design…………………………………………………………..…..34
[Link]. Customer satisfaction………………………………………………………....37
4.3 Inferential Statistics for SCM Practices and Customer Satisfaction…...............................................38
4.3.1 Correlation Analysis ............................................................................................................ 38
[Link] Correlation Analysis matrix b/n SCMP&CS…………………................................... 39
[Link] Correlation Analysis b/n SCMP&CS…………………………………...................…40
4.3.2Regression Analysis............................................................................................................ 40
[Link] Multi Collinearity .......................................................................................... ........... 41
[Link] Regression Analysis b/n Collaboration &Customer satisfaction…………… …..... .41
[Link] Regression Analysis b/n Information sharing &Customer satisfaction......... .......... .42
[Link] Regression Analysis b/n logistics design ..................................................................42
[Link] FIVE: SUMMARY OF MAJOR FINDINGS, CONCLUSION AND RECOMMENDATI.......... 44
5.1 Summary of Major Findings ......................................................................................................... 44
5.2 Conclusion ...................................................................................................... .............................. 45
5.3 Recommendation............................................................................................................................46
REFERENCE ....................................................................................................................................................... 48
APPENDIX I……………………..………………………………………………………………………….…...56
APPENDIX II …………………………………………………………………………………………..…...…...60
APPENDIX II …………………………………………………………………………………………………....63
List of tables Pages

Table3.1. Sample size determination……………………………………………………..23

Table3.2. Reliability of SCM practices and customer satisfaction……………….25
Table 4.1 Gender Frequency……………………………………………………...27
Table 4.2 Age Frequency………………………………………………………....27
Table 4.3 Work experience Frequency……………………………………..…….28
Table 4.4 Educational level Frequency………………………….…………….….28
Table 4.5 Collaboration with Suppliers………………………………………………......29
Table 4.6 Collaboration with customers………………………………………………….30
Table 4.7 Customer satisfaction measurements………………………………….……….31
Table 4.8 Information sharing…………………………………………………………….32
Table 4.9 Logistics design………………………………………………………..……….34
Table 4.10 Customer satisfaction measurements…………………………………...…….36
Table 4.11. Customer satisfaction………………………………………………………...37
Table 4.12: Correlation matrix b/n constructs of SCMP and CS...……………….39
Table 4.13: Correlation b/n SCMP and CS……………………………………….39
Table4.14: Multi collinearity test of independent variable …………………..…..41
Table 4.15: Regression Analysis between Collaboration and CS………………...41
[Link] Analysis between IS and CS……………………………...42
[Link] Analysis between LD and CS…………………………….4

III
Acronyms

SCM-Supply chain management

SCMP-Supply chain management practices

CS-Customer satisfaction

LD-Logistics design

ESC-Ethiopian Sugar Corporation

IT-Information technology

IS-Information sharing

SC-Supply Chain

IV
Abstract

Effective supply chain management practices has become a potentially valuable way of securing
competitive advantage through customer satisfaction since competition is no longer between
organizations, but among supply chains. This research used three dimensions of SCM practice
(collaboration, information sharing and logistics design) tests the effect of SCM practices on
customer satisfaction. The data for the study was collected from 68 employees of Ethiopian Sugar
Corporation. In addition, interview with department team leaders was done and a questionnaire also
has been distributed for 50 customers for supporting data .The relationships proposed in the
framework were tested using Pearson correlation, and the causal relations were analysed using
regression analysis. From the result of the analysis it is concluded that there is strong relationship
between each SCM practices (Collaboration, Information sharing and Logistics design) and customer
satisfaction. Therefore, in order to achieve advancement in marketing and financial performance in
the long-run through enhancing customer satisfaction, it is better for the organization to give due
emphasis to the constructs of those SCM practices.

V
 CHAPTER ONE
INTRODUCTION
1.1. Background of the study

Today’s management identified the customer satisfaction as the major item in business and indicated
that the company's success depends on improving management relationships. The existing business
environment is very different from the past and the competition has a unique role (Gilaninia& et
al,2011).New forms of structural reforms, competitive and exchange process causes communication
concept for the long-term relationships between buyers and suppliers (Seyedi, Moosavi, Heidari,
2009).

(Braunscheidel, 2005) also disclosed that the growth of supply chain aims to improve profitability,
customer response and ability to deliver value to the customers and also to improve the
interconnection and interdependence among firms. Therefore, adopting a more integrated approach
to supply chain relationship management has been increasingly viewed as a way of meeting changing
customer needs (Eyong, 2009).

Currently the Ethiopian business environment is becoming customer driven, competitive and
technology based. Hence, it is unquestionable that companies should build an integrated and efficient
system through which resources would flow in a seamless and instantaneous manner across the
supply chain (Assefa. B, 2011). Yohannes.A (2015) also suggest that the previous practices of
Ethiopian manufacturing industries with regard to supply chain management is traditional in that,
partners involved across the supply chain act independently in designing, developing and executing
strategies with minimum effort made to align strategies with the partners doing business with them
particularly suppliers, whole sellers, distributors, and customers.

Fasika, Thiobe& Marcus (2014) get result that, the degree of integration is low when it comes to
Ethiopian firms but there were some promising initiatives undergoing. And, also suggests that the
current supply chain integration requires an information and communication technologies that
enhance data management in great way both from automated sources such software applications.

1
(Addis T, 2015) adds that, in Ethiopia in most of product and service giving activities have a major
gaps regards to their performances and that could be due to lack of adequate SCM
[Link] (2007) suggest that Supply Chain Management is now recognized as a critical
business process for companies manufacturing or distributing products. This is because customers’
demand for most products are ever more demanding in response time, in choice and in seeking more
competitive prices Russell,(2006) as a coping up strategy suggest that the relationship with suppliers
and other partners should be supported with an appropriate level of collaboration, information
technology, information system and lean –agile principles .

This research focuses on Ethiopian sugar sector and strives to analyze barriers to satisfy customers
as well as applying supply chain management practices, and addresses these by instilling supply
chain management practices as a means of executing objectives and strategies for competitive
performance. Therefore, the investigator is inspired to conduct a study on the supply chain
management practices and their connection with customer satisfaction of Ethiopian Sugar
Corporation and forward possible suggestions that would enable the company to be competitive.

1.2. Company Background

Ethiopian Sugar Corporation is one of these largest agro-based processing industries in Ethiopia and
plays a significant role in the socioeconomic development of the country. After taking over the lands
of the Nomads in 1951, the Ethiopian Government granted a concession of 5,000 hectares in Wonji
in the upper reaches of Awash Ethiopia, 100km. Southeast of Addis Ababa, to a Dutch Company
known as HVA (Handlers –Vereenging Amsterdam) for the establishment of a sugar estate and white
sugar production. With the change of government in 1974, under Proclamation No.31 of 1975, all
the sugar factories in Ethiopia became nationalized and though administered under the centralized
bureaucratic administration of the new Military Government. The Wonji Company was very
productive until the 1980s ([Link] Jul 31, 2015).

In 1991, as the ensuing civil war completely devastated the authoritarian apparatus of the military
administration in Ethiopia, the sugar corporation was dissolved by law and all existing factories were

2
reestablished as public enterprises to be run by the Ethiopian Sugar Development Agency starting in
1992. Furthermore, under the Council of Ministers Regulation No.192/2010), in 2010, the current
Ethiopian Sugar Corporation was then formed replacing the former Sugar Development Agency. In
addition, the government is in the process of constructing new sugar factories by 2015 as part of the
five year Growth and Transformation Plan (GTP) (September 13, 2011), ([Link]
Jul 31, 2015).

Furthermore, to become self-sufficient in sugar production by the end of 2013, and diversify the
products of sugar cane into ethanol, electrical power, fertilizers, and build tissue culture laboratories,
the corporation is visualizing creating the sugar industries to be competitive enough to maintain a
sustainable growth pattern at the international level(Assefa.Y,2015).Sugar sector is important not
only for the linkage that it would create between agriculture and industry and the suitable
environment for the sector, but also because it is also a source of renewable energy and will play a
role in the countries climate resilient green economy strategy(Assefa.Y,2015).

This company produces 340, 000tons of sugar on 25,000 ha of land annually and about 20, 000 tons a
year is sold to the EU under the Everything but Arms (EBA) initiative. However, Ethiopia’s domestic
sugar consumption is considerably higher (1.26 times) than its production. Therefore, the country
imports about 152, 000 MT of sugar per year to satisfy domestic demand. Although foreign investors
have expressed growing interest in sugar production, the sugar sub-sector in Ethiopia faces several
challenges, the most important of which remains that of satisfying local demand at a stable and relatively
low consumer price (Assefa Y, 2015).

1.3. Statement of the problem

Todays to develop and survive in economic competition, Companies and organizations should be
given special importance to customer orientation and build strong relationship with the buyer of
goods (Yohannes, 2015).The problem in most firms is organized functionally, not integrated as a
chain so that, there is lack of common cooperation within and across
organizations(Hoole,2005).Mirquez(2010) adds that functionality will lead to a loss in the reduction
of the level of inventory and cost and as well it hinders critical information sharing among the chains.
This will finally results in lack of trust and bullwhip effect.

3
It is pointed out that, SCM can be used as a strategic weapon to develop a sustainable competitive
advantage by reducing investment without sacrificing customer satisfaction, Lee &Billington (1992).
Ethiopian firms are not sufficiently getting the benefits of SCM due to lack of the practice of
integration, collaboration and not having willingness and the practice of managing supply chains.
The traditional way of managing from suppliers to customers is just a buy and sale (Transactional)
relationship, Belay (2011).

Hailemickael (2011) also suggested that supply chain management practice in Ethiopia is in the
beginning stages, there are small numbers of companies integrating it to their organizational system.
But ,many manufacturers and distributors are waking up to the potential for the major cost reduction
and service improvements offered by implementing best practices in their supply chain(Haque&
Islam, 2013).The sugar industry is a major contributor to the agricultural sector which is the mainstay
of the economy and supports livelihoods of the Ethiopian population. The industry will have to
enhance its competitiveness along the entire supply chain and reduce production costs significantly
(Assefa.Y, 2015).

The factors that make for an integrated approach as applicable in the food supply chains involve
complex issues such as perishability, transportation of low value products, and increasing consumer
demands for safety. This is also applicable in the sugar industry. The chain can achieve integration
through joint strategic planning by all participants working together through open and transparent
sharing of information based on mutual trust and respect (ANZIBA, 2004).

The study done by Assefa Y. (2015) on Ethiopian Sugar Corporation tried to identify problem areas on
supply chain practices in the industry. According to the study, there is no mechanism to link the overall
corporate strategy with the supply chain and there is no measure set to follow the entire supply chain
performance; supply chain improvement project not be seen as a key part of that overall strategy; only
sell-buy relationship is available as means of managing the supply chain.

Further, the corporation’s marketing department has done research on sugar product supply, customer
service and product packaging. And the findings pointed out problems on the following business
activities. Much time taken to takeoff the product form the factory warehouse due to information gap,

4
poor sugar product quality, problems in the distribution system due to lack of collaboration and much
time taken in the ordering process because of there is a bureaucracy to give quota quantity to customers.

So, for this findings the corporation put a solution by focusing on the distribution system structure. But,
these problems need detail strategic change in the supply chain management. A more effective practices
must be designed and applied. And it is also necessary to implement and manage those supply chain
management practices. This will highly help the corporation to achieve its mission which is satisfying
customer demand and being competitive in the global market.

Joseph, Namusonge, Biraori&Wamalwa(2014) point out that ,in order to enhance global competition,
firms in the public sugar sector are struggling to optimize their profits through creation of distinctive
capabilities for competitive advantage. The primary function of the supply chain function is to provide
the correct item at the required time at the lowest possible cost so as to satisfy the customers.

As far as the knowledge of the researcher is concerned, there is no empirical study that is conducted in
the area of SCM practices and customer satisfaction (i.e. from perspectives of collaboration, information
sharing and logistics design) which incorporate upper and down streams on sugar industries in Ethiopia
particularly on Ethiopian Sugar Corporation. Therefore, since the effort to achieve generalization of the
causal relationship between SCM practices and customer satisfaction calls for empirical confirmation
in diverse environments, especially emerging economies, this paper is to contribute to the debate by
testing the relationship between SCM practices and customer satisfactions in the case company.

