AMBO UNIVERSITY WELISO CUMPAS

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTEMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT

RESEARCH PROPOSAL SUBMTTED TO THE DEPARTMENT OF LOGISTIC AND

SUPPLY CHAIN MANAGEMENT .

TITLE:-ASSESMENT OF SUPPLY CHAIN MANAGEMENT IN CASE OF WELISO

SOAP FACTORY

BY: group 7

ID 020/09

ADVISOR:kumela t

May2018

WOLIS,ETHIOPIA
 HAWASSA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTEMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT

RESEARCH PROPOSAL SUBMTTED TO THE DEPARTMENT OF LOGISTIC AND

SUPPLY CHAIN MANAGEMENT IN PARTIAL FULFILLMENT FOR THE
REQUIREMENT OF BACHELOR OF ART (BA) DEGREE IN LOGISTIC AND SUPPLY
CHAIN MANAGEMENT

TITLE:-ASSESMENT OF SUPPLY CHAIN MANAGEMENT IN CASE OF HAWASSA

TEXTILE FACTORY

RESEARCHER NAME: SIGNATURE ADDRESS

TADELE KAWO --------------------- tadelekawo19@gmail.com

ADVISOR NAME
NAME SIGNATURE
NEGASH SIMION --------------

May2016

HAWASSA,ETHIOPIA
TABLE OF CONTENT page
 CHAPTER ONE

1. Background of the study ----------------------------------------------------------------------------- 1

1. 2. Background of the organization ------------------------------------------------------------------ 2

1.3. Statement of the problem ------------------------------------------------------------------------- 2

1.4. Objective of the study ------------------------------------------------------------------------------- 3

1.5. Scope (delimitation) --------------------------------------------------------------------------------- 4

1.6 Significance of the study ---------------------------------------------------------------------------- 4

1.7. limitation of the study---------------------------------------------------------------------------- 4

1.7. Operational definition ------------------------------------------------------------------------------- 4

CHAPTER TWO

2. Review of the literature -------------------------------------------------------------------------------- 5

2.1. Definition of supply chain concept ---------------------------------------------------------------- 5

2.2. Objective of supply chain management ---------------------------------------------------------- 6

2.3. Flows in supply chain management --------------------------------------------------------------- 6

2.4. Participants in supply chain management ------------------------------------------------------- 6

2.6. Supply chain decision phases ----------------------------------------------------------------------- 6

CHAPTER THREE

3. Research methodology --------------------------------------------------------------------------------- 8

3.1. Research design ---------------------------------------------------------------------------------------- 8

3.2. Source data ---------------------------------------------------------------------------------------------- 8

3.3. Sampling technique ----------------------------------------------------------------------------------- 9

3.4 Target population on the study--------------------------------------------------------------------9

3.5. Tools of data collection ------------------------------------------------------------------------------- 9

3.5.1. Data analysis technique --------------------------------------------------------------------------- 9

Abstract
This Research proposal will conducted to investigate “The supply chain assessment in
case of Hawassa textile factory. Supply chain operation plays a crucial role to sustain
company growth by reducing different operational cost and also essential for countries
economic growth. The main objectives of this study will to investigate the challenges of
supply chain operations for Hawassa textile factory and describing possible solutions
that can alleviate the existing challenges in the company operations. This study help‘s
the textile company to see supply chain operation and their challenges on company’s
performance that leads to company’s growth and profitability. The study will primarily
supported by using primary data source and secondary data source. the Primarily data
source will collected from direct observation, interviews and questionnaires. Finally the
study will be supported by non-probability, purposive sampling techniques.
 CHAPTER ONE

1. Back ground of the study

In present day Supply Chain is the recognized discipline to shorten cycle time,
transforming purchasing from tactical operation to strategic source, reduce inventories,
decrease logistics costs, and stream line communication process across a total network
from initial suppliers to final consumption and post-sale services. It is a mechanism
through diverse organizations finds the way to form alliance to a new form of internet-
oriented consumer demand (Charles C.Poirier and baler, 2002).

Supply chain is now a core business improvement effect form most companies as senior
management directive in that area becoming common place. Supply chain optimization
has emerged as a central objective for an organized effort enhances quality moved
logically to logistics and distribution, and then to total supply chain performance (Charles
C.perior and Michael baver, 2006).A company’s supply chain structure depends on the
maturity of their markets, products, and customer relationship. A start-up group may to
have to begin with loss virtual chain where, there is no formal long term supplier
organization (someerKumar and William A.knobby, (2005).

