Optimizing Operational Efficiency and Quality in the Ethiopian Leather

Product Industry: Article Review

Mesay Megersa*1, 2, Berihun Bizuneh3

1
Leather Product Design and Engineering Department, Ethiopian Institute of Textile and
Fashion Technology, Bahir Dar University, Bahir Dar, Ethiopia

2
Fashion Design Department, Wolkite University, Wolkite, Ethiopia

3
Ethiopian Institute of Textile and Fashion Technology, Bahir Dar University, Bahir Dar,
Ethiopia

*Corresponding to author; Email; Mesaymegersa21@gmail.com

Abstract
This review paper analyzes strategies for optimizing the Ethiopian leather product industry.
Qualitative methods & and the latest scholarly articles, case studies, and books were used. It
emphasizes how crucial supply chain management, quality assurance procedures,
environmentally friendly techniques, and research and development efforts are effective. The
industry may boost its competitiveness in the global market, satisfy international standards, and
increase productivity by putting these plans into practice. To effectively execute this
recommendation and raise the industry's general performance, the government, stakeholders in
the sector, and other pertinent parties must work together effectively. Even with obstacles such as
a lack of trained workers, poor infrastructure, restricted financial resources, and poor supply
chain management, Ethiopia's leather product sector can increase productivity and quality by
implementing certain tactics. Lean manufacturing, technological integration, building worker
capacity, and supply chain synergy are a few of them. These strategies could lead to increased
competitiveness in the global market, cost savings, and productivity increases.

Keywords: global market, leather industry, supply chain, productivity, optimizing

 1. Introduction
The Ethiopian leather product industry is a significant contributor to the country's economy.
Leather production has a long history in Ethiopia and continues to play a crucial role in creating
employment opportunities and generating export revenue (Abtew, 2015). The industry
encompasses various stages, including processing raw hides and skins, tanning, manufacturing
leather products, and exporting finished goods. The subsectors of the leather sector include
tanneries, footwear, leather gloves, leather items, and apparel. Defects in leather and leather
products are unchangeable, so, the issue of quality in the leather manufacturing process is of
greatest significance (Grumiller and Raza, 2019). A product or service's quality is the sum of all
the features and qualities that have an impact on how well it can meet the explicit or implicit
demands of a client. Users must focus on the process rather than the product alone to maintain
high standards of quality. Good quality will automatically result in productivity improvement
(Iyer et al., 2013).
Ethiopia is known for its high-quality leather, which is in demand in both domestic and
international markets (Brautigam et al., 2018, Tesema, 2021). The leather product industry has
received attention and support from the government and international organizations to promote
sustainable growth and improve operational efficiency and quality. Despite the industry's
potential, there are challenges such as limited access to finance, inefficiencies in the value chain,
and inadequate infrastructure that need to be addressed to fully optimize its potential.
Furthermore, efforts are underway to enhance the industry's competitiveness through capacity
building, promoting investments, and improving the regulatory framework. Optimizing
operational efficiency and quality is of utmost importance in the industry as it directly affects the
productivity and competitiveness of businesses. In the Ethiopian leather product industry,
efficient and high-quality operations can lead to improved manufacturing processes, reduced
costs, and enhanced customer satisfaction. According to the researcher (Amde, 2017, GIZAW,
2021), In the global leather market, Ethiopian hide and skin are well known for their distinctive
natural qualities of fitness, cleanliness, and compactness of texture, thickness, flexibility, and
strength. However, due to the high prevalence of skin diseases, cultural livestock farming
practices, common backyard slaughtering techniques, a lack of an effective market structure, and
competition from regional/rural tanning industries, the leather industry is still constrained by the
poor quality of raw materials.

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By implementing strategies such as lean manufacturing, continuous improvement, and total
quality management, companies can streamline their operations, eliminate waste, and deliver
products that meet or exceed customer expectations. According to (Kwak et al., 2001) to address
quality issues, numerous quality improvement programs, such as Six Sigma, design for Six
Sigma, and Kaizen, call for data gathering and analysis improved by various researchers. Data
mining has been widely used for quality improvement in manufacturing because of
advancements in data collection methods and analysis tools. Data collection and analysis are
necessary for quality improvement of industrial processes and products to address manufacturing
issues connected to quality. Leather manufacturers may guarantee that their products meet the
highest standards and give their consumers the best leather products by adhering to a thorough
quality control method (Hans, 2022, deskera, 2018), This focus on operational efficiency and
quality is crucial for the industry's growth and success in both domestic and international
markets. It allows businesses to achieve cost savings, increase production capacity, and maintain
a competitive edge.

