Menges Draffted
Menges Draffted
Date of Submission:
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Declaration
I declare that this report is my original work and has not been submitted
elsewhere for any academic purpose
Date: ____________________
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2 Approval Page
Supervisor’s Signature: __________________
Comments:
____________________________________________________________
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3 Acknowledgements
I would like to express my sincere gratitude to Ethio Telecom for providing me
with the opportunity to undertake my practical attachment in the purchasing
section Special thanks to my supervisor Mr teshemo desta and my department&
colleagues for their support and guidance throughout my attachment period
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3 Executive Summary
During my practical attachment in the Sourcing Department of Ethio Telecom, I aimed to gain a
comprehensive understanding of procurement processes within a leading telecommunications company
The primary objectives included ,understand the purchasing processes, practices with in the
organization,familiarizing myself with supplier evaluation, inventory management, cost analysis, and
contract negotiationThroughout my attachment, I engaged in various activities that provided hands-on
experience in the procurement cycle I assisted in the supplier evaluation process, where I learned how
Ethio Telecom assesses potential vendors based on criteria such as financial stability, quality compliance,
and operational capabilities Additionally, I participated in inventory management practices, observing
how the department maintains optimal stock levels to ensure uninterrupted operationsKey findings
from my experience highlighted the critical importance of thorough supplier evaluation and effective
cost analysis I discovered that careful budgeting and spending reviews can lead to significant cost
savings while maintaining quality standards Furthermore, I recognized that strong negotiation skills are
essential for securing favorable contract terms with suppliersBased on my observations, I recommend
Ethio Telecom consider further integration of technology in their procurement processes, particularly
through e-procurement systems, to enhance efficiency and transparency Additionally, fostering closer
collaboration with other departments could streamline operations and align procurement strategies
with overall organizational goalsIn generally my attachment at Ethio Telecom's Sourcing Department
provided invaluable insights into effective procurement practices and equipped me with practical skills
essential for a successful career in supply chain management
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Table of Contents
1 Introduction
2 Organizational Profile
- Organizational Structure
- Daily/Weekly Activities
- Challenges Faced
- Skills Acquired
5 Critical Analysis
- Conclusions
7 Appendices
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                              chapter: one
                               Introduction
1.1 Background of the attachment
Ethio Telecom is the leading telecommunications service provider in Ethiopia, offering a range of
services including mobile telephony, internet, and data solutions The organization is committed to
enhancing the telecommunications infrastructure in the country
     Learn about supplier relationship management, including how to evaluate supplier performance
      and maintain effective communication with suppliers
     Develop skills in analyzing procurement data, preparing reports, and utilizing data to make
      informed decisions regarding purchasing strategies
     Understand the legal and regulatory framework governing procurement practices, including
      ethical considerations and compliance requirements
     Work collaboratively with cross-functional teams, such as finance, operations, and logistics, to
      understand how procurement impacts overall business objectives
       Learn how to conduct cost analyses, understand budgeting processes related to procurement,
        and identify opportunities for cost savings
       Enhance communication, negotiation, and interpersonal skills through interactions with team
        members, suppliers, and other stakeholders
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       Identify areas for improvement in procurement processes and suggest actionable
        recommendations based on observations and analysis
       Build professional relationships with colleagues, mentors, and industry professionals that can
        provide insights into career development in procurement etc
This report covers the activities I undertook during my attachment, the observations I made, and the
skills I acquired in the purchasing section of Ethio Telecom
             chapter: two
              Organizational profile
  2.1 Organizational Structure
The purchasing section operates under the procurement department, which is responsible for sourcing
and acquiring goods and services Key departments include:
 Procurement Planning
 Supplier Management
 inventory Control
     The purchasing department of Ethio Telecom plays a crucial role in the overall supply chain
      management and logistics activities of the organization Below are the key functions and
