Jimma University

Department of Management
College of Business and Economics
L&SCM
Fundamentals of Logistics and Supply Chain Management
Individual Assignment!

Submitted by:

No Name ID
1. Barkhad Abdi Jama RM0 160/17-0

Submitted to:
Instructor: Dr. Mekonnen Bogale
(Associate Professor)

Paper Due date:

April 16, 202
 Contents
1 Logistics and Supply Chain- Definitions ................................................................................ 3
1.1 The Importance of Logistics and Supply Chain ............................................................. 3
2 Make-and-Sell Mentality Vs Sense-and-Respond Orientation............................................... 3
3 Ensuring High Supplier Quality in Both Domestic and Global Sourcing .............................. 4
4 Key Barriers to Achieving Close Integration in Supply Chain Partnerships .......................... 4
5 Understanding the Four Essential Flows in a Supply Chain ................................................... 5
6 Distinguishing Between Open and Closed Systems in Supply Chain Management .............. 6
7 The Importance of Fair Allocation of Costs, Resources, and Benefits in the Supply Chain .. 6
8 Addressing Obstacles and Capitalizing on Enablers for Effective Supply Chain Integration 7
8.1 Enablers of Integration.................................................................................................... 8
9 Case Scenario One Answers ................................................................................................... 9
9.1 Possible Weaknesses in the Procurement Process .......................................................... 9
9.2 Improving Transparency and Fairness in Government Procurement ............................. 9
9.3 Importance of Supplier Evaluation and Contract Management in Public Procurement 10
10 Case Scenario Two Answers............................................................................................. 11
10.1 Potential Risks of Outsourcing Logistics to a Third Party ........................................... 11
10.2 Managing the 3PL Relationship to Improve Service Quality ....................................... 11
10.3 Performance Metrics for Evaluating 3PL Effectiveness............................................... 12
11 Case Scenario Tree Answers................................................................................................. 13
11.1 Key Challenges Related to Transportation Modes in the Berbera Port Logistics Corridor
13
11.2 Comparing Road Transport vs. Rail or Multimodal Systems for Inland Cargo Movement
14
11.3 Mitigation Strategies to Improve Inland Transport from Berbera Port ........................ 14
12 References ......................................................................................................................... 15
 Jimma University
College of Business and Economics
Fundamentals of Logistics and Supply Chain Management
Individual Assignment Answers!

1 Logistics and Supply Chain- Definitions

Logistics refers to the management process that plans, implements, and controls the efficient,
effective forward and reverse flow and storage of goods, services, and related information from
the point of origin to the point of consumption to meet customer requirements. It encompasses
activities such as transportation, warehousing, inventory management, packaging, and order
fulfillment. On the other hand, supply chain management (SCM) is a broader concept that
integrates logistics with sourcing, procurement, conversion, and coordination across business
functions and partners, including suppliers, intermediaries, and customers.

1.1 The Importance of Logistics and Supply Chain

The importance of logistics and SCM lies in their profound impact on economic performance,
customer satisfaction, and sustainability. Efficient logistics ensures product availability and timely
delivery, while effective supply chain management drives collaboration, innovation, and cost
reduction across entire business ecosystems. As highlighted in Grant et al. (2017), these systems
are crucial in enhancing a society’s standard of living, supporting economic growth, and mitigating
environmental impacts through sustainable practices such as emissions reduction, reverse logistics,
and optimized resource use. Together, logistics and supply chains form the backbone of modern
commerce, ensuring the smooth movement and transformation of goods in a globalized economy.

