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Supply chain management practices are defined as a set of activities assumed in an organization to encourage effective management of its supply chain. SCM practices are multidimensional which affect the performance of partners in the supply chain. In addition, the company should improve its resolve to meet the customer needs and demands. The main objective of the study is to investigate the effect of supply chain management practices on the performance of the firm. So the aim of supply chain management practice is to produce the right product or service, in the right quantity, at the right time and at minimal cost with the purpose of sustaining customer requirement and internal target as efficiently as possible. Effective supply chain management (SCM) has become a potentially respected way of securing competitive advantage through enhancing SC and improving firm performances since competition is no longer between organizations, but among supply chains. This research conceptualizes and develops on practices of SCM (strategic supplier’s partnership, Customer relationship, information sharing and internal integration) and tests the employees view on effects of SCM practice on firm performance. The research methodology was used explanatory research design, quantitative approach, questionnaire and primary data source. Since the total population size was small, so we used census method. The data for the study was collected from the total population of 60 employees of the company. The relationship anticipated in the framework was examined by using Pearson correlation, and the causal relation analysed using multiple liner regression analysis by using SPSS version 23. The study was employed the descriptive statics and inferential statics. Cronbach alph was used to know reliability of data. From the statistical out put the reliability of this data (Cronbach alpha) average value is 0.749 which is acceptable. Adjusted R square of the data was 77.5%. From the result of the analysis, we conclude that there is a strong relationship between SCM practices and firm performance in the company and independent variables (strategic supplier’s partnership, Customer relationship, information sharing and internal integration) all has positive and significant effect on dependent variable (firm performance). Besides, SCM practices examined on influence of organizational performance. Therefore, in order to achieve improvement in market share and profitability in the long-run through improving organizational performance, it is better for the organization to give due emphasis to the constructs of SCM practices and the measures of firm performance. |
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