      operations of ethio telecom purchasing section
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       Analyzing historical data and market trends to predict future demand for telecommunications
        products and services
       Collaborating with various departments (eg, sales, marketing) to gather insights that inform
        accurate demand forecasting
 Evaluating suppliers based on criteria such as price, quality, reliability, and service capabilities
       Establishing and maintaining relationships with suppliers to ensure a steady supply of goods
        and services
 Developing procurement strategies that align with the company's goals and objectives
4 Contract Management:
       Drafting, negotiating, and managing contracts with suppliers to ensure favorable terms and
        conditions
       Monitoring compliance with contract terms and addressing any issues that arise during the
        contract lifecycle
6 Quality Assurance:
       Conducting quality checks upon receipt of materials to ensure they meet specified
        requirements
7 Logistics Coordination:
       Coordinating with logistics teams to manage the transportation and delivery of goods from
        suppliers to various locations within Ethio Telecom’s operations
 Ensuring that logistics operations align with procurement schedules for timely delivery
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- Operations in Logistics Activities
1 Transportation Management:
      Selecting appropriate transportation modes (road, air, sea) based on cost, speed, and
       reliability
2 Warehouse Management:
3 Order Fulfillment:
       Processing orders from different departments within Ethio Telecom and ensuring timely
        delivery of required materials
       Regularly assessing supplier performance based on delivery times, quality of goods, and
        service levels
5 Cost Management:
 Analyzing transportation and logistics costs to identify areas for cost reduction
 Negotiating freight rates and terms with logistics providers to optimize expenses
6 Risk Management:
       Identifying potential risks in the supply chain (eg, supplier disruptions, natural disasters) and
        developing contingency plans
In generally The purchasing department of Ethio Telecom is integral to the organization’s supply chain
management and logistics operations By effectively managing supplier relationships,optimizing
procurement processes, and ensuring efficient logistics coordination, the department contributes
significantly to the overall operational success of Ethio Telecom This comprehensive approach not only
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enhances efficiency but also supports the company in delivering high-quality telecommunications
services to its customers
                                       chapter: three
               Activities Undertaken During the Attachment
3.1 Roles and Responsibilities
During my attachment, I assisted in various tasks, including:
1 Supplier Management:
Maintain relationships with existing suppliers and conduct regular performance reviews
Track the status of purchase orders and ensure timely delivery of goods and services
3 Contract Negotiation:
4 Cost Analysis:
5 Quality Assurance:
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- Participating in procurement meetings
3.2 Activities
Weekly Activities
Weeks Activities
Details:
I was involved in developing a comprehensive supplier performance evaluation system This project
included creating key performance indicators (KPIs) to assess suppliers based on criteria such as quality,
delivery time, cost competitiveness, and responsiveness We conducted surveys and gathered feedback
from internal stakeholders who interacted with suppliers to ensure a holistic evaluation
Significance:
Improved Supplier Selection: The evaluation system enabled the procurement team to make informed
decisions when selecting suppliers, leading to better quality products and services
 Cost Savings: Identifying underperforming suppliers allowed Ethio Telecom to renegotiate contracts or
seek alternative sources, resulting in potential cost savings
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2 Streamlining the Purchase Order Process
Details:
I participated in a project aimed at streamlining the purchase order (PO) process This involved mapping
out the existing workflow, identifying bottlenecks, and proposing solutions for improvement We
implemented an electronic purchase order system that automated approvals and notifications
Significance:
 Increased Efficiency: The automation of the PO process reduced processing times significantly, allowing
for quicker order placements and deliveries
 Reduced Errors: Automation minimized manual entry errors, leading to more accurate orders and
improved inventory management
 Enhanced Transparency: The new system provided real-time tracking of purchase orders, increasing
transparency for all stakeholders involved in the procurement process
Details:
Significance:
 Corporate Social Responsibility: This initiative aligned Ethio Telecom's procurement practices with its
commitment to corporate social responsibility, enhancing its reputation in the market
Long-Term Cost Savings: Sustainable sourcing often leads to long-term cost savings through reduced
waste and improved resource efficiency
