International Journal of Advanced Research in Management and Social Sciences
  • Year: 2018
  • Volume: 7
  • Issue: 6

Supply chain management as a tool for cost minimisation strategy among selected tissue paper manufacturing firms in ABA, South East Nigeria

  • Author:
  • Samuel Arinze Offorbike1, Elizabeth Uzoamaka Okechukwu2
  • Total Page Count: 15
  • Page Number: 45 to 59

1Department of Business Administration, Faculty of Management Sciences, Enugu State University of Science and Technology, Enugu, Nigeria

2Department of Business Administration, Enugu State University of Science and Technology, Enugu, Nigeria

Online published on 5 December, 2019.

Abstract

The understanding and practicing of supply chain management (SCM) has become an essential prerequisite for staying competitive in the global race and for enhancing profitably. The study examine supply chain management as a tool for cost minimization strategy among selected tissue paper manufacturing firms in Aba, South East Nigeria. Descriptive research design was adopted in the study among138 staff of the selected tissue paper manufacturing firms in Aba, Abia State. Questionnaire was used to obtain data used for the study. The results were presented in descriptive statistic while the study hypotheses were tested using inferential statistic of linear regression. The result of the study shows that distribution cost control significantly and positively affect cost minimization operations of tissue paper manufacturing firms in Aba, South East Nigeria (t = 17.634; F = 149.504; p =.000 < 0.05) and Inventory cost control does not positively affect cost minimization operations (r =.899, F = 528.6744, t = 33.161; p =.000 < 0.05). It was concluded that supply chain management among tissue papers is a vital strategy that influences the cost as such, it leads minimization of cost. It was concluded that the management of tissue papers within Abia state especially Abba should see the supply chain management as a cardinal to minimizing operating cost and creating customer satisfaction, as such, a need to plan towards its integration into management strategy and that the management should adopt information communication technology in facilitating its supply chain system as such, allowing adequate flow of communication between distributors and the organization to reduce high cost of distribution.

Keywords

Supply Chain Management, Cost Minimization Tool, Tissue Paper Manufacturing, Distribution Cost Control, Inventory Cost Control