Assessment of Limestone Distribution Effectiveness: The Case of Guder Limestone Factory.
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Date
2021-02
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Addis Ababa University
Abstract
The purpose of distribution is fundamentally concerned with ensuring that products
reach target customers in the most direct, in the right quantity, at the right time, and
cost-efficient manner. Distribution is mainly designed to flow the products through the
best configuration of the network to fill customers’ demand with minimum total cost.
Most activities involved in this process include order handling, information processing,
inventory control, storage, and transportation. However, distribution effectiveness in
supply chain management is affected by different factors. The main objective of this
study looked into assessing and identifying challenges that affect the limestone
distribution effectiveness in supply chain management, the case of the Gudar lime
factory, West Shoa Zone. For this research objective, the study adopted a qualitative
and quantitative method. However, the primary data were collected from 95
employees working in Gudar limestone factories, woreda agriculture office, Primary
cooperative agency, and Kebele administration by using Likert scale type questioner
as measuring instrument collection of data. Then, the collected data were analyzed
using descriptive and inferential statistics. The finding of the study indicated that the
limestone distribution effectiveness in supply chain management affected by lack of
coordination among stakeholders, lack of fulfillment of demand request, lack of
sufficient warehouse construction, lack of awareness on inventory and warehouse
management, lack of appropriate dispatching procedure; poor transportation
availability and carrying capacity, poor road network, and lack of using information
technology for detecting truck location.
According to FGD, Key informant interview and physical observation indicated that the
limestone distribution from the factory warehouse to the Woreda agriculture office and
the cooperative agency was taken as a direct distribution method and implemented by
government organizations. There is no whole sealers or retailer between the factory and
the Woreda Agriculture and the cooperative agency.
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Keywords
Distribution, Effectiveness, limestone, GLF