ASSESSEMENT OFTHE FACTORS THAT AFFECT THE SUCCESSFUL

IMPLEMENTATION OF SUPPLY CHAIN MANAGEMENT IN CASE STUDY OF

NAZERATHE BROTHERS BISCUIT AND FLOUR FACTORY

RESEARCH PROPOSAL SUBMITED IN THE PARTIAL FULIFILLMENT OF BA

DEGREE IN LOGISTICS AND SUPPLY CHAIN MANAGEMENT

PREPARED BY

GEREMEW SHELEMO

ID NUMBER; R/4057/05

ADVISOR, EPHREM NEGASH

AP
RIL, 2015

ADAMA, ETHIOPIA
Contents
CHAPTER ONE.............................................................................................................................3

INTRODUCTION..........................................................................................................................3

1.1 BACKROUND OF ORGANIZATION..........................................................................4

1.2 STATEMENT OF THE PROBLEM.................................................................................4

1.3 OBJECTIVE OF THE STUDY............................................................................................5

1.3.1 GENERAL OBJECTIVE OF STUDY...........................................................................5

1.3.2 SPECIFIC OBJECTIVE..............................................................................................5

1.4 SIGNIFICANCE OF THE STUDY......................................................................................6

1.5 DELIMATATION OF STUDY.............................................................................................6

CHAPTER TWO............................................................................................................................6

2. REVIEW OF RELATED LITERATURE...................................................................................6

2.1 DEFINITION OF SUPPLY CHAIN.....................................................................................6

2.2 OVERVIEW OF SUPPLY CHAIN MANAGEMENT.........................................................7

2.3 PROBLEM ADDRESSED BY SUPPLY CHAINMANAGEMENT....................................8

2.3.1 DISTRIBUTION NETWORK CONFIGRUTION........................................................8

2.3.2 INFORMATION............................................................................................................8

2.3.3 DISTRUBITION STRATEGY......................................................................................8

2.3.4 SUPPLY CHAIN BUSSINESS INTGRATION.............................................................8

2.3.5 IT IN SUPPLY CHAIN..................................................................................................9

2.3.6 FORECASTING IN SUPPLY CHAIN..........................................................................9

CHAPTER THREE........................................................................................................................9

3. RESEARCH DESGN.................................................................................................................9

3.1 RESEARCH METHODOLOGY..........................................................................................9

3.2 SOURCE OF DATA.............................................................................................................9

3.3 SAMPLING PROCEDURE...............................................................................................10

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 3.3.1 TARGET POPULATION.............................................................................................10

3.3.2 SAMPLING SIZE........................................................................................................10

3.3.3 METHOD OF SAMPLING.........................................................................................10

3.4 DATA COLLECTION TOOLS...........................................................................................10

3.5 METHODS OF DATA ANALAYSIS.................................................................................10

4. TIME AND BUDGET SCHEDULE.........................................................................................10

4.1 TIME SCHEDULE.............................................................................................................10

4.2 BUDGET SCHEDULE......................................................................................................11

REFERANCES.........................................................................................................................12

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CHAPTER ONE

INTRODUCTION
Supply chain is the flow and transformation of products from raw material acquisition to
final product delivery. Supply chain is network of organization that is involved in through
upstream and downstream linkages in different process and activity that produce the
value in the form of goods and services (David Blanchard, 2006).

Supply chain management is management of system that consists of all parts which are
directly or indirectly involved in fulfilling customer satisfaction and request.

Supply chain management is consistent flow of information, product, and funds through
different participant firm in the chain (martin Christopher, 2005 ).Supply chain can be
seen as a process of strategically managing the procumbent, movement and storage of
materials, parties and finished inventory as well as related information flow through the
organization and its marketing channel in such way that current and feature profitability
are maximized through the cost effective fulfillment of orders (G.raghuram, 2007).

Therefore, currently there are a number of business organizations in Ethiopia that are
linked with different firms that must be decide on the good way to storing, inventorying,
handling, warehousing as well as distributing their product across the supply chain to
provide a satisfaction for their customers and provide right product at right time, at right
price, at right quality and quantity with respect to actually place by reducing total supply
chain and logistics coasts up to the level it has to been reduced.

Nazareth Brothers floury and biscuit factory is organization which is participating in

supply chain activities among a number of organizations which participate in supply
chain activities. The study specially will focus on assessment of factors affecting
successful implementation of supply chain management in Nazareth Brothers and Biscuit
factory.

