Assessing The Supply Chain Strategy Of Garment Firms Located At Addis Industrial Village

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Date

2017-06

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Publisher

Addis Ababa University

Abstract

In the rapidly changing global business environment, many companies want to become efficient and flexible, but have struggled, in part, because they have not been able to formulate and implement appropriate supply chain strategies. The root cause of the problems plaguing many supply chains is a mismatch between the supply chain strategy and the business strategy, and supply-chain strategies based on a one-size-fits-all strategy often fail. Companies can use supply chain strategies to gain a competitive advantage for the supply chain. A competitive advantage can be achieved by means of low cost or by means of differentiation. The objective of this research is to assess the supply chain strategy implementation on selected Garment companies in Ethiopia and to imply the appropriate supply chain strategy. Furthermore, the research aimed to identify potential areas where these Garment firms may be able to improve their supply chain management practices. The supply chain strategies implemented by those selected garment companies are assessed through the analysis of those factors that can be considered when determining supply chain strategies i.e. the product characteristics, the manufacturing characteristics and the supply chain drivers. The potential areas where the companies may improve are identified through the analysis of how these companies are managing their supply chain drivers. Companies with lean supply chains should manage their supply chain drivers to achieve efficiency, while companies with agile supply chains should manage their supply chain drivers with responsiveness towards customers’ needs in mind. Non-probability sampling is used to include eight companies in the research. However, out of all the companies targeted, only four effectively responded. The entire sample Garment companies do not manage their supply chain drivers according to the implied supply chain strategy principles

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Keywords

Supply Chain Management, Supply Chain Strategy, Supply Chain Drivers

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