Girma 2013 Wa

DOWN STREAM OF SUPPLY CHAIN INTEGRATION PRACTICE IN CASE OF ALLOT
FLOUR FACTORY.
DOWN STREAM OF SUPPLY CHAIN INTEGRATION PRACTICE IN CASE OF ALLOT

FLOUR FACTORY
A SENIOR ESSAY SUBMITTED TO THE DEPARTMENT OF LOGISTICS AND

TRANSPORT MANAGEMENTIN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR BACHELOR OF ARTS DEGREE IN LOGISTICS AND TRANSPORT MANAGEMENT
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF LOGISTICS AND TRANSPORT MANAGEMENT
DILLA UNIVERSITY
BY: GIRMA TSEGAYE
ADIVSOR: ENDRIS.A (MBA
January, 2021
DILLA, ETHIOPI
DILLA UNIVERSITY COLLEGE OF BUSINESS AND
ECONOMICS DEPARTMENT LOGISTICS AND
TRANSPORT MANAGEMENT
“DOWNSTREAM OF SUPPLY CHAIN INTEGRATION PRACTICE”IN CASE OF ALLOT

FLOUR FACTORY
BY
Girma Tsegaye
Approved by
Advisor Signature
Examiner Signature
DECLARATION
I, hereby declare that this research thesis work entitled downstream of supply chain
integration practice in case of allot flour factory is my original work and has not been presented
for a degree in any other university, and that all sources of materials used for the study have
been fully acknowledged.
Declared by:
Name____________________________
Sign_____________________________
Date_____________________________
Confirmed by Advisor:
Name____________________________
Sign_____________________________
Date_____________________________
i
Acknowledgement
First of all and more than anything, I would like to thanks my heart full thank and
gratitude to Almighty God. It is great pleasure for me to express my independences to
individuals and company helped me in the completion of this paper. I cannot find words to
thanks my senior essay advisor Endris A. /MBA/ for his constructive advice for
accomplishment and improvement of the paper. I also thank employees of and marketing
department manager of Allot Flour factory who provides me necessary information.
Finally my special thanks and heart full gratitude goes to my parents who financially
support me, people and my friends who gave supportive ideas.
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Abstract
This research was conducted on the assessment of supply chain integration practice in case of
Allot flour factory. The general objectives of the study would be to investigate the supply chain
integration practice in case of Allot flour factory. And the specific objectives of the will be
included. The study commonly based on the primary as well as secondary data .this primary
data was collected through questionnaire and observation. Furthermore, secondary data was
collected from related written materials such as books, tamp lets, journals magazines and
different website. Moreover, the researcher uses descriptive types of research. In order to
fulfill the study the investigator selects 19 employees from the whole population depending
on judgmental sampling technique, because the target employees are those who are educated
and familiar with the customer of the company. Not only this, in Judgment (purposive or
deliberate sampling techniques would be used to get information from respondents. the
techniques would be preferred, because in such approach the investigator has complete
freedom in choose.
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TABLE OF CONTENTS
Contents Page
DECLARATION...................................................................................................................................i
Acknowledgement ii
Abstract iii
1. INTRODUCTION.........................................................................................................................1
1.1. Background of the study....................................................................................................1
1.2. The Statement of the Problem............................................................................................3
1.3. Basic Research Questions..................................................................................................3
1.4. Objectives of the study...................................................................................................................4
1.4.1. Generalobjective..........................................................................................................................4
1.4.2. Specific objectives.......................................................................................................................4
1.5 Significance of the study.................................................................................................................4
1.6 Scope of the study............................................................................................................................4
1.7. Limitation of the study....................................................................................................................5
1.8. Definition of used terms Supply chain............................................................................................6
1.9 .Organization of the study................................................................................................................7
CHAPTER TWO...................................................................................................................................8
2. RELATED LITERATURE REVIEW...............................................................................................8
2.1. Introduction....................................................................................................................................8
2.2. Functionalities................................................................................................................................8
2.3. Overview of supply chain integrations...........................................................................................8
2.4. Strategic customer partnership......................................................................................................11
2.5. Customer relationship...................................................................................................................13
2.6. Quality of information sharing......................................................................................................13
2.7. Other supply chain management activities....................................................................................13
2.7.1. Transportation............................................................................................................................13
2.7.2 Transportation Management system...........................................................................................13
2.7.3 Importance of Transportation.....................................................................................................14
2.8. Inventory......................................................................................................................................15
2.8.1. Functions of inventory management..........................................................................................15
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2.8.2. Significance of inventory...................................................................................................16
2.8.3. Warehousing management.........................................................................................................16
2.9. Supply chain integration performance..........................................................................................16
2.9.1 Supply management performance measures...............................................................................17
2.9.2 Approaches (models) of SCI performance measurements..........................................................17
2.9.3Supply chain management...........................................................................................................17
2.9.4 Delivery......................................................................................................................................17
2.9.5 Delivery lead time......................................................................................................................17
2.9.6. Company integration into order fulfillment...............................................................................18
2.9.7. Supply chain integration: Challenges and Good practices.........................................................18
CHAPTER THREE.............................................................................................................................19
3. RESEARCH DESIGN & METHODOLOGY.................................................................................19
Introduction.........................................................................................................................................19
3.1Research design..............................................................................................................................19
3.2Research approach..........................................................................................................................20
3. 3. Types and Source of Data............................................................................................................20
3.4. Method of Data Collection and Instruments.................................................................................21
3.5Target of population.......................................................................................................................21
3.6. Method of data analysis and Interpretation...................................................................................21
3.7. Ethical Considerations..................................................................................................................22
CHAPTER FOUR...............................................................................................................................23
4. DATA PRESENTATION INTERPRETATION AND ANALYSIS...............................................23
4.1 OVERVIEW..................................................................................................................................23
4.2 Personal information......................................................................................................................23
4.2.1 Gender........................................................................................................................................24
4.2.2 Age group of Respondents..........................................................................................................25
4.2.3 Educational back ground............................................................................................................25
4.2.4 Length of working time in the organization................................................................................25
4.3 Analysis of questionnaire...............................................................................................................26
4.3.1 Strategic customer partnership practice in the Downstream SCI Allot flour factory...................26
4.3.2 Attitudes of selected respondent to ward supply chain integration activities which show
company performance at current time.................................................................................................28
CHAPTER FIVE.................................................................................................................................35
5. SUMMARY, CONCLUSION AND RECOMMENDATION.........................................................35
5.1 SUMMARIES...............................................................................................................................35
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5.2 CONCLUSION.............................................................................................................................36
5.3 RECOMMENDATION.................................................................................................................36
Reference.............................................................................................................................................38
LIST OF TABLE
4.2.1 Classification of respondents by social and demographic issues
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CHAPTER ONE
1. INTRODUCTION
This introduction part of the study would discuss the background information of downstream
supply chain integration, statement of problem, research question, research objective, scope
study, limitation of study, significances of study definition used terms and organization
papers.
1.1. Background of the study
Due to intense business competition in the global area, manufacturing companies need to
increase their competitiveness. The companies can no longer be satisfied with only one
traditional competitive advantage which they would have relied on previously .At present
time they have to create multiple possible niche to become more completive and productive
The area that the manufacturing companies can focus on the enhancement of their
downstream supply chain integration to optimize their outcome (Donald
Waters,2009).Several researchers have suggested that the understanding and practicing of
down supply chain integration was an essential prerequisite for staying competitive in global
race and for enhancing profitability.
Highlighted that huge number of contribution to the operation management literature are now
focus on how companies should integrate their activities with partners and know downstream
supply chain integration practice should align with company strategy(Harington,1995).The
downstream supply chain integration was often a rewarding and eye opening one, with
organization establishing trust and starting to work collaboratively rather than independently.
Efficiencies and synergies are quickly established between organization in supply chain that
lower cost at every point and establish a network relationship with partners keeping supply
chain running smoothly (Harrington, 1995).
Downstream SCI was one of the most popular management concept to the impact of the
business and the logistics concept in the(Harrington, 1995).The study was conducted to
assess the downstream supply chain integration practice in case of Allot flour factory. And it
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touched all activities that create integration process between company and partners across
supply chain. The study would cover the activities of downstream supply chain actors’ start
from distribution partners, wholesalers, retailers and customer. And it may investigate their
performance, structures, facilities and integration practice across the supply chain within the
company. SCI is the collection of organizational functions that manage information, product
and cash flow from a point of consumption with a goal of maximizing consumption
satisfaction while minimizing the total costs of organization.
In Ethiopia little or no research would found indicating whether the firm believes their
measure for evaluating performance was effective, regardless of downstream SCI
implementation. In fact SCI is holistic approach to installing efficiency, higher quality and
cost reduction into every process from distribution of finished goods, it has proven beneficial
for smallest tiered customer to largest multinational and brings together logistics, purchasing,
quality, customer and supplier with aim of helping each work to gather more effectively.
Downstream SCI takes an end to end view of an organization with all its customers and look
to create on efficient, synergistic operation model. The study would begin a version of what
the organization wishes to accomplish, what are hampering its success and how thing can be
improved .Downstream SCI improved if all stages of the supply chain take action that
together increase total supply chain profit. SCI requires each stage of the downstream supply
chain to take into account the climactic its action has on other stages .Different stages of the
supply chain have objectives that conflict if each stage has different owners.
Today, supply chain consists of potentially hundreds even thousands of independence owned
enterprise. Information is distorted as it moves with in the supply chain. Because complete
information is not shared between stages, this distortion is exaggerated by the fact supply
chain integration. However, there is little evidence that suggest that downstream of supply
chain integration that gained acceptance among firms (Beamon, 1999).
Supply chain Integration requires strong commitment and involvement by top management,
supply chain risk management, needs to react to dynamic market changes and the factories
brings high competition among them to win the market share throughout the country
(Gunasekara,&Ngai,2004). In identifying the gaps and inconsistencies in the downstream of
supply chain integration towards continuously improving its operations, to encourage more
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implement downstream of supply chain integration since the main reasons for failure would
be highlighted in the study, add knowledge and stimulate further research in other aspects of
supply chain(Mwanyota, 2004).This paper reviewed the literature on supply chain integration
as well as customer partnership in the case of Dilla town Allot flour factory.
1.2. The Statement of the Problem
Companies need to integrate their supply chain among partners into their operations.
The strategic customer partnership construct would be operated base on five different
activities that manufacturers commonly use to integrate their operations with customer
namely emphasis on high, long term relationship with customer, jointly problem solving with
customer, continuous improvement program with customer ,planning and goal setting(Sunil
Chopra and Peter Meindl,2009).
The long term customer relationship practice has influences on the bottom line such as
products quality. The downstream supply chain integration practice in the world, our country
and company is still in infancy stage there may be a number of manufacturing companies that
may practice supply chain integration in a good manner and integrate their organization
system (Fasika, 2014). This study would intend to investigate the strategic customer
relationship in supply chain integration of Allot flour factory.
The problems relevant to the concept of downstream SCI includes:- Inappropriate or lack of
information technology integration with the business, poor IT infrastructure, The lack of
research on downstream SCI practice, The problems related to the implementation of
downstream SCI programs, insufficient inadequate application of IT among the supply chain
partners affects the overall supply chain performance (Gunasekaran & Ngai, 2004)
1.3. Basic Research Questions
Specifically the study would design to search answers for the following questions:
1.what are the downstream SCI activities practicing in the Allot flour factory?
2. What are the major problems that affect downstream SCI practice? .
3. What are the challenges of downstream supply integration?
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1.4. Objectives of the study
1.4.1. Generalobjective
The general objectives of this study would try to investigate downstream SC practice of Allot
flour factory.
1.4.2. Specific objectives
In order to accomplish the general objective of the study the researcher would be formulate
the following specific objectives:
 To identify downstream SC activities in case of Allot flour factory.

