SUPPLY CHAIN MANAGEMENT AND PRODUCT VALUE CREATION: A PANACEA FOR ENHANCING COMPANY’S PROFITABILITY
DOI:
https://doi.org/10.47672/ajscm.714Keywords:
Supply Chain Management, Product Value Creation, Company’s Profitability, Raw Material, Manufacturing, LogisticsAbstract
towards enhancing company’s profitability. The specific objectives were to examine the effect of raw material sources, manufacturing and logistics as metrics of supply chain management on company’s profitability through product value creation.
Methodology: The study utilized survey research design. Primary source such as questionnaire response was used to proof the originality of the study. The population of the study comprised of marketing, purchasing and supply and management, top and middle staffs working in the three selected manufacturing companies in Nigeria includes Uniliver Nigeria Plc, Nestle Nigeria Plc and Cadbury Nigeria Plc, all the headquarters situated in South-West, Nigeria. The study utilized convenience sampling technique to drawn sample of 235 and all respondents were used for the study. 5-point likert scale options of structured questionnaire were used in the study to obtain respondents response. Content validity was used to determine the validity of the instrument and the value of the test of reliability was 0.87 which was calculated using test-retest reliability method. Simple linear regression analyses were used to test the hypotheses.
Findings: Three hypotheses were tested in line with the objectives of the study and it was revealed that raw material sources, manufacturing and logistics as metrics of supply chain management have significant effect on company’s profitability through product value creation.
Recommendations: The study suggested some recommendations as follows: Manufacturing company’s manager should establish a favorable relationship with suppliers in order to source the right quality and quantity of raw material that create value to company’s product, Manager should involve in proper planning of both human and material resources to showcase the effectiveness of supply chain management in the business organization and manufacturing activities should be paramount among manufacturing firms for efficient transformation of raw material to finished product. Better coordination of manufacturing activities necessitates product value creation
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Copyright (c) 2021 Gbadamosi Olaniyi Mufutau, Ogah Arome Victor (Ph.D), Olatunji Rufus Oladimeji
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