4_5890868592190162345

AMBO UNIVERSITY WELISO CUMPAS COLLEGE OF BUSINESS AND ECONOMICS DEPARTEMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT

RESEARCH PROPOSAL SUBMTTED TO THE DEPARTMENT OF LOGISTIC AND SUPPLY CHAIN MANAGEMENT . TITLE:-ASSESMENT OF SUPPLY CHAIN MANAGEMENT IN CASE OF

WELISO

SOAP FACTORY BY: group 7 ID 020/09

ADVISOR:kumela t

May2018

WOLIS,ETHIOPIA

HAWASSA UNIVERSITY COLLEGE OF BUSINESS AND ECONOMICS DEPARTEMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT

RESEARCH PROPOSAL SUBMTTED TO THE DEPARTMENT OF LOGISTIC AND SUPPLY

CHAIN

MANAGEMENT

IN

PARTIAL

FULFILLMENT

FOR

THE

REQUIREMENT OF BACHELOR OF ART (BA) DEGREE IN LOGISTIC AND SUPPLY CHAIN MANAGEMENT TITLE:-ASSESMENT OF SUPPLY CHAIN MANAGEMENT IN CASE OF HAWASSA TEXTILE FACTORY RESEARCHER NAME: TADELE KAWO

SIGNATURE ---------------------

ADDRESS [email protected]

ADVISOR NAME NAME NEGASH SIMION

SIGNATURE --------------

May2016

HAWASSA,ETHIOPIA TABLE OF CONTENT

page

CHAPTER ONE 1.

Background of the study ----------------------------------------------------------------------------- 1

1. 2. Background of the organization ------------------------------------------------------------------ 2 1.3. Statement of the problem ------------------------------------------------------------------------- 2 1.4. Objective of the study ------------------------------------------------------------------------------- 3 1.5. Scope (delimitation) --------------------------------------------------------------------------------- 4 1.6 Significance of the study ---------------------------------------------------------------------------- 4 1.7. limitation of the study---------------------------------------------------------------------------- 4 1.7. Operational definition ------------------------------------------------------------------------------- 4 CHAPTER TWO 2. Review of the literature -------------------------------------------------------------------------------- 5 2.1. Definition of supply chain concept ---------------------------------------------------------------- 5 2.2. Objective of supply chain management ---------------------------------------------------------- 6 2.3. Flows in supply chain management --------------------------------------------------------------- 6 2.4. Participants in supply chain management ------------------------------------------------------- 6 2.6. Supply chain decision phases ----------------------------------------------------------------------- 6 CHAPTER THREE 3. Research methodology --------------------------------------------------------------------------------- 8 3.1. Research design ---------------------------------------------------------------------------------------- 8 3.2. Source data ---------------------------------------------------------------------------------------------- 8 3.3. Sampling technique ----------------------------------------------------------------------------------- 9 3.4 Target population on the study--------------------------------------------------------------------9 3.5. Tools of data collection ------------------------------------------------------------------------------- 9 3.5.1. Data analysis technique --------------------------------------------------------------------------- 9

Abstract This Research proposal will conducted to investigate “The supply chain assessment in case of Hawassa textile factory. Supply chain operation plays a crucial role to sustain company growth by reducing different operational cost and also essential for countries economic growth. The main objectives of this study will to investigate the challenges of supply chain operations for Hawassa textile factory and describing possible solutions that can alleviate the existing challenges in the company operations. This study help‘s the textile company to see supply chain operation and their challenges on company’s performance that leads to company’s growth and profitability. The study will primarily supported by using primary data source and secondary data source. the Primarily data source will collected from direct observation, interviews and questionnaires. Finally the study will be supported by non-probability, purposive sampling techniques.

