The Effects Of Supply Chain Integration On Operational Performance The Case Of Ethiopian Commodity Exchange Ecx

Over the recent years, supply chain Integration has emerged as a major field of interest that involves the strategic alignment of functions and processes within an organization.rnThe purpose of this study is to examine the current level of supply chain integration and to analyze its effect on ECX’s operational performance. This research conceptualizes and develops the dimensions of supply chain integration (supplier integration, warehouse integration, ICT integration, customer integration and internal integration) and examines with operational performance (OP). The data collection instrument used was a questionnaire which was administrated to a total sample of 147 employees using stratified random sampling techniques. Measured from the dimensions of SCI, it can be concluded that the current level of SCI of the company is moderate. The company has a relatively better internal integration and ICT integration, but its supplier, warehouse and customer integrations are weaker. The result of the analysis also proved that there is strong and significant relationship between supply chain integration and operational performance. The results also indicated that supplier integration had the highest effect on OP, followed by ICT integration and warehouse integration. Customer integration had no direct effect on OP, though. Therefore, for improving OP, the current study recommends improving the components of SCI together as they are strongly interrelated.

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