BENEFITS OF TURNING SUPPLY CHAIN INTO REVENUE CHAIN IN PRODUCTION COMPANIES
- Project Research
- 1-5 Chapters
- Quantitative
- Chi-Square
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 5000
EXCERPT FROM THE STUDY
Based on findings, the study concludes that supply chain management practices are strongly related to profitability where adoption of superior practices leads to increased profitability. This is due to the fact that disruption in the supply chain in terms of delivery of products to the customers due to supply chain disruptions would have potential downstream implications for brand reputation, regulatory compliance, product safety, and other risks. Further, efficient supply chain management reduces financing costs and saves company distribution costs hence increasing profitability.
The study also concludes that having competent and more qualified staff leads to increase in profitability as well as streamlining supply chain. Therefore investment in employees through education and training leads better supply chain management practices and further increases profitability. Competent, experienced employees and systems to ensure continued staff growth lead to increase in human productivity, which in turn leads to a high firm’s profitability. This further ensures excellent and efficient supply chain management practices.
The study also concludes that automation of supply chain management and adoption of innovative strategies has positive effect on profitability. Even though the relationship was found to be minimal and statistically insignificant, companies in low margins industries cannot afford to miss out any opportunities that may lead to increase in profitability. The positive effect of automation of supply chain management on profitability is due to the elimination of inefficiencies in supply chain in addition to ensure that the products reach consumers on timely basis.