This study therefore, sought to assess the relationship of customer satisfaction and the supply chain
management practices in the Ethiopian Sugar Corporation, with reference to collaboration, information
sharing, and logistics as key independent variables. This will provide basis for development of practices
after assessing the relationship in case company associated with customer satisfaction.

1.4. Research Questions

Based on the statement of the problem due considerations are also given for the following questions:

 What are the current supply chain management practices of Ethiopian Sugar Corporation?
 How collaboration practices affect customer satisfaction in the corporation?
 How the role of information sharing practices affect customer satisfaction in the corporation?
 How logistics practices affect customer satisfaction in the corporation?

5
1.5. Objective of the study
General Objective

The main objectives of this study is assess the effect of supply chain management practices on customer
satisfaction in Ethiopian Sugar Corporation.

Specific Objectives

The following are specific objectives of the study:-

1. To determine which supply chain management practice are performed in Ethiopian Sugar
Corporation.
2. To assess the effect of collaboration on customer satisfaction in the case of Ethiopian sugar
corporation.
3. To assess the effect of information sharing practices of Supply Chain Management on Customer
Satisfaction in the case of Ethiopian Sugar Corporation.
4. To assess the effect of logistics practices of supply chain management on customer satisfaction
in the case of Ethiopian Sugar Corporation.

1.6. Significance of the study

Findings from this study will help to the corporation, to insight the effect of those supply chain
management practices on customer satisfaction and also to look their supply chain management practice
gaps and their strength. Academics/Researchers use the findings as a base for further study; hence it
will provide little understating of the nature and influence of those supply chain management practice
on customer satisfaction in Ethiopian Sugar Corporation.

1.7. Scope and limitation of the Study

Scope of the study

Even if sugar is the main product of Ethiopian sugar Corporation, it also provides raw materials for
other industries such as bagasse for power cogeneration and molasses for a wide range of industrial
products including ethanol. Molasses is also a key ingredient in the manufacturing of various
industrial products such as beverages, confectionery and pharmaceuticals. These products also

6
distributed in three different methods for the whole country. But for time constraints and to focus on
the main product of the corporation, the researcher will limited to sugar product and the distribution
centers that only located in Addis Ababa.

A number of literatures show many different perspectives of supply chain practices (Tan et al., 2002;
Chen &Paulraj 2004; and Lie, 2002 and 2005). The same with Chen and Paulraj, Min and Mentzer
(2004) also examined in their study long-term relationship, information sharing, cooperation process
integration and supply chain leadership underlying the supply chain management practices. Lie et al
(2005, 2006); identified supply chain management practices in form of strategic supplier partnership,
customer relationship, and information sharing.

These different writers perspective suggested a multi-dimensionality of SCM that covers set of activities
and processes from upstream, firm’s internal operations to downstream of the supply chain. Thus, the
literature portrays SCM practices from a variety of different perspectives with a common goal of its
objectives. However, it is difficult and unmanageable to conduct the study in all areas that will limit
SCM in terms of time, finance, and research manageability. The researchers take collaboration, logistics
design and information sharing practices that have been taken as a strong practices and give suggestion
on their relations with the end customers in their studies.

As Stank et al, (2001) asserted that, the industry leaders increasingly build competencies to integrate
with suppliers and customers and find that, these competencies lead them to supply chain excellence.
In addition, several benefits of collaboration have been documented over the years for manufacturers,
suppliers, and customers.

Lysons& Farrington (2006) asserts that supply chain best practices are normally most likely to be
achieved by collaboration between cross functional teams within the organization, customers and
suppliers external to it. Synergy among all these layers are imperative in optimizing product, process
design, customers’ and suppliers’ satisfaction

Assefa B.(2011) suggest that the primary reason mentioned for poor level of customer service is the
internal operations that have direct effect on the company’s ability (potential) to embark on external

7
integration. In other words, its effect is clearly reflected on customers not getting what they need when
they need it, long lead time, and poor complaints management, poor integration with suppliers, not
having effective flexible production system that could respond to the changing market and customer’s
preference.

In the agro food sector in particular, efficient logistics is a crucial element for achieving enterprise
and industry competitiveness. The coordination of these logistical processes into a seamless flow of
closely integrated activities allows considerable cost efficiencies and is presently a prerequisite for a
competitive poultry business (Jack, Carlos &Jacques, 2009). And logistics practice has different
functional areas like, Network Design 2. Information Technology 3. Transportation 4. Inventory and
Storage 5. Warehousing 6. Materials Handling, Loading and unloading 7. Packaging and Re-
packaging (Kiran, 2014).

The positive impact of both market orientation and information sharing on increasing the levels of
consumer satisfaction. Sharing information enabled supply chain stakeholders to react to market
information and distribute produce that was more appropriate to the consumer demand (Cadilhon,
2004). In this regard, it is pertinent to observe the impact among the supply chain parties of
information sharing that would greatly strengthen both intra and inter-organizational integration
(Narasimhan and Nair, 2005).

The relevant and timely information sharing would entail aspects of various dimensions – from
strategic to tactical (Huang et al. 2003) with the benefit ultimately accruing from the parties’ ability
in transforming that information into a supply chain strategy and superior performance
(Raghunathan.S, 2001), which would be reflected through enhanced customer satisfaction.
Therefore, it can be one variable that taken as supply chain management practice in this study.

Therefore, the scope of this study will delimit to relate supply chain management practices with
downstream of supply chain of Ethiopian sugar corporation. In addition, this study is also limited to the
company’s point of reference towards collaboration, information sharing, logistic design.

8
Limitation of the study

It is difficult to cover entire domain of supply chain just in one study. The research sample didn’t
incorporate all the supply chain participants namely: the suppliers and customers due to time
constrained so that it couldn't be generalized/applied to the complete chain of the company under
investigation. On the other hand constructs of SCM are not only limited to SCM practices selected
in this study. Therefore it is not representing all constructs that could explain SCM practices.

Organization of the Study

This project paper is will organize into five chapters: Chapter one contains the introduction part dealing
with back ground of the study and company, the research problem, objectives of the study, scope and
significance of the study. The second chapter will discusses the literature review about the subject
matter. In chapter three the research methodologies will be presented. In chapter four presents data
collection, analysis, results, Interpretation and discussion of the study and finally, chapter five presents
the major findings, conclusions and forwarded suggestions.

9
 CHAPTER TWO
LITRATURE REVEIW
2.1. Concepts of Supply Chain Management

A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request.
The supply chain includes not only the manufacturer and suppliers, but also transporters, warehouses,
retailers, and even customers themselves. Within each organization, such as a manufacturer, the supply
chain includes all functions involved in receiving and filling a customer request. These functions
include, but are not limited to, new product development, marketing, operations, distribution, finance,
and customer service (Ullrich, C.A, 2014).

Supply chain management has raised the interest in the past years as organizations started to realize that,
the action taken by one member of the chain actually have an influence on the profitability of other
members in the chain(Silver,1998).This is because the new source of business competition lies outside
the walls of organizations and it is determined by how effectively companies link their operations with
their supply chain partners such as suppliers, manufacturers, distributers, wholesalers, retailers and end
customers(Silver,1998)

Therefore, supply chain management is used to manage activities and integrate with down-streams, up-
streams and internal supply chain operations (Ross, 1998).Because of the growth of this inter-network
competition, individual business may no longer compete solely as independent company rather as
supply chains. Because of the collaboration between members of the chain, SCM gives significant
opportunities for partners involved in terms of cost reduction, revenue enhancement, flexibility,
customer satisfaction, speed and economy of time (Hoole.R, 2005).Min &Mentzer (2004) identify the
concept SCM as including agreed vision and goals, information sharing, risk and award sharing,
cooperation, process integration, long-term relationship and agreed supply chain leadership.

Supply Chain Management is now recognized as a critical business process for companies
manufacturing or distributing products. This is because customers’ demand for most products are ever
more demanding in response time, in choice and in seeking more competitive prices and thanks to
globalization, customers can choose from an increased number of suppliers(Lazarevic , 2007).

10
2.1.2. Challenges /Barriers of Supply Chain Management

Most supply chain management related-problems mainly occur from uncertainties and an inability to
co-ordinate several activities and partners (Turban et al, 2004).Fawcett, (2001) identified top ten barriers
to supply chain management these are: Inadequate information sharing, Poor/conflicting measurements,
Inconsistent operating goals, Organizational culture or structure, Resistance to change- lack of trust,
Poor alliance management practices, Lack of supply chain vision (understanding), Lack of managerial
commitment, Constrained resources, No employee dedication/ empowerment.

2.2. Supply chain management practices

(Tan et al., 2002) define supply chain management practices as a set of activities undertaken in an
organization to promote effective management of its supply chains. From this definition one can
conclude that components of SCM practices includes supply and material management issues,
operations, information technology and sharing (ICT) and customer service (Tan et al. 2002). Other
components such as technology, cost, inventory management, competitiveness and external regulations,
according to McMullen (1996) needs to be managed effectively to achieve to business goals of each
supply chain members which leads to value creation to end customer.

There are five basic dimensions/perspectives of supply chain management practices. These are namely;
supplier and customer relationship, information sharing, internal operation, information technology and
training (Perry &Sohl, 2000; Lazarevic et al., 2007).

2.2.1. Supplier and Customer Relationship (SCR)

Supplier and customer relationship is defined as a set of firms’ activities in managing its relationships
with customers and suppliers to improve customer satisfaction and synchronize supply chain activities
with suppliers, leverage suppliers’ capacity to deliver superior products to customers. This is due to the
ultimate objective of SCM is to deliver products to the satisfaction of end customers (Tan, 2001).

Close customer relationship allows a company to be more responsive in fulfilling customers’ demand
and differentiate its product from competitors, sustain customer loyalty, &dramatically extend the value

11
it provides to its customer through improving customer satisfaction by proactively seeking customers’
needs and requirements. The ability to build a close relationship with customers will bring companies
in to a long-lasting competitive edge (Bowersox et. al, 1999).

Supply chain management suggests that firms need to integrate with their suppliers and customers to
achieve both financial and non- financial growth objectives .In today’s competition, firms with a
superior ability to provide services that customers perceive as valuable incur an important competitive
advantage(Tan, 2001).

2.2.2. Internal Operation

In addition to the upstream and downstream integration, SCM also emphasize on the importance of both
effectiveness and efficiency of firm’s internal operations on its performance. This is due to a significant
element of SCM practice is an internal operations and they are the basis for developing a competitive
advantage before embarking into external integrations. Poor internal operations can lead to failure in
coordinating with external partners (Handfield & Nichols, 1999).

To judge the SCM practice as an effective and value adding the internal operation should be flexible in
responding to changing market needs, which is expressed on the basis of agility principles. This means
that, a production system must be able to perform rapid change over in both order patterns and mass
customization (Lambert &Cooper, 2000).

Thus, the effectiveness of SCM can be examined by the ultimate effect it would have on customer
satisfaction through responsiveness and lower price resulting from lean internal operations. Automated
orders and automated productions are the key enablers to realize the quick response program (Perry and
Sohal, 2000).

2.2.3. Information Sharing

Information sharing is an important aspect in achieving perfect integration in a supply chain. Cross
functional integration and inter organizational integration requires the visibility of information across
the supply chain. Poor information sharing between partners in a supply chain will result in poor

12
coordination that will lead to many serious problems such as high inventory levels, inaccurate forecasts,
low resource utilization, and high production costs (Whang, 2000).

Indeed, information sharing is highly considered as the way to reduce demand uncertainty(Lee,
2002).Many studies have reported that information sharing can bring many benefits to both suppliers
and buyers, such as inventory reduction, and reduced manufacturing costs (Yu et al, 2001).

The way companies share information whatever the confidential level or not; determines the success of
the collaboration (Raghunatahan, 2003). The nature of information to be across the supply chain differs
based on the degree of integration, institutional trust and availability of infrastructure that facilitate the
practice (Lazarevic, et al., 2007).

[Link]. Level of information sharing

Level of information sharing refers to the extent to which critical & proprietary information is
communicated to one’s supply chain partner (Moberg et al, 2002). Many researchers have suggested
that the key to make supply chain effective and efficient is making available undistorted & up-to-date
marketing data at every node within the supply chain (Balmier et. al.1996; Childhouse&Towill, 2003).

