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Supply Chain Integration in the Manufacturing Firms in Developing Country: An Ethiopian Case Study

DOI: 10.1155/2014/251982

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Abstract:

With the advancement of information and communication technologies, supply chain integration has been considered a strategic tool for firms to improve their competitiveness. The supply chain integration within processes and between organizations has enhanced value creation. However, the fragmented nature of the business in developing country demonstrates a noticeable difficulty in terms of competitiveness and efficiency. Lack of a relevant literature on practical experience in supply chain integration in developing countries is one of the challenges. The purpose of this research is to identify the level of interorganizational and intraorganizational supply chain integration practices. It also analyzes the challenges faced in the manufacturing firms in developing countries. The methodology followed a thorough review of literature and semistructured interviews amongst the Ethiopian manufacturing industries. The preliminary findings of the study highlight that prevailing approach to supply chain integration is limited to ad hoc functional based boundaries within the firm. The SC integration enablers are also restricted to the traditional way of communications such as telephone, fax, and letters. Firms need to focus on those issues that require attention in pursuance of greater SC integration. 1. Introduction Recently, the manufacturing industry in developing countries (MIDC) has been facing unprecedented competitiveness pressure generated by the new business trends. To cope with this pressure, the manufacturing industries have tried to upgrade their operations by using different manufacturing techniques such as Total Quality Management, Business Process Reengineering and Lean Technology, and others. Despite these efforts, the MIDC has not yet made their share of markets. This drives industry to get additional efficiency from their production systems. Effective supply chain management and supply chain (SC) integration are becoming increasingly critical factors for business success. The integration of SC members can significantly support the MIDC to face the constantly changing competitiveness scenarios. Companies versus companies have been replaced with supply chain versus supply chain competitiveness strategy. However, the number of companies that have truly integrated their supply chains to take advantages of this opportunity is still small [1, 2]. The effects of globalization and fiercer competition have forced firms to focus their attention on entire supply chain integration (end-to-end) rather than on effectiveness and efficiency of separate business

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