The Impact of Supply Chain Management on Operational Efficiency in BUA Group, Sokoto State
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Background of the Study
Supply chain management (SCM) plays a vital role in ensuring business efficiency, cost reduction, and competitive advantage. Effective SCM integrates procurement, production, logistics, and distribution to enhance operational efficiency (Christopher, 2024). In manufacturing industries such as cement production, SCM is essential for maintaining production flow, reducing waste, and ensuring timely delivery of raw materials and finished goods (Okoro & Ibrahim, 2023).
BUA Group, a leading manufacturing conglomerate in Nigeria, relies on a robust supply chain to maintain its cement, sugar, and food production operations. However, inefficiencies such as transportation delays, supplier inconsistencies, and logistical bottlenecks can negatively impact production and profitability (Adekunle et al., 2023). Given the increasing complexity of supply chains due to globalization and economic fluctuations, businesses must optimize their SCM strategies to remain competitive.
Although research highlights the benefits of effective SCM, challenges such as poor infrastructure, supply disruptions, and regulatory barriers can hinder its success (Umar & Adebayo, 2024). This study examines how SCM affects operational efficiency in BUA Group, Sokoto State, identifying key factors that influence performance and potential areas for improvement.
Statement of the Problem
Manufacturing firms in Nigeria face significant supply chain challenges, including poor infrastructure, high transportation costs, and inventory mismanagement. These issues can lead to delays, increased operational costs, and reduced efficiency (Chinedu & Yusuf, 2024).
The problem is that while BUA Group has established supply chain strategies, their effectiveness in enhancing operational efficiency in Sokoto State remains uncertain. Without optimizing supply chain processes, BUA risks production slowdowns, financial losses, and reduced market competitiveness. This study aims to analyze the link between SCM and operational efficiency in BUA Group.
Objectives of the Study
- To assess the supply chain management practices at BUA Group.
- To examine the impact of SCM on operational efficiency.
- To identify challenges affecting effective SCM implementation in BUA Group.
Research Questions
- What supply chain management practices are adopted by BUA Group?
- How does SCM impact operational efficiency in the company?
- What challenges affect the efficiency of BUA Group’s supply chain?
Research Hypotheses
- Effective SCM significantly improves operational efficiency in BUA Group.
- Poor SCM practices lead to increased operational costs and inefficiencies.
- Technological integration in SCM enhances supply chain efficiency.
Scope and Limitations of the Study
The study will focus on SCM strategies within BUA Group in Sokoto State. Limitations include data accessibility and differences in SCM implementation across various product lines.
Definitions of Terms
- Supply Chain Management (SCM): The coordination of supply chain activities to maximize efficiency (Christopher, 2024).
- Operational Efficiency: The ability of a business to minimize costs while maximizing productivity (Okoro & Ibrahim, 2023).
- Logistics: The management of material flow from suppliers to consumers (Umar & Adebayo, 2024).
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