CHAPTER ONE 1. Back ground of the study In present day Supply Chain is the recognized discipline to shorten cycle time, transforming purchasing from tactical operation to strategic source, reduce inventories, decrease logistics costs, and stream line communication process across a total network from initial suppliers to final consumption and post-sale services. It is a mechanism through diverse organizations finds the way to form alliance to a new form of internetoriented consumer demand (Charles C.Poirier and baler, 2002). Supply chain is now a core business improvement effect form most companies as senior management directive in that area becoming common place. Supply chain optimization has emerged as a central objective for an organized effort enhances quality moved logically to logistics and distribution, and then to total supply chain performance (Charles C.perior and Michael baver, 2006).A company’s supply chain structure depends on the maturity of their markets, products, and customer relationship. A start-up group may to have to begin with loss virtual chain where, there is no formal long term supplier organization (someerKumar and William A.knobby, (2005). In order to achieve an organization’s goals a good supply chain decision is critical. Supply chain requires many decisions related with the flow of information, product and funds. There are phases (levels) of supply chain decisions: 1st strategic level which involves a long term time horizon and at this level the firms establish objectives that are consistent with a higher order mission statement and define strategies to achieve each of those objectives (mantzer, 1993).2ndTactical level in this level the decision that need to be updated regularly (i.e. monthly, quarterly and yearly. 3rd level is operational level with day to day short term supply chain decisions.

1.2. Background of the organization Hawassa Textile factory is one of the oldest companies, which was established in 1989 under State ownership but as of 2011, the ownership was transferred to Dukem Textile Plc at a cost of 37 million Br. The company produces bed sheets and foam mattress covers, school uniforms, workers uniforms and thread. Of all its products, only thread has made it to the international market, said Eyasu Atnafu, general manager of Hawassa Textile factory.In fiscal 2010-11, the Ethiopian government had initiated the first ‘Growth and Transformation Plan’ (GTP) for the textile industry which concludes on July 7, 2015. During the course of the first GTP, the government had planned to boost textile exports to $1 billion; however, exports from the sector till the third quarter of current fiscal could only reach $427 million. As per statistics, there are 130 textile factories, both medium and large scales in the country, of which 37 are owned by foreign investors.

1.3. Statement of problem There is a close connection between the design and management of supply chain flows (product, information, and funds) and the success of the supply chain (chopra, and peter, 2007). The study shows that the success and failure of the company is depend on supply chain decisions (onlinesc.com). The companies like Wal-Mart who is the known world retail company, Dell computer company who is known by its computer production and

others that built their success on superior design, planning and operation of their supply chain (CHopra,and Peter ,2007).Also there are many companies who face failure because of weakness in their supply chain design and planning. In our country Ethiopia, there are many companies which faces failures at the very beginning because of they doesn’t give attention to the decisions related with supply chain. There are different problems related with supply chain decisions. Among these, the first one is the problem which is related with strategy or design, because of low level of skilled man power to design a good strategy. The strategic decision is critical in order to stay in business. There is also the problems related with planning which leads the companies to failure and this kind of problem occurs due to the problem of collaboration in the company and across the company. The third problem is related with operational decisions this also leads the company to either success or failure because of the strategic and tactical decisions will become to implemented through operations. At this level there may carelessness occur and it leads the company to big problem. All the above problems were observed from Hawassa Textile factory and this study will contribute to fill the gap. In this study the following basic questions will be answered: 1. Is there a well-organized strategy in Hawassa Textile factory? 2. Are there agood planning trends in Hawassa Textile factory? 3. Is the employees are motivated to accomplish a day to day activities?

1.4. Objective of the study 1.4.1. General objectives This study aimed to assess the supply chain decision practices in Hawassa textile factory 1.4.2. Specific objectives  To see a well-organized strategies in the company  To enhance good planning trend in the company  To see motivated employee

1.5. Scope (delimitation) the study Assessing a supply chain decision practices in all Textile factories company is important, but because of time and cost constraints, plus it is difficult to assess by student compact, the study is delimited to Hawassa Textile factory to investigate the three (3) supply chain decision phases or levels.

1.6. Significance of the study This study will contribute the following importances to the organization as well as the readers.  It would add new information to existing knowledge specially, about Supply chain decision areas.  It would contribute to modify or change existing strategies policies, rules and regulations of concerned bodies.  It would serve as a mirror that shows the images of the company to itself.

1.7. Limitation of the study Shortage of time and finance are expected to be the major limitation of the proposed study. Lack of explaining crucial activity by general manager and staff as well as geographical location are the major limitation of the study

1.8. Operational Definitions Network;-a connected and interdependent organization mutually and

cooperatively

working together to control, manage and improve the flow of materials and information from supplier to end user.

