Enhancing Supply Chain Performance through Collaborative Planning Forecasting and Replenishment Model: The Case of Ethiopian Dairy Industry
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Date
2016-06
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Addis Ababa University
Abstract
In today’s competitive market, the competitions between individual enterprises transformed in to competition between their supply chains which emerged as the biggest differentiating factor between a successful and unsuccessful business. The goal of SCM is to meet the needs of customer by supplying the right product at the right place, time, and price. Therefore in order to meet the customers need, all the actors in the chain should work together collaboratively for similar goal. Ethiopia has the second largest livestock population in Africa and the contribution of livestock and livestock product to the agricultural economy is significant. But the livestock sector in general and the dairy sub sector in particular are not developed in the expected level because of many problems in the sector such as: poor collaboration and integration throughout the chain, week information sharing practices, unfair market competition, low milk productivity level, poor infrastructure on potential milk producing area. Therefore, the main objective of this thesis is identifying the existing supply chain related problem of the dairy processing industry /i.e. shortage and poor quality of raw milk supply, unbalanced demand & supply, poor collaboration & information sharing practices throughout the chain/, evaluate & analyzing the performance of their supply chain in terms of information sharing, on time delivery, flexibility, decision synchronization, resource planning, cost reduction and customer satisfaction by taking twelve sample dairy industries and adapting collaborative planning forecasting and replenishment model which is used to improve the chains performance. The final result is, if the dairy industry adapted the collaborative planning, forecasting & replenishment method, they can solve most of the problems which affects their supply chain and improve the performance.
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Keywords
Chain Collaboration, CPFR, Ethiopian Dairy Industry SC, Lame Dairy PLC