The purpose is to review and analyze the strategies for optimizing operational efficiency and
quality in the Ethiopian leather product industry. Ethiopia has a rapidly growing leather industry,
and enhancing the efficiency and quality of its operations is crucial for its sustainability and
competitiveness in the global market. This review aims to explore various approaches and
techniques employed in the industry to improve operational efficiency and quality, such as lean
manufacturing, total quality management, and supply chain management. Additionally, the essay
will examine the challenges faced by the Ethiopian leather industry and propose potential
solutions to overcome these obstacles. By studying and understanding the strategies for
optimizing operational efficiency and quality in the Ethiopian leather product industry,
stakeholders can make informed decisions and implement effective measures to enhance the
industry's performance and success.

2. Method for review

The review paper provides an overview of important topics related to Optimizing Operational
Efficiency and Quality in the Ethiopian Leather Product Industry. It is analyzed through
qualitative methods by employing the latest scholarly articles, case studies, and books to acquire
a thorough comprehension of the subject matter. The process of selecting these sources takes into

2
account their credibility, relevance, and alignment with the objectives of the review paper. The
objective of this paper is to review and analyze the strategies for optimizing operational
efficiency and quality in the Ethiopian leather product industry. The findings presented based on
secondary data, yielding valuable recommendations for Optimizing Operational Efficiency and
Quality in the Ethiopian Leather Product Industry.

3. Finding and discussion

3.1 Challenges in the Ethiopian Leather Product Industry
The Ethiopian leather product industry faces several challenges that hinder its operational
efficiency and quality (Filketu and Negash, 2023). Firstly, there is a lack of skilled labor in the
industry, leading to a shortage of trained professionals who possess the necessary technical
knowledge to handle modern machinery and implement efficient production processes. This
scarcity of skilled labor not only limits the industry's capacity to meet production targets but also
affects the overall quality of leather products. Additionally, the industry struggles with
inadequate infrastructure, including limited access to reliable electricity and water supply, which
significantly hampers production activities. Insufficient infrastructure also contributes to higher
production costs and delays in meeting customer demands. Furthermore, the industry faces
challenges related to raw material procurement and quality control. Limited access to high-
quality raw materials and the absence of effective quality control mechanisms result in
substandard products that do not meet international market standards (Addis et al., 2017). These
challenges underscore the need for targeted interventions to address skill development,
infrastructure improvement, and quality control systems within the Ethiopian leather product
industry.

3.1.1 Lack of modern technology and infrastructure

The lack of modern technology and infrastructure is another significant challenge faced by the
Ethiopian leather product industry (Wakeford et al., 2017). The industry heavily relies on manual
labor and outdated machinery, which hinders operational efficiency and quality. The absence of
advanced technology and infrastructure limits the industry's ability to adopt automated processes,
implement quality control measures, and meet international standards. According to a study
conducted, (Zinabu et al., 2018). Furthermore, the lack of access to modern technology and
equipment hampers the industry's competitiveness in the global market. Without adequate

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investment in technology and infrastructure, the Ethiopian leather product industry may struggle
to optimize its operational efficiency and enhance the quality of its products.

3.1.2 Limited access to finance and investment

Limited access to finance and investment is a significant challenge facing the Ethiopian leather
product industry (Lakew and Chiloane-Tsoka, 2015). The industry requires a substantial amount
of capital for investment in machinery, equipment, and technology to improve production
efficiency and product quality. However, many small and medium-sized enterprises in the
industry struggle to access the necessary funds due to a lack of collateral, limited financial
literacy, and stringent lending requirements imposed by banks and financial institutions. As a
result, these SMEs often have to rely on personal savings or informal sources of finance, which
may not be sufficient or reliable. This limited access to finance and investment hinders the
industry's ability to grow, innovate, and compete in the global market (Tesema, 2021).

3.1.3 Inadequate skilled labor force

An inadequate skilled labor force is a major challenge faced by the Ethiopian leather product
industry. The industry requires a skilled workforce to meet the growing demand for high-quality
products and to adopt modern manufacturing techniques. According to (Brautigam et al., 2018),
the lack of skilled workers is a result of limited access to technical training and education
programs in the country. Many individuals in leather do not have the opportunity to gain the
necessary skills and knowledge required for the industry (Karuppiah et al., 2021) and also in
Ethiopia. This shortage of skilled workers not only hinders the growth and development of the
industry but also contributes to low productivity and poor-quality products. To address this issue,
the Ethiopian government and industry stakeholders should prioritize investing in technical
training programs and vocational schools to develop a skilled labor force in the country.

