DESIGNING GREEN SUPPLY CHAIN MANAGEMENT SYSTEM FOR HORIZON ADDIS TIRE MANUFATURING P.L.C

Abstract

The history of tire manufacturing goes back to early 19th century and in Ethiopia the tire manufacturing industry began in 1972 G.C, where Addis Tire S.C. is first of its kind and currently holds its new name “Horizon Addis Tire Manufacturing PLC”. However, the company being the leading tire manufacturing company, it continued to waste inputs and operated at low level of capacity resulted by different internal and external factors. In an existing status where companies eliminate wastes from their manufacturing and natural environment, HATMPLC imports almost all of its inputs from abroad followed by packaging wastes, and this is the point where the situation needs scientific inquiry and solution. The general objective of this study is to design green supply chain management model in Horizon Addis Tire Manufacturing PLC. Data is collected using interview, document review and observation approaches. Observation was made to understand and structure the tyre production process, eight detailed key informant interviews were carried out and essential documents from the company were reviewed. Data were analyzed in descriptive analyses for performance measurements and waste study. As a result, the existing supply chain structure of the company was structured, and its supply chain processes were discussed. The company is extremely dependent on import from abroad where all of raw materials, except for part of the natural rubber, are imported, and it has a production waste of about 16,129,099.4 in 2011 E.C and 14,366,005.5 ETB worth in 2012 E.C just from tire defect. The company had 55.9% and 48.9% of capacity utilization in 2011 E.C and 2012 E.C respectively, and it improved the reliability and responsiveness performance attributes while cost and flexibility attributes sustained and asset turn over and total supply chain management cost dragged down. Following this, a green supply chain management is designed through the designs of green supply chain processes in accordance with green Supply Chain Operations Reference by applying best practices. To conclude, although HATMPLC is producing essential product, its waste management performance is below its target set. The company needs a governmental attention in consideration with environmental management and market place since the company plays important role in fulfilling the domestic tyre demand and equally contribute to waste accumulation in the country