In order to achieve an organization’s goals a good supply chain decision is critical.

Supply chain requires many decisions related with the flow of information, product and
funds. There are phases (levels) of supply chain decisions: 1st strategic level which
involves a long term time horizon and at this level the firms establish objectives that are
consistent with a higher order mission statement and define strategies to achieve each of
those objectives (mantzer, 1993).2ndTactical level in this level the decision that need to be
updated regularly (i.e. monthly, quarterly and yearly. 3rd level is operational level with
day to day short term supply chain decisions.
 1.2. Background of the organization
Hawassa Textile factory is one of the oldest
companies, which was established in 1989 under State
ownership but as of 2011, the ownership was
transferred to Dukem Textile Plc at a cost of 37 million
Br. The company produces bed sheets and foam
mattress covers, school uniforms, workers uniforms
and thread. Of all its products, only thread has made it
to the international market, said Eyasu Atnafu, general
manager of Hawassa Textile factory.In fiscal 2010-11,
the Ethiopian government had initiated the first
‘Growth and Transformation Plan’ (GTP) for the textile
industry which concludes on July 7, 2015. During the
course of the first GTP, the government had planned
to boost textile exports to $1 billion; however, exports
from the sector till the third quarter of current fiscal
could only reach $427 million. As per statistics, there
are 130 textile factories, both medium and large scales
in the country, of which 37 are owned by foreign
investors.
1.3. Statement of problem
There is a close connection between the design and management of supply chain flows
(product, information, and funds) and the success of the supply chain (chopra, and peter,
2007). The study shows that the success and failure of the company is depend on supply
chain decisions (onlinesc.com). The companies like Wal-Mart who is the known world
retail company, Dell computer company who is known by its computer production and
others that built their success on superior design, planning and operation of their supply
chain (CHopra,and Peter ,2007).Also there are many companies who face failure because
of weakness in their supply chain design and planning. In our country Ethiopia, there are
many companies which faces failures at the very beginning because of they doesn’t give
attention to the decisions related with supply chain. There are different problems related
with supply chain decisions. Among these, the first one is the problem which is related
with strategy or design, because of low level of skilled man power to design a good
strategy. The strategic decision is critical in order to stay in business. There is also the
problems related with planning which leads the companies to failure and this kind of
problem occurs due to the problem of collaboration in the company and across the
company. The third problem is related with operational decisions this also leads the
company to either success or failure because of the strategic and tactical decisions will
become to implemented through operations. At this level there may carelessness occur
and it leads the company to big problem. All the above problems were observed from
Hawassa Textile factory and this study will contribute to fill the gap. In this study the
following basic questions will be answered:

1. Is there a well-organized strategy in Hawassa Textile factory?

2. Are there agood planning trends in Hawassa Textile factory?
3. Is the employees are motivated to accomplish a day to day activities?

1.4. Objective of the study

1.4.1. General objectives

This study aimed to assess the supply chain decision practices in Hawassa textile factory

1.4.2. Specific objectives

 To see a well-organized strategies in the company

 To enhance good planning trend in the company
 To see motivated employee
 1.5. Scope (delimitation) the study
Assessing a supply chain decision practices in all Textile factories company is important,
but because of time and cost constraints, plus it is difficult to assess by student compact,
the study is delimited to Hawassa Textile factory to investigate the three (3) supply chain
decision phases or levels.

1.6. Significance of the study

This study will contribute the following importances to the organization as well as the
readers.

 It would add new information to existing knowledge specially, about Supply

chain decision areas.
 It would contribute to modify or change existing strategies policies, rules and
regulations of concerned bodies.
 It would serve as a mirror that shows the images of the company to itself.

1.7. Limitation of the study

Shortage of time and finance are expected to be the major limitation of the proposed
study. Lack of explaining crucial activity by general manager and staff as well as
geographical location are the major limitation of the study

1.8. Operational Definitions

Network;-a connected and interdependent organization mutually and cooperatively
working together to control, manage and improve the flow of materials and information
from supplier to end user.
Upstream; -means against the current and related to the relationships between the
expertise and its suppliers and suppliers’ supplier.

Linkages; - coordination of SC processers, and relationship

Value; - is the amount buyers are willing to pay for what firm provides (porter).

