Assessing The Supply Chain Strategy Of Garment Firms Located At Addis Industrial Village
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Date
2017-06
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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