Assessment Of Critical Factors Of Inbound Logistics Performance (the Case Of Un-wfp White Maize Procurement Under Purchase For Progress-p4p)

The United Nation World Food Program (UN-WFP) implements P4P (Purchase for Progress) programrnin Ethiopia since 2010. The program mainly procures White Maize from different FarmersrnCooperative Unions (FCUs). But, the total average Maize price of those smallholder farmers found arn2% to 11% higher than the price of a MT of Maize from traders. As a result, the WFP divert much ofrnits purchase to traders even if its corporate strategy aimed to save 10% from total purchase valuernthrough buying 10% of the quantity from those Smallholders farmers’ organizations. So the researchrnaimed to identify the critical inbound logistical factors that can play a significant role for the successrnof 10% saving by procuring commodity from Smallholder farmer organization at lower price thatrntraders. The researcher used quantitative approach by designing the study in both descriptive andrnexplanatory methods in order to measure the relation of logistics activities with performance ofrninbound logistic. In order to test the variables, both primary and secondary data were collected.rnPrimary data collected using a survey methods and applying questionnaire as a tool. Responses of 34rnwere analyzed using Bivariate Ranked correlation test Kendall’s tau-b method. On the other hand, thernsecondary data analyzed using percentage to reveal the practice of Forward Delivery Contractrnexecution. Accordingly, the findings indicated that customer response management activity ofrnlogistics play a major role and FCUs are suffered due to lack of clear organizational structure thatrnencourage management to apply their capacity to develop ideas and giving prompt decision tornincrease competitiveness of the Union with regards to Maize supply to WFP. Also, the commodity hasrnbundle cost that did not add value to the product but affect the competitiveness adversely. Then, arnrecommendation on the necessity to study FCUs current organizational structure and adopt the changernto bring effectiveness was given. Also, the need to revise cost components of Maize recommendedrntogether with provision of continuous capacity training for FCUs management particularly onrndeveloping strategy & setting performance evaluation model that take in to consideration financialrnand non-financial part of the business.rnKey Words: Competitive advantage, Logistics, Inbound Logistics, Balanced Score Card (BSC)Efficiency

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