 To investigate problems that affect downstream SC practices in Allot flour
factory.
 To examine downstream SC integration performance of Allot flour factory.
1.5 Significance of the study
Primarily, the study would be important for all actors of downstream SCI practice as well as
for the researcher. The research findings would also give insights to supply chain partners
(distributors, retail outlets, transporters, etc.) in the chain of the case floor factory to analyze
their own supply chain operational performance excellence.
Moreover, the study would be contributed to the growing body of knowledge on downstream
supply chain integration practice in the Ethiopia manufacturing organization context. The
study would be very important for the case of organization in order to see and evaluate the
supply chain integration practice. Finally, the study would be important for academic
researcher, and be used as a reference, to conduct further study on this interesting and
important area of concept.
1.6 Scope of the study
It would be better to study all aspects of downstream SCI practice in manufacturing

companies of Ethiopia ,but this study would conducted on the issue of strategic customer
partnership in supply chain integration practice in case of Dilla town Allot flour factory. This
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study was delimited on the downstream supply chain integration on flour factory. The study
also delimited geographically in Dilla and surrounding towns.
The Conceptual scope of this study was limited to the supply chain variables including
information integration among the downstream partners, coordination and resource sharing
practice and collaboration on Products downstream supply chain partners, information
technology utilization practice, benefits, challenges of downstream supply chain integration
in flour factory
The study was delimited to strategic customer partnership because it not simple to obtain the
customers of the company for asking some necessary question and discuss with them. The
study would include three activities in the strategic customer partnership in the downstream
supply chain integration practice namely:-
 Emphasis on customer satisfaction

 Jointly solving problems with customer
 Long term relation with customer.
1.7. Limitation of the study
Like other researches, this study would have its own limitations the source of difficulty
would encounter in the study would be described as following: most of the data would be
collecting from respondent that concern with the firms downstream supply chain integration
practice are in English language..
In conducting this research, the most and significant constraint were limited literatures
available on downstream supply chain integration especially in flour factory. The other
significant challenge was the respondent to fill the questioner due time and lack of supply
chain concept at all level of the supply chain members. The study also didn’t comprehend the
effect of the integration on the overall downstream supply chain performance. So, the
research focused in Allot flour factory.
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1.8. Definition of used terms Supply chain:
The strategy coordination of business function within a business organization and throughout
its supply chain for the purpose of integrating supply and demand management (Stevenson,
2012).
Supply chains consist of all parties involved, directly or indirectly, in fulfilling a customer
request. The supply chain includes not only the manufacturer and suppliers, but also
transports, warehouses, retailers, and even customers themselves (Chopra & Meindl, 2007).
Supply chain management: The management of upstream and downstream relationships

with suppliers and customers in order to deliver superior customer value at low cost to the
supply chain as a whole (Christopher,2011).
Logistics: The efficient transfer of good from the source of supply through place of
manufacture to the point of consumption in a cost effective way whilst providing an
acceptable service to the customer (Rushton,2006).
Logistics management: The process of strategically managing the procurement,

movement ,and storage of materials ,parts and finished inventory (and the related information
flow)through the organization and its marketing channels in such way that current and future
profitability are maximized through the cost effective fulfillment of orders
(Christopher,2011).
Integration: Integration is the process of redefining and connecting parts of a whole in order
to form a new one (Award and Nasser, 2010).
Supply chain integration: The close internal and external coordination across the supply
chain operation and process under the shared vision and value amongst the participating
members (Lu, 2011).
Downstream: The movement away from suppliers and towards customer’s. Conversely,
upstream was the movement towards the suppliers (Sadler,2007).
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1.9 .Organization of the study
This research proposal was divided in to Threes chapters. The first chapter introduction it
include background of the study, statement of the problem, basic research question’s,
objective, significance, limitation, scope of the study, definition of used terms and
organization of study. The second chapter would review literatures by referring to various
relevant books, publications and other related literatures.
The third chapter would covers the methodology it include research paradigm, research
approach, source and types data, data collection methods and instruments, issues of
reliability, sampling techniques and sample size determination, data analysis and
interpretation, ethical consideration and pretest or pilot study.
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CHAPTER TWO
2. RELATED LITERATURE REVIEW
2.1. Introduction
In this chapter, different relevant literatures have been reviewed related to downstream
supply chain integration to develop the conceptual framework of the research. The main area
of the literatures reviewed are the conceptual or theoretical aspect of supply chain integration
which lead to come up the good understanding of downstream supply chain integration
practice, challenges and benefits to partners in the downstream supply chain.
2.2. Functionalities
Transportation management systems manager four key processes of transportation

