Factors that Affect Lead Time Optimization of Break Bulk Cargo: In the Case of Sugar Import by the Sugar Corporation via Djibouti- Addis Ababa Corridor

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Addis Ababa University


rdIncreasing sugar import transit time delays at various nodal points along Djibouti Addis Ababa corridor is a pertinent problem for Sugar Corporation. The purpose of this research is to asses the factors that contribute to lead time optimization of sugar import along Djibouti-Addis Ababa corridor. The research will benefit Sugar Corporation in reduction of its sugar import lead-time and make the corporation’s import logistics operation more efficient . In order to address the research questions the pertinent research design selected was explanatory research design and both qualitative and quantitative research approach was applied. Besides ,purposive sampling was used as sampling technique. Primary data on impact of port congestion, truck availability, customs process and warehouse facility as independent variable on lead-time of sugar import as dependent variable were collected from Sugar Corporation ,Sugar Factories, Maritime Authority of Ethiopia ,Ethiopian Shipping and Logistics Enterprise, Djibouti Port Authority in Addis Ababa. Related to this total of 150 questioners were distributed and response rate of 92.17 % was achieved . The data were collected using the five point Likert-Scale while the Cronbach’s Alpha was used to check the data reliability of measurement scale. Descriptive statistics was used to identify and summarize significant contributing factors for delay in lead time of sugar import. Correlation was conducted among the variables to identify the existence of linear relationship between independent and dependent variables. . The result of analysis showed that port congestion significantly delayed lead time of sugar import mainly because of shortage of trucks, limited berth availability and inefficient vessel arrival schedule. Truck availability also significantly delayed lead-time of sugar import mainly because of failure of transport companies to avail truck, the bad road condition from Addis Ababa to Djibouti, and late hiring of transport service. The result also revealed that lead-time of sugar import was moderately affected by customs process and warehouse availability. The study definitely answered the question regarding the impact of port congestion ,truck availability, customs process and warehouse facility on lead-time of sugar import along Addis Ababa Djibouti corridor. Further studies should be conducted on cost impact of the delay on sugar import ,impact on sugar export lead time and cost .Besides the influence of lack of logistic and supply chain management knowledge and skill on lead time of sugar import and export can be considered.



optimization,, lead time, port congestion, truck availability, warehouse facility