The Effect of Global Supply Chain Disruptions on Local Manufacturing: A Study of Guinness Nigeria in Kwara State
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Background of the Study
Global supply chain disruptions, such as those caused by pandemics, geopolitical tensions, natural disasters, and trade restrictions, have far-reaching impacts on local manufacturing operations. Guinness Nigeria, one of the leading breweries in the country, imports raw materials such as barley, hops, and packaging from international suppliers, making it vulnerable to global supply chain disruptions. In Kwara State, where Guinness Nigeria operates manufacturing and distribution facilities, the company’s ability to manage these disruptions is critical for maintaining production schedules, inventory levels, and overall supply chain efficiency (Ogunleye & Adedeji, 2023).
The COVID-19 pandemic has underscored the vulnerability of global supply chains, highlighting the need for companies like Guinness Nigeria to develop strategies to mitigate the impact of such disruptions. In addition, rising transportation costs, fluctuating exchange rates, and trade restrictions further exacerbate challenges in obtaining critical supplies from international sources. Understanding how global disruptions affect local manufacturing processes, particularly for Guinness Nigeria in Kwara State, is essential for developing resilient strategies that can reduce operational risks and enhance long-term sustainability (Fadeyi & Shehu, 2024).
This study aims to explore the effects of global supply chain disruptions on local manufacturing at Guinness Nigeria in Kwara State, focusing on how such disruptions affect production, costs, and supply chain strategies.
Statement of the Problem
While global supply chain disruptions are inevitable, local manufacturers like Guinness Nigeria must adapt to minimize the negative impact on operations. The problem lies in understanding how global supply chain disruptions affect local manufacturing operations and what strategies Guinness Nigeria employs to manage these disruptions in Kwara State. Despite having contingency plans in place, Guinness Nigeria still faces challenges in maintaining production schedules, quality standards, and cost efficiency during global supply chain disruptions.
Objectives of the Study
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To assess the impact of global supply chain disruptions on production processes at Guinness Nigeria in Kwara State.
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To evaluate the strategies employed by Guinness Nigeria to mitigate the impact of global supply chain disruptions.
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To identify the challenges and opportunities for Guinness Nigeria in adapting to global supply chain disruptions in Kwara State.
Research Questions
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How do global supply chain disruptions impact production processes at Guinness Nigeria in Kwara State?
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What strategies does Guinness Nigeria employ to mitigate the impact of global supply chain disruptions on its operations?
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What challenges and opportunities does Guinness Nigeria face in adapting to global supply chain disruptions in Kwara State?
Research Hypotheses
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Global supply chain disruptions negatively impact production processes at Guinness Nigeria in Kwara State.
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Effective mitigation strategies reduce the negative impact of global supply chain disruptions on Guinness Nigeria’s operations.
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Challenges in adapting to global supply chain disruptions negatively affect Guinness Nigeria’s production efficiency in Kwara State.
Scope and Limitations of the Study
This study will focus on assessing the impact of global supply chain disruptions on local manufacturing at Guinness Nigeria in Kwara State. Limitations may include the difficulty in isolating the direct effects of global disruptions and potential data access issues regarding Guinness Nigeria’s internal operations.
Definitions of Terms
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Global Supply Chain Disruptions: Interruptions in the global flow of goods and services caused by external factors such as pandemics, trade policies, and natural disasters (Fadeyi & Shehu, 2024).
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Local Manufacturing: The production of goods within a specific geographic region, often relying on both local and global supply chains for raw materials and components (Ogunleye & Adedeji, 2023).
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Mitigation Strategies: Plans and actions designed to minimize the impact of risks or disruptions on business operations (Fadeyi & Shehu, 2024).
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