Risk Mitigation: By sourcing from environmentally responsible suppliers, we mitigated risks associated
with regulatory compliance and potential reputational damage
Details:I assisted in designing and implementing a training program for procurement staff focused on
best practices in purchasing and negotiation skills The program included workshops, case studies, and
role-playing exercises
Significance:
 Skill Development: The training program enhanced the skills and knowledge of the procurement team,
leading to improved negotiation outcomes and supplier engagement
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Cohesive Teamwork: It fostered a culture of collaboration and continuous learning within the
procurement section, ultimately improving overall team performance
Increased Confidence: Staff members reported increased confidence in their purchasing decisions,
which contributed to more strategic sourcing initiatives
In generally the projects I engaged in during my attachment at Ethio Telecom's purchasing section not
only addressed specific challenges but also contributed to broader organizational goals Through these
experiences, I gained valuable insights into procurement best practices and the importance of
continuous improvement in supply chain management The significance of these initiatives lies in their
ability to enhance operational efficiency, reduce costs, improve supplier relationships, and align
procurement practices with sustainability objectives
                                                          Chapter:four
                               Observations and Learning Outcomes
4.1 Challenges Faced
I encountered challenges such as
 reduced innovation
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4.2 Skills Acquired
I acquired skills
     I understanding how to evaluate & mange suppliers r/ships includes; performance assessment
      & communication
     gaining skills researching market trends ,pricing & potencail suppliers to make in formed
      purchasing decisions
     Learning to analysis procurement data & reports to identify cost saving opportunities &
      improve procurement strategies
     Lfamiliarity with contract terms condions & compliance issues as well as how to draft & review
      contracts
     developing the ability to conduct cost benefit analysis to determine the most economical
      purchasing options
     enhansing verbal & written communication skills though interaction with suppliers ,stake
      holders & team members
     Learning to addresses challenges that arise during the procurement processes ,such as; supply
      chain ditruption or vender issues
     I working with cross functional teams to understand how procurement interacts with other sept
      like ; finance ,operation, invent magt and etc
     I familiarity with procurement software & tools that stream line purchasing processes &
      manege suppliers information and etc I acquiring more skills & experience from the internship
      at ethio telecom semen region in purchasing or sourcing section
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1 Supplier Relationship Management (SRM)
Observation:
Ethio Telecom places a strong emphasis on building and maintaining long-term relationships with key
suppliers Regular meetings and performance evaluations are conducted to ensure that suppliers meet
quality, delivery, and service expectations
Trend:
There is a shift towards strategic partnerships rather than transactional relationships This includes
collaborative planning and joint problem-solving initiatives aimed at enhancing supply chain resilience
Observation:
The organization is increasingly adopting digital tools and platforms for procurement processes This
includes the use of e-procurement systems that streamline purchase requisitions, order management,
and supplier communications
Trend:
The integration of technology in logistics and supply chain practices is becoming more prevalent,
allowing for real-time tracking of orders, automated reporting, and enhanced data analytics capabilities
This digital transformation helps in making informed decisions based on accurate data
3 Sustainability Initiatives
Observation:
Trend:
There is a noticeable shift towards sustainable supply chain practices, including the evaluation of
suppliers based on their environmental impact This trend reflects a broader industry movement towards
corporate social responsibility (CSR) and sustainable sourcing
Observation:
The procurement section has implemented risk management strategies to address potential disruptions
in the supply chain This includes diversifying suppliers to mitigate risks associated with reliance on single
sources
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Trend:
In response to global supply chain challenges, there is an increasing focus on developing robust risk
management frameworks Organizations are investing in contingency planning, scenario analysis, and
supplier audits to enhance resilience against unforeseen disruptions
Observation:
There is a strong culture of continuous improvement within the procurement section Regular feedback
loops are established to assess procurement processes and identify areas for enhancement
Trend:
Lean principles are being adopted to eliminate waste and improve efficiency in supply chain operations