3.1.4 Poor supply chain management

According to (Tsega et al., 2023), Poor supply chain management can have significant negative
impacts on the operational efficiency and quality of the Ethiopian leather product industry. The
global leather supply chain operates on an international scale, involving sourcing and distribution
across various countries (GISILLA, 2013). It is important to note that the meat supply chain is
intricately linked to the leather supply chain. Tanneries obtain raw skins, which are by-products
of the procedures carried out at slaughterhouses and meatpackers. Consequently, any changes or

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developments within the beef industry directly impact the manufacturing of leather goods
(Brack, 2016). Inadequate coordination and integration among different stages of the supply
chain can result in delays, disruptions, and inefficiencies (Asegede et al., 2015). For instance,
delays in the delivery of raw materials can lead to production bottlenecks and missed deadlines,
ultimately affecting the timely delivery of finished products to customers. Additionally, poor
inventory management and inadequate forecasting can result in overstocking or stockouts,
leading to increased costs and lost sales opportunities. Furthermore, ineffective communication
and collaboration between suppliers, manufacturers, and distributors can result in quality issues
and customer dissatisfaction (Wakeford et al., 2017). To tackle these hurdles, the Ethiopian
leather and leather product industry has demonstrated commendable progress in embracing eco-
friendly supply chain management practices. These endeavors encompass internal environmental
management practices, eco-design, green manufacturing practices, green packaging, and
investment recovery (Worku and Virdi, 2019). These initiatives foster effective communication,
coordination, and collaboration among all participants engaged in the leather product value
chain.
3.2 Strategies for Optimizing Operational Efficiency
Several strategies can implemented to optimize operational efficiency in the Ethiopian Leather
Product Industry. One approach is implementing lean manufacturing principles, which
emphasize the elimination of waste and continuous improvement throughout the production
process (Köksal et al., 2011). By identifying and reducing inefficiencies, such as excessive
inventory or unnecessary transportation, lean manufacturing can enhance productivity and
reduce costs. Another strategy is investing in technology and automation to streamline operations
and increase production capacity (Tao et al., 2018). Advanced machinery and software can help
improve product quality, reduce lead times, and increase overall efficiency. Additionally,
implementing effective supply chain management practices can minimize disruptions and ensure
timely delivery of raw materials, reducing production delays and costs (Tang, 2006). These
strategies, when combined, can significantly enhance operational efficiency and drive growth in
the Ethiopian Leather Product Industry.

3.2.1 Adoption of advanced technology and machinery

The adoption of advanced technology and machinery has played a significant role in optimizing
operational efficiency and quality (Mutinda et al., 2019) . By integrating advanced technologies

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such as computer-aided design software and automated production systems, manufacturers can
streamline their production processes and reduce time and labor costs. For example, CAD
software allows designers to create digital prototypes, minimizing the need for physical samples
and reducing the time required for product development. Additionally, the use of automated
machinery has improved accuracy and precision in cutting, stitching, and finishing leather
products, resulting in higher quality and consistency. Moreover, advanced technology has
enabled manufacturers to enhance their inventory management and supply chain processes
(Mekasha, 2015), and what the Ethiopian leather industry needs to apply. By implementing
sophisticated inventory tracking systems, companies can effectively monitor stock levels, reduce
wastage, and improve order fulfillment. Overall, the adoption of advanced technology and
machinery has revolutionized the Ethiopian leather product industry, leading to increased
efficiency, improved quality, and enhanced competitiveness in the global market.

3.2.2 Improvement of infrastructure and logistics

Improvement of infrastructure and logistics is crucial for optimizing operational efficiency and
quality (Debela, 2013). The current state of infrastructure in Ethiopia poses challenges for the
industry, hindering its growth and competitiveness in the global market. Inadequate
transportation systems, such as roads and ports, result in delays and increased costs for the
industry (Eshetie, 2018). Additionally, the lack of modern logistics facilities and practices further
hampers the efficiency of supply chains, resulting in longer lead times and higher production
costs. To address these challenges, investments in infrastructure development and the adoption of
advanced logistics technologies are required. Upgrading transportation networks, including road
and port infrastructure, will enable faster and more reliable delivery of raw materials and
finished products (Lee and Shen, 2020). Moreover, the implementation of modern logistics
practices, such as inventory management systems and real-time tracking, will facilitate better
coordination and visibility throughout the supply chain, leading to improved operational
efficiency and customer satisfaction.

3.2.3 Enhancing the skills and knowledge of the workforce

Training and education are crucial for optimizing operational efficiency and quality in the
Ethiopian leather product industry (Addis et al., 2018). With the rapid advancements in
technology and changing market demands, continuous learning and development are essential to
keep up with the latest trends and techniques in the industry. Investment in training programs and

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educational opportunities can empower workers with the necessary skills to adapt to new
processes and technologies, improve productivity, and deliver high-quality products (Tessema,
2014). Moreover, providing access to education and training can also empower individuals by
increasing their employability and career advancement prospects. By investing in the workforce's
skills and knowledge, the Ethiopian leather product industry can enhance its competitiveness in
the global market and contribute to sustainable economic growth.