Upstream; -means against the current and related to the relationships between the expertise and its suppliers and suppliers’ supplier. Linkages; - coordination of SC processers, and relationship Value; - is the amount buyers are willing to pay for what firm provides (porter). Customer; - the recipient of goods and services that result from the process and activities of supply chain.

CHAPTER TWO 2. Review of literature 2.1. Definition of supply chain concept Now days, supply chain is the recognized discipline to shorten cycle time, transforming purchasing from a tactical operation to strategic sourcing, reduce inventory inventories, decrease logistics costs and stream line communication process across a total network from initial suppliers to final consumption and post-sale services. It is mechanisms through diverse organizations find the way to form alliance to a new form of internetoriented consumer demand (Charlesc. poirer and Baver, 2002). There are various definitions offered by different scholars that attempt to describe the supply chain concept. “Supply chain is that network of organization that are involved through upstream and downstream linkages in different process and activities that produce value in the form of products and services in the hand of the ultimate customer or consumer” (KennethK.

And bridn F., 2006).According to Michal hugos

(2006),Supply Chain is a network of facilities and distribution options that performs a procurement of materials in to intermediate and finished goods and distribution of these finished goods to customers. .Broadly Supply Chain is a network of organization that involved,

through upstream linkages in the different process and activities that produce value in the form of goods and services in the hands of ultimate customer or consumer.

According to William J., 2005, Supply Chain is a sequence of organization- their facilities, functions and activities- that are involved in producing and delivering a product or service. Broadly, Supply Chain is defined by many scholars as the network of facilities and distribution options that performs a procurement of materials in to intermediate and finished goods to customers.Keneth and brain; defines Supply Chain as the network of organizations that are involved, through upstream and downstream linkages, in the different process and activities that produce value in the form of products and services in the hands of the ultimate customer or consumer (Kennath and Brian ,2003,).

2.2. Objectives of Supply chain management 

To keep inventory management.



To maintain and improve quality.



Purchasing required items and services at lowest cost of ownership.

2.3. Flows in supply chain management Within Supply Chain there are a flo! ucts and funds through the network involving a numbers of enterprises that have an involving in the movement of materials from the source to the final consumer.

2.4. Participants in Supply chain management Supply Chain is composed of a company and suppliers, and it’s the result of complex interactions within and between companies in relationship over time (ford et al).Supply Chain generally contains the actor such as, producers, distributors, retailers and customers.

2.5. Supply chain decision phases

Each supply chain has its own unique set of market demands and operating challenges and yet the issues remain essentially the same in every case. Such is the frequency and impact of decisions made within the supply chain and their direct influence of firm performance, that the scholars believe that insufficient attention has been giving to fully understand the complexities of the decision making process. Supply chain management relies on real time information flows at a number of different levels to ensure optimal decision process efficiency and customer satisfaction (Dr .mike, marki, and Elena .D12012).If the sales staff implements promotional activities without informing the warehouse and production departments of the forthcoming increases in demand. Hence, communicating at different levels need to be made at what level and by whom. Understanding this dilemma and consequences (barriers to overcome) of not communicating in coordination manner is the focus of this study. Understanding the Supply Chain decision context is important in the current dynamic business environment as it facilitates joint management of Supply Chain which leads to competitive advantage (mentezer, 1993). There are three levels (areas) of Supply Chain decision making:

 The first phase of Supply chain decision is strategic level At this level the firms establish objectives that are consistent with a higher order mission statement and define strategies to achieve each of those objectives (mentzer, 1993). These objectives should define cost drivers of differentiation, and the resultant strategic positioning (porter, 2002).

 The second phase of Supply Chain decision is tactical or planning level At this level the decisions are that need to be updated regularly i.e. monthly, quarterly, and yearly) such as purchasing and production decisions, inventory policies and transportation strategies and customer strategies. The tactical level covers the planning of supplies manufacturing schedules and the forecasting of demand in order to ensure seamless operation of the Supply Chain (fox, 2002).

 The third phase of supply chain decision is operational level The operational decisions level is deal with the day-today short term of Supply Chain decisions. Some of these decisions are scheduling, lead time quotations, routing and truck loading plans and schedules to meet actual demand are executed at the operational level (fox, 2002).