management Planning and decision making: Transportation management system would
define the most efficient transport schemes according to given parameters, which have a
lower or higher importance according to the user policy , transport cost, shorter lead-time.The
chapter would present three main issues of SCI practice in manufacturing company that
relevance to the instruments of this study specially: overview of SCI, supply chain practice of
(strategic customer partnership, customer relationship, level of information sharing, quality of
information sharing and post postponement),explore supply chain practice and components of
supply chain integration.
2.3. Overview of supply chain integrations.
The increased complexity of products and he companies to groups or chain once the higher
level of outsourcing have moved the level of competition from single s of firms (Gomcs-
Casscres. 1994; Rice and Hoppe, 2001) for this reason, literature widely acknowledges the
strategic relevance of supply chain management as a source of competitive advantage
(Christopher. 1992; line, 1998). This can be achieved by considering the network as a whole,
and hence pursuing global instead of local optimization (F.llram. 1991; Cooper and HI Irani.
1993; Simchi-I.evi et al.. 2000).
This can be attained by integrating all the key business processes from end-users to original
suppliers (Cooper et al.. 1997; Burgess. 1998). Supply chain integration has been approached
8
in the literature from different perspectives. For example, Nnrasimhan and Das (2001)
distinguish between customer integration, information integration, logistics and distribution
integration and supplier integration. Differences have been also highlighted on the basis of
the type of process involved: for example. (Dc loni and Nassimbeni. 1999) classify supply
chain integration mechanisms into design links, quality links and logistic links According to
Frohlich and Westbrook (2001). it is important to recognize two distinctive elements of
supply chain integration which are forward physical Hows and backward information and
data flows. Some practices are aimed at integrating the forward physical flows (Saunders.
1997; Trent and Monczka, 1998).While other practices are more 9 oriented towards the
coordination and integration of backward information and data flows from customers to
suppliers (Christopher. 1992: Trent and MoncAa. 1998). l'hcsc two ways of integrating
supply chain processes are different in nature.
The first type of integration requires a closer coupling of the production systems between the
customer and the supplier, and even the co-location of plants. As a result, often the
integration of physical flows is closely related to purchasing practices such as supply base
leveraging and rationalization (lamming. 1993). His second type of integration mechanism is
aimed at leveraging information from the counterpart to improve internal activities and
operations management
SCI practices have been defined as set of activities under taken in organization to promote
effective integration of its supply chain. Identify six aspects of SCI practices through factor
analysis. SCI information sharing supply chain characteristics, customer service management,
geographical proximity and just in time .In their seminal they defined integration as, “the
quality of the state of collaboration that exists among departments that are required to achieve
unity of effort by the demand of the environment”. While this definition refers to integration
internal to a firm or organization, our emphasis here goes beyond the firm and encompasses
external entities that are players in a supply chain.(Bower sox, Closs and Stank, 2002) have
classified integration in a supply chain context in six different types.
These are customer integration, internal integration, material and service supplier integration,
technology and planning integration, measurement integration and relationship integration.
Identified four stages of supply chain integration, where stage I represented the fragmented
operations within the individual company. Stage II focused on limited integration between
adjacent functions. Purchasing and materials control. Stage III required the internal
9
integration of the end-to-end planning in the individual company and stage IV represented the
true supply chain integration including upstream to suppliers and downstream to customers.
The outlines three dimensions of supply chain integration: information integration,
coordination resource sharing, and organizational relationship linkage. Information
integration refers to the sharing of information and knowledge among the members in the
supply chain, including sales forecasts, production plans, inventory status and promotion
plans. Coordination and resource sharing refers to the realignment of decisions and
responsibility in the supply chain capacity ,According to Strategic SCM this variable refers to
several activities or practices related to operational function of firms . It is used to measure
the supply chain integration adoption and its level practices. The Strategic supply chain
defines supply integration as having three common components in common:-
 Information
 Organization linkage
 Coordination
 Information refers to the sharing of skill and knowledge.
Organization linkage encompasses the means to communicate whether by EDI internet or by

face to face meeting. Coordination refers to the task of integrating organizational units along
a supply chain and coordinating materials, information and financial flows in order to fulfill
ultimate customer demands with aim of improving competitiveness of supply chain as a
whole ( Robert B.Handfield,2002).

coordination resource sharing, and organization linkage. Information integration refers to the
sharing of information and knowledge among the members in the supply chain. According to
downstream supply chain management the several activities or practice related to the
operational function of the firms to customer. They are used to measure the supply chain
integration adoption and its level practices. Related practices are divided into six dimensions.
coordination resource sharing, and organization linkage. Information integration refers to the
sharing of information and knowledge among the members in the supply chain. According to
downstream supply chain management the several activities or practice related to the
operational function of the firms to customer. They are used to measure the supply chain
integration adoption and its level practices. Related practices are divided into six dimensions
10
name:
1, strategic customer partnership
2, Customer relationship
3, Information sharing
4, Information quality
5, Postponement
2.4. Strategic customer partnership

Strategic customer partnership is defined as the long term relationship between organization
and customer. It is designed to leverage the strategic and operational capabilities and
organization to help them and to achieve significant ongoing benefits and opportunities.
Customer partnership is the shared journey to create a future for both parties, means the
customer is the foundation of your organization’s success according to strategic management.
Over the last decades, the world manufacturing companies have embraced wide variety of
management programs to improve product value in order to satisfy customer and to enhance
business performance (Möller & Halinen, 1999). Because this research would study
downstream supply chain, the following definition for the supply chain is used: An integrated
collection of organizations that manage finished goods, work in process and in formations
from company up to the end customer. Supply chain metrics that can be used as a standards
and can pass assessment using the eight criteria and they fall into four categories: - Customer,
satisfaction, time, cost and Assets.
Research has indicated that the firms that use a supply chain strategy might use different
types of performance metrics than the firms that do not utilize the concept of supply chain.
No research was found indicating whether the firms believed their measures for evaluating
performance are effective, regardless of SCI implementation.
The strategic customer partnership identifies optimum practices that can facilitate supply
chain process alignment and integration. In order to further expedite collaboration, it is
necessary to implement the latest collaborative information systems that drive efficiencies,
performance, and quality throughout supply chain. Several researchers suggest that effective
SCI practice has a direct impact on the overall financial and marketing performance of an
organization.
In fact, SCI practice is expected to increase an organization’s market share, return on
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investment points that in order to achieve high performance in SCI and companies need to
integrate their supply chain partners into their operations(Pala, 2013). Yet very few studies
have examined empirically the role of strategic supply partnership in the supply chain
management process, as well as its linkage to a firm’s performance. Strategic partnerships
(downstream supply chain integrations) with customer enable organizations to work more
effectively with a few important suppliers who are woulding to share responsibility for
success of the product. Suppliers participating in the product design process can offer more
cost effective design choice, help select the best components and technologies, and help in
design assessment. Strategically, aligned organization can work together and eliminate
wasteful time and efforts. An effective supplier partnership can be critical components of a
leading edge supply chain.
supply chain partnership is defined as a strategic coalition of two or more firms in supply
chain to facilitate joint effort and collaboration in one or more value creating such as research
product development , manufacturing ,marketing , sales and distributions .the objectives of
supply chain partnership is increasing benefits to all partners by reducing total cost and
services.
Supply chain partnership is designed to influence the strategic and operational capabilities of
individual participating organization to help them achieve significant ongoing benefits.
Strategic partnership with customer enables organization to work more effectively with few
important supplier who woulding to share responsibility for success of product. Strategic
customer partnership in supply chain integration has been reported to yield organization
specific benefits in terms of financial performance (Jarillo, 1988).
The highlighted strategic partnership between customer and manufacturers has significant
impact on supply chain integration performance and various aspects of competitive
advantage. SCP in the SCI is one the most popular hybrid organizational forms it has been
increasingly adopted by firms to manage inter organizational collaboration in supply chain
integration.
SCP provide both large and small firms with numerous opportunity to improve their conduct
of business wider diffusion of products without costly physical presence in the markets , risk
and reward sharing , resource pooling reduction in coordination and transaction costs , ability
to concentrate on core competency, and rapid response to market needs emphasize that the
department and functions in partnering companies need to work with each other in evaluating
inventories, systems, process, training, work methodologies, equipment utilization and a host
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of other opportunities to reduce the cost of operation and explore opportunities for
partnership (Wouldiamson, 1985).
Supply chain integration partnership is resource intensive investment, which involve financial
and strategic risk and point outs that involving customer extensively in SCI organization
could gain more production flexibility , faster product development cycles , lower input costs
and higher end product quality in order to gain greater market share and premium
prices(Harington L,1995).
2.5. Customer relationship