2 Make-and-Sell Mentality Vs Sense-and-Respond Orientation

The shift from a make-and-sell mentality to a sense-and-respond orientation marks a critical
evolution in supply chain management. In traditional supply chains, companies operated with a
make-and-sell mindset, focusing on mass production and pushing products to the market regardless
of actual demand. This often resulted in excess inventory, inefficient use of resources, and a
disconnect between what was produced and what customers actually needed. However, modern
supply chains are increasingly embracing a sense-and-respond orientation, which is more demand-
driven and customer-focused. This newer approach emphasizes agility, responsiveness, and real-
time data sharing across the supply chain. Companies now seek to understand and anticipate
customer needs through advanced forecasting, collaborative planning, and integrated information
systems. As the textbook states, “Firms must work together by sharing information on things like
demand forecasts, production plans, capacity changes, new marketing strategies, new product and
service developments, new technologies employed, purchasing plans, delivery dates and anything
else impacting the firm’s purchasing, production and distribution plans” (Wisner et al., 2012, p.
8). This change supports improved decision-making, reduced waste, and higher customer
satisfaction—hallmarks of a well-integrated and competitive supply chain. It also mitigates the
negative impacts of the bullwhip effect by promoting transparency and collaboration between
supply chain partners (Wisner et al., 2012, pp. 11–12).

3 Ensuring High Supplier Quality in Both Domestic and Global Sourcing

Quality issues can arise regardless of whether suppliers are located domestically or globally,
making it vital for companies to adopt structured strategies to maintain high-quality standards. One
of the primary methods is through supplier evaluation and certification, which involves
assessing suppliers based on clearly defined performance metrics such as quality, delivery
reliability, and compliance standards. Certified suppliers are expected to consistently meet quality
requirements, reducing the need for extensive incoming inspections. As emphasized in the
textbook, supplier certification “allows buyers to assume the supplier will meet certain product
quality and service requirements… thus reducing duplicate testing and inspections” (Wisner et al.,
2012, p. 16). In addition, companies should engage in continuous improvement initiatives with
their suppliers, encouraging collaboration to refine processes, minimize defects, and implement
feedback loops. Regular audits, performance reviews, and site visits also help ensure
accountability and early detection of issues. Furthermore, integrating quality management
systems such as ISO 9000 and fostering long-term strategic partnerships contribute to shared
commitment toward quality excellence. By combining these practices, companies can effectively
manage and mitigate quality risks across both domestic and international supply chains (Wisner et
al., 2012, pp. 82–88).

4 Key Barriers to Achieving Close Integration in Supply Chain Partnerships

A close integration among supply chain participants is indeed essential for achieving efficiency,
responsiveness, and competitiveness. However, several significant obstacles can hinder the
formation of these close relationships. One major barrier is the silo mentality, where different
departments or firms focus solely on their own goals and performance, often at the expense of the
overall supply chain. This lack of a shared vision prevents collaboration and information sharing.
Another critical obstacle is the lack of trust between partners. Without mutual trust, firms may be
reluctant to share sensitive information or invest in joint strategies, fearing that their partners might
act opportunistically. The textbook emphasizes that "high levels of trust, cooperation,
collaboration and honest, accurate communications" are vital for effective supply chain
integration, and their absence significantly hampers progress (Wisner et al., 2012, p. 8).
Additionally, lack of visibility across the supply chain—where participants cannot access or do
not share critical data like inventory levels or demand forecasts—can also disrupt coordination and
responsiveness. Moreover, lack of knowledge or experience in managing collaborative
relationships, along with resistance to change or fear of losing control, often inhibits firms from
fully embracing integration. These challenges, if not properly addressed, can result in
inefficiencies, duplicated efforts, and suboptimal performance across the entire supply chain
(Wisner et al., 2012, pp. 461–467).