3.2. 4 Strengthening supply chain management through collaboration and coordination

Strengthening supply chain management through collaboration and coordination is crucial for
optimizing operational efficiency and quality (Negero, 2018). In the leather industry, various
stakeholders, including suppliers, manufacturers, and retailers, need to work together to ensure
smooth and effective operations (WONDWOSSEN, 2019). For example, suppliers can better
understand the demand patterns and requirements of manufacturers, enabling them to provide the
necessary raw materials promptly. Moreover, coordination among different stages of the supply
chain can help in reducing lead times and minimizing inventory holding costs. By working
collaboratively and coordinating their activities, stakeholders in the Ethiopian leather product
industry can streamline their operations and achieve higher levels of efficiency and quality.

3.3 Enhancing Quality in the Ethiopian Leather Product Industry

To enhance the quality of leather products in the Ethiopian leather industry, several measures can
be taken. Firstly, implementing quality management systems and processes can help ensure that
the production of leather goods meets international standards. Research by (Alemu et al., 2022)
highlights the importance of quality management systems in improving the overall quality of
leather products. Secondly, investing in modern technology and machinery can improve the
efficiency and accuracy of leather production, resulting in higher-quality products. A study
conducted by Abebe (2018) emphasizes the need for technological advancements in the
Ethiopian leather industry to enhance product quality. Lastly, providing specialized training and
education to workers can help improve their skills and knowledge of leather production
techniques. This aligns with the findings of a study by Getachew et al. (2020), which emphasizes
the importance of training programs in enhancing the quality of leather products. By
implementing these measures, the Ethiopian leather product industry can achieve significant
improvements in quality and compete in the global market.

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3.3.1 Implementation of quality control measures and standards

Implementation of quality control measures and standards is crucial for optimizing operational
efficiency in the Ethiopian leather product industry. These measures ensure that products meet
the required quality standards and specifications, improving customer satisfaction and increasing
competitiveness in the global market (Filketu and Negash, 2023). Quality control measures
involve the establishment of a comprehensive quality management system, which includes the
use of standardized processes, inspection procedures, and the implementation of quality control
tools such as statistical process control (SPC) and Six Sigma methodologies (Rajeswara Rao et
al., Montgomery, 2020). By effectively implementing these quality control measures and
standards, the industry can minimize defects, reduce waste, and enhance overall operational
efficiency. Creation of novel technologies, developments in artificial intelligence and machine
learning, and a holistic approach to leather production that guarantees quality from the raw
material to the finished product are the prospects of the sector.

3.3.2 Adoption of sustainable and eco-friendly practices

The adoption of sustainable and eco-friendly practices is becoming increasingly important in the
Ethiopian leather product industry (Negash and Filketu, 2022). As consumers around the world
become more conscious of the environmental impact of their purchases, industries are under
pressure to implement eco-friendly measures throughout their operations. In the leather product
industry, sustainable sourcing of raw materials, reduction of waste and water consumption, and
the use of non-toxic chemicals in the production process (Daba and Jilcha). By adopting these
practices, companies can not only meet the growing demand for sustainable products but also
reduce their environmental footprint and contribute to the overall well-being of the planet.
Furthermore, companies that prioritize sustainable practices are likely to attract environmentally
conscious consumers and gain a competitive edge in the market.

3.3.3 Promoting research and development for innovation and product diversification
Promoting research and development (R&D) is crucial for innovation and product diversification
in the Ethiopian leather product industry. R&D activities can help in identifying new market
trends, understanding customer preferences, and developing innovative products that meet the
changing needs of consumers. According to a study conducted by, investing in R&D can lead to

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increased productivity, improved quality, and enhanced competitiveness in the industry.
Moreover, R&D can also contribute to the development of new techniques, processes, and
materials that can improve the efficiency and sustainability of the industry. Consequently, leather
product manufacturers need to allocate sufficient resources and create a supportive environment
for R&D initiatives, such as establishing partnerships with research institutions and providing
incentives for innovation.

4. Conclusion
In conclusion, optimizing operational efficiency and quality in the Ethiopian leather product
industry is crucial for its growth and competitiveness in the global market. The industry is a vital
contributor to the country's economy, generating employment opportunities and export revenue.
In addition, involves processing raw hides and skins, tanning, manufacturing leather products,
and exporting finished goods. Optimizing operational efficiency and quality is crucial for the
industry's growth and success in both domestic and international markets as it affects the
product's ability to meet client demands. This review analyzed various strategies and approaches
that can be implemented to achieve these goals. By focusing on areas such as supply chain
management, workforce training, technology adoption, and quality control measures, the
industry can enhance its productivity and meet international standards. Additionally,
collaborating with stakeholders across the value chain and investing in research and development
can further drive innovation and sustainability. The government, industry players, and other
relevant stakeholders need to work together and implement these recommendations to enhance
the overall performance of the Ethiopian leather product industry.

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