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Timnit Proposal F.
Timnit Proposal F.
MBA
May, 2024
Mekelle, Ethiopia
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Table of Contents
CHAPTER ONE......................................................................................................................................................1
1. Introduction..........................................................................................................................................................1
1.1. Background of the Study...............................................................................................................................1
1.2 Statement of the Problem...............................................................................................................................2
1.3 Objective of the Study....................................................................................................................................4
1.3.1 General objective.....................................................................................................................................4
1.3.2. Specific objective...................................................................................................................................4
1.4. Research Questions.......................................................................................................................................4
1.5. Significance of the Study..............................................................................................................................5
1.6 Scope the Study..............................................................................................................................................5
1.7. Limitation of the study..................................................................................................................................5
1.8. Organization of the Paper.............................................................................................................................6
1.9. Definition of Terms.......................................................................................................................................6
Chapter Two: Review literature...............................................................................................................................8
2.1. Concept of Supply Chain Management........................................................................................................8
2.2. The Relationship between SCM of The Organizational Performance..........................................................9
2.2.1 Customer Relationship............................................................................................................................9
2.2.2 Strategic Supplier Partnership.................................................................................................................9
2.2.3. Level of Information Sharing.................................................................................................................9
2.2.4. Quality of Information Sharing............................................................................................................10
2.3. Organizational Performance.......................................................................................................................10
2.4 .Competitive Advantage Manufacturing Organization................................................................................10
CHAPTER THREE: RESEARCH METHODOLOGY........................................................................................11
3.1 Location of the study area............................................................................................................................11
3.2. Research Approach.....................................................................................................................................12
3.3. Sources of data............................................................................................................................................12
3.4. Sample size and sampling procedure..........................................................................................................12
3.5. Data collection method...............................................................................................................................12
3.6. Method of data analysis and processing.....................................................................................................13
4. Schedule plan and Budget.................................................................................................................................14
5. Reference...........................................................................................................................................................15
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CHAPTER ONE
1. Introduction
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traditional management of the internal activities to an innovative handling of the internal processes in the
broader environment of a supply chain (Marco, 2015).
According to Emily (2017) defines that the management of material, money, human resource, and information
within and across the supply chain to maximize customer satisfaction and to enhance competitive advantage.
The challenge associated with getting a product and service to the right time at the lowest cost should be
resolved within supply chain management practice. In this emerging competitive environment, the challenges
associated with getting a product and service to the right place at the right time at the lowest cost are the
determinant factors. There are some factors or practices that affect the performance of supply chain
management for instance Christopher (2017) noted that strategic supplier alliances are one of the vital factors
influencing supply chain performance. Other factors which are needed for successful implementation of supply
chain management program consider by Truong et al. (2017) is having good relationships with customers.
Mesfin Industrial Engineering (MIE) being one of the Endowment Fund for the Rehabilitation of Tigrai
(EFFORT) companies is a privately owned company located at the northern part of Ethiopia, in the Tigrai
regional capital, Mekelle. It is the leading equipment manufacturing and industrial engineering company in East
Africa. MIE designs and installs equipment’s & components for the energy, mining, manufacturing,
construction, transportation, and agricultural sectors (MIE, 2023). Despite this fact, the company could not
achieve a sales volume as expected due to war and sometimes its annual sales volume is less than what other
small firms can achieve it within a year. Furthermore, this in turn will help the company improve its supply
chain management, enabling the company to strengthen its competitive advantage relative to its competitors and
enhance its organizational performance.
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For any business activity, such as supply chain management (SCM), which has strategic implications for any
company, identifying the required performance measures on most of the criteria is essential and it should be an
integral part of any business strategy. Many methods have been suggested over the years for SCM evaluation of
any organization (Bhagwat et al., 2007).
