Proposal

2. CHAPTER ONE
INTRODUCTION
• BACKGROUND OF THE STUDY
• Business environment is becoming increasingly competitive at the passing of
each day and various industry players are leaving no stone unturned in taking
advantage as it unfolds.
• To this end, firms are innovatively strategizing to create added value at
reduced costs in a bid to satisfy their customers (Hassan, A., 2012).

3. Cont.……….
• Different firms adopt different approaches to attain industry relevance and achieve
corporate objectives of the organization but strategic communication and efficient
sharing of information has been identified by experts in supply chain management
domain as strategies getting the most attention (Li, S., Ragu-nathan., et. Al., 2006).
• Supply chain management comprises the integration of key business processes that
entail the provision of products, services, and information adding value for
customers and other stakeholders from design through delivery, from original
suppliers to end user (Gunasekaran and Ngai, 2004; Lambert et al., 1998).

4. • Scott and Westbrook (1991) and New and Payne (1995) described SCM as
the chain linking each element of the manufacturing and supply process from
raw materials through to the end users, and treating all firms within the
supply chain as a unified virtual business entity.
• Baatz (1995) further expanded SCM to include recycling.
• To have effective supply chain, companies have to use effective Supply
Chain management practice.
Cont.……….

5. • Supply chain management practices are a set of activities undertaken by an
organization to promote effective management of its supply chain.
• It is a multi-dimensional construct that includes both upstream and
downstream sides (Li et al, 2006).
• Hence, organizations are pushed to compete using their entire supply chain
and began to realize that it is not enough to improve efficiencies within an
organization but their whole supply chain has to be made competitive
(Anderson & Gerbing, 2008).
Cont.……….

6. • Creating long lasting business relationships with customers, suppliers and
other strategic partners depend on trust and long term commitment becomes
crucial competitive parameter (Lazarevic, 2007).
• The understanding and efficient management of supply chain practices has
become an essential for enhancing profitability and staying competitive in
the global market (Storey et al, 2015).
Cont.……….

7. • Supply chain management (SCM) links a firm with its customers, suppliers and
other members of the supply chain system, including transportation, freight
forwarding and warehousing service providing companies.
• The management of the supply chain is basically management of the
relationships and activities among the members of organizations (system) in the
supply chain
Cont.……….

8. • Customer satisfaction is the key for any business to growth and continued
existence (Chow, 2014; Sun and Kim, 2013).
• It has been identified as the key indicator that differentiates between high or
successful business performance and a low or unsuccessful business
performance within the business environment (Sharifl et al., 2013).
• In other words, when a customer is satisfied, there is a strong possibility that the
customer might become loyal, which results in the improvement of
organizational performance (Terpstra and Verbeeten, 2014).
Cont.……….

9. • A chain of customers is established through word of mouth as a result of customer
satisfaction derived from the product or service supplied by a particular organization
(Subramanian et al., 2014).
• Breweries in Ethiopia therefore face the challenge of adopting appropriate strategies
necessary to satisfy their demanding customers (Ayalew, K. 2018).
• As mentioned in various literature there is a direct relationship between supply chain
management practices significantly predicted customer satisfaction (Omoruyi, O., &
Mafini, C. (2016), Francis, G. H., & Waiganjo, E. (2014).)
Cont.……….

10. • World beer industry is on the rise especially in the developed countries.
• This has been propelled by economic growth, technology advancement, high
per capita beer consumption, improved quality and globalization of markets that
has provided better market opportunities.
• In other regions, the industry has either declined or is stagnant as a result of
economic recession, health and social concern, negative influence on
globalization of markets, lack of donor funding support, and industrial brewing
technology as in the case of some African countries.
Cont.……….

11. • In many developing nations, demand is expected to rise with the strongest gains
being in Asia especially china and Eastern Europe (The Drinks Business,
2015).
• The beer market is at a turning point in Ethiopia. Its value has grown
dramatically, reaching USD620 million over the years, while consumption
grew by 16 per cent yearly, as studies shows.
• While annual production hit as high as 7 million hectoliters, the number of
breweries has almost doubled.
Cont.……….

12. • Consumers have seemingly dozens of choices to quench their thirst for
invented beers with an emphasis on flavor and technique.
• This has brought about many changes, from rethinking the marketing strategy
and resource management in the retail trenches to mushrooming of products
and services by the breweries to simplify, innovate and improve their
operations (The Evolution of Ethiopia’s beer industry April 18, 2019, the Afro
Champions Initiative).
Cont.……….

