CHALLENGE AND PROSPECT OF SUPPLY CHAIN MANAGEMENT PRACTICES THE CASE OF BGI ETHIOPIA PLC

Abstract

This research aimed to investigate the prospects and challenges faced by BGI Ethiopia PLC on their supply chain activities in Ethiopia. More particularly the study intended to identify the supply chain activities effectively practiced by BGI Ethiopia, to examine the challenges they face in their supply activities and to propose some prospects. The study contributes significantly to academic as well as industry and policy makers. The study collected relevant data from employees and department managers from Addis Ababa, Meta and Zebider. A sample of 176 respondents was randomly selected to take part to this research. The resultant data were subsequently analyzed using descriptive statistics, as well as the Likert scale analysis. Based on the result, the practice of supply chain management is average. The results of this research found that, the few supply chain management activities practiced by BGI Ethiopia were level of information sharing, customer’s relationship, strategic supplier partnership, raw material flow management,and corporate culture were found to be averagely practiced and managed. The results also indicated that, the challenges faced by BGI Ethiopia in their supply chain activitieswere warehouse (limited space, layout, and unfavorable condition), technological and information sharing (information simplicity, accuracy, adequacy, communication, etc.,), infrastructural (ICT, transportation, management), high inventory cost, operational capacity (delay, under capacity), legal (absence of lease land, high tax), and internal and external (political instability, safety and security, unfavorable working area, workforce diversity, waste management, income generating mechanisms, geographical distribution). The research ended investigating some prospects that could have been adopted to minimize these supply chain activities challenges and thus improve the working conditions and logistics of BGI Ethiopia. Strengthening supply chain management practices, developing strategy to use opportunities, and building strong network with suppliers and customers were recommended in this study