Supply Chain Management and Performance: Evidence from Manufacturing Organisations in Nigeria
DOI:
https://doi.org/10.32890/jtom2022.17.2.7Keywords:
Information, Manufacturing, Order, Performance, Procurement, Supply chainAbstract
This study examined how supply chain management practices (SCM) impact on the performance of selected quoted manufacturing organizations in Nigeria. These practices include procurement outsourcing, information flow management and order process management. Survey research was used through questionnaire administration to the staff of production, procurement, warehouse, logistics and marketing departments of two quoted manufacturing organizations operating in Edo state. Statistical tools used in analyzing the data obtained include mean, standard deviation, correlation and regression analyses. The study found that positive and statistically significant relationship exists between supply chain management practices such as procurement outsourcing, information flow management and order process management, and performance of manufacturing organizations. The study, therefore, recommends that manufacturing organizations should concentrate on the production and services they have the expertise on and outsource those functions other firms or individual can do better for them.
References
Batista, L. (2009). Key operations performance factors on trade and transport facilitation.Proceedings of the 14th Annual Logistics Research Network Conference, Cardiff, UK, September.
Buysee, K., & Verbeke A. (2003). Proactive environmental strategies: a stakeholder management perspective. Strategic Management Journal, 24(5), 453-470.
Christopher, M. (2005). Logistics and supply chain management: Creating value-adding networks. London, UK: Prentice Hall.
Christopher, M. (2000). The agile supply chain: Competing in volatile markets. Industrial Marketing Management, 29(1), 37-44.
Davis-Sramek, B., Germain, R., & Stank, T. P. (2010). The impact of order fulfillment service on retailer merchandising decisions in the consumer durables industry. Journal of Business Logistics, 31(2), 215-230.
De Brito, M., & Dekker, R. (2004). A framework for reverse logistics. In reverse logistics; Quantitative models for closed-loop supply chains, pp.3–27. (Springer-Verlag, Germany).
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston, MA: Pitman.
Fugate, B. S., Mentzer, J. T., & Stank, T. P. (2010). Logistics performance: Efficiency, effectiveness, and differentiation. Journal of Business Logistics, 31(1), 43-62.
Green, K. W, Jr., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: Impact on performance. Supply Chain Management: An International Journal, 17(3), 290-305.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. (2006). Multivariate data analysis. Upper saddle River.
Han, J., & Trienekens, J. H. (2009). Integrated information and logistics management, quality management and firm performance of pork processing industry in China. British Food Journal, 111 (1), 9-25.
Harisson, A., & van Hoell, R. (2002). Logistics management and strategy (6th Ed). London: Pearson Education Limited.
Huo, B., Haq, M. Z. U., & Gu, M. (2021). The impact of information sharing on supply chain learning and flexibility performance. International Journal of Production Research, 59(5), 1411-1434.
Iriqat, R. A. M., & Abu-Daqar, M. A. M. (2017). The role of customer relationship management in enhancing the customers’ satisfaction in the banks in Palestine. Modern Applied Science, 11(12), 84-91.
Kabergey, M., & Richu, S. (2015). Effect of reverse logistics on operational performance of Sisal processing firms in Nakuru county, Kenya. International Journal of Economics, Finance and Management Sciences, 3(5), 556-565.
Kaufmann, L., & Carter, C. (2006). International supply relationships and non-financial performance - A comparison of US and German practices. Journal of Operations Management, 24(5), 653–675.
Keebler, J. S., & Plank, R. E. (2009). Logistics performance measurement in the supply chain: A benchmark. An International Journal, 16(6), 785-798.
Kinyanjui, M. B. (2014). Procurement outsourcing and supply chain performance of manufacturing firms in Nairobi, Kenya (Unpublished MBA Thesis). School of Business, University of Nairobi, Kenya.
Kogoh, Z. B. K. (2015). Effect of outsourcing on performance of logistics industry in Kenya (Thesis). Strathmore University. Retrieved from http://su-plus.strathmore.edu/handle/11071/4730
La Londe, B. J. (1998). Building a supply chain relationship. Supply Chain Management Review, 2(2), 7-8.
Lummus, R. R., & Vokurka, R. J. (1999). Defining supply chain management: A historical perspective and practical guidelines. Industrial Management and Data Systems, 99(1), 11-17.
Memia, F. K. (2018). Influence of contemporary supply chain practices on performance of large manufacturing firms in Kenya (Doctoral dissertation, JKUAT-COHRED).
Miguel, P. L. S., & Brito, L. A. L. (2011). Supply chain management measurement and its influence on operational performance. Journal of Operations and Supply Chain Management, 4(2), 56–70.
Mutimos, A. (2014). Relationship between reverse logistics practices and organizational performance of manufacturing firms in Kenya (Unpublished MBA Project). University of Nairobi, Kenya.
Mwangangi, P. W. (2016). Influence of logistics management on performance of manufacturing firms in Kenya (Unpublished Ph.D. Thesis). Jomo Kenyatta University of Agriculture and Technology, Kenya.
Nowakowski, T. (2004). Reliability model of combined transportation system. Probabilistic Safety Assessment and Management. Spitzer, C., Schmocker, U. and Dang, V. N. (ed.). London: Springer
Oisamoje, M. D., & Areloegbe, H. A. (2014). Supply chain management and completion of petroleum projects in Nigeria. European Journal of Logistics Purchasing and Supply Chain Management, 2(1), 42-61.