The impact of information sharing on SCM depends on what information is shared, quality on shared
information, and company’s capability in using and translating the information in to a supply chain
strategy and operational activities (Moberg et al, 2002). Basically, Information sharing can vary from
strategic to tactical & from information about logistics activities to general market & customer
information (Mentzer et al. 2004).

[Link] Quality of information sharing

Quality of information sharing includes aspects such as the accuracy, timelines, adequacy, & credibility
of information exchanged. As information sharing is vital, its major impact on supply chain
management depends on what information is shared, when & how it is shared, & with whom it is shared
(Monczka et. al., 1998; Moberg et. al. 2002).

13
Having, different interests & opportunities by supply chain participants affect the quality of information.
Given these predispositions ensures that, the quality of the shared information becomes a critical aspect
of effective supply chain practice (Feldman & Muller 2003).Therefore, organizations need to view their
information as a strategic asset & ensure that it flows with minimum delay & distortion (Feldman et al.
2003).

2.2.4. Information Technology (IT)

Nowadays, since IT is involved in every step of operation in each company, therefore it is not surprising
that organizations’ Supply Chain Management supported by adopting IT. Talluri, (2000) makes the
comment that the advances in IT systems have given opportunities for organizations’ to transform the
way they manage their business.

In SCM, IT is highly regarded as a major enabler in achieving effective SCM. As a supply chain spans
many organizations in developing products to customers both up-stream, downstream and many
functional areas within a company, the implementation of IT allows the companies to increase
communication and coordination of various value adding activities with their partners and between
functions within their own operation (Simchi- levi et al, 2000).

In addition, to advance development of the internet technology offers significant opportunities for cost
reduction, increasing flexibility, increasing response time, and improving customer services (Lee and
Whang, 2001).Li et al, (2005) reviled that, the objectives of IT in SCM are; to provide the information
availability and visibility to supply chain partners, to enable the collaboration with organizations in the
supply chain and to allow the decision making based on the total supply chain information.

2.2.5 Training
Lee and whang, (2000) argue that information visibility throughout a supply chain will bring significant
impact if companies do not have a capability to utilize the information in effective ways. Hence
companies need to consider the skills requirements and education when integrating their value-adding
activities with their partners (Gattoma& Clark, 2003).

14
The major concept of SCM is collaboration and seamless integration between various value adding
activities with in individual companies and across different organizations along a supply chain
(Lazarevic, et al., 2007). Beginning this concept in to practice requires significant changes in corporate
culture as well as a new level of human performance. Successes full implementation of SCM concept
largely depends on human aspects of organizations (Bowersox et al, 2000; Mentzer, et. al. 2004).

2.3. The Concept of customer Satisfaction

Customer satisfaction can be experienced in a variety of situations and connected to both goods and
services. It is a highly personal assessment that is greatly affected by customer expectations. Satisfaction
also is based on the customer’s experience of both contact with the organization and personal outcomes.
Some researchers define a satisfied customer within the private sector as “one who receives significant
added value” to his/her bottom line—a definition that may apply just as well to public services
(Hanan,Mick&Petter,2010).

Hines (2004) also define customer supply relationship as: supply chain strategies require a total systems
view of the links in the chain that work together efficiently to create customer satisfaction at the end
point of delivery to the consumer. As a consequence, costs must be lowered throughout the chain by
driving out unnecessary expenses, movements, and handling. The main focus is turned to efficiency and
added value, or the end-user's perception of value.

In today's competitive business environment marketing managers are more influenced from customer
expectation and meeting the demand for customer satisfaction is very important for them. Every
organization must define customer satisfaction regarding their market. So customer satisfaction could
not be defined only standard or quality of product. Customer satisfaction is about relationships between
the customer and product or service and the provider of a product or service (Nicholas, 2009).

The food industries need to make commitments to learn what customers need and set strategies that
implement customer friendly process relationship rather than the existing one buy-sell traditional
relationship. This is because; in most cases customers base their purchasing decisions on the service
they receive, not just on price. Therefore, quality and availability of the product that provides superior
service to the customers is very important for the firm (Makweba& Xu, 2009).

15
2.4. Literature on Supply chain management Practices
Donlon (1996) describes the latest evolution of SCM practices, which include supplier partnership,
outsourcing, cycle time compression, continuous process flow, and information technology sharing.
Tan [Link]. (2001) use purchasing, quality, and customer relations to represent supply chain management
practices.

Alvarado&Kotzab (2001) include in their list of SCM practices concentration on core competencies,
use of inter-organizational systems such as EDI, and elimination of excess inventory levels by
postponing customization toward the end of the supply chain. Tan et al. (2002) identify six aspects of
SCM practice through factor analysis: supply chain integration, information sharing, supply chain
characteristics, customer service management, and geographical proximity and JIT capability.

Chen &Paulraj (2004) use supplier base reduction, long-term relationship, communication, cross-
functional teams and supplier involvement to measure buyer–supplier relationships. (Perry &Sohl,
2000; Lazarevic, 2007) identify the basic dimensions/perspectives of supply chain management
practices which are supplier and customer relationship, information sharing, internal operation,
information technology and training.

Supply chain practices are related to supply and materials management issues, operations, information
technology and sharing (ICT) and customer service (Tan, 2002). Supply chain practice also includes:
technology, cost competitiveness, inventory management and external regulation (McMullan, 1996).
All those have to be managed effectively to realize supply chain’s strategic position which allows
competitive advantage. Joseph, Namusarge & Biraori (2014) conclude from their study that technology
adoption is critical in determining effectiveness of the supply chain function in the public sugar sector.

Supply chain practice depends on business strategy and collaboration in the organization, plan and
execution, logistic performance and information technology and its implementation in the organization
and including five distinctive dimensions: strategic supplier partnership, customer relationship, level of
information sharing, quality of information sharing and postponement (Li et al., 2006).

16
Fazila, (2009) studied that supply chain management practices which are information sharing, customer
relationship and strategic supplier partnership has strong impact on competitive advantage respectively.
Alirezaet al. (2011) study on Malaysia Electronic Industry to present a model for supply chain
performance by employing supply chain design, supply chain information sharing, and flexibility and
delivery components as independent variables influencing supply chain performance.

While managers in a SC involving external organizations have to deal with the people outside of its
own company, in this situation mutual understanding have to be reached between the managers of
departments inside the company itself. However, the term SCM has been used to describe the planning
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 al, 1997).Due to the increasing number
of players and forces, a supply chain may develop into a supply network which will require a more
complex and complicated management system. The idea of improving products and services through
SCM; including to reduce the production time and cost without compromising the product quality, is
that the managers have to work cooperatively with other organizations in the SC (Handfield &Nichols,
1999).

Moslem (2013), conducted research on impact of supply chain management practices on competitive
advantage in manufacturing companies of Khuzestan province (Iran) by using strategic partnerships
with supplier, customer relationship, information sharing , Quality of information sharing and internal
lean practices as independent variables affecting the competitive advantage. The result from this study
was indicates as there is relationships between SCM practices and competitive advantage.

2.5. Literature on Customer satisfaction

Customer satisfaction is the way the customer thinks about the company and deals with the meeting
or exceeding of expectation over the lifetime of the products and services. A company’s loyalty and
product repurchase comes from achieving customer satisfaction (Braunscheidel, 2005).

Customer satisfaction has a positive effect on an organization’s profitability. The more customers
are satisfied with products or services offered, the more are chances for any successful business as
customer satisfaction leads to repeat purchase, brand loyalty, and positive word of mouth marketing
(Zairi, 2000).

17
These mechanisms are managing for customer satisfaction, clearing the barriers, building the
foundation, using the tools and managing customer satisfaction. All these arms of the mechanisms
will be analyzed and explained in the subsequent chapters (Scott, 2003).

Customer focus delivers customer satisfaction and builds customer loyalty. If firms are customer
focused, they will understand their key competitors well and the corresponding competitive forces.
Moreover, they monitor and understand their level of pricing, product quality, product availability, and
service quality and customer satisfaction. Higher level of customer satisfaction leads higher level of
customer loyalty, high level of revenue and market share in the end it drive to high level of profitability
(Best,2009).

Customer satisfaction is the degree to which a customer perceives that an individual, firm or
organization has effectively provided a product or service that meets the customer’s needs in the context
in which the customer is aware of and / or using the product or service. Satisfaction is not inherent in
the individual or the product but is a socially constructed response to the relationship between a
customer, the product and the product provider/maker. To the extent that a provider / maker can
influence the various dimensions of the relationship, the provider can influence customer satisfaction
(Nicholas, 2009).

2.6. Literature on the Relationship between Supply Chain Management Practices and
Customer Satisfaction
While managers in a SC involving external organizations have to deal with the people outside of its
own company, in this situation mutual understanding have to be reached between the managers of
departments inside the company itself. However, the term SCM has been used to describe the planning
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 al, 1997).

According to Handfield and Nicholas (1999), to stay competitive, business enterprises are responsible
to manage a network of upstream firms (suppliers) that provide inputs and a network of downstream
firms (customers) suppliers, and fostering trust with the right partners have a great impact on current as
well as future business performances.

18
The objective of supply chain management is to satisfy the requirement of the end customer. Customer
is an integral part of the supply chain and the primary purpose of a supply chain is satisfying customer
needs and generating profit for itself in the process. The routine supply chain activities begin with a
customer order and end when a satisfied customer has paid for his purchase. (Childerhose&Towill,
2000).

Customers could be satisfied if they are mainly be a part and parcel of the system that delivers the
product and services, giving direct input regarding their expectation (Fawcett et al, 2007).As the essence
of supply chain management is a pull system and starts from the customer, the role and involvement
level would lead in the end of the satisfaction of the customer (Best, 2009). Business enterprises today
focus on their Supply Chain Management (SCM) to improve product quality and lead time due to stiff
competition from global markets and increased levels of customer’s expectation (Tracey, Lim,
&Vonderembse, 2005).

Mustefa (2014) conclude in his study, supply chain management practice has strong significant
influence on both operational and organizational performance. Christopher (1998) also stated that an
effective SCM is a powerful tool to achieve competitive advantage for all parties in the supply chain.
According to Tan (2001), the ultimate goal of SCM is to integrate various members of the supply chain
in a seamless manner to achieve a high level of customer satisfaction, and thus a long-term competitive
advantage.

Adebayo (2012) conducted study on SCM Practices in Nigeria Today: Impact on SCM Performance.
The supply chain management practices considered in this paper were namely strategic supplier
partnership, customer relations practices, information sharing, information quality and postponement.
This paper provides empirical justification for five key dimensions of SCM practices identified and
describes the relationship among SCM practices and SCM performance as well as the impact of these
practices on SCM performance. The study thus showed that SCM practices definitely impacts SCM
performance. Haque& Islam (2013) conducted research on Effects of Supply Chain Management
Practices on Customer Satisfaction in the pharmaceutical industry of Bangladesh: Evidence from
Pharmaceutical Industry of Bangladesh. The results of the study indicate that SCM practices as
observed in the industry comprise three dimensions, namely, collaboration and information sharing,

19
logistics design and IT infrastructure, and organizational culture (OC). However, while the first two
exert their impact on customer satisfaction, OC does not have any influence on it.

Generally, from above literature reviews it can be easily understandable that the work on supply chain
management measurements/ practices and its influences on different perspectives of the organization
and overall supply chain partners increasing and yields good backgrounds. However, there is no much
researches done on supply chain management practices in the sugar sectors especially in Ethiopia and
the relationship of supply chain management practices with customer satisfaction cannot be seen studied
in detail .Despite the increase of empirical research in the last few years, important differences in lack
of consensus about the definition and dimensionality of the supply chain management practices.

2.7. Conceptual Framework of the Study

The conceptual model (figure 2.1) identifies the link between effects of supply chain management
practices on customer satisfaction. The framework proposes that SCM practices will have an effect on
customer satisfaction both directly and also indirectly .SCM practice is conceptualized as a three
dimensional construct.
[Link] Framework
Independent variables
Supply chain Collaboration
 Company-supplier integration
 Company-customer integration
Dependent variables
Logistics design Customer satisfaction

Information Sharing

20
 CHAPTER THREE

RESEARCH METHDOLOGY

This section presents an overview of the methods to be used in the study. Areas covered include the type
of research, research design, population determination, sample and sampling techniques, data collection
and analysis, validity and reliability and ethical consideration.

