SUPPLY CHAIN PERFORMANCE EVALUATION AND MODELING: CASE OF SIDAMA COFFEE FARMERS‟ COOPERATIVE UNION

Abstract

This thesis aims to propose a supply chain (SC) performance evaluation model in the coffee processing industries: Case of Sidama coffee farmers’ cooperative union (SCFCU). Coffee is a major agricultural export commodity of Ethiopia, particularly the Sidama Zone, which has a high potential for specialty coffee. From Sidama Zone, SCFCU has major contribution supplying coffee product to domestic and export market unifying 61 coffee farmers’ cooperatives and being the second-largest union in the country. However, the primary coffee farmers’ cooperatives are facing enormous challenges at the current time in sourcing methods and production processes decreasing SC performance associated with quality of raw material and costly production making them unable to be a competitive and unprofitable business. They have no suitable SC performance evaluation model, standardized business operation process and methods that can improve their inter-organization and SC performance in a sustainable way. To solve these problems, the thesis study on SC performance evaluation and modeling was conducted. To achieve the study goal, investigation and reviewing of an appropriate SC performance evaluation model were carried out to have comprehensive knowledge. From several SC performance evaluation models, the SCOR model is identified as an appropriate SC evaluation model being dynamic, balanced and universal model. Significance of the study, using the SCOR model is believed to give an insight for the primary coffee farmers’ cooperatives as well as other concerned bodies about the existing challenges of coffee processing industries SC suggesting possible solutions to the problems and enabling them to improve SC performance. Because SCOR model designated to analyze SC performance and optimize the various processes in SC and it can play an important role in identifying problem-solving ways being starting points to find better ways to improve SC performance, in coffee processing industries making them more optimal and sustainable performance improvement. To achieve the study goal, a descriptive research design was employed and 13 cooperatives were selected unified in SCFCU from Sidama Zone in five Woreda within three clusters from the total population 182, the sample size was 125 respondents using Yamane sample size decision model and random sampling system. The primary data were collected using semi-structured questionnaires, interviews and field observation. Secondary data were collected from different published and unpublished sources. Data analysis was on the basis of qualitative and quantitative research approaches. The result was a high performance of reliability and responsiveness, the poor performance of Plan and Source process having moderate overall SC performance. Using the study result, SC modeling was made considering suitability for coffee processing industries. Finally, from data analysis and result discussions, conclusions were drawn and recommendations made on gaps