Customer; - the recipient of goods and services that result from the process and activities
of supply chain.

CHAPTER TWO

2. Review of literature
2.1. Definition of supply chain concept

Now days, supply chain is the recognized discipline to shorten cycle time, transforming
purchasing from a tactical operation to strategic sourcing, reduce inventory inventories,
decrease logistics costs and stream line communication process across a total network
from initial suppliers to final consumption and post-sale services. It is mechanisms
through diverse organizations find the way to form alliance to a new form of internet-
oriented consumer demand (Charlesc. poirer and Baver, 2002).

There are various definitions offered by different scholars that attempt to describe the
supply chain concept. “Supply chain is that network of organization that are involved
through upstream and downstream linkages in different process and activities that
produce value in the form of products and services in the hand of the ultimate customer
or consumer” (KennethK. And bridn F., 2006).According to Michal hugos
(2006),Supply Chain is a network of facilities and distribution options that performs a
procurement of materials in to intermediate and finished goods and distribution of these
finished goods to customers. .Broadly Supply Chain is a network of organization that involved,
through upstream linkages in the different process and activities that produce value in the form of
goods and services in the hands of ultimate customer or consumer.

According to William J., 2005, Supply Chain is a sequence of organization- their

facilities, functions and activities- that are involved in producing and delivering a product
or service. Broadly, Supply Chain is defined by many scholars as the network of facilities
and distribution options that performs a procurement of materials in to intermediate and
finished goods to customers.Keneth and brain; defines Supply Chain as the network of
organizations that are involved, through upstream and downstream linkages, in the
different process and activities that produce value in the form of products and services in
the hands of the ultimate customer or consumer (Kennath and Brian ,2003,).

2.2. Objectives of Supply chain management

 To keep inventory management.
 To maintain and improve quality.
 Purchasing required items and services at lowest cost of ownership.

2.3. Flows in supply chain management

Within Supply Chain there are a flo! ucts and funds through the network involving a numbers of
enterprises that have an involving in the movement of materials from the source to the final
consumer.

2.4. Participants in Supply chain management

Supply Chain is composed of a company and suppliers, and it’s the result of complex interactions
within and between companies in relationship over time (ford et al).Supply Chain generally
contains the actor such as, producers, distributors, retailers and customers.

2.5. Supply chain decision phases

Each supply chain has its own unique set of market demands and operating challenges
and yet the issues remain essentially the same in every case. Such is the frequency and
impact of decisions made within the supply chain and their direct influence of firm
performance, that the scholars believe that insufficient attention has been giving to fully
understand the complexities of the decision making process. Supply chain management
relies on real time information flows at a number of different levels to ensure optimal
decision process efficiency and customer satisfaction (Dr .mike, marki, and Elena
.D12012).If the sales staff implements promotional activities without informing the
warehouse and production departments of the forthcoming increases in demand. Hence,
communicating at different levels need to be made at what level and by whom.
Understanding this dilemma and consequences (barriers to overcome) of not
communicating in coordination manner is the focus of this study. Understanding the
Supply Chain decision context is important in the current dynamic business environment
as it facilitates joint management of Supply Chain which leads to competitive advantage
(mentezer, 1993). There are three levels (areas) of Supply Chain decision making:

 The first phase of Supply chain decision is strategic level

At this level the firms establish objectives that are consistent with a higher order mission
statement and define strategies to achieve each of those objectives (mentzer, 1993). These
objectives should define cost drivers of differentiation, and the resultant strategic
positioning (porter, 2002).

 The second phase of Supply Chain decision is tactical or

planning level

At this level the decisions are that need to be updated regularly i.e. monthly, quarterly,
and yearly) such as purchasing and production decisions, inventory policies and
transportation strategies and customer strategies. The tactical level covers the planning of
supplies manufacturing schedules and the forecasting of demand in order to ensure
seamless operation of the Supply Chain (fox, 2002).
  The third phase of supply chain decision is operational
level

The operational decisions level is deal with the day-today short term of Supply Chain
decisions. Some of these decisions are scheduling, lead time quotations, routing and
truck loading plans and schedules to meet actual demand are executed at the operational
level (fox, 2002).

CHAPTER THREE

3. Research design and methodology

3.1. Research design

The study will use the descriptive type of study. Because the descriptive study uses to
describe the state of affairs as it exists at present and the aim of the researcher’s is to
describe state of facts in supply chain decision making practices in Hawassa textile
factory as it exist.

