Microlink Information Technology And Business College

A RESEARCH PROPOSAL SUMITTED TO DEPARTMENT OF MBA AS APARTIAL FULFILLMENT OF THE

REQUREMENT FOR THE MASTER OF BUSINESS ADMINISTRATION (MBA) specialization on LOGISTICS
AND SUPPLY CHAIN MANAGEMENT

ASSESSMENT OF LOGISTICS AND SUPPLL CHAIN MANAGEMENT IN MANUFACTURING INDUSTRY (CASE

STUDY OF MOHA SOFT DRINKS INDUSTRY S.C, MEKELLE PLANT)

By: Tekeste Dade

ID NO: MBA 4196/19

ADVISOR: Yonas Berhanu (Ass prof)

ACRONYMS AND ABBREVIATIONS

LSCM Logistics and supply chain management

SCM Supply chain management

SC

SRM

MOHA Mohammed Hussein Al-Amoudi

CHAPTER ONE

1.1 Introduction

Logistics and supply chain management (LSCM) play a vital role in the manufacturing
industry. LSCM encompasses the planning, execution, and control of the efficient, cost-
effective flow and storage of raw materials, in-process inventory, finished goods, and
related information from the point of origin to the point of consumption for the purpose of
meeting customer requirements.

In the manufacturing industry, LSCM is responsible for ensuring that the right materials are
in the right place at the right time to support production and meet customer demand. This
involves managing a complex network of suppliers, manufacturers, distributors, and
retailers.

Logistics and Supply chain management (LSCM) is a critical function in the manufacturing
industry, playing a pivotal role in ensuring the efficient and effective flow of goods and
information from raw materials to finished products to end consumers. In today's competitive
and dynamic business environment, SCM has become a strategic advantage for manufacturers,
enabling them to optimize costs, improve quality, and enhance customer satisfaction. LSCM
activities in the manufacturing industry include procurement, transportation, warehousing,
inventory management and order fulfillment

Supply chain network refers to the steps taken to move and store product from supplier stage to
customer stage. It occurs between every pair of stages overall profitability of a firm. Supply
chain is Life cycle processes comprising physical, information, financial, and knowledge flows
whose purpose is to satisfy end-user requirements with products and services from multiple
linked suppliers (Ayers, 2000).

1.2 Back ground of company

Moha Soft Drink Industry S.C. is a leading beverage producer in Ethiopia, established in was
acquired from the Ethiopian Privatization n Agency and established on May 15, 1996 with the
following purposes, to manufacture, buy, sell, bottle, distribute and otherwise deal in
nonalcoholic beverages mineral and aerated waters and the ingredients. The company produces
and distributes a wide range of popular soft drinks, including Pepsi, Mirinda, 7-Up, and Kool.
Moha Soft Drink has a strong presence in the Ethiopian market, with a distribution network that
reaches every corner of the country. The company is committed to providing high-quality
products that meet the needs of its customers.
Moha Soft Drink is a major player in the Ethiopian beverage industry, with a market share of
over 50%. The company's success is due in part to its strong commitment to innovation. Moha
Soft Drink has a dedicated research and development team that is constantly working on new
products and flavors. The company is also committed to sustainability, and it has implemented a
number of initiatives to reduce its environmental impact.

MOHA Soft Drinks Industry Mekelle plant is one of the Medroc Corporation among the 8 soft
drink plants (Nifas Silk, Teklehaimanot, Summit, Gondar, Dessie, Bure, Hawassa and Mekelle)
that located at Mekelle the capital city the Tigray reign established in 2014 G.C built up at
6,100m2 by project cost of 80 million Birr.

Moha Soft Drink is a valuable contributor to the Ethiopian economy, and it is a major employer
in the country. The company is also a strong supporter of local communities, and it is involved in
a number of social responsibility initiatives.

1.3 Problem Statement:

Manufacturing companies face challenges in managing their supply chains effectively, leading to
inefficiencies, cost overruns, and potential disruptions that can hinder their ability to meet
customer demands and maintain a competitive edge.

Global Supply Chain Complexity: The interconnected nature of global supply chains, with
components sourced from various regions, increases complexity and exposes manufacturers to
potential disruptions from geopolitical events, natural disasters, or transportation disruptions.

Demand Volatility and Forecasting Accuracy: Unpredictable demand fluctuations can lead to
inventory shortages or overstocks, causing significant financial losses. Accurate demand
forecasting is crucial for optimizing production schedules and inventory levels.

Supply Chain Visibility and Risk Management: Limited visibility into supply chain activities
can hinder proactive decision-making and risk mitigation. Manufacturers need real-time insights
into supplier performance, inventory levels, and potential disruptions to prevent stock outs or
excessive inventory.

Technological Advancements and Integration: Rapid technological advancements in SCM,

such as artificial intelligence, big data analytics, and automation, can provide manufacturers with
powerful tools for optimization and efficiency. However, integrating these technologies into
existing SCM processes can be challenging.
Sustainability and Ethical Sourcing Practices: Growing consumer and regulatory pressures
demand sustainable practices throughout the supply chain, including reducing environmental
impact, ensuring ethical labor practices, and sourcing materials responsibly.

Objectives of the study

The general objective of this study is to identify effect of LSCM on organizational performances.
The primary objective of this study is to assess LSCM practices of mekelle plant and its
relationship with competitive advantage.

Specific Objectives
Specific Objective of the study:

1. To assess the SCM practices of the case factory in terms of supplier relationship
management.

2. To assess SCM practice of the case factory in terms of Customer relationship management.

3. To assess SCM practice of the case factory in terms of the level of Information Sharing,
Information Quality, and Internal Lean Practice.

4. To assess the relationship between supply chain management practices and Competitive
advantage of mekelle plant.

5. Explore the effect of information system for efficiency on the supply chain performance
of the company
6. To examine the impact of different LSCM practices on the performance of manufacturing
companies.
i. To identify effect of Strategic Supplier Partnership on organizational performance;
ii. To analyze effect of Customer Relationship on organizational performance;
iii. To examine effect of Level of Information Sharing on organizational performance
iv. To examine effect of Quality of Information Sharing on organizational performance; and
v. To analyze effect of Internal Lean Practices on organizational performance.
1.4 Methodology

This thesis will use a qualitative case study approach to examine the implementation of
sustainable SCM practices at Moha Soft Drink. The case study method allows for in-depth
exploration of the company's specific context and experiences.

Data collection methods will include:

1. Semi-structured interviews with Moha Soft Drink employees from various departments
involved in SCM operations.
2. Review of company documents, including sustainability reports, policies, and procedures
related to SCM.
3. Observation of the company's supply chain activities at selected sites, if permitted.

The collected data will be analyzed using thematic analysis to identify recurring themes and
patterns related to sustainable SCM practices at Moha Soft Drink.

Scope of the study

This thesis will focus on exploring the implementation of L&G SCM practices in Moha Soft
Drink, a leading beverage manufacturer in Ethiopia. The study will encompass the following key
areas:

1. Identification of L&G SCM Practices

2. Assessment of Environmental Impact:

3. Evaluation of Financial Performance

4. Recommendations for Further Enhancements:

Significance of the study

Limitation of the study

Research methodology