Supply Chain Performance and Challenges (A Casestudy in Anbessa Shoe Share Company: Ethiopia)

Abstract

Supply chain management is the streamlining of a business' supply-side activities to maximize customer value and to gain a competitive advantage in the marketplace. It represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible and cover everything from production, to product development, to the information systems needed to direct these undertakings. The aim of this research was to study the supply chain management performance and challenges of Anbessa shoe manufacturing company. As it has been revealed in the study major challenges mentioned by the respondents in the supply chain management system were low customer service quality, cost controlling problems, poor planning and risk management, supplier/partner relationship management, lack of skilled labor /expert and technology. Furthermore, shortage of raw materials, frequent machinery breakage, shortage of spare parts, lack of accessibility to market,   lack of working capital and other management and management- related  problems were the major   bottlenecks for not working at full capacity .The study also showed that the study firm are operating at low total performance and are faced with many performance problems, mainly with shortage of inputs, poor production planning and control, low productivity, high manufacturing cost and lack of marketing strategy.

Keywords: Supply chain, Supply chain management and Supply chain performance