Supply Chain Management: Empirical Case Study of a Small-Scale Manufacturing Company in Nigeria

Abstract

The supply chain of a manufacturing company can be classified into three categories namely: 1) supplier chain; these are a network of suppliers of raw materials, machinery, and other requirements for daily operations for the company; 2) internal chain; these are departmental or functional relationships within the organization like production, finance, marketing, logistic and quality control departments all interacting together to achieve the goals and objective of the company; and 3) customer chain; these are networks used for products distribution to the final consumer which includes the product distributors and retailers in the marketplace as may be applicable. In a developing country like Nigeria where government infrastructures are poor or in some cases none in existence, the survival of a small-scale manufacturing company often depends on how effectively its supply chain is managed. In Nigeria, suppliers of machinery and raw materials to most manufacturing companies are from low-cost but high-tech countries like China or India. The problem with the supply chain from these countries apart from the language barrier between these countries and Nigeria is also that of product quality and after-sales support services. The internal chain also requires funding to employ an experienced and trained workforce to deliver the company’s goals and objectives effectively and efficiently which is always a challenge for small scale manufacturers including product marketing. In Nigeria, the management of the supply chain by small scale manufacturers is further complicated by unfavourable government policies. This empirical research is a review and analysis of the supply chain management of a small-scale manufacturing company located in Lagos Nigeria. The company performance for the past five years has been on the decline and company management thinks there is a need for a review of its supply chain management for business survival. The company’s supply chain is analysed and compared with best global practices in this research and recommendations made to the company management. The research outcome justifies the company’s need for a strategic change in its supply chain management for business sustainability and provides a learning point to small-scale manufacturing companies from developing countries of Africa.