Abstract:
This study is aimed to explore the effect of SCM practices on competitive advantage of Bahir Dar
textile share company. The study used five dimensions of SCM practice (strategic supplier
partnership, customer relationship, quality of information sharing, level of information sharing
and postponement) and were tested the relationships between SCM practices and competitive
advantage. Data for the study was collected from the employee of Bahir Dar textile Share
Company. The study was focused on the causal relationships between SCM practice and
competitive advantage and ignored the possible recursive relationships. The research design for
this study was causal type of research. The total population were consisted of 1407 employees.
From these population the researcher selected 125 by using the model developed by (malhorata,
2007). The sampling technique for this was non-probabilistic technique of purposive method. The
target population was the employee of the company. Questionnaires and interview were used as
the main data collection instrument. The data were analyzed using descriptive and inferential
statistics by using (SPSS) version 22 and results were presented on frequency and tables inferences
drawn from the data obtained. Correlational analysis and multiple linear regressions was carried
out to test the relationship between the research variables. The research has found that the SCM
practices are positively correlated to competitive advantage. The findings also indicated that
among the practice; postponement, strategic supplier partnership and customer relation have
strong effect on competitive advantage, postponement being the highest to influence competitive
advantage. Generally, the finding of the research indicates that SCMP as cumulative significant
effect on competitive advantage. Further future research is recommended to examine the effects
of supply chain management on competitiveness and performance in textile companies.