5 Understanding the Four Essential Flows in a Supply Chain

A well-functioning supply chain depends on the seamless movement of various interconnected
elements, commonly referred to as the four types of flows:

1) Product Flow involves the physical movement of goods from suppliers to customers,
including returns and service needs. It represents the core of the supply chain—getting the
right product to the right place at the right time.
2) Information Flow refers to the sharing of data such as order details, forecasts, inventory
levels, and shipping updates across the supply chain. As the textbook notes, information
flow is essential to coordination and integration, helping participants make timely, data-
driven decisions (Wisner et al., 2012, p. 6).
3) Financial Flow covers the movement of money, credit terms, payment schedules, and
other financial arrangements between supply chain partners. Efficient financial flows
ensure that all participants are compensated fairly and on time, supporting supply chain
sustainability.
4) Demand Flow captures customer needs and preferences, allowing supply chain activities
to be aligned with actual market demand rather than forecasts alone. This flow is
 particularly important in a sense-and-respond supply chain, where responsiveness to
customer behavior is key. Each of these flows must be carefully managed and synchronized
to optimize performance, reduce inefficiencies, and enhance customer satisfaction across
the supply chain network (Wisner et al., 2012, pp. 6–8).

6 Distinguishing Between Open and Closed Systems in Supply Chain Management

In supply chain management, understanding the difference between open and closed systems is
crucial for designing effective strategies and managing interactions with the external environment.
An open system is one that actively interacts with its external environment—such as customers,
suppliers, competitors, and regulatory bodies. It continuously exchanges information, materials,
and financial flows beyond organizational boundaries to adapt, evolve, and stay competitive. As
highlighted in the textbook, modern supply chains are inherently open systems because they rely
on coordination and collaboration among multiple independent firms to deliver value to the end
customer (Wisner et al., 2012, p. 8).

On the other hand, a closed system is self-contained and operates independently of its
external environment. It does not actively seek or process external feedback and tends to focus
inwardly on internal processes and goals. This approach is less common and generally considered
inefficient in today’s dynamic and interconnected business landscape, where responsiveness and
flexibility are essential. Closed systems may suffer from poor adaptability, limited innovation, and
a lack of customer-centricity. In summary, open systems thrive on external interaction and
integration, while closed systems operate in isolation, often resulting in rigidity and missed
opportunities within the supply chain context.

7 The Importance of Fair Allocation of Costs, Resources, and Benefits in the Supply
Chain
For a supply chain to function efficiently and sustainably, costs, resources, and benefits must be
fairly allocated among all participants. When supply chain partners perceive that they are receiving
equitable returns relative to their investments and contributions, they are more likely to collaborate,
share information, and commit to long-term relationships. Fair distribution fosters trust,
transparency, and mutual respect, which are the cornerstones of successful supply chain
integration. According to the referencing textbook, supply chain management relies on “high
levels of trust, cooperation, collaboration and honest, accurate communications” to ensure that all
parties benefit and remain committed (Wisner et al., 2012, p. 8). Unfair allocation—such as one
party bearing excessive costs while others gain disproportionate benefits—can lead to conflict,
reduced performance, and even breakdowns in the relationship. For example, if a supplier is
underpaid for high-quality materials, they may cut corners, impacting the entire supply chain’s
output. Conversely, when benefits like cost savings, market insights, or efficiency gains are
equitably shared, each member is incentivized to contribute optimally, driving collective success.
Ultimately, balancing contributions and rewards across the supply chain ensures alignment of
goals, encourages innovation, and enhances responsiveness to customer needs, positioning the
entire supply chain for long-term competitiveness and resilience (Wisner et al., 2012, pp. 8–9).

8 Addressing Obstacles and Capitalizing on Enablers for Effective Supply Chain

Integration

Supply chain integration is a crucial goal for companies aiming to streamline operations, improve
responsiveness, and enhance customer satisfaction. However, obstacles and enablers can influence
the success of this integration, and an effective supply chain manager must proactively address
them. Some of these integration obstacles include;

