Upstream Supply Chain Integration In Ethiopian Brewery Sector: The Case Of Bgi Ethiopia Plc.

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Date

2020-06

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Addis Ababa University

Abstract

The objective of this study was to assess the Upstream Supply Chain Integration in Ethiopian Brewery Sector by taking the case company, BGI Ethiopia Plc. To carry out this task an explanatory type of research design was adhered. The target populations were upstream BGI Ethiopia partners & Supply Chain staff, and their total number were 860( 851 suppliers and 9 BGI staff) out of which a sample size of 274 ( 265 suppliers and 9 BGI staff) units has been determined. Whereas, a clean response of 235 questionnaires were effectively used for analysis that shows response rate of 85.8% .The major findings of the study indicates that the practice of upstream supply chain integration in the case company is very weak. Very few variables of the upstream supply chain integration considerations were practiced. These include the accuracy of information sharing (mean value of 2.76), operating with supply contract/commitment (mean value of 2.5), and informal & personal relationship (mean value of 2.9). The Pearson correlation analysis result indicated that there were positive relationship between all of independent variables and the dependent variable. Furthermore, the linear regression model revealed that out of the four predictors the two predictors organizational relationship linkage (b coefficient 0.63) & management commitment (b coefficient 0.48) has been founds as a predictor variables that have got high level of intensity to influence the response variable, upstream supply chain integration. Finally, the researcher recommended that getting organizational legal ground through the inculcation of upstream supply chain integration in the sourcing policy and procedure is the foundation work which should be accompanied with continuous learning, and sourcing reform.

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Keywords

upstream supply Chain Integration, Information Integration, Coordination & Resource sharing, Organizational relationship linkage, Management Comment.

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