Due to the number of rival companies expanding both locally and globally, companies not only have to
reestablish themselves to produce higher-quality products and services, decrease waste and are able to respond
to the market but also to handle their supply chain management efficiently. Organizations are facing different
kinds of challenges in their effort of competing in today’s dynamic global markets. To remain competitive,
organizations must recognize the importance of supply chain practices that improve not only their own
organizational performance, but also coordinate with their supply chain partners to improve their joint
performance. Yet, despite the significant advances in research and practices, many organizations continue to
struggle to understand the complex issues associated with the coordinated planning and supply activities
amongst the members of their supply networks (Makena, 2014).
Mesfin Industrial Engineering (MIE) being one of the Endowment Fund for the Rehabilitation of Tigrai
(EFFORT) companies is a privately owned company located at the northern part of Ethiopia, in the Tigrai
regional capital, Mekelle. It is the leading equipment manufacturing and industrial engineering company in East
Africa. MIE designs and installs equipment’s & components for the energy, mining, manufacturing,
construction, transportation, and agricultural sectors (MIE, 2023). Despite this Mesfin Industrial engineering
may be facing challenges in aligning their supply chain management practices with sustainability goals, such as
reducing environmental impact or ensuring ethical sourcing practices. Competitive Pressure: Intense
competition in the industry may require Mesfin Industrial Engineering to enhance their supply chain
management practices to gain a competitive advantage and meet customer demands effectively.
Since the business environment where Mesfin industrial engineering is operating becoming more and more
competitive, Mesfin industrial engineering is highly recognizing the need to focus on supply chain management
to improve its competitive advantage and thus enhance its organizational performance. Therefore, and in spite
of the increasing interest in and importance of supply chain management, especially for manufacturing
companies like Mesfin industrial engineering, studies regarding the effect of supply chain management on
business variables such as competitive advantage and organizational performance are still rare. Accordingly,
there is a significant need for more research on this topic. One potential research gap in the study could be the
lack of comparison with other companies in the manufacturing industry. By focusing solely on Mesfin
Industrial Engineering, the study may miss out on valuable insights that could be gained by comparing supply
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chain management practices, competitive advantage, and organizational performance across multiple companies
within the same industry.
- To analyze the current supply chain management practices at Mesfin Industrial Engineering.
- To assess the relationship between supply chain management and competitive advantage in the manufacturing
industry.
- To evaluate the impact of supply chain management on organizational performance in Mesfin Industrial
Engineering.
- To identify strategies for enhancing supply chain management practices to improve competitive advantage and
organizational performance.
How does effective supply chain management contribute to the competitive advantage of mesfin
industrial engineering?
What the key elements are of supply chain management that have direct impact on organizational
performance of mesfin industrial engineering?
What are the challenges and barriers faced by Mesfin industrial engineering in implementing effective
supply chain management practice and how do these impact its competitive advantage and
organizational performance?
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1.5. Significance of the Study
This research is significant as it will provide valuable insights for Mesfin Industrial Engineering and other
manufacturing companies on the importance of effective supply chain management in achieving competitive
advantage and organizational performance.
The significance of the research will lies in their potential to provide valuable insights for businesses,
particularly in the manufacturing industry, on how effective supply chain management practices can lead to
competitive advantage and improved organizational performance. By understanding the specific impacts and
relationships between supply chain management, competitive advantage, and organizational performance,
companies like Mesfin Industrial Engineering can make informed decisions and implement strategic changes to
enhance their operations and gain a competitive edge in the market. Ultimately, the research findings can help
organizations optimize their supply chain processes, increase efficiency, reduce costs, and ultimately improve
their overall performance and profitability.