13. STATEMENT OF THE PROBLEM
• Literatures indicate that companies are now seeking to integrate their
decisions across the supply chain partners globally as a result of increasing
awareness about the financial and non-financial impact of supply chain
management processes on business companies in particular (Georgise, F.
B., et., al (2014), Asmamaw, S. (2016), Ayalew K. (2018)).
• In Ethiopia, the concept of supply chain management and measuring its
performance for improvement is at the infant stage except very few
multinational and international companies investing in Ethiopia.

14. • According to the reviews literature made by the researcher, most of the
researches on assessment of supply chain management performance were
conducted on manufacturing companies in the developed countries and very
few in developing countries, like Ethiopia.
• Specifically, the researchers conducted on the supply chain process
performance on brewery industry were very rare in Ethiopia in particular.
• As a result, there was little insight about the performance of supply chain
management in the brewery companies of Ethiopia.
Cont.……….

15. • This knowledge gap in the subject of this thesis in this competitive industry
caused the researcher to incline for conducting this research study (Asmamaw,
S. (2016).
• According to Hague and Islam (2013) the supply chain management practices
often result in improved organizational performance, competitiveness, and
customer satisfaction.
• Applying supply chain practices allows SME to identify the market changes
and needs, and a unified supply chain will be able to contribute on added value
and efficiency in the supply chain (Hague &Islam, 2013).
Cont.……….

16. • In summary, there was less insight about the level of integration and
collaboration with supply chain upstream and downstream partners, supply
chain reliability, responsiveness, agility, cost effectiveness, inventory
management efficiency as well as effectiveness, and ICT utilization in the
supply chain management in the case brewery companies (Fekadie, E. 2019).
• Despite the role of supply chain management as a competitive tool, the supply
chain operational excellence in the brewery in Ethiopia is under researched and
there is knowledge gap how well is the performance supply chain management
practice in Ethiopia (Fekadie, E. (2019), Asmamaw, S. (2016) Ayalew K.
(2018)).
Cont.……….

17. • The intention of this research study is to investigate and analyze the performance of supply chain
management practice by focusing on the level of supply chain integration and collaboration with the
chain partners, the responsiveness, reliability, agility, and cost and inventory management efficiency
and effectiveness of the supply chain management practices as well as best practices based on SCOR
model and other literatures on supply chain management philosophy.
• Consequently, this thesis will focus on investigating the performance of supply chain management
practice in the case of St. George brewery company located in Kombolcha in terms of their
collaboration and integration with their suppliers and B2B customers, supply chain reliability,
responsiveness, flexibility and supply chain operational cost as well as ICT utilization in supply
chain management in this industry with limited.
Cont.……….

18. RESEARCH QUESTIONS
• This research is guided by the following research questions:
• What is the level of integration between the St. George brewery & its suppliers?
• What is the level of integration between the St. George brewery & its customer?
• How reliable is the supply chain management practices of the St. George brewery?
• How responsive is the supply chain management of St. George brewery?
• What is the level of agility level of St. George brewery & its suppliers?
• How high the cost of supply chain operation in St. George brewery?
• How inventory management practice St. George brewery?
• What is the level of ICT utilization in managing supply chain operations?

19. OBJECTIVE OF THE STUDY
• GENERAL OBJECTIVE
• The general objective of this study is to examine the effect of perceived performance of supply chain management
practices on customer satisfaction the case of St. George Brewery.
• SPECIFIC OBJECTIVES
• To identify the level of integration between St. George brewery and its suppliers
• To identify the level of integration between St. George brewery and its customer
• To investigate the supply chain reliability of St. George Brewery.
• To investigate supply chain responsiveness of St. George Brewery Company.
• To investigate supply chain Agility of St. George Brewery Company.
• To investigate Inventory Management Practice of St. George Brewery.
• To examine supply chain operational cost of St. George brewery.
• To identify the level of ICT utilization in managing supply chain operations

20. RESEARCH HYPOTHESIS
H1. Integration with suppliers has a significant and positive effect on customer satisfaction
H2. Integration with customer has a significant and positive effect on customer satisfaction
H3.Supply chain reliability has a significant and positive effect on customer satisfaction
H4. Supply chain responsiveness has a significant and positive effect on customer satisfaction
H5. Supply chain Agility has a significant and positive effect on customer satisfaction
H6. Inventory management practice has a significant & positive effect on customer satisfaction
H7. Supply chain operation cost has a significant and positive effect on customer satisfaction
H8. Level of ICT utilization has a significant and positive effect on customer satisfaction

21. SIGNIFICANCE OF THE STUDY
• As different literatures point out, the supply chain management concept
and strategy have significant role for any manufacturing company,
provided that company implement the supply chain management
successfully.
• Effective and efficient supply chain management creates value to customer
as well as the rest of the supply chain actors and enables the supply chain
firms to maintain or gain competitive advantages over their competitors.
Besides, in the contemporary business environment, individual firms will
not perform and compete independently.