This includes process mapping, value stream analysis, and employee training programs aimed at
fostering a culture of innovation
Observation:
Ethio Telecom engages in collaborative planning with key stakeholders across the supply chain, including
suppliers and internal departments This ensures alignment on demand forecasts, production schedules,
and inventory levels
Trend:
The trend towards integrated supply chain planning is gaining traction, with organizations recognizing
the importance of collaboration for improved responsiveness and agility in meeting customer demands
In generally the logistics and supply chain practices observed during my stay in the procurement section
of Ethio Telecom reflect a proactive approach to managing procurement activities in a dynamic
environment The organization is adapting to emerging trends by leveraging technology, fostering
supplier relationships, emphasizing sustainability, and implementing risk management strategies These
practices not only enhance operational efficiency but also position Ethio Telecom as a forward-thinking
player in the telecommunications sector
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                                          Chapter: five
                                            Critical Analysis
The theoretical knowledge gained from my academic studies was applied in real-life procurement
scenarios For instance, concepts of strategic sourcing were evident in the supplier selection process,
highlighting the relevance of academic principles in practice
- In line with this theoretical understanding, I contributed to a sustainability sourcing initiative at Ethio
Telecom We assessed potential suppliers based on their environmental practices and certifications This
commitment to sustainability not only aligned with corporate social responsibility goals but also
positioned Ethio Telecom as a leader in ethical procurement within the telecommunications industry
During my attachment at Ethio Telecom in the purchasing section, I had the opportunity to apply various
theoretical concepts and knowledge gained from my academic program in a practical setting Below, I
analyze how specific theories and principles were integrated into the procurement processes at Ethio
Telecom, particularly in sourcing selection
Theoretical Knowledge:
From my studies, I learned about various supplier selection criteria, including quality, cost, delivery, and
service Theoretical frameworks such as the Analytic Hierarchy Process (AHP) were introduced to
prioritize these criteria based on organizational needs
Application in Practice:
At Ethio Telecom, I participated in the development of a supplier selection matrix that incorporated
these theoretical criteria We evaluated potential suppliers based on their performance against the
established benchmarks This systematic approach allowed us to make informed decisions and select
suppliers who aligned with our organizational goals
Theoretical Knowledge:
The concept of Total Cost of Ownership (TCO) emphasizes that the purchase price is only one
component of the overall cost of acquiring a product or service TCO includes acquisition costs, operating
costs, maintenance costs, and disposal costs
Application in Practice:
In evaluating suppliers for specific telecommunications equipment, I applied the TCO framework to
assess not only the initial purchase price but also the long-term costs associated with maintenance and
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operational efficiency This analysis helped Ethio Telecom select suppliers who offered better long-term
value rather than just the lowest upfront cost
- Negotiation Strategies
Theoretical Knowledge:
My academic program covered various negotiation strategies and tactics, including interest-based
negotiation and the importance of understanding both parties' needs
Application in Practice:
During contract negotiations with suppliers, I utilized interest-based negotiation techniques to identify
mutual benefits By focusing on shared interests, we were able to secure favorable terms while
maintaining positive relationships with suppliers This approach was instrumental in achieving win-win
outcomes that benefited both Ethio Telecom and its partners
Theoretical Knowledge:
The importance of Supplier Relationship Management (SRM) was a key focus in my coursework I learned
about the significance of building strategic partnerships with suppliers for long-term success
Application in Practice:
At Ethio Telecom, I assisted in developing a supplier performance evaluation system that facilitated
ongoing communication and feedback with suppliers By establishing clear performance metrics and
regularly reviewing supplier performance, we fostered stronger relationships and encouraged
continuous improvement This application of SRM principles enhanced collaboration and trust between
Ethio Telecom and its suppliers
In generally overall, the integration of theoretical knowledge from my academic program into practical
applications at Ethio Telecom significantly enhanced the procurement processes within the purchasing
section By applying concepts such as supplier selection criteria, TCO, negotiation strategies, inventory
management principles, SRM, and sustainability practices, I contributed to more effective sourcing
decisions that aligned with the organization's strategic objectives This experience reinforced the value of
