Supply Chain Integration of Oil Seed Product and Manufacturing Industries in West Gojjam
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Date
2018-10
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Addis Ababa University
Abstract
Supply Chain Integration can be defined as the way of make a network between suppliers and accompany to produce and distribute a specific product to the final buyer. Supply chain is the process of develop relation between supplier and customer. Nowadays, the field of supply chain is an important activity due to the expansion of oilseed farming investments. The previous stud-ies on supply chain integration of oilseed products focused on export and import system to increase income, industry management to customer and retailer to industry. Study supply chain integration has a great advantage to resource scarcity and to increase the productivity of in-vestor is to grade up manufacturing industries. West Gojjam, oilseed product investment is the research area in Supply chain integration of oilseed product challenged by transport, collect, quality assurance level, distribute oilseed product to smallholders and manufacturing indus-tries.
This research focuses on propose supply chain integration model of oilseed for West Gojjam suppliers and manufacturing industries. Studying the supply chain integration of oilseed in this region helps to increase the potential of investors in rural area and reduce the scarcity of oilseed product for manufacturing industries to the end user.
In order to perform a good flow of raw material from investor to manufacturing industry a proper collection center, transportation, information, awareness creation are the dominant factor to minimize the scarcity of oilseeds in industry. In order to achieve the objective of the study different data gathering techniques include; litterateur review of different articles related to the concept of supply chain integration system, Micmac and SPSS scientific tools are ap-plied. From the finding of the study, barriers and drivers influence the supply chain integration of oilseed smallholders and manufacturing industries in W/Gojjam.
Agricultural product collection center, distribution center, quality assurance level and trans-portation system are the challenge. Awareness in supply chain integration hinder farmers, in-vestors and smallholder manufacturers. The factor reduces the productivity of investors, man-ufacturing industries and incomes. The barriers and drivers of supply chain integration ana-lyzed by using SPSS factor analysis method. The result from MICMAC tool shows that, the factors such as collection center, awareness, transportation and quality assessment level are direct impact on the supply chain integration of oilseed product in W/Gojjam. The warehouse analyses by using MICMAC tool the result indicates that when the distribution center far from investment area the scarcity of oilseed increase and the quality level decrease. To alleviate the scarcity of oilseed product in W/Gojjam the researcher recommends implement the proposed supply chain integration model.
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Keywords
manufacturing industries, Supply chain integration, oil seed products