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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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