Materials Management and Productivity of Fast Moving Consumer Goods Companies in Nigeria: A canonical Correlation Approach

Abstract

In this paper, the effect of material management on productivity level of fast moving consumer products enterprises in Nigeria was assessed. The survey design was employed and questionnaire was the major instrument of data collection designed via two material management dimensions (raw materials and work-in- progress) and productivity dimensions (material efficiency and yield). Questionnaire were administered to three hundred and seven (307) respondents and data obtained were analyzed using Canonical correlation. Results of canonical correlation analysis revealed that the combination of material efficiency and yield (productivity proxies) had a statistically significant relationship on sets of material management being measured by raw material and work-in-progress. The study concludes that improvement in material management will increase the productivity of FMCG companies in Nigeria. Given the results of the study, improvements in material management is needed such that material requisition and conversion units should ensure that required materials for production of goods are those put into the production process in order to realize efficiency of production and superior yield of finished goods by fast moving consumer products organizations. In addition, fast moving products companies should ensure maintenance of optimum level of material resources in its store room and reduce unhealthy practice in material usage that are pivotal to reducing productivity.