Materials Management and its Effect on the Performance of Manufacturing Sector: Evidence from Nigerian Cement Industry

Abstract

The study examined the effect of materials management on the performance of manufacturing industry with particular reference to the selected cement industry. Purposive sampling technique was employed to select Dangote Cement Plc, Ashaka Cem Plc and Lafarge Africa Plc, while judgmental technique was used to select ten (10) staff members from purchasing/store/ logistic department of the selected cement industry respectively, totalling thirty (30) respondents as a sample size for the study. The data collection instrument for the study was a structured questionnaire and a personal interview. Data analysis was conducted with the aid of multiple regression analysis. Result revealed that materials management dimensions jointly contribute significantly to firm performance. The study further revealed that materials inventory, materials procurement and inter-departmental collaboration have an insignificant effect on firm performance, while only materials storage has a significant impact on firm performance. The study concluded that effective materials management is a veritable tool to organization performance. Subsequently, the study recommended that management should embrace effective materials management especially in the area of materials inventory, materials procurement and inter-departmental collaboration, in order for the industry to achieve its vision of being a global leader in cement production and the largest employers of labour in the world by 2030.