3.1. Research Design

There are different research methodologies that are used, depending on the type of research that are
undertaken. In this research descriptive survey research method was employed as the researcher wants to
identify and explore the correlation among the identified supply chain management practice variables with
customer satisfaction as it used by (Dereje, 2012, Haque& Islam, 2013, Belay, 2011). In this methodology,
the researcher was poses questions to willing participants, summarizes and analyze them and finally
inference was made for the population from the drawn samples (Leedy and Ormarod, 2010)

The research design for this study consists of a mixed methods approach, utilizing both quantitative
research in the form of a questionnaire and qualitative research in the form of semi-structured interview.
The questionnaire and interviews make up the primary research .(Fasika B,2015)sites recent research done
by Susan et al.(2012)explains the advantage of a balanced research approach for success in the area of
logistics and supply chain management.

Both primary and secondary data was used as a source and utilized for purposes of addressing the research
objectives. Secondary data was gathered from annual reports, journals, brochures, books and other
documents.

3.2. Unit of analysis

In this study, the corporation is a unit analysis as it was assessed the supply chain management practices
related with its customers satisfaction. Customers of the corporation were the second unit as the study
shows their satisfaction on the practices taken in the Ethiopian sugar corporation with in its supply chain.

21
 3.3. Target Population
The corporation has fourteen different division as a department and distributed its sugar product in three
features for all over the country. Actors involved in sugar marketing include those who mainly involve in
wholesale and retailers and consumers associations .The Corporation is distributing its sugar product to
120 consumer association shops in Addis Ababa which are directly sell to the end customers .The other
distribution center is the cooperation itself which sell the sugar directly to 100 factories and industries
located in Addis Ababa.

Therefore, the target population includes the Corporation’s employees which can be related to this study
and located in its head office. Regards to customers, the target population also includes 120 customer
association, and 100 factories and industries located in Addis Ababa.

3.4. Sampling and Sampling Technique

The exact sample units of respondents was considered from company’s management and employees on
the basis of judgmental/non-probability sampling technique. This is due to non-probability sampling
method is where samples are chosen on the basis of their availability or accessibility (Diamantopoulos
&Schlegelmilch, 2000).That is purposive sampling helps to address respondents those who have direct
relationship with the issue at hand as it used by Assefa B. (2015),Bogale,A,(2015). Whereas convenient
sampling was used to contact the customers who buy frequently from the companies and order customized
products both as per their arrival/availability at the companies and at their own premises as it also used by
Haque& Islam,(2013).

In order to this, there are 68 employees which are directly related with this study in the corporation’s three
departments which are Human resource management & communication division, Marketing division and
Logistics and procurement division. So, the researcher took all these employees and included in the sample
purposively.

To determine the sample size from total 220 customers, the researcher used the method developed by
Carvalho (1984), as cited by Malhorta Naresh, k. (2007).

22
 Table 3.1 Sample Size Determinations

Population Size Sample Size

Low Medium High
51-90 5 13 20
91-150 8 20 32
151-280 13 32 50
281-500 20 50 80
501-1200 32 80 125
1201-3200 50 125 200
3201-10,000 80 200 315
10001-35000 125 315 500
35001-150,000 200 500 800

Therefore, from 220 customers 50 were considered as a sample respondents as per the Malhora Naresh’s
sample determination method, considering the heterogeneity of sample respondents on the basis of their
frequent time visit and time and its manageability.

3.5. Data collection and instrument

In this research both primary and secondary sources of data has been utilized through Questionnaires,
interview, and literature review.

The primary data has been conducted in the form of personal interviews with logistics and procurement
directors, marketing and human resource team leaders and through questionnaires which will distribute to
employees of the company. As the secondary data; books, articles, journals, magazines, and broachers has
been reviewed.

This research has been conducted a well-structured questionnaire as a data collection instrument that has
been distributed to the whole 68 employees who included a mix of directors, section heads, team leaders
and supervisors of the three corporations departments. And, personal interview with 3 general managers in
the corporation and distribute questionnaire for customers within the studied sector has been conducted.

23
Donlon (1996), Tan [Link] (2001) and Lazarevic, Sohal, Bower&Baihaqi (2007) used 5 point likert scale to
measure the indicators of supply chain management practices. So, a close ended 5 point likert scale
questionnaire has been administered to collect data from the sample respondents. The questionnaire has 5
rating scales ranging from 1- very low to 5- very high.

Data gathered through questionnaires is simple and clear to analyses and it allows for tabulation of
responses and quantitatively analyzes certain factors. The studies reviewed for these dimensions include
Singh and Power (2009), Kannan and Tan (2005), Li et al. (2005), Ou et al. (2010). This study has been
used SERVQUAL model to measure customer satisfaction .So, the researcher has been used five
measurements and its 22 indicators in its questionnaire prepared for customers; the studies covered for
this construct include Chen and Paulraj (2004), Han et al. (2007), Wu and Ding (2007).

The questionnaire has been structured in such a way that it includes all relevant parts of and information
to clearly acquaint the respondents. And it has been included customer satisfaction as an independent
variable and collaboration, information sharing and logistics as a dependent variables.

3.6. Data analysis techniques

As determined in the data collection tool for this study, data was collected in both questionnaire and
interview. After successful gathering of the data, the data collected has been analyzed by using both
descriptive statistics (tables, mean and standard deviation) and inferential statistics with a computer
program called the statistical package for social science (SPSS). Therefore, Correlation analysis has been
utilized to test the hypotheses of the study. In addition, linear regressions has been employed to estimate
the effects of each independent variables on a single dependent variable for purposes of prediction as it
used by Yorgon, Kosgei& Lagat(2015).

3.7. Validity and Reliability

3.6.1 Assessing Reliability

According to Bryman & Bell (2007), reliability analysis is concerned with the internal consistency
of the research instrument. As multiple items in all constructs has been used, the internal
consistency/reliabilities of supply chain management practices, customer satisfaction has been
assessed with Cronbach’s Alpha. Alpha values over 0.7 indicate that all scales can be considered
reliable (Nunally, 1978). According to Sekaran (2003) values between 0.50 and 0.80 are acceptable
while values below 0.50 are considered less reliable and therefore unacceptable.

24
 [Link] of Supply chain management practices and customer satisfaction

Variables Cronbach’s Alpha

Collaboration with suppliers .856
Collaboration with customers .654
Information Sharing .879
Logistics design .820
Customer satisfaction .895

From the above table all variables except collaboration with customers are reliable as the alpha is greater
than [Link] the value for collaboration with customers are also acceptable since it is between 0.5 and
0.8.

3.6.2. Analysis of Validity

The questions were based on information gathered during the literature review to ensure that they are
representative of what the customers and staffs know about the supply chain management practices and
customer satisfaction indicators. The questionnaire has been distributed by the researchers so as to ensure
the validity of the questions. All the subjects has been completed the questionnaires in the presence of the
researcher. This has done to prevent the respondents from giving the questionnaires to other people to
complete them on their behalf.

3.8. Ethical considerations

According to Leedy& Ormrod(2010), there are four main ethical issues that need to be addressed in the
process of undertaking a research. These are: protection from harm, informed consent, right to privacy,
and honesty with professional colleagues. Thus, the researcher:

4 Tries to not to expose participants from any physical or psychological harm

5 Requests their consent and could participate only on a voluntary basis
6 Respects the participants right to privacy
7 Reports the findings in a complete and honest fashion.

25
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DISCUSSION

[Link]

As discussed in previous chapter, this study attempted to examine the relationship between supply
chain management practices and customer satisfaction in case of Ethiopian Sugar Corporation.
Therefore, the findings of Ethiopian Sugar Corporation are presented and discussed in this chapter.
The questionnaire were developed in five scales ranging from five to one; where 5 represents Very
high,4 High, 3 Average, 2 Low, and 1 Very low. In order to assess the relationship between supply
chain management practices and customer satisfaction, Correlation and regression analysis were
conducted for scale typed questionnaire. A total of 68 questionnaires were distributed to employees
and 50 questionnaires were distributed to customers as a supporting data. The collected data were
presented and analyzed using SPSS (version 20) statistical software. The study used descriptive
statistics and inferential statistics. Therefore, mean, standard deviation, correlation analysis,
specifically Pearson correlation to measure the degree of association between different variables
under consideration used. Regression analysis was also used to test the effect of independent variable
on dependent variable.

[Link] statistics

4.2.1 Frequency Analysis of the Respondents’ Profile

The demographic profile of the sample respondents is presented and analyzed below. The purpose
of assessing respondents’ age, sex, is that, to determine whether the researcher considered
heterogeneity of sample units. On the other hand assessing the work experience and education level
of the respondents’ is that, when the respondents are more experienced and educated they have better
opportunity to understand the case and give better response than else.

26
Table 4.1 Gender Frequency

Frequency Percent Valid Percent Cumulative

Percent
Male 41 60.3 62.13 61.13

Valid Female 25 36.8 37.88 100.00

Total 66 97.1 100.00

Missing 2 2.9

Total 68 100.00

(Source: researcher’s survey)

Gender frequency of the respondents shows that the numbers of male respondents were almost two
times as female respondents. This is 62.13% of the respondents were male, while 37.88 % were
female respondents and two respondent (2.9%) is invalid because these respondents did not clarify
his /her sex.

As table 4.2 below shows that, the researcher divided the age of the respondents in to five categories,
starting from 20- 25 years of age to above 40. In this study, the researcher can conclude that more
than half of the respondents were above 40 ages. This group covers 44.12% of the respondents to the
questionnaire.

Table 4.2 Age Frequency

Frequency Percent Valid percent Cumulative
percent

Valid 26-30years 11 16.18 16.18

16.18

31-35years 19 27.95 27.95 44.13

Above 30 44.12 44.12 100.0

40years
Total 68 100 100.0

(Source: researcher’s survey)

27
The next age group with valid percent of 16.18 is respondents gain aging between26-30.
Surprisingly, there was no respondent below age of 26 and within age group of 36-40.
Table 4.3 Work experience Frequency
Frequency Percent Valid Percent Cumulative
Percent
1-3years 27 24.1 24.1 63.4
4-6years 27 24.1 24.1 87.5

Valid 7-11years 10 8.9 8.9 96.4

Above 11 years 4 3.6 3.6 100.0

Total 68 100.0 100.0

(Source: researcher’s survey)

As table 4.3 below clearly shows the frequency distribution of respondents work experience, the
largest of the respondents 45 % (14) have more than eleven (11) years of work experience. In the
same case, 29% (9) of respondents have from 1-3 years of work experience and followed by 4-6
years of experience, which accounts 16% and 6.5 % (2) respondents represents having 7-10 years of
experience.

The remaining one respondent (3.2%) did not respond. This implies that in total more than 67.5% of
the respondents have more than 4 years of work experience with in the case company and it is
sufficient to judge and give views. This is because when the respondents are more and more
experienced within the organization they have better opportunity to know more and more about the
organization.
Table 4.4 Educational level Frequency

Frequency Percent Valid Percent Cumulative

Percent

College diploma 35 51.47 51.47 51.47

First degree 23 33.83 33.83 85.30

Valid
Second degree & above 10 14.71 14.71 100.0

Total 68 100.00 100.00

(Source: researcher’s survey)

28
As shown below in table 4.4 the highest education level attained by most of the respondents was
college diploma holders which represents, (35) 51.47% out of the valid respondents and followed by
first degree holders which accounts (23) 33.83%. 14.71% of the respondents ware second degree &
above and there was no respondents that represents below college diploma.

