Supply Chain Integration in the Manufacturing Firms in Developing Country: An Ethiopian Case Study

Abstract

With the advancement of information and communication technologies, supply chain integration has been considered a strategic tool for firms to improve their competitiveness. The supply chain integration within processes and between organizations has enhanced value creation. However, the fragmented nature of the business in developing country demonstrates a noticeable difficulty in terms of competitiveness and efficiency. Lack of a relevant literature on practical experience in supply chain integration in developing countries is one of the challenges. The purpose of this research is to identify the level of interorganizational and intraorganizational supply chain integration practices. It also analyzes the challenges faced in the manufacturing firms in developing countries. The methodology followed a thorough review of literature and semistructured interviews amongst the Ethiopian manufacturing industries. The preliminary findings of the study highlight that prevailing approach to supply chain integration is limited to ad hoc functional based boundaries within the firm. The SC integration enablers are also restricted to the traditional way of communications such as telephone, fax, and letters. Firms need to focus on those issues that require attention in pursuance of greater SC integration.