Oromia Forest Industry’s Supply Chain Network Performance Analysis

Abstract

Supply chain network performance measurement is the process of qualifying the efficiency and effectiveness of the supply chain. Supply chain network performance analysis is one of the promising tools employed for assessing performance and then taking the necessary measures for improvements of existing supply chain network. Ethiopia’s forest coverage is estimated about 10 to 30 percent. Still there are efforts to increase the coverage. Reducing deforestation has equal importance with that of increasing plantation to improve forest coverage in the country. For instance, in order to reduce deforestation the government has put in place a policy to import wood and wood products without tax. However, if the forests are not properly cultivated or harvested then forests will decay and also triggers illegal users which intern will have impact on the forests coverage in the country. In this study, Oromia Regional State which covers 70% of the total forest coverage in the country is considered and the research identified that forests are decaying in the region. This is partly because the major customers are far from the forests. Hence, the forest products supply chain network is first analyzed. For this purpose, main sources of data were interview, observations, secondary data, Geographic Information System (GIS), and standard preference table. Based on the findings a new supply chine network is designed which enables the Oromia Forests Industry optimally utilizes its resources and at the same time address customers’ requirements keeping the current forest as well as improving forest coverage of the region.