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1.1 BACKROUND OF ORGANIZATION
Brother’s biscuit and flour factory is private owned business organization which had been
emerged on November, 1999 by two brothers known as Ahmed Basher Ibrahim and
Mohammed basher Ibrahim. The company’s beginning capital was 7,687,580 Ethiopian
birr. The company’s current employers are around 1528 from which 1054 are temporary
employers and 474 are permanent. The head office of the company is located in Oromo
Regional state at Adama Town and currently the company’s capital is more than
60,000,000 Ethiopian birr.

1.2 STATEMENT OF THE PROBLEM

Supply chain management is discipline which encompasses the end to end business
activities independent of manufacture or service sectors. Supply chain management plays
a greater role in product and makes organization to provide necessary satisfaction for
their customers by reducing all necessary cost related to their products and makes
organization to be competitive against other organization effectively. Strong supply chain
management implementation leads to continuous and suitable success.

In other words poor implementation of supply chain management such as inadequate

information sharing, lack of potential suppliers, lack of experienced supply chain
managers leads the organization to great loss and damage even it leads to down size of
organization.

Not only that but also long lead time, lack of good inventory, no strong relation with
management customers and absence of good risk management related to related transit
goods.

Therefore, in the case company this study will attempt to assess the existing problems
and suggest possible solutions. Finally this study will raise the following basic
questions.

1 .What is the challenges that organization are facing in implementing supply chain
management effectively?

2 .what kinds of relation exist between organization and their customers?

3. What are some possible suggestions or remedial actions that organization are using to
overcome supply chain implementation challenges?

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1.3 OBJECTIVE OF THE STUDY

1.3.1 GENERAL OBJECTIVE OF STUDY

The General objective of this study will to assess the factors that affect successful
implementation of supply chain management in Nazareth Brother Flour and Biscuit
factory and evaluate the current activities of downstream supply chain with regards to the
customer satisfaction.

1.3.2 SPECIFIC OBJECTIVE

The specific objective of this study will be the following:

 To understand the challenges that the case organization is facing on successful

implementation of supply chain management effectively

 -To understand the relation that exists between organization and their customers.

 -To recommend some possible suggestions to overcome the challenges in supply s

chain management implementation effectively.

1.4 SIGNIFICANCE OF THE STUDY

From the start point every research has its significance. Therefore, In case of this study
the Researcher strongly believe that the study will have the following significance

 -It can serve as an input for other researcher who wants to conduct different
investigation in supply chain management.

 -It will provide the information for planning and effective improvement of supply
chain management in Nazareth biscuit and brothers floor factory.

 It will improve the understanding the readers particularly the participating in the
supply chain about supply chain management

1.5 DELIMATATION OF STUDY

The finding of study will be more interesting if it is conducted widely by including other
similar firms. However, due to time, labor, money, constraints and unable to include all
firms of the different organization due to it’s too wide and beyond scope of the
researcher. Therefore, in order to make the study manageable and meaningful the
researcher will conduct this study on downstream supply chain to identify the factors that
affect the successful implementation of supply chain management in the case camp any.

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CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

2.1 DEFINITION OF SUPPLY CHAIN

Supply chain is the network of organization that are involved through

upstream and downstream linkage in different activities that produces
value in the form of goods and services to ultimate the customer or
consumer(Kenneth lysine and Braden farringon,2006).
Supply chain is includes all activities associated with the flow and transformation of
products from raw material acquisition to finally product delivery (Ernest, Nicholas,
1999).

Supply chain consists of all parties that are involved directly in fulfilling customer needs
and wants up on their request.

Supply chain not only includes the manufacturer and supplier but also transporters,
warehouses, retailers and customers in the organization. It also includes all functions
involved in receiving and fulfilling customers request but these functions is not limited to
new product development, marketing, operation, distribution, finance, and customers
services (Sunil copra, 20007).

Supply chain management is defined as the management of all activities associated with
flow and transformation of products from raw material acquisitions in to intermediate and
finished product and distributing the finished goods to customers (Michael Hugo’s,
20006)

2.2 OVERVIEW OF SUPPLY CHAIN MANAGEMENT

Supply chain management is a critical element in today’s highly complex and competitive
business environment. It is direct influence on key issues like cost to market, time to
market, and responsiveness to change customer demand and market dynamics and overall
business environments. Effective and efficient implantation of supply chain management
can helps to reduce or minimize the cost of the company and make the organization to
compete against international and domestic markets (Sunil Chopra).