bridging theory with practice in the field of procurement and supply chain management
- The purchasing section of Ethio Telecom plays a critical role in the company's overall supply chain
strategies, policies, and operations Given the dynamic nature of the telecommunications industry,
where technology evolves rapidly and customer demands shift, the effectiveness of supply chain
management directly impacts the company's ability to deliver quality services and maintain competitive
advantage Below, I discuss the relevance of Ethio Telecom's purchasing section strategies, policies, and
operations to the overall organization
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1 Alignment with Corporate Objectives
Relevance:
The purchasing section's strategies and policies are designed to align with Ethio Telecom's broader
corporate objectives, such as improving service delivery, expanding network coverage, and enhancing
customer satisfaction By ensuring that procurement decisions support these goals, the purchasing
function contributes to the overall strategic direction of the company
Impact:
When procurement strategies prioritize suppliers that can provide innovative technologies or services
that enhance network performance, it directly supports Ethio Telecom's commitment to being a leader
in telecommunications This alignment ensures that resources are allocated efficiently and effectively
towards initiatives that drive growth
Relevance:
Effective supply chain strategies within the purchasing section focus on cost management and
operational efficiency Policies that emphasize Total Cost of Ownership (TCO) and strategic sourcing
enable Ethio Telecom to minimize expenses while maximizing value from suppliers
Impact:
By optimizing procurement processes and negotiating favorable terms with suppliers, Ethio Telecom can
lower its operational costs This cost efficiency allows the company to invest more in network expansion
and technology upgrades, ultimately enhancing its service offerings and competitiveness in the market
3 Risk Management
Relevance:
The purchasing section plays a vital role in identifying and mitigating risks within the supply chain
Strategies that include supplier diversification, performance monitoring, and contingency planning help
Ethio Telecom navigate challenges such as supply disruptions or price volatility
Impact:
By proactively managing risks associated with suppliers and procurement processes, Ethio Telecom can
maintain service continuity and protect its reputation This resilience is essential in a sector where
service reliability is paramount to customer satisfaction
Relevance:
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The purchasing section's focus on building strong relationships with suppliers through effective Supplier
Relationship Management (SRM) is crucial for long-term success Policies that promote collaboration and
communication with key suppliers foster innovation and continuous improvement
Impact:
Strong supplier relationships enable Ethio Telecom to leverage supplier expertise in technology
advancements and service delivery improvements This collaboration can lead to better product quality,
faster response times, and enhanced flexibility in meeting customer demands
5 Sustainability Practices
Relevance:
Ethio Telecom's purchasing policies increasingly emphasize sustainability and ethical sourcing, reflecting
global trends in corporate responsibility By integrating sustainability into procurement practices, the
company demonstrates its commitment to environmental stewardship and social responsibility
Impact:
These sustainable practices not only enhance Ethio Telecom's brand image but also attract
environmentally conscious consumers Additionally, by working with suppliers who prioritize
sustainability, the company can reduce its ecological footprint and contribute positively to community
welfare
6 Technology Integration
Impact:
By leveraging technology in procurement operations, Ethio Telecom can improve efficiency, reduce lead
times, and enhance decision-making capabilities This technological integration supports the company's
agility in responding to market changes and customer needs
Relevance:
The purchasing section adheres to regulatory requirements and internal governance policies that ensure
ethical procurement practices This compliance is essential for maintaining transparency and
accountability within the supply chain
Impact:
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By upholding high standards of compliance, Ethio Telecom minimizes legal risks and enhances its
credibility with stakeholders This governance fosters trust among customers, investors, and regulatory
bodies, which is vital for long-term business success
Generally the purchasing section of Ethio Telecom is integral to the company's overall supply chain
strategies, policies, and operations By aligning procurement practices with corporate objectives,
managing costs effectively, mitigating risks, fostering supplier relationships, promoting sustainability,
integrating technology, and ensuring compliance, the purchasing function significantly contributes to
Ethio Telecom's ability to deliver quality services and maintain a competitive edge in the
telecommunications industry As the market continues to evolve, the relevance of these strategies will