CHAPTER THREE 3. Research design and methodology 3.1. Research design The study will use the descriptive type of study. Because the descriptive study uses to describe the state of affairs as it exists at present and the aim of the researcher’s is to describe state of facts in supply chain decision making practices in Hawassa textile factory as it exist.

3.2. Sources of data To conduct this research proposal paper, the researcher will use both primary and secondary source of data.

3.2.1. Primary sources

Primary source of data is first-hand information collected by researcher. This includes interview, observation and questionnaires. Primary data also helps researcher to generate clear and more detailed understanding of the problem at hand.

3.2.2 Secondary data sources It is already collected by someone else and passed through statistical process. This provides a good back ground of information about the subjective under the study. This kind of data sources includes book, bin cards of the organization, journal, and etc.

3.3. Sampling technique 3.3.1. Population The population of the study is Hawassa textile factory logistics and supply chain management staff. Because they can understand better the objective of the study. The total population of the study is 100 (N=100). 3.3.2 Sample and sample size The study will be apply non –probability sampling. Purposive/judgmental sampling technique will be used to determine sample size. Based on this 15%of the total population. By the formula of (Yamane1967). The confidence interval (e) = 15 n=N/1+N (e) 2

=100/1+100(0.15)2 =30

3.4 Target population on the study The researcher’s target population in all logistics and supply chain management related departments is 100. These logistics and supply chain management related departments are:-purchasing, customer service, warehousing and materials management and transportation. From these the researcher will use 15% of target population approximately 15 employees as the sample size and will be distribute questionnaire to each of them

3.5. Tools of data collection In order to conduct an effective research proposal, accurate and reliable data is crucial. The necessary information will be collected though different methods of data collection. In this study, both primary and secondary data will be used the collection of primary data will be conducted through unstructured interview and questionnaires the unstructured in interview will be

used because

it enables the researcher to ask questions further

beyond what he intended. Making interview with all of the sample population is difficult because it’s Cost and consumes time thus; in order to overcome these difficulties the researcher will be used questionnaire to collect primary data. Observation is less important because it cannot provide the past information thus researcher will not use observation to collect primary data. The secondary data will be collected from different source of documents of the organization which are related with the Supply Chain decisions. 3.5.1. Data analysis technique The collected data as per the method stated above will be coded, tabulated and presented in terms of percentage. The analysis goes through organization’s analysis and interpreting and conclusion of the finding will be draws to analyze the research work as whole.

Work plan

Scheduling of project time and budget is important in any proposal to complete the study effectively and efficiently as much as possible. I. Time schedule Because of the lifespan of research proposal is restricted, preparing time schedule is important to complete the study within given period of time. Table 1.1 chart of the work plan of the research proposal is presented as follow:

Months No

Activity

1

Title selection and submission of the selected title

2

Proposal preparation, literature, survey and submission of proposal and literature

3

Develop questionnaires’ and duplication of data collection tools

4

Conducting pre test

February March

April

May

5

Data collection through questionnaires

6

Data recording ,coding and entry, clearing

7

Data analysis and write up

8

Submission of first draft of the final research

9

Presentation of finding and submission of final paper

II, Cost (budget) schedule There is a different expense which spent to conduct research properly. The purchase of stationary, printing, photocopy, and other expenses related with the study is presented as follow: Table 1.2. Cost schedule for the research No

Items

Amount of money needed Birr

1.

2.

Total cost cents

Secretarial work -printing

300

-copy

6

-duplication

7

Binding

25

Transport east

135

Foods

200

refreshment Telephone

280

Sub total

947

1.14

948.14

References Baver, C. C. (2006). Supply chain management and e-commerce. India: Inc. Charles C. poirier and Michael Baver. (2006). Supply chain management and e-commerce. India: press. Chopra, s. (2007). Supply chain management (3rd ed.). New Jersey: Pearson education, Inc. David N. Burt and Donald W. Dobler. (2003). world class supply chain management. USA: Chicago. Handfeild, Nichalas Jr. (2006). Supply chain redesign. USA: Chicago. Kenneth Lysonsad Brain Farrington. (2006). Purchasing and supply chain management (7th ed.). USA. Michael, H. (2006). Essentials of supply chain management (13th ed.). Singapore. Peter, S. c. (2004). Introduction to supply chain (7th ed.). Stevenson, W. J. (2005). www.onlineSupply Chain.com