✓ Silo Mentality: One of the primary barriers to integration is the silo mentality, where
departments or firms operate independently without sharing information or coordinating
their activities. To overcome this, a supply chain manager should promote cross-functional
collaboration within the organization and encourage open communication across
departments.
✓ Lack of Trust: Without trust, partners may be reluctant to share critical information or
resources. A supply chain manager can build trust by fostering transparent communication,
consistent performance, and fair treatment of all supply chain partners.
✓ Inadequate Technology: Integration is heavily reliant on effective information systems.
Managers can address this by investing in advanced supply chain technologies, such as
Enterprise Resource Planning (ERP) systems and Supply Chain Management (SCM)
software, that facilitate real-time data sharing and visibility across the entire supply chain.
✓ Resistance to Change: Many firms face resistance when trying to implement integrated
practices. To combat this, managers should educate stakeholders on the long-term benefits
of integration and promote a culture of continuous improvement.
8.1 Enablers of Integration
Enablers of integration are the key factors that facilitate effective collaboration and coordination
among supply chain partners. These elements support the seamless flow of information, materials,
and finances, helping firms align their goals and processes. By leveraging these enablers—such as
advanced technologies, strong relationships, shared objectives, and information transparency—
companies can overcome fragmentation and achieve a fully integrated, high-performing supply
chain.

✓ Technology: As mentioned, advanced technologies like ERP and Collaborative Planning,

Forecasting, and Replenishment (CPFR) systems are powerful enablers of supply chain
integration. A supply chain manager can invest in and upgrade technological infrastructure
to ensure smooth communication and coordination across all partners.
✓ Supplier Relationships: Strong relationships with suppliers and customers are key
enablers of integration. Managers can develop long-term partnerships, foster mutual trust,
and engage in collaborative planning and forecasting to align goals and operations between
suppliers and buyers.
✓ Shared Vision and Goals: Integration is more likely to succeed when supply chain
partners share common objectives. A manager should align the strategic goals of the firm
with its suppliers and customers, ensuring that all parties are working toward the same end
goal. This requires frequent communication, shared performance metrics, and joint
problem-solving initiatives.
✓ Information Transparency: Sharing data on demand forecasts, inventory levels, and
production schedules is critical for integration. Managers can encourage information
sharing and implement systems that allow real-time access to relevant data, reducing
uncertainty and enabling better decision-making across the supply chain.

By removing obstacles like silo mentalities and trust issues, and capitalizing on enablers such as
advanced technology and strong supplier relationships, a supply chain manager can effectively
integrate the supply chain. As the referencing textbook emphasizes, a successful supply chain
manager needs to “review and establish supply chain strategies, align supply chain strategies with
key supply chain process objectives, and develop internal performance measures for key process
effectiveness” (Wisner et al., 2012, p. 461).
9 Case Scenario One Answers

The Ministry of Health in Country X launched a national COVID-19 vaccine distribution program.
To ensure transparency and accountability, the government followed a competitive bidding
process to select suppliers. However, several issues arose: delivery delays, quality concerns, and
complaints from local vendors about unfair selection processes.

9.1 Possible Weaknesses in the Procurement Process

The problems reported—delivery delays, quality issues, and local vendor dissatisfaction—likely
stem from several weaknesses in the procurement process:

✓ Lack of Proper Supplier Evaluation: One key issue may be the absence of rigorous
supplier prequalification or evaluation procedures. Without assessing potential suppliers'
capacity, financial standing, track record, and compliance history, the risk of poor
performance increases significantly (Wisner et al., 2012, pp. 82–84).
✓ Inadequate Contract Terms and Monitoring: Contracts may not have included clear
performance metrics, timelines, or penalties for non-compliance. Weak contract
management can lead to unmonitored delivery schedules and quality slippages (Wisner et
al., 2012, p. 88).
✓ Overemphasis on Lowest Price: A frequent issue in public procurement is awarding
contracts based on the lowest price rather than overall value or capability, which can result
in poor quality and missed deadlines (Wisner et al., 2012, p. 54).

