The Impact of Supply Chain Management Practices on the Performance of Manufacturing Firms in Rivers State Nigeria.

Abstract

Nigerian manufacturing firms including small and medium scale are part of the supply chain. They may be assemblers, subcontractors or small part maker. As a result of emphasis by government to attract more direct foreign investment, joint ventures or associate companies from developed countries, the establishment of these companies in Nigeria thereby requires local supporting companies, as this is necessary and as this is necessary for an effective supply chain. Rivers state is one of the industrial hobs in Nigeria but it has not produced results to match its potentials. The manufacturing industry have to put in more effort to ensure that it performs better and contribute more to the economic wellbeing of the state and country at large. For the manufacturing firms, supply chain management practices play vital role on their performance given the nature of competition in the environment that they operate. Hence a study on the level which this sector has adopted the various supply chain management practices and its effect on organizational performance is imperative. The objective of the study is to examine how supply chain management practices affect the performance of manufacturing firms in Rivers State. The research design for this study is survey design because it allows flexibility and permits the use of questionnaire, interviews, observation etc with each instrument capable of serving as a control. The population of the study is 1005 comprising the management and technical staff of the selected manufacturing firms in Rivers State. They includes Sloak Paints limited, Terra Paints, Inter Color Industries limited, Demcok Paints limited, Versus Paint Specialists Nigeria, Berger Paints, Portland Paints and Products Nigeria Plc and Wesly. Other categories of staff like security man and cleaners were not included in our analysis. Simple random sampling technique, while 278 sample size used was determined using the Krejcie and Morgan table of 1970. The reliability of the instrument was determined using test-retest method. The data were analysed using percentage distribution, mean and standard deviation, pearson product moment correlation coefficient and SPSS (Statistical Package for Social Sciences) version 25.0. The study showed there is a significant positive effect of strategic supplier partnership on productivity in manufacturing firms in Rivers State. There is a significant positive effect of strategic supplier partnership on inventory turnover in manufacturing firms in Rivers State. There is a significant strong positive effect of quality of information sharing on productivity in manufacturing firms in Rivers State. There is a significant strong positive effect of quality of information sharing on inventory turnover in manufacturing firms in Rivers State. The implication is that it is expedient for marketing managers in the industry to be properly guided in directing their efforts towards ensuring proper techniques are implemented in their industry in achieving increase performance. The study recommends that granted the nexus between supply chain management practices and organizational performance, managers in the manufacturing industry should ensure that they maintain strategic partnership relationship as this could encourage mutual planning and problem-solving efforts between the firm and her suppliers and enhance organizational performance.