Integrating developing country manufacturing industries into global supply chain

Abstract

Purpose: Due to globalized nature of manufacturing activities, the arena of competition and competitiveness advantage is moving from firms towards supply chains and networks. With the recent advancement of information and communication technologies this participation are becoming as common business practice in developed countries firms. Companies are more integrating into the world market for the global nature of the sourcing, manufacturing and distribution. These changes create both challenges and opportunities for the manufacturing industries in developing countries. The objective of this paper is to examine the level of interorganizational and intra-organizational supply chain integration practices in developing country, Ethiopia. Design/methodology/approach: An industrial questionnaire survey is used to collect the current practices of the manufacturing industries in Ethiopia as an example of the developing countries. Descriptive statistics is primarily used for the analysis. Findings: Results show a low level of supply chain relationship both in intra and inter organizational supply chain integration level among members. Accordingly, such issues require-174-Journal of Industrial Engineering and Management-http://dx.doi.org/10.3926/jiem.845 much attention to facilitate a greater integration within the global supply chains for the Ethiopian manufacturing industries. Research limitations/implications: The paper focuses on examining the practices of Ethiopian manufacturing industries empirical data. The interpretation of results should be taken with prudence. Originality/value: The manufacturing industry in developing countries (MIDC) has been a part of the global supply chains for long time as a supplier of raw material and manufacturer of primary products. Currently, the MIDC is trying to access the different markets segment of the world even with new products starting from their local market to the complex and dynamic international market. Nevertheless, their supply chains are inefficient and hence, their competitiveness level far from the norm expected. The supply chain integration will bring positive impacts and benefits for manufacturers in developing countries if it adopted properly.

The challenges and practice of metal industries into global supply chain integration: A literature review

“…Since the improvement and progress of basic metal industry sector have great role on other manufacturing industries expansion, developments and economic transformations. Albeit, the previous studies more empathize on the development of improvement models, strategies related to non-metal industries including garment (Abdullah & Musa, 2014), chemical industries, textile (Georgise et al, 2014), but forget metal sectors. Accordingly, the fifth issue emphasis in the missed and less emphasized agenda and concepts.…”

Performance Analysis of Manufacturing Industries for System Improvement

“…Meanwhile, in this study the Ethiopian manufacturing industry supply chain in trend and practice were investigated. The result shows that, in Ethiopia supply chain systems found as fragmented supply chain, rigid business process, problems on skill man power, outdated technology, poor information exchanges, systems are outdated and paper work, lack of a relevant literature on practical experience in supply chain integration have been the current trends and the challenges of Ethiopia manufacturing firms [6]. The following table also shows that the practices of supply chain systems on Ethiopian manufacturing industries ( Table 6).…”

“…Also, even if, the tremendous efforts made and the economic growth achieved, the Ethiopian economy remains beleaguered by structural problems. In specific, study [3][4][5][6][7]. shows that, due to skill man power, problems infrastructure and financial constraints the Ethiopia basic metal industries is poor in market shear and GDP contribution to the country.…”

The Roles of TQM and JIT For Basic Metal Industries Global Competitiveness

“…At the same time most of Ethiopian basic metal manufacturing industries has limited and improper improvement system. the pervious study [2][3][4] shows that Ethiopian basic metal industry, is characterized by lowest level of industrialization and poor performance, poor production capacity, poor innovation, problems product quality, poor export capacity. As a result, in the Ethiopia basic metal industries has not yet made their share of markets and their GDP contribution still low [3,5].…”

“…the pervious study [2][3][4] shows that Ethiopian basic metal industry, is characterized by lowest level of industrialization and poor performance, poor production capacity, poor innovation, problems product quality, poor export capacity. As a result, in the Ethiopia basic metal industries has not yet made their share of markets and their GDP contribution still low [3,5]. Consequently, this research is designed to study the role of continuous improvement programs for global competiveness of basic metal industry and attempted to fill this gap.…”