9.2 Improving Transparency and Fairness in Government Procurement

Transparency and fairness are foundational principles of effective public procurement. When
procurement processes are open, well-documented, and accessible to all qualified suppliers, they
promote competition, reduce corruption, and build public trust. Ensuring fairness also means
giving all vendors, including local and small businesses, an equal opportunity to participate and
succeed. Strengthening these principles is essential for achieving value for money, quality service
delivery, and sustainable development outcomes. Some ways to improve are as follows:

✓ Use of Transparent, Standardized Criteria: Establish clear, objective bid evaluation

criteria publicly available before the bidding process begins. This ensures all suppliers
understand what is expected and how they will be assessed (World Bank, 2021).
 ✓ Digitize the Procurement Process: Adopting an e-procurement platform enables real-
time tracking, reduces human interference, and makes the process auditable, enhancing
transparency (Wisner et al., 2012, p. 121).
✓ Capacity Building for Local Suppliers: Governments should organize pre-bid workshops
or provide templates and guidance to equip local vendors to compete fairly, ensuring
broader participation and equity in supplier selection.
✓ Public Disclosure and Engagement: Publishing procurement outcomes and justifications
for supplier selection can build trust. Also, involving independent observers or civil society
organizations during the bidding process can help promote accountability.

9.3 Importance of Supplier Evaluation and Contract Management in Public Procurement

Supplier evaluation and contract management are vital to ensuring value for money, service
quality, and risk mitigation in public procurement:

✓ Supplier Evaluation: This process ensures that only capable and reliable suppliers are
selected. Evaluation based on technical capacity, past performance, financial health, and
quality standards helps prevent failures like delays or substandard goods (Wisner et al.,
2012, pp. 82–84).
✓ Contract Management: Once a supplier is selected, ongoing contract oversight ensures
that terms are met. This includes monitoring timelines, quality, and responsiveness. Strong
contract management practices also provide mechanisms for penalties or dispute resolution
if obligations are not fulfilled (Wisner et al., 2012, p. 88).
✓ Promotes Accountability and Performance: Well-structured contracts with
performance-based clauses and regular audits help enforce accountability and build long-
term supplier relationships based on trust and proven results.

In conclusion, supplier evaluation and contract management are critical tools for ensuring
efficiency, accountability, and high performance in public procurement. By selecting reliable
and capable suppliers through thorough evaluation and maintaining consistent oversight
through well-managed contracts, governments can minimize risks, avoid costly delays, and
achieve better value for public funds. These practices not only safeguard service quality but
also strengthen public trust in the procurement process (Wisner et al., 2012, p. 88).
10 Case Scenario Two Answers
GreenGro, an organic food company, outsourced its logistics operations to a 3PL provider to
reduce costs and improve efficiency. Initially, performance was strong, but over time the company
noticed delays in delivery, damaged goods, and lack of communication from the 3PL side.

10.1 Potential Risks of Outsourcing Logistics to a Third Party

Outsourcing logistics to a third-party logistics (3PL) provider offers benefits like cost savings and
improved focus on core activities. However, it also introduces several potential risks:

✓ Loss of Control: By handing over logistics functions, GreenGro may lose direct oversight
of critical operations, including delivery schedules, handling practices, and customer
interactions.
✓ Service Degradation Over Time: As observed in this case, initial performance may
decline if the 3PL becomes complacent or overburdened. Delays and damaged goods
reflect lapses in operational quality and accountability (Wisner et al., 2012, p. 325).
✓ Communication Gaps: Poor coordination and lack of real-time updates from the 3PL can
lead to reduced visibility and slower problem resolution. This disconnect can negatively
impact customer satisfaction.
✓ Cultural or Strategic Misalignment and Reputation Risk: If the 3PL's values, priorities,
or operating standards do not align with GreenGro’s focus on quality and sustainability,
service levels can suffer. Additionally, any service failure by the 3PL reflects directly on
GreenGro, potentially damaging its brand and customer trust.

