An empirical study on supply chain practices and their effect on financial performance: a case from Egypt

Managing supply chain is a challenge for enterprises to sustain the competitiveness that reflected in their bottom-line financial figures. This research aims at exploring the impact of supply chain practices on the financial performance of different manufacturing companies in the Egyptian market. Qualitative and quantitative approaches have been followed to use theories and literature to cover the supply chain to test it empirically. Research data was collected from 98 managers who are representing 14 manufacturers, which are registered in Egypt's Stock market between 2005-2010. The secondary data on financial performance of the participated companies were obtained from official publications. Findings indicate a strong relationship between supply chain practices and bottom-line profits of an organisation. Supply chain managers decrease the use of large fixed assets in the supply chain. Results yield useful insights to both academics, and corporate practitioners about the importance of synthesising supply chain with financial performance.