Analysis of Supply Chain of Domestic Steel Reinforcement Bar For The Construction Projects in Addis Ababa

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Date

2018-06

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Publisher

Addis Ababa University

Abstract

Domestic production and supply of construction raw materials such as cement, steel reinforcement bars,sheet metals, aluminum, glasses, etc. have been far less than the domestic demand, therefore, by resulting in widening gaps and increasing prices.There is lack of integration of producers, wholesalers and retailers for fulfillment of consumers’ requirements withmaterials, cash and information flows.So, this research tries to show the flow of reinforcement bar across the supply chains with their bottleneck by identifying the major actors, levels of cost and lead times in the chain. The Primary data was collected through questionnaires and interviews, whilesecondary data wasfrom different sources through desk study. The collected data has been analyzed using Relative Importance Index (RII), Statistical Package for Social Science (SPSS) and GeographicalInformation System (GIS). Thefinding shows that, the major stakeholders and in the supply chain networks of domestic steel reinforcement bar for the construction projects of Addis Ababa city. Andalso the flow network of material, information and cash between each parties. The research also indicates that the major factors that affect the performance of domestic steel reinforcement barsupply chain network in the city. The astonishing finding of the research is the cost of steel reinforcement bars increased by 84%,as it moves across the supply chain network. At the same time95% of contractors complained with the high cost of domestic steel reinforcement bar. Theaverage delay for contractors is 26, for retailers is 33 and for wholesalersis 52 days respectively. In Addis Ababa city, the demand of domestically produced steel reinforcement bar has been increased in construction, throughout the years.There is a lack of integration between producers, wholesalers and retailers, in the supply chain network of domestic steel reinforcement bar.In order to develop successful and well-organized supply chain networkof steel reinforcement barfor construction industry, first, the problems mentioned in the research be solved.

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Keywords

Cost, performance, reinforcement bar, supply chain, stakeholders

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