Customer relationship is comprises the entire array of practices that are employed for the
purpose of managing customer complaints, building long term relationship with customer and
improving customer satisfaction (Award & Nassar, 2010 ) .Close customer relationship allow
organization to differentiate its product from its competitors sustain customer loyalty and
dramatically extend the value it provides to its customer.
2.6. Quality of information sharing

The aspects of information area accuracy, timeliness, adequacy and credibility of information
exchanged. While information sharing is very important, the significant of its impact on SCI
depends on what the information is shared, when and how it is the significant of its impact on
SCI. If the information is sharing it creates the strong relationship between company and
partners even it increases the productivity level (Rahul V.Altekar, 2005).
2.7. Other supply chain management activities
2.7.1. Transportation
Geographically distant resources become accessible with transportation. The economic
growth of any part of the world is directly related to the availability of transportation.
Without question, a society without an advanced transportation system remains primitive. No
matter where we turn; transportation is involved in our daily lives. The clothes we wear the
food we eat, the entertainment we seek and homes we live in are all available because of
transportation. Transportation contributed immeasurably to our personal well-being and to
society in general (Bowersox, 2002).
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2.7.2 Transportation Management system
Transportation management system is a process of identifying, evaluating, treating and
controlling the transportation activity in order to maintain transportation service. Manager
undertakes widely jobs in content and scope. From this it would seem that it is impossible to
discuss any general functional aspects of transportation management. However, some writers
consider as a process, which includes planning, organizing, staffing, directing, control,
representation and communication.
A transportation management system is subset of supply chain management concerning

transportation operations and may be part of an enterprise resource planning system. A
transportation management system “sits “between an ERP or legacy order processing and
warehouse/ distribution module. A typical scenario would include both in bound and out
bound orders to be evaluated by the transportation management system planning module
offering the user various routing solutions. These solutions are evaluated by the user for
reasonableness and are passed along to the transportation provider analysis more, fewer stops
possible to ensure quality, flows regrouping coefficient, etc.
Transportation Execution: Transportation management system would allow for the execution
of the transportation plan such as carrier rate acceptance, carrier dispatching EDI etc
Transport Follow-up: Transportation Management system would allow following any

physical or administrative operation regarding transportation, traceability of transport event
by event (shipping from A, arrival at B, customs clearance etc), editing of reception, custom
clearance, invoicing and booking documents, sending of transport alert (delay, accident , non-
forecast stop..)
Measurement: Transportation management systems have or need to have a logistics key

performance indicator (KPI) reporting function for transport.
Various functions of a TMS include but not limited to:
1. % of on time pick up or delivery performance relative to requested.
2. Cost per metric. Mile; km, weight, cube, pallet.
3. Productivity in monetary terms, e.g. cost per unit weight or shipping unit.
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4. Productivity in operational terms, e.g. shipping units/order or weight/load.
2.7.3 Importance of Transportation

Transport is essential link between supplier and receiver, and the aim to receive the goods in
good condition, when and where they needed. This necessitates close collaboration between
procurement staff, the supplier and the transportation. The journey involved, whether over
land, sea and or air may introduce certain cost and risk that can be mitigated by appropriate
methods of dispatch, insurance, courage, suitable packaging instructions, and by considering
the rules and responsibilities of the parties involved in the chain of transport events up until
final delivery to customers? In generally, the importance of transportation is includes:
- A key factor for any movement
- Connecting customer and supplier
- Increasing organizational profitability and
- Delivery goods at needed place.
2.8. Inventory
Inventory can be defined as follow:
Inventory refers to any kind of resources having economic value and is maintained to full fill
the present and future needs of the main campus.
- Inventory is a physical stock of items that business or production enterprise keeps in
hand for efficient running of affairs or its production.
- Inventory is the quantity of goods, raw materials or other resources that are idle at any
given point of time.
- Inventory control is the means by which materials of the correct quantity and quality
is made available as a when required with due regard to economy in storage and
ordering costs and working capital.
- It is also defined as the systematic location, storage and recording of goods in such a
way that desired degree of service can be made to the operating shops at a minimum
ultimate cost. Inventory and its management are related both to materials management
and physical distribution management. Material management and physical
distribution management together constitute logistics management, the process of
15
management both the movement and storage of materials and materials from their
source to the point of ultimate consumption (Saxena, 2003).
2.8.1. Functions of inventory management

Inventory management cover wide variety of activities in the in venture management there is
some functions the function are
 To carry adequate stock to avoid stock out
 To ensure optimum level of stock so that total inventory cost is minimized.
 To bay the right quantity of perishable items so that loss in cured by unsold items are
minimized.
 To order sufficiently higher quantity at a time so that repeated ordering and costs
incurred in such manner can be reduced.
2.8.2. Significance of inventory

The word inventory refers to any stock on hand at a given time. If materials are held for
future use in an idle or unproductive sate waiting its intended purpose. The relative
importance of inventory management to an organization can be arranged by the overall
investment in inventory and the magnitude of materials costs for all products. Inventory so
late one part of the system from the next to allow each work independently absorb the stock
of for cost errors, and permit the effective utilization of inventory management to control the
lot sizes to that the overall costs associated with the purchase or manufacture are at a
minimum. Poor inventory management implies having enough item available when needed
but not so much that an unnecessarily cost surplus incurred inventories are assort of
lubrication for the supply production supply distribution system that protects it from
excessive friction.
2.8.3. Warehousing management

Warehousing refers to the storing and assorting products in order to create time utility. The
basic purpose of the warehousing activity is to arrange placement of goods, provide storage
facility to store them, consolidate them with other similar products, divide them into smaller
quantities and build up assortment of product. Generally, larger the number of warehouses a
firm has the lesser would be the time taken in serving customers at different locations, but
greater would be the cost of warehousing. Thus, the firm has to strike a balance between the
cost of warehousing and the level of customer service (Saxena, 2003).
16
2.9. Supply chain integration performance
Supply chain integration needs to be assessed for its performance in order to evolve an
efficient and effectively.SCI as the measurement of current activities performance of the
particular firm and customer, it brings firm to improve production and satisfaction level
(Robert B. Handfield, 2002).
2.9.1 Supply management performance measures.
The SM performance measurements are comparable and consistent across both function and
channel institutions. And the process of quantifying the effectiveness and efficiency of
actions is also possible. The supply chain management key performance indicators are: cost
performance (ware house cost, transportation cost, inventory cost and production cost).And
non-cost performance (time, flexibility, safety and quality).The supply chain management
performance determinants that areused to evaluate the performance of SCI overall action are:
lead time, costs, capacity, delivery and flexibility ( Robert B.Handfienld,2002).
2.9.2 Approaches (models) of SCI performance measurements.

