The Role Of Supply Chain Integration On Freight Transport Performance: The Case Of Ethiopian Shipping And Logistics Enterprise In Kality Branch

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Date

2020-06

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Addis Ababa University

Abstract

Due to lack of long term relation with suppliers, poor infrastructure, instability of higher manager and employees turn over. Moreover, Enterprise Resource Planning (ERP) is not implemented yet and these make: the relationship become weak among the actors on the supply chain, unavailability of spare parts on time, vehicles with high cost but low round trip, In order to solve those problem, the researcher believe that trying to show the supply chain integration on performance of on Kaity freight transport sector was needed. Thus, the researchwas undertaken. The primary data was collected using likert scale questionnaires distributed to company employees and interviews for selected expertise. The dependent variable was supply chain performance. Independent variables were internal, external, customer, x supplier and information integration. The target populations were 89 employees. The researcher utilized sampling techniques to select the participants. The descriptive statistics was used to analyze the supply chain practice and explanatory analysis to determine relationship between supply chain dimension and supply chain performance and to test the hypothesis. Accordingly, the regression output indicated that internal integration, information integration and supplier integration have a significance and positive effect on company supply chain performance. And the remaining variables namely external and customer integration were insignificant. All the five independent variables are making 54.57% of the contribution for supply chain integration performance. Thus, the researcher recommended that it is better for the organization to give due emphasis about external and customer integration so as to improve the organization performance. In addition, the good practice that the organization performed such as internal integration, information integration and supplier integration should be continued. On the other hand, short term training should be given to those employees who are directly related to transport operation in order to gain a competitive advantage.

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Keywords

Supplies Chain, Supply Chain Integration, Supply Chain Performance.

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