Assessment Of Supply Chain Integration In Dairy Processing Center In And Around Addis Ababa
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Date
2018-04-08
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Addis Ababa University
Abstract
Supply chain integration has become a prominent issue during the last decade. Efficient supply chain integration enables upstream and downstream supply chain firms to compete better. The thesis research was conducted to assessing supply chain integration in nine dairy processing centers in and around Addis Ababa. The study focused on five supply chain internal integration items, eight supply chain integration items with suppliers and customers. The general objective of this study was to assess supply chain integration in dairy processing center in and around Addis Ababa. Nine processing centers were selected purposively based on their processing capacity and accessibility. The research strategy of this study was a multiple case study and the dairy processing companies were the unit of analysis. Moreover, the study included organization that work closely with these companies to ensure the reliability of the research output. The research design applied both qualitative and quantitative methods for data collection. The quantitative data was analyzed using SPSS for descriptive statistics and the qualitative data was used to further explain the findings of the quantitative data. The finding of the study indicated that most of representative processing centers were established before 10 years and are privately owned. Pasteurized milk, yogurt, and soft cheese are the most common dairy products which were produced by most of the processing companies. Almost all of the mean level of agreements for variables in internal integration score is above 4.0 which are considered as high level of integration.The internal supply chain integration is more reliable and flexible than external (supplier and customer) supply chain integration. The supply chain internal integration of the case dairy processing was perceived high. The study also found the gap on sharing on production plan, long term policies and strategies with their suppliers and customers. Poor quality raw milk, raw milk supply and dairy product demand fluctuations during dry seasons and fasting period respectively, considered as a challenge for dairy processing centers. Dairy processing centers focused on internal integration and intensification. Collaboration and sharing information on production plan and strategies with suppliers and customers was considered as average. Even though supply chain integration variables score is high in dairy processing centers, sharing information on production plan, collaboration development program, sharing medium-term and long-term policies and strategies with suppliers and customers needs attention to bring sustainable improvement in the sector.
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Keywords
Dairy supply chain, Customer Integration, Supply integration