The supply chain performance measurement approaches are: balanced score card ( BSC)
,supply chain operation reference ( SCOR),ABC ( activity based- costing),LSB ( logistics
score board) and EVA ( economics value analysis ) (Donald J.Bowersox,2002).
2.9.3Supply chain management

Supply chain is defined as a network of various organizations involved both through
upstream and downstream linkages in different kind of activities and process.SCM is defined
as the management of all the activities associated with the flow and transportation of the
finished goods to the final customer (Pala, 2013).
2.9.4 Delivery
Delivery is the way of fulfilling customer need by transporting goods and services to where
they are needed. All delivery dimensions are fulfilled. There are three delivery dimensions
like: delivery speed, delivery lead time and delivery reliability. The delivery system is
accompanying by transportation, inventory and warehouse (Robert B. Handfield, 2002)
2.9.5 Delivery lead time

Lead time is the ability to respond the customer order like order release, release shippable
time, shipment time to customer and acceptance by the customers. local delivery ,blanket
17
orders with multiple releases and paper work simplifications are common approach for
shortening lead time .some companies have been implement electronic data interchange and
bar coding application to stream line of customer order fulfillment and receiving
administrative tasks . Other have adapt the concept which would also shortens the processing
cycle by consolidating traditional production and planning tasks into a single function .
Closer, more responsive firm and a simplified administrative cycle eliminate the need for
such customer.
2.9.6. Company integration into order fulfillment

Many companies are continuing to integrate customer not just distribution level, but also in
the order fulfillment phase of downstream supply chain management. The companies also
involve in customer improvement (DdavisT.1993). Many companies are encouraging
supplier to provide a permanent on site representative who can aid the company in improving
customer order fulfillment process. The idea behind this initiative is (called vendor or
customer managed inventory in some circles). Is to have the representative assist in managing
the inventory material or service, provide technical support, and in some cases even aid in
transporting and producing the product or the service.
2.9.7. Supply chain integration: Challenges and Good practices.

The last decade has brought a dramatic shift in the nature of competition for most companies.
Technological advances, particularly in information technology, coupled with globalizing, the
rise of complexity and shrinking time horizon are driving order of magnitude changes in the
competitive demand on strategic management of business and on the management of supply
chain.This competitive pressure has a strong direct effect on supply chain strategy and
integration. Integrating activities both within and beyond organizational boundaries has
become and would continue to be a major challenge for supply chain executives. Integration
efforts now extend beyond traditional product process design and functional integration to
focus on extra organizational links with customers. The object is to produce “supply chain
enhance” distribution and customer service.
The examination of SCI focuses on two key issues: alignment and linkage. Supply Chain
Execution Process incorporates the operational decisions in supply chain management that
must be aligned with the supply chain strategy. The design and execution of these processes
determine in the large part how supply chain performs. The processes define how the firm
18
matches supply with demand to deliver value to the customer. Included here are the processes
for forecasting and demand management. The SCI problems are: heterogeneous infra-
structure (EDI and VPN), lack of effective metrics and disaster recovery (inadequate
information, lack of sharing risk and poor process (Michael Hugos, 2006).
CHAPTER THREE
3. RESEARCH DESIGN & METHODOLOGY
Introduction
The major purpose of the study wasto identify and explore the practice and level of
downstream supply chain integration. It includes research design, research approach , data
type and source, method of data collection and instrument, data collection, target of
population, sampling techniques and sample size determination, method of data analysis
ethical consideration. In order to investigate the association of strategic customer partnership
(downstream customer integration) in supply chain integration in case of Allot flour factory.
3.1Research design
According to Krishnaswamy, Sivakuma and Mathiraja (2006) the research design
phase“deals with the detailing of procedures that would be adopted to carry out the research
design”. “A research design provides a frame work for the collection and analysis of data a
choice of research design reflects decisions about the priority being given to a range
ofdimensions of the research process” (Bryman and Bell, 2007).
Cooper and Emory (1995) stated the essentials of research design, first, as a plan for selecting
the resources and types of information used to answer the research question, second as a
framework for specifying the relationship among the study’s available and third, as it is a
blue print that outlines each procedure from the hypothesis to the analysis of data”.
The study was descriptive type which showed the level of integration, challenges faced in
downstream supply chain, the level of coordination and the tools implemented on the existing
supply chain integration practice. Causal research also called explanatory research was the
investigation of cause and effect relationships in order to determine causality; to observe
variation in the variable that was assumed to cause the change in the other variable and then
19
measure the changes in the other variable using statistical methods. It enables us to
understand the very nature of what we are actually looking at it.
Exploratory research was requires the researcher to investigate different sources such as
published secondary data ,data from other surveys ,observation of research items ,and
opinions about a company ,product ,or service.
As the research intention was to show the extent of the facts in the downstream supply chain
integration and needs to investigate what is happening on the downstream supply chain based
on the facts observed, descriptive type of research design implemented (Kotheri, 2004).Thus,
the research was an empirical case analysis that tried to investigate a current phenomenon of
downstream supply chain integration in the Allot flour factory.
3.2Research approach
The study would also employ quantitative and qualitative or mixed approaches in order to
attain the objective of the study. Quantitative research, according to Van der Merwe (1996),
was a research approach aimed at testing theories, determining facts, demonstrating
relationships between variables, and predicting outcomes. Quantitative research uses methods
from the natural sciences that are designed to ensure objectivity, generalizability and
reliability (Weinreich, 2009).
Qualitative research, according to Van der Merwe (cited by Garbers, 1996) wasa research
approach aimed at the development of theories and understanding. Denzin and Lincoln
(2005) define qualitative research as a situated activity which locates the observer in the
world. Qualitative methods include direct observation, document analysis and overview,
participant observation, and open-ended unstructured interviewing.Qualitative research
implies an emphasis on the qualities of entities and on processes and meanings that are not
experimentally examined or measured (Denzin & Lincoln, 2005:10).
3. 3. Types and Source of Data
The study used both primary and secondary type of data. Primary data wasin order to realize
the target the study would be designed questionnaires as best instructed. It would be
completed by the employee of the company. Beside, observation within the company work
area would be held to avoided ambiguity. The questionnaire method of data collection was
20
preferred with its high response rate and clarification of issue which was easy to achieve the
leading accuracy of data from respondents.
Secondary data from files, pamphlets, office manuals, circulars and policy paper was used to
provide additional information, where appropriates. Besides, variety of books, web site,
reports and newsletter were reviewed to make the study fruitful.
3.4. Method of Data Collection and Instruments

The study would use four instruments, questionnaire, qualitative, quantitative and structure
interview. A questionnaire was a form containing a set of questions, especially addressed to a
statistically significant number of subjects, and is a way of gathering information for a
survey. It is used to collect statistical information or opinions about people. The Oxford
Advanced Learner‘s Dictionary (1997:952) defines a questionnaire as a written or printed list
of questions to be answered by a number of people, especially as part of a survey.
Qualitative data collection can be usedto improve the quality of survey based quantitative
evaluations by helping generate evaluation hypothesis strengthening the design of survey
questionnaires and expanding quantitative evaluation findings.
Seale, Giampietro, Gubrium and Silverman (2004) define an interview as a social encounter
where speakers collaborate in producing retrospective and prospective accounts or versions
of their past or future actions, experiences, feelings and thoughts. The instruments would
appropriate to the study because the research is not alike analytical research, which one can
conduct only through referring secondary sources of data. The questionnaire was use vastly
because it would less time consuming and less costly than interview, interview wise it would
employee in areas where detail information would gathering and where comparative
advantage of clarifying the question to respondents are demanded.
3.5Target of population
The study would be conducted on the downstream of supply chain integration practice in the
Allout flour factor in Dilla town. The total population in the organization is 47 employees.
Among them the target population 13 permanent employee and 34 temporary employee so,
the researcher would use census method to conduct this study. The reason behind is the
researcher would easy to manage the total population of the organization.
21
3.6. Method of data analysis and Interpretation
The study was to conduct based on both Descriptive statistics and inferential statistics.
Descriptive statistics was to summarize and graph the data for a group that you choose. This
process allows you to understand that specific set of observations.
Inferential statistics takes data from a sample and makes inferences about the larger
population from which the sample is drawn. Accordingly on this study the qualitative and
quantitative data analysis tools would be utilized through tabulation and percentage that
would make the finding very easy to everyone. Quantitative data analysis was used in order
to discover inherent facts to explore new facts and easy to understand by users of the study.
While qualitative data analysis provided detail answer to research questions through direct
quotation and careful description to explore new facts or interpret already known existing
fact.
3.7. Ethical Considerations
Respondent would inform about the objective and purpose of the study and verbal consult
was obtained for better participation engaged in the study. Participants were also informed
their right not to participate in the study at any time. Participants were clearly informed the
benefit of the research and thus research has no risk. Participants have been given right to ask
questioned or clarification and refuse to give information in any time in the research process
if there is any.
22
CHAPTER FOUR
4. DATA PRESENTATION INTERPRETATION AND ANALYSIS
4.1 OVERVIEW
The purpose of this chapter is to present the result of description study in context with their
research objective and design and relation to the broader problem statement. The discussion
would therefore contain the finding correlated to the research question. The interpretation
also contains the various methodological issues and consideration regarding the gathering of
the data though questions. A total of 20 questionnaires were distributed and returned all. The
structured questionnaires were organized in 2 parts .In the first parts questionnaires focusing
more on social or demographic issues and the second parts of questionnaire comprised of 20
questions for the testing of the relationship between the company and the customer on the
downstream supply chain integration practice.
4.2 Personal information
Table 4.2.1 classification of respondents by social and demographic issues

