Supply Chain Analysis of the Handmade Textile Manufacturing Sector Based on Supply Chain Operations Reference (SCOR) Model

Abstract

Supply chain management has gained wider acceptance to compete in the current business environment in the developed world. However, its application has remain limited in developing countries. In recent years, supply chain management has shown growth in the developing world. However, there is limited experience and application in the traditional manufacturing sector, like handcraft industries. In order to increase productivity and meet consumer demands, this study will examine how the Handmade Textile Manufacturing Industry (HMTMI) in Gamo Zone operates its supply chain. Data for the study was gathered through observation techniques, questionnaires, and interviews. The current supply chain operations have been examined to find areas for future development using the Supply Chain Operations Reference (SCOR) model. The main issues found in the analysis of the current SC operation were the high cost of sourcing because of the drawn-out supply chain process, the scarcity of raw materials and issues with quality, the low production efficiency and capacity utilization, the absence of modified weaving technologies, the inadequate scheduling of production, the poor management of orders and deliveries, and the inadequate marketing system. Using modified production technologies, minimizing non-value-adding SC actors, establishing distribution centers for weaving associations in urban areas, strengthening market links with final product users, and switching up source points and connecting potential suppliers are all ways to improve the performance of SCs. By taking this improvement measure, the industry will become more efficient in meeting client expectations while reducing manufacturing and sourcing costs as well as delivery times.