4.2.2. Supply Chain Management Practices

This study focused on the case company’s SCM practices from these three perspectives. For each
practices different items were developed and measured based on their mean and group mean values.
[Link]. Collaboration With suppliers
In this part, the researcher tried to see the level of integration between Ethiopian Sugar Corporation
and its suppliers. Collaboration is the process of combining or coordinating separate functions,
processes, or producers and enabling them to interact in a seamless and continuous manner (Kenneth
and Brian 2006).
Table 4.5 Collaboration with Suppliers
S/N Items N Mean Std. dev.
1 The level of strategic partnership with suppliers 68 2.53 .954
2 The establishment of quick ordering system 68 2.63 1.196
3 Stable procurement through network 68 2.72 1.034
4 The company seeks long-term stable r/p with suppliers 68 3.22 0.975
5 Regulatory solve problems jointly with our suppliers 68 3.12 1.015
6 Helped suppliers to improve their product quality 68 3.00 0.993
7 Included key suppliers in corporation’s planning ad goal 68 2.71 1.305
setting activates
Group mean 2.847
(Source: researcher’s survey)
As illustrate in Table 4.1, there are seven items used to determine the extent of integration of the case
company with its suppliers. Accordingly, relatively to other items the high mean value was scored
on the company seeks long-term stable relationship with suppliers which are 3.22, followed by
regulatory solve problems jointly with our suppliers, [Link] mean value of helped suppliers to
improve their product quality,[Link] the group mean shows that 2.847 mean value. The
group mean value approximately reveals as, moderate integration between ESC and its suppliers. In

29
addition to this, an interview was conducted with procurement and supply manager of the case
company to consolidate the information obtained through questionnaire.

According to the interview response, Ethiopian sugar corporation common supplier both in domestic
and foreign cases. And, the manager also point out that the suppliers of sugar cane to the corporation
has strong relation with the case company as it gives them fertilizers and supports to supply products
on time. Therefore, based on information obtained from both sources (qualitative and quantitative)
the level of integration between the suppliers and the case company is medium.

[Link]. Collaboration with customers

SCM suggests that, firms need to integrate with their suppliers and customers to achieve both financial
and none financial growth objectives (Tan, 2001).

Table 4.6 Collaboration with customers

S/n Items N Mean Std. dev.

1 Follow-up customers for feedback 68 2.45 1.008

2 Monitoring and measuring customer service level 68 2.29 1.045
3 The level of market information sharing with major customers 68 2.65 1.006
4 Customer feedback is used to improve customer relations, 68 2.50 1.086
processes, products and services
5 The organization has systematic processes for handling customer 68 2.20 1.025
complaints
Group mean 2.42
(Source: researcher’s survey)

As table 4.6 above depicts, five items were used to evaluate the case company’s integration with its
customers or downstream of the SC. Accordingly, the item that is organization has systematic
processes for handling customer complaints, monitoring and measuring customer service level and follow up
customer feedback scored mean value of 2.20, 2.29 and 2.45respectively, which is approximates to
bad level of integration. Customer feedback is used to improve customer relations, processes, products and

30
services and the level of market information sharing with major customers indicates mean value of, 2.50,
2.65respectively which shows medium level of collaboration.

This implies that the case company is in a bad position to pay attention for measuring the extent of
customers’ service level and to make an improvement to satisfy the customers. On the other hand,
the customer response on this related items, shows in the Table 4.7

According to their response particularly the whole sellers, the corporation solving the problem of
customers scored mean value of 2.30 and its understanding on the specific needs of the customers is
also scores mean value of [Link] shows that customer are not satisfied on the corporation’s
measurement and monitoring of customer service level. In addition the corporation’s staff politeness
and willingness to help customers shows a mean score of 2.46, 2.38 and 2.40 which is bad position
of integration with customers.

As marketing manager responded that, there is improvement on the follow-up of customers for
feedback, like different research done on customer satisfaction by marketing department. By the
studies done, managements has be doing a lot of improvement on the distribution structure as well
as gave a solutions on the problems raised by customer in the corporation’s warehouses.

Table 4.7 Customer satisfaction measurements

S/N Items N Mean Std. dev.

1 Employees are polite to customers 50 2.46 0.909

2 Staff make information easily obtainable by customers 50 2.38 0.755
3 Staff are always willing to help customers 50 2.40 0.894
4 When customer has a problem, they show sincere interest 50 2.30 0.837
in solving the problem
5 Employees of corporation stores understand the specific 50 2.14 0.810
needs of their customers
Group mean 2.33
(Source: researcher’s survey)

31
Therefore, the total implication of the ESC’s integration with its customers is poor. This will leads
to the dissatisfaction of its customers and in a long-run there may be a chance losing its customers.
If it is so, it may be difficult and dangerous to the company to survive and compete in this intensive
competitive market environment.

[Link]. Information Sharing

The theoretical evidence confirms that supply chain management rides on the back of information in
order to meet the required resources at the right time, and at the right place, seamless and
instantaneous information flow should exist across the value chain (Russell, 2006).With respect to
the above theoretical justification, this study tried to investigate the practices of information sharing
among the supply chain participants of the case company. Accordingly, seven items related to
information sharing practice were used by the researcher.

Table 4.8 below indicates, the mean value of each items and group mean that can generalize the
information sharing practice of the case company with its up and down-stream supply chain partners.

Table 4.8 Information sharing

S/ Items N Mean Std. dev.
N
1 Sales forecast information sharing with customers 68 2.23 1.969
2 Sales forecast information sharing with suppliers 68 2.74 1.060
3 Adequacy and quality of information sharing throughout the 68 2.26 1.888
supply chain
4 Overall efforts of Inter-organizational information 68 2.26 1.888
coordination and sharing
5 Sense of trust and confidence along the supply chain 68 2.31 1.868
Group mean 2.36
(Source: researcher’s survey)
Relatively, the high and the lowest mean values are scored by sales forecast information sharing with
suppliers and sales forecast information sharing with customers that is 2.74 and 2.23 respectively.
On the other hand, Sense of trust and confidence along the supply chain scored mean value of 2.31.

32
This implies that the case company has poor information sharing practice with its customers than
with its suppliers particularly on sales forecast. Both adequacy and quality of information sharing
throughout the SC and the overall effort of inter-organizational coordination and information sharing
has a mean value of 2.26.

In SCM, information sharing is another important practice that should have to be given due attention
in order to make the SC robust. Because, when there is distortion, inadequacy and lack of accuracy
in information flows with in the SC partners, it will negatively affect the SC participants
Raghunathan, S. (2001). The mean value of the respondents on adequacy and quality of information
sharing throughout the SC implies that, there is information sharing among the SC partners but it is
not sufficient and it lacks accuracy.

From the above presented data, the researcher can conclude that the information sharing practice
between ESC and its customers is poor. This is based on the mean value obtained with respect to
sales forecast information sharing which scored 2.23.

In fact, customers like whole sellers, distributors, agents and retailers are closer to the end customers.
They have better opportunity for understanding the end customers’ demand. Sharing forecast
information with such customers would help the case company and consolidate its market demand
forecasts. So that, having poor relationship with such partners is a cause for poor information sharing
practices which make the forecast of the case company weak and unrealistic. According to Lee and
Whang, (2000) poor information sharing between partners in SC will lead to many serious problems
such as high inventory level, high demand uncertainty, inaccurate forecasts, low resource utilization,
and high production costs.

Furthermore to the above theory, many studies have reported that information sharing can bring
many benefits to both suppliers and buyers, such as inventory reduction, and reduced manufacturing
costs (Yu et al, 2001; and Raghunatahan, 2003).However, the information sharing practice of the
case company with in its supply chain particularly on sales forecast is poor which is the group mean
value score 2.36.

33
The empirical study of Lazarovic et al., (2007) states that efficiency in meeting customers
‘requirement is significantly differentiated by the level and quality of information sharing among SC
partners. Therefore, based on the analysis, empirical study and the current (21th) century real practice
and importance of information sharing and its impacts on any kind of organization.

[Link]. Logistics design

This study tried to investigate the practices of logistics design related to IT and delivery systems
among the supply chain participants of the case company. Accordingly, twelve items related to
logistics design practice were used by the researcher.
Table 4.9 Logistics design
S/ Items N Mean Std. dev.
N
1 The level of IT-based automated ordering from major customers 68 2.20 1.024
2 The level of IT-based automated ordering to major suppliers 68 2.37 0.960
3 up-to-datedness of IT technologies throughout the supply chain 68 2.18 1.064
4 Adequate investment are made in developing technology for 68 2.85 0.996
SCM practices
5 SCM software systems (like ERP, EDI) are used 68 2.14 1.042
6 The company creates compatible Information system for supply 68 2.34 1.101
chain members
7 Joint product planning with suppliers 68 2.74 0.997
8 The level of cooperativeness with suppliers 68 3.09 0.842
9 Customer’s delivery adherence requirement 68 2.67 0.948
10 Compliance with customer’s delivery in- full requirements 68 2.99 0.763
11 Compliance customer’s delivery on time requirements 68 2.78 0.912
12 Joint product planning with major customers 68 2.67 0.948
Group mean 2.62
(Source: researcher’s survey)
From the above table, in the first section, there is items of IT development in the Corporation’s
logistics design practices. The adequate investment are made in developing of IT throughout the SC
represent mean value of 2.85. On the other hand, the mean value of up-to-datedness of IT throughout

34
the supply chain, IT-based automated ordering from major customers , IT-based automated ordering
to major suppliers, SCM software are used and company creates compatible IS for SC members
revealed that 2.18, 2.2 , 2.37,2.14 and 2.34 mean value respectively.

Generally, even if there is adequate investment are made through the SC, the mean values of SCM
practice from IT perspective interpreted as there is poor IT application practice across the ESC’S
supply chain. Turban, McLean & Wetherbe, (2004), illustrates as, good experience in information
technology have a positive effect on the firm’s ability to enhance customer satisfaction and supply
chain responsiveness.

In addition to the data collected through questionnaire, interview was held with the communication
and IT team leader of the case company. According to the interview there are enhanced information
technology facilities within the company. But, there is no practices done on the technology through
supply chain integration. Nowadays, the company is implementing intra-network connection
facilities to connect marketing, purchasing, production and administration departments.

According to Levi et al.,(2003) the objectives of IT in SCM are; to provide the information
availability and visibility to supply chain partners, to enable the collaboration with organizations in
the supply chain and to allow the decision making based on the total supply chain information.

Currently, many manufacturing companies are using integrated information systems to manage their
business activities. To share information there should be an up-to dated IT and integrated information
system which is capable of connecting all functional units of the company and its external
participants.

Based on the data collected both in questionnaire and interview and the analysis made on the IT
practices, the existing IT System of ESC’s supply chain cannot support effective SCM
Implementation. Therefore, based on the mean value of each items and interviews, the SCM practice
of IT in the case company is poor and conveys that a lot has to be done to bring about change in the
IT system.

35
In the second section, logistics design practices regards to cooperativeness and delivery system items
were analyzed. Joint product planning with customers, level of cooperativeness with suppliers and
compliance with customer’s delivery in full-requirement scores the mean value with 3.09, 3.00 and
[Link], from this values, the corporation’s practices are good regards to cooperativeness with
supplies and joint product planning and full requirement with customer’s delivery . Joint product
planning with suppliers, customer’s delivery adherence requirement and compliance with customer’s
delivery on time also reveals a mean value 2.74, 2.67and [Link] values also reveals that
corporations interaction with suppliers in product planning and customer delivery requirement on
time were moderate.

But these findings were completely different from the respondents of ESC’s customer regards to
delivery requirements and compliance with customer’s delivery on time. As the following table4.10
shows that the delivery system of the corporation has mean scores 2.32 and the service given by the
corporation’s stores to the customer when they pick the sugar product has mean score of [Link]
shows the delivery system of the corporation didn’t satisfy customers.

Table 4.10 Customer satisfaction measurements

S/N Items N Mean Std. dev.

1 Physical facilities are virtually appealing 50 2.41 0.945

5 Adequate product service delivery system 50 2.20 0.814
9 The corporation warehouses perform the service right the 50 2.37 0.845
first time
Group mean 2.32
(Source: researcher’s survey)

36
[Link]. Customer satisfaction
The ultimate goal of an integrated, efficient and effective SC system is superior customer service:
short lead-time, quick response to requirements, accurate delivery, product accessibility, risk sharing,
complains handling etc. (Christopher1998; Kenneth 2006; Russell 2006; and Eyong 2009).
Table 4.11. Customer satisfaction

S/N Items N Mean Std. dev.