10.2 Managing the 3PL Relationship to Improve Service Quality

Section Introduction: Effective management of third-party logistics relationships is crucial to

maintaining service excellence. GreenGro can implement the following strategies to strengthen its
partnership and regain operational control:

✓ Establish a Collaborative Relationship: Transition from a transactional to a strategic

partnership model. This includes regular communication, joint planning, and shared
objectives that align with GreenGro’s customer service and sustainability values (Wisner
et al., 2012, p. 326).
 ✓ Define Clear Service-Level Agreements (SLAs): SLAs should detail expected delivery
times, packaging standards, damage thresholds, and response times. This forms the basis
for performance monitoring and accountability.
✓ Conduct Regular Performance Reviews: Periodic assessments of the 3PL’s performance
against agreed KPIs help identify gaps and corrective actions.
✓ Implement Real-Time Information Sharing: Leveraging logistics technology such as
Transportation Management Systems (TMS) and integrated dashboards enhances
visibility, enabling GreenGro to monitor shipments and respond proactively (Wisner et al.,
2012, p. 331).
✓ Develop Exit and Contingency Plans: In case of repeated underperformance, GreenGro
should have a backup logistics solution or supplier development strategy in place
proactively (Wisner et al., 2012, p. 331).

10.3 Performance Metrics for Evaluating 3PL Effectiveness

Section Introduction: To hold the 3PL accountable and drive continuous improvement, GreenGro
must track meaningful metrics. These should cover operational, financial, and customer service
dimensions:

✓ On-Time Delivery Rate (OTD): Measures the percentage of shipments delivered on or

before the promised date.
✓ Order Accuracy and Damage Rate: Tracks whether shipments arrive complete and
undamaged—a critical concern for perishable, organic products.
✓ Response Time and Communication Efficiency: Monitors how quickly and clearly the
3PL responds to inquiries or disruptions.
✓ Customer Satisfaction and Return Rates: Assesses end-user feedback on delivery
experience and any product returns due to 3PL handling.
✓ Compliance with SLAs and Cost-to-Serve: Assesses end-user feedback on delivery
experience and any product returns due to 3PL handling. And evaluating the total logistics
cost per order relative to service quality. In conclusion, outsourcing logistics offers
operational advantages, but it must be managed with diligence and strategic intent. For
GreenGro, a strong relationship built on transparency, aligned goals, and measurable
performance will restore service quality and protect its brand reputation.
11 Case Scenario Tree Answers
Berbera Port has emerged as a strategic logistics hub for landlocked countries like Ethiopia,
offering an alternative to traditional routes such as the Port of Djibouti. However, logistics
companies using Berbera Port have faced challenges in selecting suitable transportation modes—
especially for inland freight movement. Limited rail infrastructure, underdeveloped road networks,
and customs bottlenecks have slowed the efficiency of cargo transit from the port to inland
destinations. This has raised concerns among importers about cost, reliability, and delivery times.

11.1 Key Challenges Related to Transportation Modes in the Berbera Port Logistics
Corridor

The inland logistics corridor from Berbera Port to Ethiopia presents strategic opportunities but
also faces several key transportation-related challenges:

✓ Limited Rail Infrastructure: Currently, there is no functional rail system connecting

Berbera to major inland markets like Addis Ababa. This leaves logistics companies with
few alternatives to road transport, increasing dependence on a single mode and heightening
risks related to congestion and delays.
✓ Underdeveloped Road Networks: While the Berbera Corridor Road project is underway,
many stretches remain in poor condition, particularly on the Ethiopian side. Poor road
quality leads to slower transit times, higher vehicle maintenance costs, and increased risks
of cargo damage (Wisner et al., 2012, p. 302).
✓ Customs and Border Bottlenecks: Inefficient border procedures and lack of harmonized
customs systems between Somaliland and Ethiopia create delays at checkpoints, increasing
lead times and undermining reliability.
✓ Lack of Logistics Support Infrastructure: Insufficient freight terminals, warehouses,
rest stops, and repair services along the corridor hinder smooth cargo flow and reduce
service reliability.

