Performance Optimization of Supply Chain Management Systems: A Case of Alle Bejimla
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Date
2018-06
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Addis Ababa University
Abstract
Optimization in supply chain management is differentiated to maximize the profitable and
minimize overall operation costs through stakeholders and business partners. Optimization of
supply chain management is mainly contributed to ultimately goal of product supplied from
source to end users. It has also facilitated socioeconomic growth of the country based on
supplied value add goods from the manufacturing industries including agro-industries to
consumers. The sector of supply chain management is very wide in order to competitive
supply food and fast moving consumables goods in the market based on integrate and
collaborate with stakeholders. The study of performance optimization is the outcome of
internal and external supply chain integration based on cluster collaboration with channel of
business partners that synchronized each other’s in the supply of consumables goods. To
optimize supply chain performance, efforts have been required to integrate and cluster
collaborates with stakeholders and business partners in order to provide quality services to
customers. Among the efforts of the study on performance optimization of SCM systems, the
research used both primary and secondary source of data to identify gaps of supply chain in
Alle Bejimla. The study focused on the existing supply chain systems and further examined
by using observation, questionnaires distributed to the respondents and informal key
interviewed of top and middle managements. Besides that the research has conducted
extensive literature review on the integration and cluster collaboration to optimize supply
chain performance in the case company.
The findings show that performance optimization of SCM systems of Alle Bejimla is
significance essential to meet customer requirements and satisfaction. The study analyzed
overall supply chain activities through Alle Bejimla in order to serve customers by provide
food and fast moving consumables goods. The major gaps found in Alle Bejimla which didn’t
supplied enough food and fast moving consumables goods to consumers. These major gaps
occurred due to lack of integration and cluster collaboration with stakeholders and business
partnerships. Besides that transport and inventory management systems are other challenges
to Alle Bejimla. Based on further assessment and evaluation the actual inventory data under
considering transportation & other operation costs, the research has improved the overall
inventory operation costs by 24.2% minimized from the actual operational costs. And also the
research proposed conceptual model to optimize SCM performance in order to serve
customers at right place in the right time with low costs. Besides that Alle Bejimla should
adopt the new concept in order to optimize the competitiveness of business in the market and exceed customers’ requirements. It also carries out the new concept to achieve performance
optimization of supply chain management systems of the case of Alle Bejimla and maximize
its income profits based on customer satisfactory.
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Keywords
Supply chain, Optimization, performance, integration, cluster collaboration