The Role of Supply Chain Digitalization in the Case of Ethiopian Commodity Exchange
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Date
2021-08
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Addis Ababa University
Abstract
There are different studies conducted in the area of digitalized supply chain management practice, performance & adoption. Therefore, the main objective of this study is to assess the role digitalization of the supply chain practices of the Ethiopian commodity exchange, examine the performance of supply chain digitalization, to identify the major barriers & enablers exhibited in the adoption of digitalized procurement in Ethiopian commodity exchange and finally identifying the role of information communication technology in supply chain are the objectives of this research. The researcher employed a descriptive research design to investigate the problem under study by employed census method. The collected data were analyzed by using international business machines Corporation Statistical Package for social science statistics 29 version. The study shows that respondents from the company have a good awareness level about e-procurement. Whereas major procurement activities like preparing purchase order, making approval, identifying new potential suppliers & administering contract management are not well practiced or the activities are not digitalized. From digitalized supply chain practices warehouse & inventory management is well practiced & automated in the enterprise. Electronic good receiving voucher is issued; items are tagged & tabled, maintaining balance and other warehouse activities are well automated & practices at satisfactory level. Regarding the performance of digital supply chain management from the four performance indicator both responsiveness & cost effectiveness count the low level of responsiveness & minimizing supply chain costs. Whereas, data accessibility & flexibility count high level of practice in the company. Major barriers that have been identified under the study are social & cultural, economic, political, legal & regulatory barriers are major barriers for adopting digitalized supply chain at Ethiopian commodity Exchange. Regarding the enablers of digital supply chain management are major types of enablers have been identified under this study such as, technological, top management commitment, legal ground and human resource are items included in enablers of digital supply chain management. Finally, about role of information communication technology the study identifies a major role by adopting technologies transparency, minimize costs and enhance integration. The study recommended that the company shall fully automate major supply chain activities and practices like procurement, logistics & transportation and also outsource other supply chain actives Ethiopian commodity exchange top managements review the procurement strategy and improve their strategy or develop a new one that includes digital supply chain aspects.
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Keywords
Practice, Digitalization, Supply Chain Management