1 Company’s order process ability 68 2.47 1.198

2 Company’s production time 68 2.72 0.964
3 Total lead time taken 68 2.20 1.148
4 Overall customer care service 68 2.79 0.910
5 Ability to get attendant quickly 68 2.78 0.928
6 Ability to get feedback and follow up 68 2.45 1.780
7 Level of market information sharing 68 2.33 1.126
8 Interact with customers to set reliability ,responsiveness and 2.59 1.063
other standards 68

9 Measure and evaluate customer satisfaction 68 2.77 0.961

10 Facilitate customers’ ability to seek assistance from the 68 2.49 1.051
corporation
Group mean 2.56
(Source: researcher’s survey)

Table 4.11 above depicts that ten customers satisfaction attributes were used to investigate the extent
of the case company’s orientation towards customer’s service performance. In view of this,
company’s production time, overall customer care service, ability to get attendant quickly ,Interact
with customers and measures & evaluate have a mean values greater than [Link] ,these the
corporation practices with those attributes was moderate.

On the other hand, order process ability, total lead time, ability to get feedback & follow up ,level of
market information sharing and facilitate customers’ ability to seek assistance from the corporation
show 2.47,2.20,2.45,2.33 and [Link],the corporation has poor practice regards to ordering process

37
,get feedback and follow up ability. In addition the case company’s market information sharing and
less facilitate customers to seek assistance also poor.

Accordingly, the groups mean value of customer satisfaction reveals that the case company’s
orientation towards customer’s service is moderate. The researcher held an interview with marketing
, and distributed questionnaire for major customers of the case company to triangulate, and state the
extent of services given to the customers’ and which finally results in customer satisfaction.

As per the interview held with marketing manager of the case company reveals that in lead time
reduction, there are problems resulted from both external and internal factors. As their response the
external factor is related with suppliers i.e., some inputs are bought from abroad and it takes up to
four months to reach to the company which may increase lead time.

4.3..Inferential Statistics for SCM Practices and Customer satisfaction

4.3.1. Correlation Analysis

Correlations are the measure of the linear relationship between two variables. A correlation
coefficient has a value ranging from -1 to 1. Values that are closer to the absolute value of 1 indicate
that there is a strong relationship between the variables being correlated whereas values closer to 0
indicates that there is little or no linear relationship. As described by Andy (2006), the correlation is
a commonly used measure of the size of an effect: values of ± 0.1represent a small effect, ± 0.3 is a
medium effect and ± 0.5 is a large effect. In this section, correlation analysis conducted in the light
of each research objectives and hypotheses developed. The relationship between supply chain
management practices and firm performance was investigated using correlation analysis. This
provided correlation Coefficients which indicated the strength and direction of relationship. The p-
value also indicated the probability of this relationship’s significance.

38
 [Link]. Correlation Analysis between Construct of SCM practices and Customer
satisfaction
Table 4.12: Correlation matrix between constructs of SCMP and CS

Collaboration Information Logistics design Customer

Sharing Satisfaction
Pearson Correlation 1 .716** .562** .778**

Collaboration Sig. (2-tailed) .000 .000 .000

N 68 68 68 68
Pearson Correlation .716** 1 .807** .840**

Information Sharing Sig. (2-tailed) .000 .000 .000

N 68 68 68 68
Pearson Correlation .562** .807** 1 .609**

Logistics design Sig. (2-tailed) .000 .000 .001

N 68 68 68 68
Pearson Correlation .778** .840** .609** 1

Customer Satisfaction Sig. (2-tailed) .000 .000 .001

N 68 68 68 68
**. Correlation is significant at the 0.01 level (2-tailed).

(Source: researcher’s survey)

The correlation between constructs of SCM practices with Customer satisfaction was run as seen in
the above table. The result of correlation matrix between each constructs and customer satisfaction
are analyzed as follow: As it is indicated in the table, there is significant positive correlation between
collaboration and customer satisfaction with correlation coefficient of 0.778 (r=0.778) and
significance less than 0.001. Therefore, collaboration and customer satisfaction are genuinely
correlated.

Table 4.13 also depict that as there is strong positive relationship between Information sharing and
customer satisfaction with a Pearson correlation coefficient of 0.840. (r=0.840) and significance
value is less than 0.001. This significance tells that there is genuine relationship between information
sharing and customer relationship.

As the conducted Pearson correlation test indicated in the table 4.1, also there is significant positive
correlation between level of logistics design and customer satisfaction. In other words, logistics
39
design and customer satisfaction are Correlated in high relationship (r=0.516) with level of
significance less than 0.001.

[Link].Correlation between SCM practices and Customer satisfaction

Pearson correlation test was conducted between SCM practices (collective representative of three
constructs of SCM practices) and the results are shown in Table 4.14. As it is shown in the table,
there is significantly strong correlation between SCM practices and customer satisfaction. In other
words SCM practices and customer satisfaction have strong positive relationship with correlation
coefficient of 0.745(r=0.745) and significance value less than 0.01.

Table 4.13: Correlation between SCMP and CS

SCM Practices Customer satisfaction

Pearson Correlation 1 .745**

SCM Practices
Sig. (2-tailed) .000

N 68 68
Pearson Correlation .745** 1

Customer Satisfaction Sig. (2-tailed) .000

N 68 68
**. Correlation is significant at the 0.01 level (2-tailed).

(Source: researcher’s survey)

4.3.2. Regression Analysis

This regression analysis is conducted to know by how much the independent variable explains
the dependent variable. The regression was conducted between collaboration (independent variable)
and customer satisfaction (dependent variable) in the first regression. The second regression was
made between information sharing (independent variable) and customer satisfaction (dependent
variable). Finally, the third regression was made between logistics design (independent variable)
and customer satisfaction (dependent variable). The results of the regression analysis are presented
as follows.

40
 [Link] Multi Collinearity

Table4.14 Multi collinearity test of independent variable

Model Collinearity Statistics
Tolerance VIF

Collaboration .487 2.053

Information Sharing .248 4.028

Mean of Logistics design .348 2.871

Dependent Variable: Customer Satisfaction

(Source: researcher’s survey)

The result in table 4.15 show that the collinearity between independent variables has no series
problem Since the value of tolerance for all independent variable is greater than 0.1 and all VIF is
less than ten (VIF<10).

[Link]. Regression Analysis between collaboration and customer satisfaction

Table 4.15: Regression Analysis between Collaboration and Customer satisfaction

Model B t-stat Std. Error P-value R Adjusted R

Square
1 .863 8.88 0.625 .000 .874a .848

Predictor: Collaboration
Dependent variable: Customer satisfaction
(Source: researcher’s survey)
The Model Summary provides the correlation coefficient and coefficient of determination (r2) for the
regression model. As we have already seen a coefficient of .874 =r suggests there is a strong positive
relationship between collaboration and customer satisfaction while r2 = .848 suggests that 84.8% of
the variance in collaboration can be explained by customer satisfaction.

Although there might be many factors that can explain the variable on customer satisfaction, nearly
84.8% of it is explained by collaboration practice. This means that the remaining 15.20% of the
variation is cannot be explained by those dimensions of collaboration. The P value and positive β
coefficient also implies that collaboration have a positive and significant influence on customer
satisfaction.

41
 [Link]. Regression Analysis between information sharing and customer satisfaction

[Link] Analysis between IS and CS

Model B t-stat Std. Error P-value R Adjusted R

Square
1 .740 7.18 0.565 .000 .742a .736

(Source: researcher’s survey)

The correlation between constructs of information sharing and customer satisfaction was run as seen
in the above table. As it is indicated in the table, there is significant positive correlation between
information sharing and customer satisfaction with correlation coefficient of 0.742 (r=0.742) and
significance less than 0.001. Therefore, information sharing and customer satisfaction are genuinely
correlated.
In addition, the summary provides the correlation coefficient and coefficient of determination (r2)
for the regression model. As we have already seen a coefficient of .742 =r suggests there is a strong
positive relationship between information sharing and customer satisfaction while r2 = .736 suggests
that 73.6% of the variance in information sharing can be explained by customer satisfaction.

[Link].Regression analysis between logistics design and customer satisfaction

[Link] Analysis between LD and CS

Model B t-stat Std. Error P-value R Adjusted R

Square
1 .846 6.81 0.90 .000 .692a .681

(Source: researcher’s survey)

The correlation between constructs of logistics design and customer satisfaction was run as seen in
the above table. As it is indicated in the table, there is significant positive correlation between
logistics design and customer satisfaction with correlation coefficient of 0.692 (r=0.692) and
significance less than 0.001. Therefore, logistics design and customer satisfaction are genuinely
correlated.
In addition, the summary provides the correlation coefficient and coefficient of determination (r2)
for the regression model. As we have already seen a coefficient of .681 =r suggests there is a strong

42
positive relationship between logistics design and customer satisfaction while r2 = .681 suggests that
68.10% of the variance in logistics design can be explained by customer satisfaction.

43
 CHAPTER FIVE

SUMMARY OF MAJOR FINDINGS, CONCLUSION AND RECOMMENDATION

5.1. Summary of Findings

The purpose of this study was to assess the case company’s orientation towards managing its supply
chain and how this affects the customers’ service. The ESC’s orientation of SC was evaluated
through three SCM practices and five types of measurements that determine customer satisfaction.
In addition, the impact of SCM orientation was examined through customer service level which is
the ultimate goal of an effectively managed supply chain. Based on the quantitative and qualitative
data analysis, discussion of results with respect to the basic questions, the following are the summary
of major findings of this study.

The degree of relationship across the supply chain of ESC was shown in two integrations which is
characterized by less integration with customer than suppliers as it also revealed in which less joint
product planning with customer than supplier. So, an independent decision making across the
downstream side of the SC. The descriptive analysis and interview with management bodies has
verified the prevalence of these characters of relationship. Regarding to integration among the SC
partners the mean of ESC integration with its supplier’s conveys group mean value of 2.84 and this
shows the integration is in moderate level. But, the quantitative analysis of customers’ integration
conveys group mean value of 2.42 and it is really poor.

With regard to information sharing, the descriptive data and interview analysis conveys that, there is
poor information sharing with customer, moderate related to suppliers. Again the overall efforts in
coordinating and sharing information across the supply chain partners are weak. Even the shared
information lacks adequacy and quality. Concerning information technology as one of logistics
design, the quantitative and qualitative analysis indicated that, poor and absence of IT & IS tools
with in the case company. But the logistic design regards to delivery system and cooperativeness
with in the corporations ‘supply chain is moderated.

44
This study is also intended to test if there is a relationship between SCM practices, and customer
satisfaction. Based on the results of the study the summary of major findings are as follows. The test
result indicates that collaboration practice has positive and strong correlation (r=0.874) with
customer satisfaction at significance level less than 0.001. In other way, collaboration have also
contributed 84.4% for the variability of customer satisfaction.

On the other hand, the test result of information sharing and customer satisfaction indicates that
information sharing has significant positive correlation (r=0.742) at significance level less than 0.001
with customer satisfaction. In addition, 73.6% of variability of customer satisfaction explained by
information sharing. Finally, the test result of logistics design and customer satisfaction indicates
that logistics design is positively correlated to customer satisfaction with correlation coefficient of
0.692 (r=0.692) and the significance value is less than 0.001. On the other side, the regression result
of logistics design and customer satisfaction indicates that customer satisfaction can explain
approximately 68.10% of logistics design.

5.2. Conclusions

Based on the results of the study obtained and summary of findings the following conclusions are
given. The eventual conclusion of this study is that generally, the case company’s orientation towards
SCM is traditional that lacks substantial indicators of an integrated, efficient and effective SCM. In
addition, the quantitative analysis of the company’s customer satisfaction group mean is moderate
that is 2.56. Therefore, this can’t ensure customer satisfaction with respect to indicators taken. Based
on qualitative and quantitative analysis the investigator comes up with conclusion that the case
company’s orientation towards customer satisfaction is poor and SCM practices have direct impact
on customers’ satisfaction. The primary reason mentioned for poor level of customer service is
corporation integration with customer that have direct effect on the company’s ability (potential) to
embark on external integration. In other words, its effect is clearly reflected on customers not getting
what they need when they need it, long lead time, and poor complaints management, not having
effective flexible production system that could respond to the changing market and customer’s
preference.