Additionally, Security Concerns may pose challenges since, certain stretches of the route are
exposed to risks like theft or armed interference, requiring additional security costs and
coordination. Together, these challenges undermine cost efficiency, reliability, and
competitiveness of Berbera as a preferred logistics route (Wisner et al., 2012, p. 302).
11.2 Comparing Road Transport vs. Rail or Multimodal Systems for Inland Cargo
Movement
Section Introduction: Selecting the right transportation mode is central to logistics efficiency.
Below is a detailed comparison of road, rail, and multimodal options for inland movement from
Berbera to the landlocked destinations like Ethiopia:

Mode Advantages Disadvantages

1) Road Transport o Flexible and o Vulnerable to road

accessible to remote conditions and
areas. congestion.
o Ideal for short to o Higher fuel and
medium distances. maintenance costs.
o Lower initial capital o Less sustainable
cost. (carbon emissions).
2) Rail Transport o Cost-effective for bulk o Requires heavy
or long-distance cargo. investment and long
o Higher load capacity. lead time.
o Environmentally o Limited flexibility for
friendly. last-mile delivery.
3) Multimodal (Road + o Combines strengths of o Requires logistics
Rail or Sea + Road). modes. coordination and
o Enables cargo infrastructure.
deconsolidation and o Intermodal transfers
re-routing. may cause delays if
o Reduces pressure on not managed well.
any single mode.
From a strategic viewpoint, road transport is suitable in the short term, but developing a
multimodal or rail solution is vital for long-term sustainability and efficiency (Wisner et al., 2012,
pp. 302–304).

11.3 Mitigation Strategies to Improve Inland Transport from Berbera Port

Section Introduction: To enhance reliability and performance, logistics stakeholders must adopt
collaborative strategies that address both infrastructure and process gaps. These strategies are
presented in the below lines;

✓ Government Initiatives: Investing in Road and Rail Infrastructure with prioritizing in

upgrading the Berbera Corridor Road and seeking donor funding or PPPs to develop a
standard-gauge railway linking Berbera to key Ethiopian trade hubs. Additionally,
Harmonizing Customs Procedures to reduce paperwork and border delays would be
effective (Wisner et al., 2012, p. 314).
 ✓ 3PL and Logistics Operators: To enhance logistics efficiency along the Berbera corridor,
logistics operators should invest in fleet upgrades by modernizing their truck fleets and
adopting advanced Transportation Management Systems (TMS), while also developing
strategic warehousing facilities near the port and key inland hubs to support smoother cargo
handling and distribution (Wisner et al., 2012, p. 331). In addition, implementing real-time
tracking technologies such as GPS and RFID will enable companies to closely monitor
shipments, quickly respond to disruptions, and improve overall visibility and reliability of
the supply chain.
✓ Private Investors and Development Partners: To support the efficiency of inland cargo
movement, private investors and development partners should invest in the development
of intermodal terminals such as dry ports or container terminals along the corridor to
facilitate modal transfers and bulk breaking. Additionally, establishing logistics councils
or dialogue forums will help align private sector insights with government planning,
ensuring that infrastructure development and regulatory reforms are responsive to
operational realities and market needs.

In conclusion, Berbera Port holds immense potential as a logistics gateway for Ethiopia and the
Horn of Africa, but transportation inefficiencies must be addressed. By tackling infrastructure
gaps, harmonizing processes, and embracing multimodal transport strategies, logistics
stakeholders can significantly improve service reliability and delivery timelines. A coordinated
and forward-looking approach will be essential to unlocking the full value of this strategic corridor.

12 References
Wisner, J. D., Tan, K.-C., & Leong, G. K. (2012). Principles of Supply Chain Management: A
Balanced Approach (3rd ed.). Cengage Learning.

Wisner, J. D., and W. J. Corney, “Comparing Practices for Capturing Bank Customer Feedback,”
Benchmarking: An International Journal 8(3), 2001, 240–50.

Dyché, J. The CRM Handbook: A Business Guide to Customer Relationship Management. Upper
Saddle River, NJ: Addison-Wesley, 2002

Dickie, J., “Don’t Confuse Implementation with Adoption,” Customer Relationship Management
13 (5), 2009: 10.