Determinants Of Milk Supply Chain Integration In Oromia National Regional State The Case Of Sululta District

Logistics And Supply Chain Management Project Topics

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The main objective of this paper was aimed to analyze the determinants of milk supply chainrnintegration in Sululta District. Specifically, it tried to identify the most determinant factors thatrnaffect milk supply chain integration and tried to prioritize factors that affect milk supply chainrnintegration across the supply chain actors based on information integration, coordinationrnresource sharing and organizational relationship linkage. Data were gathered from 97 milkrnproducing households and 20 milk traders through questionnaire survey and Likert scale-basedrnfactor evaluation were applied. Hence, data from the survey were analyzed and presented usingrndescriptive statistics. The results showed that, in most cases regardless of the significantrnimportance of information, integration for effective and efficient business performance, majorityrnof respondents from producers and traders affirmed that lack of joint replenishment forecast,rnabsence of real time information, and lack of sustainable and compatible information sharingrnsystem to improve collaborative market planning and decision making as the most importantrnchallenges for milk supply chain integration in study area. It also indicated that, the level of trustrnamong supply chain partners is limited. This implies that, the organizational relationship linkagernin the study area is very limited for cross-functional integration in milk supply chain initiatives.rnThe result also showed that, there were great challenges of coordination of resource sharing andrnthis lead to high cost of supply chain integration among supply chain partners. The threerndimensions of milk supply chain integration were prioritized from the most to the leastrndeterminant factors in the study area. Information integration, organizational relationshiprnlinkage and coordination resource sharing were prioritized as first, second and third by theirrnvirtue of their mean of mean score of Likert scale of 4.84, 4.83 and 4.62 respectively. Thisrnimplies that, information integration is an essential for the effective functioning of the wholernsupply chain integration. Which leads to sustainable relationship linkage and trust among supplyrnchain partners and lastly, the integration of coordination resource sharing might be broughtrnamong supply chain partners due to high level of trust. In general, milk supply chain in the studyrnarea seemed to be un-integrated and separately performed. Thus, the study recommended that,rnthe government should establish legal framework and written contract agreement platform tornmaintain trust, facilitate compatible information technology system and provide frequentrntraining to supply chain partners on the best practices in the form of seminars and workshops.rnMoreover, the study also recommended that, supply chain partners should introducerncoordination resource sharing in order to increase quality and minimize cost of milk supplyrnchain integration. These all need to be due attention in-order to enhance dairy businessrndevelopment through increasing efficiency and effectiveness among milk supply chain partners

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Determinants Of Milk Supply Chain Integration In Oromia National Regional State The Case Of Sululta District

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