Supply chain management is the outgrowth of unified evolution of manufacturing

management and logistics management functions. The concept of logistics management
itself evolved from unified evolution of material management as well as sales and
distribution management (Peter Media, 2007).

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Supply chain management is an ongoing process that involves precision in demand
forecasting, inventory optimization, and reduction in warehouse coast and efficient as
well as coast effective handling of both incoming and outgoing stocks (Sunil Chopra,
2007).

Effective implementation of supply chain managements brings down operating cost by

reduction of cost linkages like inventory and logistics costs by insuring a better planned
environment where in production and supply side are better synchronized and optimized.
Thus, supply chain management is really about enhancing the efficiency of supply chain
right from planning stage to execution stage while coordinating with diver’s partners
located at different locations. Effective and efficient implementation of supply chain
management needs an integrated approach, need to identify and address various factors of
business so that it can enhance supply chain accordingly. The essential first step here is
that assessing the current supply chain capability and then linking the strategy to deliver
bottom line results through supply chain management, competitiveness, and order
fulfillment inventory management etc (Peter Media, 2007).

Supply chain management is an instrument that provides effective market coverage,

availability of products at locations which holds the key to revenue recognition
depending up on effectiveness of supply chain strategy rolled out. Every business must
have standard for inventory turn around that is optimum for the business. Inventory turn
around refers to number of times the inventory is sold replaced in period of twelve
months, the health of inventory is the health of the any business organization (Shoshanna
Cohen,2005).

2.3 PROBLEM ADDRESSED BY SUPPLY CHAINMANAGEMENT

Supply chain management must address the following problems.

2.3.1 DISTRIBUTION NETWORK CONFIGRUTION

A number location, network mission of suppliers, product facilities, and distribution
centers, warehouse, cross docks and customers.

2.3.2 INFORMATION
It’s the significant part of supply chain management that enables and drives the concept
of supply chain and reduce demand uncertainty Integration of process through supply
chain to share valuable information.

Including about demand signals, forecasts, inventory transportation and potential

celebration and etc

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 2.3.3 DISTRUBITION STRATEGY
It is about Number, location, network mission of suppliers, product, and distribution
centers, warehouse, cross docks and customers. Operating control (centralized,
decentralized and shared facilities) delivery scheme example direct shipment, pool point
shipping, cross docking, closed loop shipping and etc.

2.3.4 SUPPLY CHAIN BUSSINESS INTGRATION

Successful implementation of supply chain management requires change managing
individual functions to integrating activities in to key supply chain process. Information
shared between supply chains partners can only be fully leveraged through process
integrated (Lambert, 2004).

2.3.5 IT IN SUPPLY CHAIN

Information is key driver of supply chain because it serves as the blue print that allows
other driver of supply chain to work together with goal of creating an integrated,
coordinated supply chain .information is crucial to supply chain performance because it
provides the foundation on which supply chain process execute transactions and manager
make decision.

The decision of supply chain manager will maximize the profit of organization if their
decision is equipped with accurate, accessible in timely manner and right kind
information.

2.3.6 FORECASTING IN SUPPLY CHAIN

Demand forecasting in supply chain form by using push and pull process .All push
process in the supply chain are performed in anticipatation of customer demand , where
ass all process are performed in response to customer demand.

For push process a manager must plan the level of activity in production, plan the level of
available capacity and inventory but not the actual amount to be executed.

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CHAPTER THREE

3. RESEARCH DESGN

3.1 RESEARCH METHODOLOGY

This study will use descriptive type of research method. . According the main purpose of
this study that describe the state nature and present practice of downward stream of
supply chain of the organization the researcher will use the descriptive research design.

= 3.2 SOURCE OF DATA

Tyo conduct this study the researcher will use both primary and secondary data.

The researcher will use primary source of data because the data obtained from primary
source are very crucial for reliability of researcher output. Primary source of data helps
researcher to generate a clear and detailed understanding of problem at hand.

The researcher also will use secondary data in conducting this study because any research
cannot be conducted without using secondary source of data. Secondary source of data
provide good information about the subject under study and it o obtained from website,
report of organization, books and etc.

3.3 SAMPLING PROCEDURE

3.3.1 TARGET POPULATION

T he target population of the study will be the managers of the organization, employers’
and the customers of the organization.