Demographic Item Frequency Percent
character
1 Male 14 73.68%
Female 5 26.32%
Gender
Total 19 100%
2 Age 21-30 6 31.578%
31-40 10 52.63%
41-50 3 15.78%
>50 0 0
Total 19 100%
3 Incomplete 0 0
23
Educational
Certificate 2 10.52%
background
Diploma 5 26.31%
1st degree 10 52.63%
Master and above 2 10.52%
Total 19 100%
4 Less than one year 0 0
1-5 year 10 52.63%

Year of working
6-10 year 5 26.31%
in the firm
Above 11 year 4 21.052%
Total 19 100%
Source: Q.(2015)
Gender, age, education and length of the work classification of respondents
4.2.1 Gender
The purpose of question 1, in section one of the questionnaires refers to appendix to

determine the gender category of respondents. In the question one above, the male
respondents in this study responded the higher response as compared to female respondents
(refer table 4.2.1) where 73.68% of the respondents were male and 26.32% of the responds
were female.
24
4.2.2 Age group of Respondents
The purpose of questions 2, in section one of questionnaires to determines the age group
category of respondents. Table 4.2.1 also indicates that the biggest categories in this study
were represented by 31-40 age groups and between 21-30 age groups. Where 52.63 %and
31.57% are recorded respectively .There was also age groups between 40-50 was 15.78%
.There was no other respondents whose age group is elsewhere
4.2.3 Educational back ground
It is designed to aware the respondents’ educational level difference in the survey has been
employed. As observed by the researcher from the above table in question 3, majority of the
responds participated in this study were qualified in degree and they account 52.63% of the
total sample and more over being followed by 26.31% diploma qualified employees. Only
small number of 10.52% respondents were certificate qualified .No respondents were
incomplete and 10.52% those qualified in master degree.
4.2.4 Length of working time in the organization
Working time stayed of employees in the firm has impact on the information that has been
collected then important to know how many employees stayed in service of the company and
at some times how many employees stayed longer time. Researcher can know by observing
the above table in question 4, regarding to how long employees serving in the firm, as such
there were more than half 52.63% of employees who serves in the firm from one up to five
year followed by 26.31%and 21.052% employees serves in the firm in the year 6-10 and
above 11 year respectively
25
4.3 Analysis of questionnaire
After demographic information of respondent has been analyzed, it was followed by analysis
of the firms supply chain integration practice in terms of strategic customer partnership in the
following items in table (4.3.1).
 INSTRUCTION:- to the following abbreviation
 1: strongly disagree 2: disagree
 3: neutral 4: agree
 5: strongly agree N: number of population
 %: percentage
4.3.1 Strategic customer partnership practice in the Downstream SCI Allot

flour factory
Table 1 shows the distribution across various statements opinion of respondents that reflect
toward the practice of strategic customer partnership of the firm in the downstream supply
chain integration of the company that the respondents had some degree of variation across the
time.
Item 1 2 3 4 5 Total
1 The company NO% NO% NO% NO% NO%

has good
relationship 0 0 3 10 6 19
with
customer
(15.789%) (52.631%) (31.578% 100%

)
26
2 The company 0 2 0 5 12 19
has continues
improvement
that includes
(10.523% (26.315%) (63.157% 100%
out key
) )
customer
3 There is a 0 0 0 11 8 19
good
information
network
system in
the (57.894%0 (42.105%)
company
100%
4 There is a 0 0 0 8 11 19
rapid
response to
customer
(42.105%) (57.894%)
need in the
company 100%
5 The 0 2 0 4 13 19
company
follows
lead time
determents
to response (10.526%) (21.052%) (68.421%) 100%
customer
demand
6 There is a 0 0 5 12 2 19
good
customer
27
service in
the
company
(26.315%) (63.157%) (10.526%) 100%
Source: questionnaire
As clearly explained in the above table item 1 of this table (the company has a good
relationship with customer) is giving the most favorable response from the respondents where
more than 84.209% taken together agreed and strongly agreed on the statement. Less than
15% of them were neutral. Moreover no respondents were strongly disagreeing and disagree.
In the item 2 of this table (the company has continues improvement integration that includes
out key customer) is given the most favorable response from the respondents, where more
than 89.47% taken together agreed and strongly agreed on the statement. Only 10.523% of
them were disagreeing. Moreover, no respondent was strongly disagree and neutral.
In item 3 of this table (there is a good information network system between company and
customer) is given response from the respondents where more than 100% taken together
strongly agree and agree on the statement. None of them is neutral. Moreover, no respondents
was disagreed or strongly disagreed.
Item 4 of this table (there is a rapid response to customer needs in the company) is given
response from the respondents 100% taken together agreed and strongly agreed on the
statement. Moreover, no respondents was strongly disagree, disagree and neutral.
In item 5 of this table (the company follows lead time determinant to response customer
demand) is given response from respondents 89.473% taken together strongly agree and
agreed on the statement .Moreover, 10.526% are disagree. No neutral and strongly disagree
respondents against the statement. In item 6 of this table (there is a good customer service in
the company) is given response from respondents 73.683% are strongly agreed and agree
with the statement. This implies that the company is involving in the good customer service,
and 26.315% respondents are neutral. No strongly disagree and disagree with the statement.
28
4.3.2 Attitudes of selected respondent to ward supply chain integration
activities which show company performance at current time.
The company uses direct delivery

7
system No % No% No% No% No%
0 0 2 11 6 19
10.526 57.894 31.578 100%
% % %
8 The is a good N0% N0% N0% N0% N0%

inventory
0 0 0 9 10 19
system in the
company
(47.368%) (52.631%) 100%
9 The company 0 6 0 7 6 19
has a good
warehousing
system
(31.578%) (36.842%) (31.578%) 100%
10 Manufacturing 0 0 0 12 7 19
system is good
in the
company
(63.157%) (36.842%) 100%
11 There is a 0 3 5 7 4 19
good package
29
system in the
company
(15.789%) (26.315% (36.842%) (21.05%) 100%

)
12 The company 8 6 4 1 0 19
uses
centralized
resource
(42.105%) (31.578%) (21.052% (5.263%) 100%

