FACTORS AFFECTING WHEAT FLOUR SUPPLY CHAIN PERFORMANCE: THE CASE OF OROMIA REGION, ETHIOPIA

Abstract

The research aims to investigate factors affecting Supply chain performance of wheat flour factory with a special emphasizes on manufacturing of wheat flour in central Oromia, more specifically in Eastern Shewa, Arsi and western Arsi zones. Simple random sampling technique was employed to select 186 sample respondents out of total population of 402 among farmers, traders, and flour factory manager. Survey data was collected from the sample respondents from beginning to end data. Both descriptive and inferential statistics and econometrics model techniques were used to analyze and interpret the data. The study initially elicited that four major factors affect the performance of Wheat Flour Supply Chain in central Oromia, namely: the level of relationship, the use of information technology and the amount of value addition. The key findings of the study show that, the level of members’ relationship, the use of information technology, Joint planning among members and the amount of value addition has positively related with supply chain performance and significantly affect its performance. The implication of the study for managers of the wheat flour factory is, they need to strength the relationship with the members in the supply chain; understand the role of using information technology and invest in it; and collaboratively work with the network actors to enhance the amount of value addition, so as to enhance the supply chain performance.