The Causes of Commodity Shortfalls in a Commodity Exchange Market

This research focuses on the causes of commodity shortfalls in a commodity exchange market, particularly Ethiopia Commodity Exchange (ECX). ECX exchange is an open outcry system where traders physically meeting on the floor of exchange and its main tasks were to standardise the quantities and qualities of the grains and provide storage facility, commodity handling and contract enforcement of the commodity that were traded. The research aimed at predicting novel ways of identifying and searching the cause of shortfalls that extends beyond acceptable weight losses. The study found out the root cause of the problem as weak process design; which means there was no strong, effective and efficient control that allows a good system of check and balance. Hence the student researcher recommended process redesign especially in forward flow of work. This study contributes new information, a new improved solution, analysis, and procedure to the existing way of doing. It results in a new or improved service process in the area. It is very useful for commodity exchange market system designers, exchange market managers, warehouse managers, marketers, student researchers, and the general public.