The Influence of Digital Technology in Improving Supply Chain Efficiency: In the Case of Ethiopian Airlines

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Date

2025-09

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Publisher

Addis Ababa University

Abstract

The object of this study is to examine the influence of digital technology in improving supply chain efficiency in Ethiopian Airlines procurement and supply chain division. Four dimensions of digital components such as integration, visibility, automation, and communication were examined with respect to major supply chain performance indicators like cost reduction, operational efficiency, cycle time reduction and customer satisfaction. An explanatory research design with mixed research approach is used, utilizing survey questioner to collect the quantitative data and semi structured interviews for the qualitative data, to have a comprehensive analysis of the subject under study. Out of the distributed 199 survey questioners, 188 were responded, which is 94.47% response rate and acceptable to conduct the study. The descriptive statistics indicate that there is a strong agreement regarding the effectiveness of digital tools in improving supply chain efficiency. Furthermore, the inferential statistics, both the correlation and regression analysis prove there is a statistically significant and positive relationship between all the four digital dimensions and supply chain efficiency, with automation and visibility identified as the most influential variables. The study concluded that implementing digital technology strategically can significantly improve supply chain outcomes and improve overall supply chain efficiency.

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Keywords

Supply chain efficiency, digital technology, integration, visibility, automation, and communication.

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