Oliver, R. K., & Webber, M. D. (1992). Supply chain management: Logistics catches up with strategy. In Christopher, M. (Ed.), Logistics: The Strategic Issues (pp. 63-75). London: Chapman and Hall, London.
Oyewo, B. M., Oyedokun, G. E., & Azuh, A. E. (2019). The use of multi-perspective strategic performance measures by manufacturing firms: Benefits, determinants and challenges. DLSU Business and Economics Review, 29(1), 115-130.
Paiva, E. L., Phonlor, P., & D’Avila, L. C. (2008). Buyers-supplier relationship and service performance: An operations perspective analyses. Journal of Operations and Supply Chain Management, 1(2), 77–88.
Perry, J. F. (2012). The impact of supply chain management business processes on competitive advantage and organizational performance (M.Sc. Thesis). Department of Operational Sciences, Air University, Ohio.
Prabusankar, R. (2017). Impact of supply chain management practices on competitive advantage of small manufacturing firms in Coimbatore district. International Journal of Mechanical Engineering and Technology, 8(10), 836–843.
Puska, A., Kozarevic, S., & Okicic, J. (2020). Investigating and analyzing the supply chain practices and performance in agro-food industry. International Journal of Management Science and Engineering Management, 15(1), 9-16.
Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance as a dependent variable: Towards methodological best practice. Journal of Management, 35(3), 718-804.
Rogers, D., & Tibben-Lembke, R. (1999). Going backwards: Reverse logistics trends and practices. Reverse Logistics Executive Council Press, Pittsburgh.
Sayed, M., Hendry, L. C., & Zorzini Bell, M. (2021). Sustainable procurement: Comparing in-house and outsourcing implementation modes. Production Planning & Control, 32(2), 145-168.
Sillanpaa, I., & Kess, P. (2012). The literature review of supply chain performance measurement in the manufacturing industry. Management and Production Engineering Review, 3(2), 79-88.
Skipworth, H., Delbufalo, E., & Mena, C. (2020). Logistics and procurement outsourcing in the healthcare sector: A comparative analysis. European Management Journal, 38(3), 518-532.
Slack, N., Chambers, S., & Johnston, R. (2004). Operations management (4th Edition). Harlow, England; New York: Financial Times Prentice Hall
Smith, M., & Chang, C. (2010). Improving customer outcomes through the implementation of customer relationship management: Evidence from Taiwan. Asian Review of Accounting, 18(3), 260–285.
Stank, T., Goldsby, T., & Vickery, S. (1999). Effect of service supplier performance on satisfaction and loyalty of store managers in the fast food industry. Journal of Operations Management, 17, 429–447.
Stevenson, M., & Spring, M. (2009). Supply chain flexibility: An inter-firm empirical study. International Journal of Operations and Production Management, 2(9), 946-971.
Tai, P. D., Duc, T. T. H., & Buddhakulsomsiri, J. (2022). Value of information sharing in supply chain under promotional competition. International Transactions in Operational Research, 29(4), 2649-2681.
Thoo, A.C., Huam, H.T., Yusoff, R.M., Rasli, A. M., & Hamid, A.B. A. (2011). Supply chain management: Success factors from Malaysian manufacturer’s perspective. African Journal of Business Management, 5(17), 7240-7247.
Tracey, M., & Tan, C. L. (2001). Empirical analysis of supplier selection and involvement, customer satisfaction and firm performance. Supply chain management: An International Journal 6 (4), 174-188.
Van Thai, V., Rahman, S., & Tran, D. M. (2021). Revisiting critical factors of logistics outsourcing relationship: a multiple-case study approach. The International Journal of Logistics Management, 33(1), 165-189.
Voss, C. A, Ahlstrom, P., & Blackmon, K. (1997). Benchmarking and operational performance: Some empirical results. International Journal of Operations and Production Management, 17(10), 1046–1058.
Wachira, R. W. (2013). Supplier relationship management and supply chain performance in alcoholic beverage industry in Kenya (Unpublished MBA Thesis). University Of Nairobi, Kenya.
Wardaya, Idrus, M. S., Hadiwidjoyo, D., & Surachman. (2013). Improving competitiveness of the national industry of logistics service providers through collaboration from the perspective of consumer goods manufacturing companies in east Jav. International Journal of Business and Management Invention 2(5), 27-38.
Zhang, Q., Vonderembse, M. A., & Lim, J. S. (2005). Logistics flexibility and its impact on customer satisfaction. The International Journal of Logistics Management, 16(1), 71-95.
Published
Issue
Section
License
Copyright (c) 2022 Journal of Technology and Operations Management
This work is licensed under a Creative Commons Attribution 4.0 International License.
Disclaimer
The Journal of Technology and Operation Management (JTOM) has taken all reasonable measures to ensure that material contained in this website is the original work of the author(s). However, the Journal gives no warranty and accepts no responsibility for the accuracy or the completeness of the material; no reliance should be made by any user on the material. The user should check with the authors for confirmation. Articles published in the Journal of Technology and Operation Management (JTOM) do not represent the views held by the editors and members of the editorial board. Authors are responsible for all aspects of their articles except the editorial screen design.
