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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Date
2020-06
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Addis Ababa University
Abstract
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.
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Keywords
optimization,, lead time, port congestion, truck availability, warehouse facility