Effect of Supply Chain Management (SCM) Practices on Organizational Performance of BUA Cement Plc, Obu Okpella, Edo State
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Abstract
Effective Supply Chain Management practices, particularly inventory management and supplier relationship management, are widely recognized as critical drivers of organizational performance in capital-intensive industries such as cement manufacturing. This study examined the effect of supply chain management practices on organizational performance at BUA Cement Plc, Obu Okpella, Edo State, Nigeria. A quantitative research design was employed, with primary data collected via a structured questionnaire administered to employees across procurement, inventory, production, logistics, and customer service units. The study population comprised 2,023 staff members across key operational departments. Using Yamane's formula, a sample of 401 respondents was selected, yielding 379 valid responses (95% response rate) that were analyzed through descriptive statistics and simple regression analysis using SPSS Version 27.0. The findings revealed that inventory management exerted a statistically significant positive effect on operational efficiency (β = .785, p < .001), explaining 61.6% of its variance, while supplier relationship management demonstrated a substantial positive influence on customer satisfaction (β = .746, p < .001), accounting for 55.7% of variance in service reliability and delivery consistency. The study concludes that inventory management and supplier relationship management function as complementary yet distinct strategic capabilities driving internal production continuity and external market responsiveness respectively within Nigeria's capital-intensive cement manufacturing sector. It is recommended that the company institutionalize data-driven forecasting systems and deploy automated, centralized inventory platforms to enhance supply chain visibility and decision-making agility. These interventions will strengthen operational resilience and sustain market competitiveness amid Nigeria's dynamic industrial environment.
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