Assessment Of Supply Chain Risks And Supply Chain Risk Management Practices: The Case Of Ethio Telecom
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Date
2017-06
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Addis Ababa University
Abstract
Despite the increasing vulnerabilities of supply chains to different costly supply chain risks/disruptions, the practice of supply chain risk management is still in its infancy for many organizations. Thus, to address the emerging need for supply chain risk management practices, the study looks in to supply chain risks affecting Ethio Telecom (ET) and assess ET’s supply chain risk management practices. A descriptive research design with quantitative and qualitative approach was used to execute the study. Data was gathered using the questionnaire from 164 respondents (excluding managers) who were selected using the stratified random sampling technique. Besides, using well structured interview questions, qualitative data was also collected from purposefully selected 5 department managers. The findings of the study revealed that, to a varying extent, ET has experienced supply chain risks associated with demand and supply side, risks associated with changes in regulations, infrastructure and catastrophic risks. Furthermore, the study found out that, ET has adopted supply chain risk management practices to a varying extent. In particular, the practice of building long term collaborative relationship with its key suppliers, the practice of developing and using supply chain contingency plans and practice of using back up suppliers were less practiced by the company. Finally, the finding indicated that the company had faced challenges to practice supply chain risk management; particularly lack of flexibility in decision making, lack of awareness and matured culture about risk management practices, lack of technology, lack of policy, Based on the findings, better ways of improving the practices of supply chain risk management were forwarded to ET.
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Keywords
Supply chain risks, management practices, increasing vulnerabilities