Comparison of select financial parameters of Ethiopian consumer goods supply chains

Abstract

Purpose

The purpose of this paper is to set the benchmark for finished goods consumer supply chain companies in terms of financial metrics driven from best performing supply chains in the world.

Design/methodology/approach

The paper used a financial data collected from 25 large industries in Ethiopia and 25 companies from the best performing supply chains in the world as ranked by Gartner® to identify the gaps in financial metrics. This method helps in setting benchmarks for the case companies.

Findings

The result shows that the Ethiopian supply chains are performing well under revenue growth and insufficient under revenue per employee metrics. The result shows us these supply chains are accumulating inventories and are also seen inefficient and ineffective in their performances.

Research limitations/implications

Even though the research is only one of the few on case considered, it is not without limitation. The strategies to narrow the performance gaps for the respective case companies are not articulated.

Practical implications

It is an ideal for the managers in the case companies to look into their performance gaps and take the necessary actions to stay alive in this fierce competition era. Hence, the paper shows insights to the improvement of the supply chain performances.

Originality/value

The research can be considered the only one of the few in a case country. It is also the first of the type in covering large fast moving consumer goods companies’ metrics at large aligning with the best practicing supply chains in the world within the same industry vertical.

Citation

Birhanu, D., Krishnanand, L. and Rao, A.N. (2017), "Comparison of select financial parameters of Ethiopian consumer goods supply chains", Benchmarking: An International Journal, Vol. 24 No. 1, pp. 102-117. https://doi.org/10.1108/BIJ-04-2015-0032