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Industrial Engineering and other companies in the industry may be limited, which could impact the depth and
breadth of the analysis. Incomplete or inaccurate data could also affect the validity of the study's findings. The
other limitation is Time constraints: The study's timeline and resources may be limited, affecting the depth of
analysis and the scope of the research. Time constraints could restrict the ability to conduct comprehensive data
collection, analysis, and interpretation, potentially limiting the study's overall rigor and validity. Response bias
may be a risk of response bias in surveys or interviews conducted with employees or stakeholders within
Mesfin Industrial Engineering or other companies. Respondents may provide socially desirable responses or
inaccurate information, impacting the reliability of the data collected for the study. Addressing these limitations
through careful research design, data validation, transparency in reporting methods, and acknowledging
potential biases can help mitigate their impact on the study's validity and reliability.
Supply Chain Management (SCM): is the movement of goods and services and includes all processes that
transform raw materials into final products.
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Strategic supplier partnership: is defined as a planned alliance of two or more firms in a supply chain to
facilitate joint effort and collaboration in one or more core value creating activities.
Organizational Performance: it refers to how well an organization meets its financial goals and market criteria.
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Chapter Two: Review literature
Supply chain (SC) is an administration of numerous capacities performed by a firm incorporates sourcing and buying, producing,
logistics coordination’s exercises and the robust coordination between SC collaborators. Considerable number of firms has begun to
understand that the SC is the basis for setting up a beneficial competitive edge in growingly busy and competitive markets (Tigist and
Rajwinder, 2020). Supply chain management is the management of relationships from upstream to downstream or from
suppliers to consumers to provide more value to customers and reduce overall supply chain costs. SCM practices have
been defined as a set of activities carried out within an organization to promote the effective management of its supply
chain. Researcher identified six aspects of SCM practice through factor analysis: supply chain integration, information
sharing, supply chain characteristics, customer service management, geographical proximity, and JIT capabilities.
Researchers used supplier base reduction, long-term relationships, communication, cross-functional teams, and supplier
involvement to measure buyer-supplier relationships. Thus, the literature describes SCM practices from different
perspectives with a common goal of ultimately improving organizational performance (Negar and mahayr, 2023). Supply
chain management has certainly become an important component for the profitability of anyorganization. It is important
to highlight that there has been recent development in the supply chain management (Karimi and Rafiee, 2014).
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2.2. The Relationship between SCM of The Organizational Performance
SCM is defined as a series of integrated activities, starting from the procurement of materials and services, which then
turn them into semi-finished or finished goods, and distribute them to consumers. Means, goods are produced in the right
quantity, at the right time and place with the aim of achieving the minimum costs (ordering costs, storage costs, raw
material costs, transportation costs, etc.) of all company business operations processes and there are five indicators of
SCM, namely: strategic supplier partnerships, customer relationships, information sharing, information quality levels, and
postponement ( Azmi and Ika, 2020).
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(Moberg, Cutler, Gross, & Speh, 2012. Level (quantity aspect) of information sharing refers to the extent to which
critical and proprietary information is communicated to one’s supply chain partner. Supply chain partners who
exchange information regularly are able to work as a single entity. Together, they can understand the needs of the
end customer better and hence can respond to market change quicker.
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CHAPTER THREE: RESEARCH METHODOLOGY
This chapter will include research design and methodologies used in this study. It includes, the choice of
particular research approach, research location, research design, data type and source of data, data gathering
techniques and instruments, sampling and sampling techniques, methods of data analysis techniques.
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3.2. Research Approach
The Both quantitative and qualitative study approach was conducted in order investigate humanitarian logistics
coordination role, practice and challenges aligning with the relationship with organizational performance in SCM
practices of the organization. Quantitative research technique was employed in order to obtain the logistics and supply
chain team perceptions on logistics coordination and supply chain practices in the organization. Qualitative research
method allows the use of historical analysis.According to Creswell (2013), mixed research method is suitable for the
development of concepts which help us to understand social phenomena in natural (rather than experimental) settings,
giving due emphasis to the meanings, experiences and views of the participants. It is generally used to gain an
understanding of underlying reasons as well as to uncover the implementation of supply chain management practices and
their effect on the performance as well as to find answers to the research problem.Structured questionnaire was employed
as a data collection tool. Information was collected from the logistics, procurement and supply chain department and those
who provide related service to the program.
