THE EFFECTS OF SUPPLY CHAIN MANAGEMENT PRACTICE ON OPERATIONAL PERFORMANCE: IN THE CASE OF RETAIL PHARMACIES IN BAHIR DAR CITY

Abstract

Background: Since pharmacies are becoming more aware of the value of developing integrated relationships with both suppliers and customers, supply chain management (SCM) has become a problem for many retail pharmacies. Objective: This study aimed to assess the effect of supply chain management practice (SCMP) on operational performance (OP) with a special focus on the BDR city administration retail pharmacies. Methods: An explanatory study design was conducted using a quantitative research approach employed in Bahir Dar City retail pharmacies up to May 2024. All retail pharmacies in Bahir Dar City were taken as a target population of the study, of which pharmacies with complete data and established before six months of establishment period were taken as a sample of the study. A convenient sampling technique used to enroll retail pharmacies or pharmacy employees. The research was used mainly primary sources of data using closed ended questionnaire in this study. Results: The descriptive statistics result implied that retail pharmacies in the study area have a good culture of sustaining their supply and customer chain network by working together. The multiple linear regression results indicate that supplier and customer relationship management has a positive and significant relationship with operational performance, while the quality of information sharing has a negative and significant effect on the operational performance of retail pharmacies. Conclusion/recommendations: According to model summary 48.1 % of the variation in operational performance is explained by supply relationship management, customer relationship management, quality of information sharing and level of information sharing Thus, to improve the operational performance of retail pharmacies; it should do great work on the level and quality of information sharing, paying critical attention to supplier and customer relationship management, conducting further studies by adding additional variables, and in other industries are possible recommendations of the study.