The Effect of Strategic Supply Chain Management on the Profitability of Flour Mills in the Sub-Saharan Africa (2005 - 2013)

To compete successfully in today’s fierce and challenging business environment, companies need to focus on supply chain management components that have impact in enhancing profitability. The study examined the effect of strategic supply chain management on the profitability of Flour Mills in the Sub-Saharan Africa (2005-2013). The problem x-rayed here stems from the huge cost burden on production firms in the sub-Saharan African region and their subsequent poor performance. The industry is marred by low profit margin as a result of high cost burden, as such the ability of the company to reduce production cost while increasing product output would largely determine profitability.  The major objective of this study is examining the effect of strategic Supply Chain Management on Profitability of Flour Mills in the Sub-Saharan African Region as measured by the Profit After Tax (PAT) and other source document. Specifically, the objectives were to; Determine the trend and level of profitability of the flour mills, Ascertain the Strategic supply chain management model adopted by the selected flour mills, Examine the effect of supply chain management cost components on the profit of the flour mills. Data collected from Annual reports of various issues were analyzed using inferential statistics such as Time trend model, Multiple and simple regression analysis. The results of the findings showed some firms in the region still see strategic supply chain management as a novel theory and as such does not reap its full benefits. Their huge investment in their supply chain component does not  reflect significantly in their profitability. The study concludes that all round development in the industrial sector (Flour mills) is possible with the integration of sound supply chain variables and exploitation of knowledgeable human resources and as well as adopting a sound supply chain management strategy/model. In Nigeria just like every other nation in the globe, when firms reaches the peak of their maturity stage in their life cycle, it starts experiencing stunted growth in terms of their profitability trend. Various recommendations were made which includes that Production firms should integrate their supply chain management operations efficiently in such a way that it enhances their sales and profitability and also should strive to create a Strategic Supply Chain system that will create value and manage risk for their numerous customers from origination and processing, to logistics and distribution, with the changing economic and political environment, emerging technology versus global competition and changing nature of supply chain management, to become competitive strategic weapon, supply chain operations must abandon fragmented approaches, the companies should shorten internal lead times and make them more predictable and repeatable and also reduce the volume of work-in-progress inventories from months of supply to days and that firms should strive to implement Just-in-time delivery strategies for their most costly component materials and also drastic reduction in the setup times, as this will substantially reduce indirect cost and improve the use of resources

Effective Supply Chain Management: A Strategic Tool for Profitability Enhancement in the Competitive Marketing Environment (An Empirical Evidence in the Nigerian Food and Beverage Industry 2005 - 2014)

To compete successfully in today’s fierce and challenging business environment, companies need to focus on supply chain management components that have impact in enhancing profitability. The study examined Effective Supply Chain Management: A Strategic tool for Profitability Enhancement in the Competitive Marketing Environment ( An Empirical Evidence in the Nigerian Food and Beverage Industry 2005-2013). The problem x-rayed here stems from the huge cost burden and poor performance of industries in Nigeria which was made manifest by its low Profit After Tax and poor contribution of 6% to the Gross Domestic product (GDP) and also holding the fact that many firms have gone extinct from the marketing environment and only four companies (Honeywell flour mills Plc, Flour mills of Nigeria Plc, Northern Nigeria Flour Mill Plc and Lafarage Dangote Flour Mill Plc) control 50% of the entire flour mills market share among the 22 surviving firms. The major objective of this study is examining the relationship between Supply Chain Management cost components and Profitability of Food and  Beverage industry in Nigeria and their impact on firm’s survival as measured by the Profit After Tax (PAT) and other source document. Specifically, the objectives were to; examine the nature of relationship existing between supply chain management and profitability of the flour mills, ascertain if the volume of Goods in Transit affects the profitability of the flour mills and ascertain the supply chain management strategy/model adopted by the selected flour mills. Data collected from Annual reports of various issues were analyzed using inferential statistics such as Pearson correlation model and simple regression analysis. The results of the findings showed firms after investing heavily in their supply chain component does not  reflect significantly in their profitability. The study concludes that there is a significant relationship between Effective SCM and Profitability growth, that to ensure sustainable supply chain management operation which will ensure increased profitability in the industrial sector, Supply Chain operational inefficiencies ultimately will have adverse effects upon profits. Turning the situation round, difference in the efficiency of the inventory control for a given level of flexibility affects the level of investment required in inventory. The less efficient is the inventory control, the greater is the investment required. Excessive investment in inventories increase cost and reduce profits, thus, the effects of inventory control of flexibility and on level of investment required in inventories represent two sides of the same coin. This will also help in reducing the high cost burden which lies on the ability to reduce production cost Various recommendations were made which includes that production firms should adopt the SCM integration model that was specified in the study, to become competitive strategic weapon in such a way that it enhances their sales and profitability and also should adopt the Supply chain strategy/models that was developed in this study as it will best align with their operations and target customers, supply chain operations must abandon fragmented approaches

The Effect of Industrial Development on Economic Growth (An Empirical Evidence in Nigeria 1973-2013)

The effect of industrial development on the economic growth of Nigeria has over the past decade been a recurring issue for analysis like every economy most especially developing economies. Nigeria has enjoyed a long period of sustained economic growth since 2001 and yet, there is poor contribution from the industrial sector to the country’s GDP. There are various studies that have supported that industrial development is a pathway to sustainable economic growth. Thus, this research investigated the effect industrial development on the Nigeria’s economic growth 1973 - 2013. PC Give 8.00 version statistical package was used to analyze the secondary data that was collected from National statistical bulletin. GDP was used as the dependent variable, while foreign direct investment, industrial output, total savings and inflation was used as the independent variables. The model explain that the influence of industrial output on economic growth is not statistically significant, though the sign obtained from its àpriori expectation is positively related to (economic growth) GDP but does not hold strong enough. Savings has a positive relationship and also significant impact on the economy. Inflation has a negative relationship while net foreign direct investment is positively significant on the impact of economic growth. R-squared shows a 76% increase on the GDP. Based on the findings, it is therefore recommended that the government and its agencies should ensure political stability and also the implementation of strategic policies that will create a fair playing grounds for foreign investors which will also improve the establishment of industries especially the manufacturing industries to encourage industrialization of the Nigerian economy as this will facilitate the strengthening of economic growth (GDP). Increase in savings will make money available for the economy through high interest rate and income adjustments from the monetary policy. The Bank of Industry (BOI) should be ready to aid Nigerian industrialization along Nigeria’s line of development and not a total shift to accepting models which worked elsewhere given their environment and circumstance which differs from place to place