3.2. Sources of data

To conduct this research proposal paper, the researcher will use both primary and
secondary source of data.

3.2.1. Primary sources

Primary source of data is first-hand information collected by researcher. This includes
interview, observation and questionnaires. Primary data also helps researcher to generate
clear and more detailed understanding of the problem at hand.

3.2.2 Secondary data sources

It is already collected by someone else and passed through statistical process. This
provides a good back ground of information about the subjective under the study. This
kind of data sources includes book, bin cards of the organization, journal, and etc.

3.3. Sampling technique

3.3.1. Population

The population of the study is Hawassa textile factory logistics and supply chain
management staff. Because they can understand better the objective of the study.

The total population of the study is 100 (N=100).

3.3.2 Sample and sample size

The study will be apply non –probability sampling. Purposive/judgmental sampling

technique will be used to determine sample size. Based on this 15%of the total
population. By the formula of (Yamane1967). The confidence interval (e) = 15
n=N/1+N (e) 2 =100/1+100(0.15)2 =30
 3.4 Target population on the study
The researcher’s target population in all logistics and supply chain management related
departments is 100. These logistics and supply chain management related departments
are:-purchasing, customer service, warehousing and materials management and
transportation. From these the researcher will use 15% of target population approximately
15 employees as the sample size and will be distribute questionnaire to each of them

3.5. Tools of data collection

In order to conduct an effective research proposal, accurate and reliable data is crucial.
The necessary information will be collected though different methods of data collection.
In this study, both primary and secondary data will be used the collection of primary data
will be conducted through unstructured interview and questionnaires the unstructured
in interview will be used because it enables the researcher to ask questions further
beyond what he intended. Making interview with all of the sample population is difficult
because it’s Cost and consumes time thus; in order to overcome these difficulties the
researcher will be used questionnaire to collect primary data. Observation is less
important because it cannot provide the past information thus researcher will not use
observation to collect primary data. The secondary data will be collected from different
source of documents of the organization which are related with the Supply Chain
decisions.

3.5.1. Data analysis technique

The collected data as per the method stated above will be coded, tabulated and presented
in terms of percentage. The analysis goes through organization’s analysis and interpreting
and conclusion of the finding will be draws to analyze the research work as whole.

Work plan
Scheduling of project time and budget is important in any proposal to complete the study
effectively and efficiently as much as possible.

I. Time schedule

Because of the lifespan of research proposal is restricted, preparing time schedule is

important to complete the study within given period of time.

Table 1.1 chart of the work plan of the research proposal is presented as follow:

Months
No Activity February March April May

1 Title selection and submission of the

selected title
2 Proposal preparation, literature, survey and
submission of proposal and literature
3 Develop questionnaires’ and duplication of
data collection tools
4 Conducting pre test
5 Data collection through questionnaires

6 Data recording ,coding and entry, clearing

7 Data analysis and write up

8 Submission of first draft of the final

research
9 Presentation of finding and submission of
final paper
II, Cost (budget) schedule

There is a different expense which spent to conduct research properly. The purchase of
stationary, printing, photocopy, and other expenses related with the study is presented as follow:

Table 1.2. Cost schedule for the research

No Items Amount of money needed Total cost

Birr cents
1. Secretarial work
-printing 300
-copy 6
-duplication 7
Binding 25
2. Transport east 135
Foods 200
refreshment
Telephone 280
Sub total 947 1.14 948.14
References
Baver, C. C. (2006). Supply chain management and e-commerce. India: Inc.

Charles C. poirier and Michael Baver. (2006). Supply chain management and e-commerce. India:
press.

Chopra, s. (2007). Supply chain management (3rd ed.). New Jersey: Pearson education, Inc.

David N. Burt and Donald W. Dobler. (2003). world class supply chain management. USA:
Chicago.

Handfeild, Nichalas Jr. (2006). Supply chain redesign. USA: Chicago.

Kenneth Lysonsad Brain Farrington. (2006). Purchasing and supply chain management (7th ed.).
USA.

Michael, H. (2006). Essentials of supply chain management (13th ed.). Singapore.

Peter, S. c. (2004). Introduction to supply chain (7th ed.).

Stevenson, W. J. (2005).

www.onlineSupply Chain.com