ASSESSING THE PRACTICE AND CHALLENGES OF FUEL SUPPLY CHAIN IN ETHIOPIA, ADDIS ABABA

Abstract

Supply chain has received in recent years a great deal of attention by researchers and practitioners. Effective Supply chain will lead to a lowering of the total amount of resources required to provide the necessary level of customer service to a specific segment and improving customer service through increased product availability and reduced order cycle time (Banomyong & Supatn, 2011), The purpose of this study is to assess the practice and challenges of fuel supply chain in Ethiopia specifically in Addis Ababa. The study deployed descriptive research method with a non-probability convenience sampling was chosen for the survey Hence, by using convenience sampling, 9 major oil companies will be taken as a sample. Again from 100 gas stations, 50 gas stations will be taken as a sample by using random sampling. Finally 100 customers, two from each gas station, will be taken as sample respondents by using simple random sampling. A self-developed questionnaire adopted from respondents from the three segments (Oil Company, Fuel stations and consumers) were used as a research tool for collecting data. The collected data was analyzed using SPSS V.20 software by using both descriptive and inferential statistics (mean, and standard deviation). The main findings of the study shows that, the respondents in the oil company suggest that fuel supply chain in Ethiopia from the expectation of the consumers are evaluated below the average mean value of 2.5, therefore it indicates at low level, regarding the challenges of full supply chain in the three dimension (in the oil company, fuel station and consumers) were indicates there is agreement with the existence of those challenges. Moreover, according to the respondents, the extent of fuel supply chain integrated to provide efficient service to the consumer and the fuel stations providing fuel distribution service to the consumers were indicates in active performance. also, the study recommends EPSE has responsible for the incoming fuel and , always check whether there is enough product at EPSE terminals (Djibouti &Port Sudan) or not and strengthen the man power in the area for the betterment of the controlling system. As well as the oil companies develop suitable fuel storage capacity & fuel stations in the industry, furthermore EPSE & its Ministry should strengthen, develop and amend the rule and regulation of the industry.