Abstract: | The supply chain encompasses various activities involved in the movement of products and
services, including financial, information, and material flows. Suppliers hold a crucial role and
contribute significantly to the chain. In Ethiopia, Ethiopian Industrial Inputs Development
Enterprise (EIIDE) is one of the key players involved in the sustainable supply of industrial
inputs to different industries. This research focuses on EIIDE and aims to examine the impact of
supply chain management on organizational performance, specifically studying the influence of
strategic supplier partnerships, information sharing, postponement strategies, and customer
relationships. Additionally, the study explores the challenges faced by EIIDE in implementing
effective supply chain management practices.
To gather data on EIIDE's supply chain, a survey design was employed, utilizing a questionnaire
covering various topics related to the organization's supply chain. The findings indicate a limited
level of strategic supplier partnerships, a communication gap with suppliers, challenges in
meeting delivery deadlines, and a lack of proactive communication from customers regarding
changes in their needs and interests. The study also highlights instances of misconduct within the
supply chain, reflecting unnecessary behaviour, as well as poor stock management practices.
Based on the findings, several recommendations are put forward. Firstly, it is advised that
EIIDE works closely with legal consultants to establish robust contracts capable of incentivizing
suppliers to fulfil their commitments. Furthermore, the enterprise should proactively foster
strategic supplier partnerships by developing a formal plan and facilitating collaborative efforts
in critical activities. Strengthening rules and regulations to address misconduct, corruption, and
unnecessary behaviour is also crucial, with a focus on rigorous implementation. |