Practices And Challenges Of Supply Chain Management Of Bitumen In Ethiopia: The Perspective Of Oil Companies
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Date
2019-06
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Addis Ababa University
Abstract
The paper has made a study on the Practices and Challenges of Supply Chain Management of Bitumen in the case of Oil companies in Ethiopia, with regard to Strategic Supplier relationship, Customer relationship, Information Sharing, Information Quality and Internal lean practices. Also the Logistics, Economic, Legislative, Technological and other challenges were discussed. The main objective of the study was to describe the current supply practices and asses the challenges in the supply chain. The study raised three research questions that are answered as a result of the study. For the study descriptive type of research was used, and quantitative and qualitative data was collected related with the extent of companies’ supply chain practices and challenges of supply chain management using structured questionnaires. The target population covers all four oil companies importing and supplying bitumen in Ethiopia. Finally, the collected data was analyzed using descriptive statistics, and secondary documents analysis is done for confirming the findings. The result indicates most of the SCM practices are practices at a lesser extent by all oil companies except for Oilibya. Even though these companies practiced the SCM activities in their day to day operations, most of the companies expect for Oilibya have no bitumen logistics and supply department that manages the distribution of the product. Price volatility, High shortage of foreign currency and High transport cost are found to be the critical challenges of bitumen Supply Chain Management. The study then recommends on establishing relationships with main suppliers, Optimizing company-owned warehouses and improve supply chain function along with product packaging and proper quality inspection
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Keywords
SCM Practices, SCM Challenges, Oil companies