45
From SCM practices the case company has a great problem on information sharing and IT practices
in supply chain. These two practices play a decisive role for creating effective and efficient SCM.
Poor IT facilities lead to poor information sharing and poor information sharing practices makes a
supply chain management ineffective. On the other hand, supply chain management need effective
internal operation for creating integration with external partners. For making internal operation
effective, the human resource is a critical factor and in order to have skilled, committed, and capable
employees and managers, to utilize resources effectively and efficiently training plays a significant
role.

The SCM main concept is creating a relationship with other partners through the SC to provide
products and services in order to satisfy the customers. The relationship of the ESC with its customers
is not strong, in sharing sales forecast, cooperativeness, joint product planning, is moderate. Even if
the marketing team leader responds that there is a lot of improvement done on the monitoring and
measuring customer level with different internal, the customer responses on this issues also shows
mean score of 2.33 which is poor level of corporation’s collaboration with customers.

Therefore these relationship shows as the relationship between ESC’s SC participants are traditional,
that is buy-sale relationship. The researcher concludes that the great challenges that prohibits
effective SCM of ESC’s like, manufacturing, supply and demand uncertainties and fluctuation of
inventories due to distorted information (bullwhip effect) are because of poor relationships between
SC partners.

4.4 Suggestions
On the basis of the findings and conclusions reached, the following suggestions were forwarded in
order to improve the Supply Chain Management of the case company. It is noticeably explained that
collaboration is vital in increasing the potential of the company to satisfied customers. ESC is
suggested to integrate suppliers and customers, so as to bring about flexible, responsive and efficient
production. This can be done first, by networking the functional units of the organization with
appropriate IT and integrated information system. Secondly, breaking functional silos to encourage
coordination and interdependent work design accompanied with agile work force and multipurpose
machineries to improve flexibility and responsiveness to market and customers’ requirements.

46
The human resource is the essential factor that performs all activities to make Supply Chain
Management effective and efficient. At the current situation marketing competition, customer
preferences, and everything is changing rapidly. Therefore, this change enforces companies to
change their strategies, and operations. Out of these changes having skilled, agile, and lean man
power is the one. So that, ESC is highly suggested that to prepare training program for its employees
and managers in order to enable them to be competent, committed, responsive, finally which
improves internal operation and customers service which then result in customer satisfaction. This
can be done through creating relation- ship with training institutions, strengthen the internal human
resource department, internal sourcing. Using appropriately the opportunities given by the
government through sending the right person to the training program.

The current information technology practice through the supply chain of the case company is poor
and affects effective communication and integration of data within the company. The case company
should improve and invest on IT facilities to enhance information sharing both internally and
externally. This can be done through hiring IT specialists or out sourcing. More importantly, the case
company is suggested to improve its relationship with suppliers from simply buy-sale relationship to
a modern supply chain relationship through establishing strategic or long term relationship, contract,
and continuous information sharing in order to minimize supply uncertainty which resulted in
demand and supply unmatched and dissatisfaction of customers of the case company. Because, this
could help the case company to obtain the inputs at the right time and quantity from these suppliers
and provide the required quantity by the customers when they need it. So that, this will minimizes
the dissatisfaction of customers due to shortage of materials.

Another important issue that is suggested to the case company’s marketing department is improving
the relationship with customers through a continuous information sharing, follow-up them and get
feedback, monitoring customers’ perceptions towards service of the company, improving its
compliant management through conducting market research for better responsiveness.

47
References
Addis (2015).The impact of SCM practices on performance of Pharmacies in governmental health facilities
in Addis Ababa, Degree of masters of Art in Logistics & SCM.

Alireza A. (2011).A Study on Total Quality Management and Lean Manufacturing: Through Lean Thinking
Approach, Department of Industrial Engineering and Management, World Applied Sciences Journal 12 (9):
1585-1596.
Andy, F. (2009). Discovering Statistic using SPSS. London: SAGE publication
ANZIBA conference proceedings (2004).Modes for enhancing competitiveness in transaction cost in
Australian Sugar Supply Chain, Dynamism and challenges in Internationalization, Canberra.

Assefa.B, (2011). Supply chain management practices in case of Ethiopian Quality food share company,
Research paper in A.A.U in fulfillment of the degree of Masters of Business Administration.

Assefa.Y, (2015).Instilling strategy management culture at the Ethiopian Sugar Corporation: AAU school of
business and economics, Degree of masters of Art in Logistics & SCM.

Bagchi, K. Prabir; Chun, H. Byoung (2005). Supply Chain Integration: A European Survey. International
Journal Logistics Management, Vol. 16, No. 2, pp. 275 – 294.

Balsmeier. (1996) .Supply chain management: a time based strategy: Industrial Management Vol. 38, no. 5,
pp.24–7.

[Link].A. (2001).Exploring the experiences of collaborative planning initiatives: International

Journal of Physical Distribution & Logistics Management, Vol.31, No.4, pp226-89.

Belay M. (2011).Challenges of supply chain management and their relationship with the competitive position
of Cement industry: Graduate school of business leadership university of South Africa.

Best. R (2009) .Market Based Management: Strategies for Growing customer value and profitability, 5th
edition, Pearson Education, Inc. New Jersey.

48
Bogale A. (2015). Supply Chain Collaboration Practices: A Study on Manufacturing Companies Ethiopia:
Industrial Engineering Letters Vol.5, No.12, 2015.

Bowersox, D. J. (2000). Ten mega trends that will revolutionize supply chain Logistics. Journal of Business
Logistics, 21(2), 1-15.

Bryman, [Link] Bell, E. (2007).Business Research Methods: 2nd [Link] University Press, Oxford.
Childerhouse, P. Disney, S. and Towill, D.R. (2000) “Speeding up the progress curve towards Effective
Supply Chain Management”, Int. Jnl. Sup. Chn. Man, Vol. 5, No. 3, pp 176-186.
Childhouse, P. &Towill, R. (2003). Simplified material flow holds the key to supply chain integration. Omega
Vol, 31(1), pp.17–27.

Christopher, M. (1998). Logistics and Supply Chain Management. Pitman, London.

Cooper, M. C. (1997). Characteristics of supply chain management and the implications for purchasing and
logistics strategy: The International Journal of Logistics Management, Vol. 4, No. 2, pp. 13-24.

Dereje .A,(2012).The impact of supply chain management practices on the organizational performance of
basic metal and engineering industries in Ethiopia: Master’s degree in business Leadership, university of
South Africa
Cadilhon (2004).Business-to business relationships in parallel vegetable supply chains: Distribution and
Logistics Management, 32(9):755–70.

Donlon JP, (1996).Maximizing value in the supply chain: Chief Executive; Vol.117:PP.54–63.
Eyong, M. (2009).Creating a competitive supply chain: Evaluating the impact of lean & agile supply chain.

Fasika, Klaus, Thoben&Marcus, (2014).Supply chain integration in the manufacturing firms in developing
country: Hindawi Publishing Corporation Journal of Industrial Engineering.

49
Fawcett, (2001). Achieving World–Class supply chain Alignment: Benefits, Barriers, and Bridges: Centre for
Advanced Purchasing Studies.

Feldmann, M. & Muller, S. (2003). An incentive scheme for true information providing in supply chains.
OMEGA, Vol. 31, no. 3, pp. 63–73.

Fisher,M.L. (2000).What is the right supply chain for your product? :Harvard Business Review,Vol.75, No.2,
pp.105-16

Gattoma and Clark (2003). Education and Skills training Requirements in supply: 9th edition, Pearson
Education, Inc., New Jersy.

Gilaninia& et al, [Link] of supply chain dimensions on customer satisfaction: The International Journal
of Logistics Management, Vol. 2, No. 2, pp. 13-24.

H/Michael D. (2011). Supply Chain Performance of selected leather Footwear firms in Addis Ababa: School
of business & public administration masters of business Program.

Hanan, Mack and Karp, Peter (2010).Customer Satisfaction: How to Maximize, Measure, and Market Your
Company’s Ultimate Product: American Management Association, New York, and XII.

Handfield, R. B., & Nichols, E. L. (1999). Introduction to supply chain management. New Jersey: Prentice

Haque& Islam, (2013).Effects of Supply Chain Management Practices on Customer Satisfaction in the
pharmaceutical industry of Bangladesh: Global Business and Management Research, An International Journal
Vol. 5.

Hoole, R. (2005).Five ways to simplify your Supply chain, Supply Chain Management: An international
Jouranl, Vol.10, Issue 1.

50
Huang, G. Q., Lau, J. S. K., & Mark, K. L. (2003). The impact of sharing production information on supply
chain dynamics: a review of the literature: International journal of Production Research, Vol. 41 No. 7, And
pp. 1483-1517.

Joseph, Namusonge, Biraori&Wamalwa. (2014).Factor Influencing supply chain performance in the public
Sugar Sector: Jornal of Research in commerce Economics and Manaement, Vol.1, Issue 3, pp (18-28).

Kenneth, L. and Brian, F. (2006). Purchasing and Supply Chain Management 7th edition, Mc Graw-Hill
Publishing Company Limited, New Delhl.

Kiran (2014).Supply Chain Management: Some Issues and Challenges, department of Mechanical
Engineering: University, Institute of Engineering & Technology,Vol.4

Lambert, M. and Cooper, C. (2000). Issues in Supply Chain Management: Industrial Marketing Management,
vol. 29, no.1, pp 65-83.

Lazarevic, P. Sohal, A. Baihaqi, I. (2007). Supply chain management practices & supply chain performance
in the Australian Manufacturing Industries: In Monish university.

Lee and Whang (2000). Information sharing in a supply chain: International Journal of Technology
management, vol. 20, no. 3/4, pp 373-387.

Lee, H.L. (2002). Aligning supply chain strategy with product uncertainties. California Management Review,
vol. 44, no. 3, pp105.

Lee, H.L. (2005). Creating value through supply chain integration. Supply chain management review, vol. 4,
no.4, pp 30-36.

Lee, H.L. Padmanabhan, V. & Whang, S. (2001). Information distortion in a supply chain: the bullwhip effect.
Management Science, Vol.43, no.4, pp.546–58.

51
Leedy, P.D. and Ormrod J.E. (2010) Practical Research Planning and Design. PROFFESOR [Link]
RANI Department of Commerce and Management Studies, Andhra University, Visakhapatnam, India

Li S, Ragu-Nathan B, Ragu-Nathan T, Subba Rao S (2006). The impact of supply chain management practices
on competitive advantage and organizational performance: Omega. Vol .34(2), PP.107-124.

Li, S. Rao, S. & Ragu-Nathan, B. (2005).Development and Validation of measurement Instrument for
Studying Supply Chain Management practices: Journal of operation management, vol.23, no.6, pp 618-641.

Lysons& Farrington (2006), Purchasing & supply chain management, 7th edition.

Nunnally, J. C. (1978).P sychometric Theory. McGraw-Hill, New York, NY.

Maeve Henchion [Link]. (2004).Developments in the IrishFood supply chain: Impacts and responses by SMEs.
Journal of International Food & Agribusiness Marketing, 16(2).

Makweba, R. & Xu. Q. (2009). Supply Chain Management and Challenges Facing the Food Industry Sector
in Tanzania. Vol. 4 No. 12

Meltzer, J.T. (2004). The nature of inter-firm partnering in Supply chain management. Journal of Retailing,
Vol.76, no.4, pp.549–568.

Min S, Mentzer JT (2004). Developing and measuring supply chain concepts: Journal of Business Logistics,
Vol.25 (1):PP.63–99.

Min S., Roath A.S., Daugherty P. J., Genchev S.E., Chen H., Arndt A. D., Richey R. G.,(2005).Supply chain
collaboration : what’s happening :The International Journal of Logistics Management ,Vol.16 , No.2 , pp.
237-56

52
Min, S. and Mentzer, J. T. (2004).Developing and Measuring Supply Chain Concepts, Journal of Business
Logistics, Vol.25(1), pp. 63–99.

Mirquez, A.C. (2010).Dynamic Modeling for supply chain management: Dealing with Front-End, Back-End
and Integration Issues, Springer, London.

Moberg. (2002). Identifying antecedents of information exchange within supply chains. International Journal
of Physical Distribution and Logistics Management, Vol.32, no. 9, pp.755–70.

Monczka, R.M. (1998). Success factors in strategic supplier alliances: the buying company perspective.
Decision Science, Vol. 29, no. 3, pp. 5553–5577.