3.3.2 SAMPLING SIZE3.1 Types of Research

The type of research used by researcher was descriptive type. The reason for the research
selecting this technique is that because it help full in descriptive existing problem
associated to set the appropriate solution in order to improve the performance of
organization.

3.2 Source of Data

The researcher used both primary and secondary source of data to conduct the research.
So the researcher combined of the two source of data both primary & secondary source.
The primary data collected from employees of the organization while the secondary data
collected form annual report of the organization.

3.3Sampling size &Sample Design

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To determine the sample size the researcher would prefer a method developed by
(Canal1984)as sited in (MalharaMaresh. K2007)

Table 1Sampling size

Sample size
Low Medium High
Population size
15-90 5 13 20
90 – 150 8 20 32
151- 280 13 32 50
281 – 500 20 50 80
501 – 1200 32 80 125
1201 – 3200 50 125 200

According to table 1.1 when number of population is between 281-500 low is about 20
sample which number of organization were 445.The researcher used non-probability
sampling among this purposive sampling .Sample has been taken from the target
population that is from organization different department because the number of
population is too large ,so it is difficult to use census. Due to this the researcher uses non
probability sampling which is purposive sampling method. The season why the
researcher needed to choose this technique among other is that because the investigator
needs to collect reliable information from respondent who are experienced & enough
knowledge about the opportunities &challenges of material management.

3.4Tools of Data Collection

Theprimary data collected from employees using questionnaires.The researcher used

questioners due to its simple and clear to analysis with alternative close ended question to
avoided confusion.

3.5 Procedures of Data Collection

The primary data collected through questionnaire &secondarydata collected through

reading annual report organization & other published document mainly focused on
research title area. At the end the researcher would interpret the collected data depending
on the result.

1.6 Method of Data Collection

Data analysis means to the computation of certain data or searching for patterns of
relationship that exist among data groups. Generally both qualitative& quantitative data

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techniques were used, in data analysis. Qualitative data analysis was used to measure
qualitative like attitude opinion& motivation using tabulation. The researcher used
quantitative through present.

From the target population of the study the researcher will take 10% as a sample.

3.3.3 METHOD OF SAMPLING

In this study the researcher will use purposive method of sampling method from non
probability sampling. Researcher will use these methods because information needed
from employers can easily obtained by using this meth

3.4 DATA COLLECTION TOOLS

In order to conduct an effective research, accurate od and they are cost effective method
to use and reliable data are very important and crucial.

There are different methods of data collection out of them researcher will use both
questionnaire and interview. . Both close and open ended question and personal interview
will be use to gather all necessary data related to the study.

3.5 METHODS OF DATA ANALAYSIS

In analyzing data both qualitative and quantitative method will be used to produce valid
research report. Then the detail will be summarized in table form of percentage.
Therefore, the methods of data analyses will be used to interpret, summarize, conclude
and come up with recommendation.

4. TIME AND BUDGET SCHEDULE

4.1 TIME SCHEDULE

No Particular Responsible Date
Body

1 Submission research title The Researcher March,2014

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 2 Submission of the final research The Researcher march,2015
proposal

3 Preparing research questionnaire The Researcher April,2015

4 Administrating the questionnaire to The Researcher April,2015

the respondent

5 Collecting interview for manager, The Researcher April,2015

employees and customer

6 Data analysis and interpretation The Researcher April,2015

7 Submission of the first draft research The Researcher May,2015

8 Submission of the final research The Researcher June,2015

9 Advisor contact The Researcher march-June,2015

4.2 BUDGET SCHEDULE

The expected total budget cost is presented as follow

No Description/Budget title Unit of Item Unit Total

measurement cost cost(Birr)

1 Transportation cost Km 7 times 96 672

2 stationery materials such as:

Paper Package 1 125 125

Pen - - - -

Flash GB 1 156 156

3 For printing service Page 4o 1 40

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4 Miscellanies Expense - 150 - 150

5 Pen (Blue and Red) - 6 pens 4 24

6 Photocopying Page 45 45

7 Un expected expenses - - - 60

8 Total cost - - - 1272

REFERANCES
1. David N .Bart (2005).World class supply chain management, the key to supply chain
management, 2nd edition.

2. Graghuran (2000) logistics and supply chain management,13 edition.

3. Michael Hugo’s (20060) Essentials of supply chain management 2nd edition,

Singapore.

4. Sunil choral (2005), Marketing and Supply chain management cases and concepts, 3rd
edition

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