A study on the effectiveness and efficiency of the Supply chain model in the Wrigley Company (East Africa) limited - (WCEA)

Abstract

A close scrutiny of debates and discourses on the concept of organizational supply chain management readily reveals that a leading concern among most organizations working with known supply chain models give overwhelming attention to cost minimization. It is generally believed that a firm's level of profit maximization will depend in large measure on the type of supply chain process that it depends on. In other terms firms that insist on working with other business partners in their supply chains who have adopted best supply and production practices are better placed to cut on overheads as they maximize profits. The purpose of the study was to investigate and provide an understanding of the existing Supply Chain Model at WCEA within the context of its main areas of efficiency and effectiveness. Further the study sought to establish what the challenges presently face the supply chain model/structure that WCEA uses. In the study, the descriptive research method was the preference. This granted the researcher the opportunity to acquire complete and accurate information relating to the issues under enquiry. This study employed the use of two types of study tools namely a structured questionnaire and an interview schedule. Structured survey questionnaire to measure a number of variables related to supply chain processes relevant to the objectives of the study. The interview schedule on the other hand enabled the researcher to carry out indepth probing of respondents in order to.. get all possible perspectives of the subject under study. In the study, several statistical analyses were performed on the study data. First, descriptive statistics was used to analyse the distribution of any categorical and numerical responses to generate frequencies and percentages. Secondly, the data from the interview schedules and open ended items was transcribed, reconstructed and analyzed using narratives. The study findings revealed that majority of staff, irrespective of hierarchy, believed that the work they did in the company was directly related to the supply chain process. It was also found that the three most common objectives as identified by the respondents were: increased productivity, enhanced customer service, and higher quality standards. Staff expected that, to a great extent, the supply chain activity would increase significantly the organization's performance in the next five years . . iv It is recommended that the company leadership demystifies the SCM concept to all associates and communicated to them effectively the intended benefits that would accrue when SCM is properly implemented and operationalised. There is also a need for WCEA management to introduce staff capacity development initiatives to improve their understanding of the supply chain process and inform them of their contribution to the process. v