Mustefa. (2014).SCM practices & firm performance in case of Awash Tannery PLC; AAU Degree of Masters
in business administration in management.

Narasimhan, R. & Kim, S. W. (2005).Information System Utilization Strategy for Supply Chain Integration:
Journal of Business Logistic, 22(5). 51 – 76.

Nicholas P., (2009).Methods for Measuring Customer Satisfaction: Energy Evaluation Conference, Chicago.
Perry, M. and Sohl, S. (2000). Quick Response Practices and Technologies in Developing Supply Chains.
International Journal of Physical Distribution and Logistics, vol.30, no 7/8, pp 627-639.

Raghunatahan (2003). Impact of Demand correlation on the value of and incentives for information sharing
in a supply chain: European Journal of operational research, vol. 146, 634-649.

Raghunathan, S. (2001).Information sharing in a supply chain. A Note on its value when demand in
Nonstationary. Management science, [Link] 4, PP603-610.

Ross, D.F. (1998). Competing through chin management: creating market-winning strategies through supply
chain partnership. New York: Chapman and Hall.

53
Russsell, H.S (2006).More than integrated logistics, air force journal of logistics: Supply chain management:
Vol, No.2.

Scott, S. (2003).Are co-operation and trust confused with power? An analysis of food retailing in Australia
and the UK: International Journal of Retail & Distribution Management,Vol.31,No.5,pp256-67

Seyedi, Moosavi, Heidari,(2009).Impact of supply chains agility on customer satisfaction Indian: Institute of
Technology Bhubaneswar

Simchi-levi, et al. (2000). Designing and managing the supply chain: concepts, strategies, and case studies.
Boston: Irwin/ McGraw-Hill.

Silver, A. Pyke, V. & Peterson, R. (1998). Inventory Management and Production Planning and Scheduling.
John Wiley & Sons, New York.

Stank, et al. (2001). Supply chain integration: Tales From The Trenches, supply chain management Review,
vol. 5(3) 62-69.

Tan (2001). A frame work of supply chain management literature. European Journal of purchasing and supply
management, vol. 7, No. 3, pp 39-48.

Tan, K. C., Kannan, and V. R. &Hanfield, R. B. (2001) .Supply Chain Management: Supplier Performance:
International Journal of Purchasing and Materials Management, 34(2). 2 – 9.

Tan, K.C. Lyman, S.B. & Wisner, J.D. (2002). Supply chain management: A strategic perspective.
International Journal of operations and production management, vol.22 (6), 614-631.

Tan, (2002). Supply chain management: a strategic perspective. International Journal of Operations and
Production Management, Vol 6.

54
Tracey, M., Lim, J. S., &Vonderembse, M. A. (2005) .The impact of supply chain management capabilities
on organization performance: Supply Chain Management, 10(3), 179-191.

Turban, E. McLean, E. &Wetherbe, J. (2004). Information technology for management 4th edition: John
Wiley & Sons New York.

Ullrich, C.A, (2014), “Issues in supply chain scheduling & contracting”, P.38
Sekaran, U. (2002). Research Methods for Business. (2nd ed). New York: John Wiley & Sons, Inc.

Yegon.J,Kosegei.D&Lagat.C (2015).Effect of Supplier development on buyer development on buyer

performance: a survey of sugar milling firms in Kenya: European Journal of Logistics, Purchasing and Supply
Chain ManagementVol.3, No.3, pp.35-54

Yohannes (2015).An assessment of Supply chain management practices and its challenges on competiveness:
The case of Migher cement [Link], Reaserch paper in fulfillment of the degree of masters of Art in
Logistics & SCM.

Zairi, M [Link] Customer Dissatisfaction through Effective Complaint Management Systems: The
TQM Magazine, Vol. 12(5), pp. 331-335.

[Link] on Jul 31, 2015.

55
APPENDIX I

QUESTIONNAIRE

The purpose of this questionnaire is to gather data on the effect of Supply Chain Management
practice on customer satisfaction in Ethiopian Sugar Corporation. The study is purely for academic
purpose and thus not affects you in any case. So, your genuine, frank and timely response is vital for
successfulness of the study. Therefore, I kindly request you to respond to each items of the question
very carefully.

Part I. Respondents Profile

1. Sex: □Male □ Female

2. Age: □20-25 years

□ 26-30 years

□ 31-35 years

□36- 40 years

□Above 40 years

3. Year of work experience in the organization:

□ 1-3 years

□ 4- 6 years

□7-11 years

□Above 11 years

4. Educational Qualification:

□Grade 10 completed

□ Grade 12 completed

□ Certificate

□College diploma

56
□ First Degree

□ Second Degree and above

5. Field of your Specialization _____________________________________

6. Your current position_________________________________________

Part II. Profile for Supply Chain Management Practices

Using the following Rating Scales under the columns, ‘‘circle only on one number from the given
numbers in the box after reading the variable on the left hand.’’

The numbers represent: 1- Very Low, 2-Low, 3-Average, 4-High and 5 –Very high

S/N Variables Rating Numbers

A Supply chain collaboration Very Low Average High Very high
low
A1 Company’s integration with suppliers

1 The level of strategic partnership with 1 2 3 4 5

suppliers
2 The establishment of quick ordering system 1 2 3 4 5
3 Stable procurement through network 1 2 3 4 5
4 The company seeks long-term stable 1 2 3 4 5
relationships with suppliers
5 Regularly solve problems jointly with our 1 2 3 4 5
suppliers
6 Helped suppliers to improve their product 1 2 3 4 5
quality
7 Included our key suppliers in corporation’s 1 2 3 4 5
planning ad goal setting activities
A2 Company’s Integration with Customers

8 Follow-up customers for feedback 1 2 3 4 5

57
9 Monitoring and measuring customer service 1 2 3 4 5
level
10 The level of market information sharing 1 2 3 4 5
with major customers
11 Customer feedback is used to improve 1 2 3 4 5
customer relations, processes, products and
services
12 The organization has systematic processes 1 2 3 4 5
for handling customer complaints
B Information Sharing Practices

13 Sales forecast information sharing with 1 2 3 4 5

customers
14 Sales forecast information sharing with 1 2 3 4 5
suppliers
15 Adequacy and quality of information 1 2 3 4 5
sharing throughout the supply chain
16 Overall efforts of Inter-organizational 1 2 3 4 5
information coordination and sharing
17 Sense of trust and confidence along the 1 2 3 4 5
supply chain
C Logistics design practices
18 The level of IT-based automated ordering 1 2 3 4 5
from major customers
19 The level of IT-based automated ordering to 1 2 3 4 5
major suppliers
20 up-to-datedness of IT technologies 1 2 3 4 5
throughout the supply chain
21 Adequate investment are made in 1 2 3 4 5
developing technology for SCM practices

58
22 SCM software systems (like ERP, EDI) are 1 2 3 4 5
used
23 The company creates compatible 1 2 3 4 5
Information system for supply chain
members
24 Joint product planning with suppliers 1 2 3 4 5
25 The level of cooperativeness with suppliers 1 2 3 4 5
26 Customer’s delivery adherence requirement 1 2 3 4 5
27 Compliance with customer’s delivery in- 1 2 3 4 5
full requirements
28 Compliance customer’s delivery on time 1 2 3 4 5
requirements
29 Joint product planning with major 1 2 3 4 5
customers
D Customer satisfaction
30 Company’s order process ability 1 2 3 4 5
31 Company’s production time 1 2 3 4 5
32 Total lead time taken 1 2 3 4 5
33 Overall customer care service 1 2 3 4 5
34 Ability to get attendant quickly 1 2 3 4 5
35 Ability to get feedback and follow up 1 2 3 4 5
36 Level of market information sharing 1 2 3 4 5
37 Interact with customers to set reliability 1 2 3 4 5
,responsiveness and other standards for us
38 Measure and evaluate customer satisfaction 1 2 3 4 5
39 Facilitate customers’ ability to seek 1 2 3 4 5
assistance from the corporation

59
APPENDIX II

QUESTIONNAIRE

The purpose of this questionnaire is to gather data on the effect of Supply Chain Management
practice on customer satisfaction in Ethiopian Sugar Corporation. The study is purely for academic
purpose and thus not affects you in any case. So, your genuine, frank and timely response is vital for
successfulness of the study. Therefore, I kindly request you to respond to each items of the question
very carefully.

Part I. Respondents Profile

1. Sex: □Male □ Female

2. Age: □20-25 years

□ 26-30 years

□ 31-35 years

□36- 40 years

□Above 40 years

3. Educational Qualification:

□Grade 10 completed □ Grade 12 completed □ Certificate

□College diploma □ First Degree

4. How long have you been purchasing our product and services?

□ less than 6 months □ 6 months to less than a year

□ 1 year to less than 3 years □ 3 years to less than 5 years □ 5 years or more

5. How often do you buy sugar product?

□ Daily □ Weekly □ Monthly □ Quarterly

60
Part II. Customer satisfaction indicators

Using the following Rating Scales under the columns, ‘‘circle only on one number from the given
numbers in the box after reading the variable on the left hand.’’

The numbers represent: 1- Very Low, 2-Low, 3-Average, 4-High and 5 –Very high

S/ Variables Rating Numbers

N
A Customer satisfaction items Very Low Ave High Very
low rage High
Tangibility

1 The corporations warehouse have up-to- 1 2 3 4 5

date products
2 Physical facilities are virtually appealing 1 2 3 4 5

3 Employees are well dressed and appear 1 2 3 4 5

neat
4 Physical Environment of the corporation 1 2 3 4 5
store is clean
Responsiveness

5 Staff make information easily obtainable 1 2 3 4 5

by customers
6 Adequate product service delivery system 1 2 3 4 5

7 Staff are always willing to help customers 1 2 3 4 5

8 Staff are never too busy to respond to 1 2 3 4 5

customer requests.
Reliability

9 When the corporation promise to do 1 2 3 4 5

something by a certain time, they do it.
10 When customer has a problem, they show 1 2 3 4 5
sincere interest in solving the problem
11 The corporation warehouses perform the 1 2 3 4 5
service right the first time
12 They provide their product at the time they 1 2 3 4 5
promised to do so
13 Corporation’s warehouses keep their 1 2 3 4 5
records accurately

61
 Assurance

14 The behaviour of employees instil 1 2 3 4 5

confidence in customers
15 Customers feel safe in their transactions 1 2 3 4 5
with the employees
16 Employees are polite to customers 1 2 3 4 5

17 Employees of the Corporation warehouses 1 2 3 4 5

have knowledge to answer customers’
questions.
Empathy

18 Corporation warehouses give customers 1 2 3 4 5

individual attention
19 Operating hours of Corporations stores are 1 2 3 4 5
convenient to customers
20 Employees of warehouse give customers 1 2 3 4 5
personal service
21 Corporation stores have their customers’ 1 2 3 4 5
interest at heart
22 Employees of corporation sores understand 1 2 3 4 5
the specific needs of their customers
.

62
APPENDIX III

Interview

Human resource management and communication team leader

1. Does your company have training program & criterion in order to make employees & managers
competent?

2. How do you see provision of multi skill training for your employees?

3. How does your company manage employees’ complaints?

4. Does your company have flexible /agile man power?

5. How do you see the employees’ commitment and initiation for work and learning?

Marketing team leader

1. What look like your supply chain system?

2. How do you see, your company’s effort to maintain and develop existing and new customers?

3. How your company manages customers’ complaints?

4. How do you see making your products accessible for your customers both in quantity and quality?

5. How do you see the extent of information sharing practice between your company and customers?

6. Is there demand uncertainty?

7. How do you see team work, flexibility, integration with in the company for meeting change in
market condition?

8. How do you see the general integration between your company and customers?

For Logistics and procurement team leader

1. How do you see the extent of supply uncertainty?

2. How do you see the internal logistics system?

3. How do you see the corporation as it assess the logistic activities systematically and frequently?

63
4. How do you see Corporations movement on extrapolate key trends to understand what future
logistic activities needs.

5. How do you see the level of IT based automated ordering system from suppliers and to customers?

6. How do you see the customer satisfaction on time delivery of the Corporation’s main product?

7. How do you see the Corporations’ information systems through the supply chain members?

64