System
)
technique
Source: questionnaire (2015)
In item 7 as it is clearly stated in the above table (the company uses direct delivery system) is
elaborated as more than 89.472% strongly agree and agree. Moreover, 10.526% respondents
were neutral. No strongly disagree and disagree respondents against the statement.
In item 8 as it mentioned in the table above (there is a good inventory system in the company)
was favor zed as more than 100% strongly agree and agree. Other respondents react nothing
to statement. In item 9 as it is clearly stated in the above table (the company has good
warehousing system) is elaborated as more than 68.42% strongly agree and agree. Moreover,
31.578% respondents were disagreeing. No strongly disagree and neutral respondents against
the statement. In item 10 as it is clearly stated in the above table (the manufacturing system
is good in the company) is elaborated as more than 100% strongly agree and agree. No
strongly disagree, disagree and neutral respondents against the statement.
In item 11 as it is clearly stated in the above table (there is a good package system in the
company) is elaborated as more than 57.892% strongly agree and agree. Moreover, 26.315%
respondents were neutral and 15.789%respondents disagree. No strongly disagreeing
respondents against the statement.
30
In item 12 as it is clearly stated in the above table (the company uses centralized resource
system technique) is elaborated as more than 73.683% strongly disagree and disagree.
Moreover, 21.052% respondents were neutral and 5.263 were agreed. No strongly agree.
Table 4.3.3 Attitude of selected respondents tow wards the company

cooperation with other of the same products
The company has Co-operation with other NO% NO% NO% NO% NO%
13
companies of the same products.
0 0 O 9 10 19
47.3 52.63 100%
As depicted on the table from the above and item 13, 100% of the respondents strongly agree
that the company has cooperation with other companies of the same products. No respondents
strongly disagree, disagree and neutral. Type and 15(25%) of respondent response the
company has no cooperation with other companies. This implies that the company has a good
relationship with other companies.
4.3.4 Response concerning any problem in the company related to working

in order to save the customer.
There is a problem when NO% NO% NO% NO% NO%

14
company is working to serve
0 0 6 11 2
its customer
19
31.57 57.894 10.526
8 100%
The company regularly
0 0 0 8 11 19
solve problem jointly with
15
the customer 42.1% 57.89% 100%
31
From item 14 it is clearly shown in table 4.2.4 above (there is a problem when company is
working to save the customer). From number of respondents (31.578%) of them are says
there are neutral and 68.42 strongly agree and agree. No strongly disagree and disagree
respondents against the statement.
In item 15 as it is clearly stated in the above table (the company regularly solve problem
jointly with the customer) is elaborated as more than 100% strongly agree and agree. No
strongly disagree, disagree and neutral respondents against the statement.
Table 4.3.5 Attitude of selected respondents to wards of training given for

employees in organization.
There is training programs use NO% NO% NO% NO% NO%

16
by the company to overcome any
0 0 4 11 4 19
challenges.
21.05 57.894 21.05% 100%
% %
32
Item 16 as it is clearly expressed in the above table (78.994%) of respondents strongly
agreed and agree that adequate level of training is given for employees of the company
Whereas, (21.05%) of respondents are neutral to say that adequate level of training is given
for employees of the company to solve challenges. There are no respondents strongly
disagree and disagree against the statement.
Table 4.3.6 response concerning to check if there is supply chain

integration among departments in the company.
17 There is a NO% NO% NO% NO% NO%

supply
19
chain
integration
0 0 0 13 6
in the
company 100%
68.421% 31.578%
18 There is a 0 0 5 10 4 19
sharing of
accurate
informatio
n between
depts. 26.315 52.631% 21.052% 100%
%
Source: Questionnaire (2015)
The above table in 17 reveals that from the total number of respondents 100% strongly
agree and agree that the company has supply chain interaction. This shows that the company
works cooperatively with its customer and departments. Item 18 as it is clearly expressed in
the above table (73.683%) of respondents were strongly agreed and agree that accurate in
formations are shared between dep’t in the company .Whereas, (26.315%) of respondents are
neutral t. There are no respondents strongly disagree and disagree against the statement.
33
Table 4.3.7 Response about the profitability of company
19 The company is NO% NO% NO% NO% NO%

profitable when it has a
0 0 2 11 6
long-term relationship
with customer
19
10.526% 57.894% 31.578%
20 Downstream supply 0 O 0 11 8
chain integration lead 100%
company to win
customer and market
42.105%
share
57.894%
19
100%
Source: Questionnaires (2015)
Item 19 as it is clearly expressed in the above table (89.472%) of respondents were strongly
agreed and agree that the company is profitable when it has a long-term relationship with
customer. Whereas, (10.526%) of respondents are neutral. There are no respondents strongly
disagree and disagree against the statement.
As clearly stated on item 20 of the above table from all respondents 100% reveal that present
of downstream supply chain integration lead company to win the customer and market share
that increase company productivity.
34
CHAPTER FIVE
5. SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 SUMMARIES
 The research was conducted on the downstream of supply chain integration
practicein theAllot flour factory.And specific objectives of the study was the
strategic customer partnership, to describe the relationship between the
manufacturing company and its customer, whether strategic customer partnership
system of the company operates effectively and efficiently.
 To achieve the stand objectives the questionnaires was developed and distributed to
the sample of respondent through purposive judgment also sampling techniques.
The distributed questions were analyzed and findings were described as follow.
 The supply chain integration in the company are not properly and systematically
used, if it is management system used in the organization is moderate over
arranging customer partnership, and are not operating to extent to which customer
need.
 The result of this study assists in understanding on how strategic customer
partnership in thedownstream supply chain integration practice may influence the
35
company operation. The strategic customer partnership in the supply chain
integration would ultimately result in positive gains. The result validates some of
the key linkage and support belief and evidences found by other researchers with
regard to the customer partnership in the supply chain integration. It is also
important to note that this study attempt to enrich the literature review and make
contribution in the supply chain integration related studies.
 In addition, its purpose has to make explicit what other research have perhaps
known implicitly but without solid evidence .the empirical result support long
standing beliefs and anecdotal evidence by researcher about the relationship
between the exogenous (strategic customer partnership), and endogenous result ( the
company profitability ) , and lend credibility to causal hypothesis that improving
internal process leads to improvement in external performance result.
 Generally, the problem that the organization faced and affects the firm at current
time is the inability present of some SCI activity.
5.2 CONCLUSION
Based on finding, the following conclusions were generalized.

 This study was conducted on majority respondents of 14 (73.68 %) males and
minority respondents of 5 (26.32%) females in Allot flour factory.
 The firm was composed from majority of 10 ( 52.63 % ) age groups 31-40 years
followed by 21-30 years age group with account for 6 ( 31.57 % ) , and whereas,3
( 15.78% ) age groups 41-50 years and above 50 years is zero.
 Regarding to educational background of the respondents , the researcher has
concluded as majority of 10 ( 52.63 % ) degree qualified employees in the survey
followed by only 5 (26.31 % ) of diploma qualified employee 2 ( 10.52 % )
employees are certificate and 2(10.52%) respondents are master qualified. This
indicate the firm has running its business with majority of qualified man power.
 The time length of employee in the organization was concluded as there were 10
(52.63 %) of employee who serve in the firm from 1 to 5 years followed by 5(26.31
% of employee serve 6 up to 10 years. A little bit, 11(21.052%) are 11 and above.
36
 The finding of this study gives some inclination about Downstream ofsupply chain
integration practice. The firm seems gives more emphasis on short time delivery of
the required products by the existing customer.
5.3 RECOMMENDATION
According to finding based on collection data, the following recommendations were

forwarded. The firm need to implement its supply chain integration based on international
standards of activities that pointed out as the strategic customer partnership construct was
operation based on up on five different kinds of activities that manufacturer commonly use to
integrate their operation with customer namely: - emphasis on SCI activities, problem within
the company, continuous improvement program to measure performance.
 In order to access customer relationship from its customer, the firm needs to negotiate
and jointly solve problem with customer as it is also present in the company.
 The firm should improve most of the supply chain integration activities as well.
 To forward productivity, the firm should expand its customer relation more
strategically with outsiders.
 Company should make good relation with its customers as it follows.
 The company should share accurate information with customer.
 Training level given for the employee of the company is important to make the
employer of the company more knowledgeable in the circulation of supply chain and
supply chain integration as it is well practiced in the company.
 The company should attracting more potential customer rather than depending on
only the existing customer.
 The company has relationship with others company and there is a co-operation
between departments within the company so it should continue to improve it.
 The company should uses and improves direct delivery system.
 Lead time strategy is well managed by the company so it should be improved.
 The company has a good package system.
 Good customer service is well managed by the company.
 The company does not uses centralized resource system technique to get advantage it
should use it.
 According to study the company performance is good.
37
 The company has a good inventory system and should focus more than present
system.
 According to the finding, the company has a good profit.
 The company has good man power according to the finding that needs to be improved
continuously.
Reference
Donald J. Bowersox(2002).Supply chain logistics management.McGraw-hill, USA
www.scmjournals/articles. net.
Harrington L. (1995).Logistics, agent for change: shaping the integrated supply chain,
transportation and distribution.63-70.
Davis T. (1993) effective supply chain management. Sloan management review.
Kittler P. (1994). Marketing management. (8th Edition). New Jersey.
Rahall V. Alticor (2005). Supply chain management. New Delhi.
Donald Waters (2009). Supply chain management.2nd ED.
M. Hugo’s (2006).Essentials of supply chain management.2 nd Ed. John Wiley & Sons, Inc.
USA. Award, H. A. &Nassar, M. O., 2010. Supply Chain Integartion: definitions and
Challanges.
Hong Kong, Proceeding of International Multiconfrence of Engineers and Computer
Scientists. Barbara, B. F.,Baofeng, H. & Zhao, X., 2010. The Impact of Supply Chain
38
Integration on Perfomance: A contegency and configuration approach. Journa of Operation
Management, Volume 28, pp. 58-71
Vadis Kafelnikov (2000).Strategic supply chain management, Inc.USA