22. • There is no more competition among individual firms, but it is among the supply
chain network.
• Therefore, conducting research on supply chain practices performance and
identifying gaps will enable firms to plan improvement actions and to fill their
gaps.
• The finding of this study will give an insight on the performance of the supply
chain management practices in case brewery companies in order to plan for
improvement by the brewery company under study in particular.
Cont.……….

23. • The finding will also give an insight to other supply chain partners (the
suppliers, distributors, retail outlets, transporters, etc.) in the chain of the case
brewery industry to scrutinize their own supply chain operational performance
excellence.
• As this research study has its own scope limitation, other researchers can also
use it as starting point to capitalize on the different aspects of the supply chain
performance analysis which have not been addressed in this study.
Cont.……….

24. SCOPE OF THE STUDY
• The geographic scope of this study is limited to the case of St. George
Brewery Company located in kombolcha.
• The scope of this study is limited to the supply chain variables including
integration with strategic suppliers and customers, information technology
utilization in SCM, supply chain reliabilities, responsiveness, agility, cost and
inventory management practices, supply chain effectiveness/efficiency and
level of ICT utilization.
• Therefore, other variables will not be included in this study.

25. Research Methodology
• Research Design
• The study will investigate supply chain management practices and its
impact on customer satisfaction by focusing on BGI Ethiopia
Kombolcha.
• Accordingly, the case company’s existing supply chain management
practices and the challenges that prohibit its effectiveness will be
evaluated and links with customer satisfaction.

26. • That means the purpose of the research is to find out the underlying facts
and /or actual circumstances existing within the case company with regard
to supply chain management practices and describing the facts.
• Therefore, the researcher will employ descriptive and explanatory research
design, which helps to use both qualitative and quantitative data analysis.
• The most appropriate research approach for this study is mixed research
approach.
Cont.……….

27. Population
• Hair et al., (2010) states target population as a specified group of people or
object for which questions can be asked or observed to collect required data
structures and information.
• This research will give main emphasis for SCM from the company side.
• The target population of the research paper will be mainly divided in to two
parts, which are employees of the company and Distribution Agents of BGI
Ethiopia.
• As far as employees of the brewery is concerned since it is manageable (191
employees distributed in seven department) the researcher employs census.

28. • Data type & Collection techniques
• The researcher will analyze the study based on the data collected from
primary sources through questionnaire and interview.
• Although this study will be supported by both theoretical and empirical
literatures and secondary data from the organization, the researcher will use
primary data to achieve aforementioned objectives and to answer research
questions.
• Primary data will be collected from selected respondents in the company and
outlets (agents) secondary data were collected from published journals,
reports of the company and websites.
Cont.……….

29. • The researcher will use both quantitative and qualitative research methods.
• The study will use questionnaire as a quantitative data collection instrument that
helps to cover larger target groups than the interview given the quality and
chance of no response.
• The questionnaire will be prepared using 5-point Likert-Scale approach (i.e.,
from “Strongly Disagree to Strongly Agree”).
• A pilot survey will be conducted in order to ascertain if the questionnaire
adequately addressed the critical aspects of the research objective.
Cont.……….

30. • Accordingly, respondents will be asked to indicate their level of their agreement
or disagreement on 5 point Likert scale with the following ratings; Strongly
Disagree (1), Disagree (2), neutral (3), Agree (4) and Strongly Agree (5) for
ordinal scale measurement and to generate data suitable for quantitative
analysis.
• In addition to quantitative data collection, the researcher will use qualitative
approach. Qualitative data will be gathered through interview from managers of
the company.
Cont.……….

31. • Methods of Data Analysis
• After the data collected, both descriptive and inferential statistical techniques
will be employed to analyze the data.
• The data will be analyzed using computer software.
• The researcher will be Statistical Package for Social Sciences (SPSS)
version 23.
• The statistical tools will be aligned with the objectives of the study.

32. • Descriptive analysis will be presented by using statistical tools mainly
frequencies, percentages, mean and standard deviation to summarize the
responses.
• Inferential analyses will be conducted by using correlation and multiple
regression techniques to show the relationship and the significance
between dependent and independent variables.
• The correlation analysis will be computed by using Pearson correlation
method.
Cont.……….

33. Dependent variables
• Quality
• Innovation
• Low cost
• Service
Independent variables
• SCM Reliability
• SCM Responsiveness
• SCM Agility
• ICT in SCM
• Supply Chain Operational Cost
• Inventory Management Practice
• Integration with Suppliers
• Integration with customers
Fig 2.5 A conceptual framework of supply chain performance indicators of this study.