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observation will be part of the study. Secondary will be obtained from published literature and unpublished
reports from the MIE and other journals.
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4. Schedule plan and Budget
S/
No Task Time Schedule Remark
1 Developing proposal Apri to May28/2024
2 Data Collection May 30-June 20/2024
3 Data Analysis June 21-June30/2024
4 Findings and Discussion July 1 -July 3/2024
5 Recommendations and Conclusion July 4 -July 5/2024
6 Final Write-Up and Revisions July6-15/2024 Including
7 Final submission of thesis July 20/07/2024 comments
S/ Total in
No Task Time Schedule Birr Remark
1 Surveys/Questionnaires:
Printing costs 300 pages*5 birr 1500
Traveling cost 2000 3000
Materials and
2 Equpmient 300 300
Research printing 70 pages*5Birr*3 Bindes 1100
Binding Research 3*50 birr per one bind 150
Total 6050
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5. Reference
Ali R. (2013): “Relation Between Supply Chain Efficiency and Supply Chain Finance,” International Research
Journal of Applied and Basic Sciences, 4(2): 416-423.
Azmi Muhammad Islam and Ika Nurul Qamari(2020) Effect of Supply Chain Management on Competitive
Advantage and Organizational Performance Studies on the Batik Industry in Yogyakarta City, Proceedings of
the 4th International Conference on Sustainable Innovation 2020-Accounting and Management, Advances in
Engineering Research, volume 201
Emily D.S, (2017). What is supply chain management and why it is important
Feldmann M, Müller S. (2003) ‘An incentive scheme for true information providing in supply chains’,
OMEGA; 31(2):63–73.
KARIMI, E., & RAFIEE, M. (2014). Analyzing the Impact of Supply Chain Management Practices on
Organizational Performance through Competitive Priorities (Case Study: Iran Pumps Company). Ijarafms, 4(1).
http://dx.doi.org/10.6007/ijarafms/v4-i1/503
Li Suhong, Bhanu Ragu-Nathan, T.S. Ragu-Nathan, S. Subba Rao. (2006). The impact of supply chain
management practices on competitive advantage and organ performance . International Journal of Management
Science, 107-124.
Lockamy, A., & McCormack, K. (2004), Linking SCOR Planning Practices to Supply Chain Performance: An
Explorative Study, International Journal of Operations and Production Management, 24(12), 1192–1218.
Marco A. (2015): An analysis of Supply Chain Finance in Europe: unexploited potential and future
Improvements.
Martin, P., & Paterson, J. (2009), On Measuring Company Performance within a Supply Chain, International
Journal of Production Research, 47(9), 2449–2460
Moberg, C., Cutler, B., Gross, A., & Speh, T. (2002). Identifying antecedents of information exchange within
supply chains. International Journal of Physical Distribution and Logistics Management
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Negar Jahanbakhsh Javid , Mahyar Amini(2023) Evaluating the effect of supply chain management practice on
implementation of halal agroindustry and competitive advantage for small and medium
enterprises ,International Journal of Computer Science and Information Technology Volume 15, Issue 6
Stuart, F. (2007). Supply-chain strategy: organizational influence through supplier alliances. British Academy
of Management.
Tigist Wolde Gebre, Rajwinder Singh (2020): Impact of Supply Chain Practices on Competitive Advantage:
Evidence from Ethiopian Brewery Industry International Journal of Innovative Technology and Exploring
Engineering (IJITEE) ISSN: 2278-3075 (Online), Volume-9 Issue-9, July 2020
Truong, H. Q., Sameiro, M., Fernandes, A. C., Sampaio, P., Duong, B. A. T., Duong, H. H., & Vilhenac, E.
(2017). Supply chain management practices and firms ‘operational performance. International Journal of
Quality & Reliability Management.
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