Robert B. Hadfield. (2002).Supply Chain Redesign: Transforming Supply Chain in to
integrated value system, Practice Hall, Financial Times.
Sunil Chopra and Peter Meindl,(2009).Supply Chain Management.(4thEdition).

Prentice Hall.
Flynn B.Sakakibara B. (1990).Empirical Research Method of operation management. Journal

of Operation Management.250-284.
Saxena P.J. (2003).Warehouse Management and Inventory Control. New Delhi: Vikas.
DILLA UNIVERSITY
COLLAGE OF BUSINESS AND ECONOMICS
Department Of Logistics and Transport Management
Survey Questionnaire
Dear Respondents,
My name is Girma Tsegaye, a prospective graduate of this academic year from Logistics and
Transportation Management department. The following are questionnaires designed to collect data
from Allot flour factory for a research paper that is partial fulfillment of BA degree in logistics and
transport management. The purpose of these questionnaires is to collect information concerning
“DOWN STREAM OF SUPPLY CHAIN INTEGRATION PRACTICE” INCASE OF
39
ALLOT FLOUR FACTORY. For the purpose of successful accomplishment of this study, your
sincere cooperation in filling the questionnaire is extremely valuable. Therefore, you are cordially
asked to deliver your support in objectively filling the questionnaires provided. The researcher
also wants to assure you that the data to be collected from you will be used for this academic
research purpose only; and its confidentiality will strictly be kept.
Thank you in advance for your cooperation!
Instruction
 no need of writing your name
 please put ( √ ) mark in the box
 asking for more elaboration is possible
Personal data
1. Age
Blow 20 □ 21-30 □ 31-40 □ 41-50 □ Above550
2. Educational qualification
Incomplete □ certificate □ masters and above □
Diploma □ bachelor degree □
3. Respondents work experience
Less than one year’s □ 1- 5 years □ 6-10 □ above 11 □
Instruction
Please put your (√) mark on the box provided for the statement you agreed with.
40
1. What company has continuous important that include customer outside?
Yes No
2. There is a good information network system in the company?
Yes No
3. There is a rapid response to the needs of the customer in the company?
Yes No
4. The company follows lead time determinant to response customer demand?
Yes No
5. There is a good customer service in the company?
Yes No
6. The company uses direct delivery system?
Yes No
41
7. There is a good inventory system in the company?
Yes No
8. The company has a good warehousing system?
Yes No
9. Manufacturing system is good in the company?
Yes No
10. There is a good package system in the company?
Yes No
11 .The companies use centralized resource system techniques?
Yes No
12 .The companies has co-operation with other companies of the same product?
Yes No
13. There is a problem when company is working to serve customer?
Yes No
42
14. The company regularly solve problem jointly with the customer?
Yes No
15. There is a training program use by the company to overcome challenges?
Yes No
16. There is supply chain integration in the company?
Yes No
17. The company is profitable when it has long-term relationship with customer?
Yes No
18. The company has good relationship with customer?
Yes No
19. Downstream supply chain integration leads company to win customer and market
share?
Yes No
43
INTERVIEW QUESTIONS TO ALLOT FLOUR FACTORY.
1. Would you explain the degree of collaboration of the company with distributors and
retailers as a supply chain member?
2 . Would you tell me please the strategies that your company adopts to support customers?
4. Could you tell me please the areas of collaboration with your distributors and retailers as a
supply chain member?
2. Do the company established criteria for supporting its customers? If yes, what are the main
criteria for supporting its customers to compete the market?
3. What is the level of involvement of your customers and suppliers in joint planning,
forecasting and sharing supply chain information?
4. Please describe your company relationship with customers (Agents).
a. Generally one-off contracts (under 1 year)
b. Short term (less than 3 years)
c. Long term relationships (more than 3 year)
5. What tell me the methods that your factories have been to communicate to your agents on
the issue of product distribution and related issues?
6. Could you tell me the level of information sharing in your company ?
7. Does the company use online technologies other than e-mail, like, for example, the internet
or an extranet, to facilitate?
a. Collaborate with business partners in the design of new products.
b. Collaborate with business partners to forecast product demand.
c. Manage capacity or inventories.
d. Exchange documents electronically with your Customers.
e. Purchase direct production goods.
44

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DOWN STREAM OF SUPPLY CHAIN INTEGRATION PRACTICE IN CASE OF ALLOT

DOWN STREAM OF SUPPLY CHAIN INTEGRATION PRACTICE IN CASE OF ALLOT

A SENIOR ESSAY SUBMITTED TO THE DEPARTMENT OF LOGISTICS AND

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF LOGISTICS AND TRANSPORT MANAGEMENT

BY: GIRMA TSEGAYE

ADIVSOR: ENDRIS.A (MBA

“DOWNSTREAM OF SUPPLY CHAIN INTEGRATION PRACTICE”IN CASE OF ALLOT

4.2.1 Classification of respondents by social and demographic issues

1.1. Background of the study

1.2. The Statement of the Problem

1.3. Basic Research Questions

1.4.2. Specific objectives

 To identify downstream SC activities in case of Allot flour factory.

1.5 Significance of the study

1.6 Scope of the study

It would be better to study all aspects of downstream SCI practice in manufacturing

 Emphasis on customer satisfaction

1.7. Limitation of the study

Supply chain management: The management of upstream and downstream relationships

Logistics management: The process of strategically managing the procurement,

2. RELATED LITERATURE REVIEW

Transportation management systems manager four key processes of transportation

2.3. Overview of supply chain integrations.

Organization linkage encompasses the means to communicate whether by EDI internet or by

The outlines three dimensions of supply chain integration: information integration,

2.4. Strategic customer partnership

2.5. Customer relationship

2.6. Quality of information sharing

2.7. Other supply chain management activities

A transportation management system is subset of supply chain management concerning

Transport Follow-up: Transportation Management system would allow following any

Measurement: Transportation management systems have or need to have a logistics key

Various functions of a TMS include but not limited to:

1. % of on time pick up or delivery performance relative to requested.

2. Cost per metric. Mile; km, weight, cube, pallet.

2.7.3 Importance of Transportation

- A key factor for any movement

- Connecting customer and supplier

- Increasing organizational profitability and

- Delivery goods at needed place.

2.8.1. Functions of inventory management

2.8.2. Significance of inventory

2.8.3. Warehousing management

2.9.2 Approaches (models) of SCI performance measurements.

2.9.3Supply chain management

2.9.5 Delivery lead time

2.9.6. Company integration into order fulfillment

2.9.7. Supply chain integration: Challenges and Good practices.

3. RESEARCH DESIGN & METHODOLOGY

3. 3. Types and Source of Data

3.4. Method of Data Collection and Instruments

3.7. Ethical Considerations

4. DATA PRESENTATION INTERPRETATION AND ANALYSIS

4.2 Personal information

Table 4.2.1 classification of respondents by social and demographic issues

2 Age 21-30 6 31.578%

1st degree 10 52.63%

Master and above 2 10.52%

4 Less than one year 0 0

1-5 year 10 52.63%

Gender, age, education and length of the work classification of respondents