remain critical for sustaining growth and achieving operational excellence
                                            Chapter: six
                        Conclusions and Recommendations
6.1 Conclusions
My practical attachment provided me with valuable insights into the purchasing processes at Ethio
Telecom The experience enhanced my understanding of supply chain management in the
telecommunications industry In generally from the attachment I advanced more experiences and skills
Such as; understanding procurement processes ,supplier relationship magt,cost analysis, budgeting
analysis, market research, complains& ethics the procurement process ,team collaboration,
technological utilization in the purchasing processes, problem solving skills concerned with purchasing
processes ,Negotiation skills ,sustainability environmental & social impacts in procurement decisions and
over all the attachment provided valuable experiences that enhanced be the technical skills and soft
skills especial for my career in procurement and sourcing
_ utilize automation tools to reduce manual tasks & speed up approval processes
_ develop strong relationship with suppliers though regular communication and performance reviews
_ utilize data analytics to assesses purchasing patterns ,suppliers performance & market trends
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_ in corporate sustainable procurement practices by considering environmental & social impacts when
selecting suppliers
_ adapt procurement software solution that offer features like sourcing ,spend analysis & contract magt
to improve efficiency & transparency
_ develop a risk management framework to identify potential risks in the supply to measure
procurement efficiency
_ conduct to regular market research to stay informed about industry trends pricing & new suppliers
_ regulatory review procurement polices to ensure they align with orgnal & compliance requirements
_ establish afeedback mechanism for both internal stakeholder & suppliers to continuously improve the
procurement processes based on their input and etc
To enhance the effectiveness of the logistics and supply chain management academic department in
preparing students for successful careers in procurement, particularly within organizations like Ethio
Telecom, I recommend some key suggestions
 Incorporate Industry-Releva nt Courses: Update the curriculum to include courses that reflect current
trends and technologies in logistics and supply chain management, such as digital supply chain
management, sustainable procurement practices, and data analytics
 Focus on Soft Skills: Integrate training on negotiation, communication, and relationship management
skills, which are critical for procurement professionals
 Internships and Co-op Programs: Establish partnerships with companies like Ethio Telecom to offer
internships or cooperative education programs This will provide students with hands-on experience in
real-world procurement environments
Case Studies and Simulations: Use case studies from the telecommunications industry to teach students
about procurement challenges and decision-making processes Incorporating simulation exercises can
help students practice their skills in a controlled environment
 Guest Lectures and Workshops: Invite industry professionals from Ethio Telecom and other relevant
organizations to conduct guest lectures or workshops This exposure will help students understand
industry expectations and best practices
 Advisory Boards: Create an advisory board comprising industry experts who can provide insights into
curriculum development and emerging trends in procurement and supply chain management
Encourage Research Projects: Promote research initiatives that focus on current issues in procurement
and supply chain management within the telecommunications sector Encourage students to explore
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topics such as supplier relationship management, risk mitigation strategies, and sustainability in
procurement
 Publish Findings: Facilitate opportunities for students to publish their research findings in academic
journals or industry publications, enhancing their credibility and visibility in the field
 Offer Certification Courses: Provide access to certification programs such as Certified Supply Chain
Professional (CSCP) or Certified Procurement Professional (CPP) These certifications can enhance
students' employability and demonstrate their commitment to the field
Industry Conferences and Events: Encourage students to participate in industry conferences, seminars,
and networking events This exposure will help them build professional connections that can lead to job
opportunities
Alumni Networks: Develop a robust alumni network that facilitates mentorship opportunities and job
placement assistance for current students
 Training on Supply Chain Software: Introduce training sessions on popular supply chain management
software and tools (eg, SAP, Oracle, or specialized procurement platforms) Familiarity with these tools
will better prepare students for roles in procurement
Data Analytics Training: Include modules on data analytics and decision-making tools relevant to
procurement processes, enabling students to leverage data for strategic sourcing decisions
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