The Effects of Lean Supply Chain Management on Organizational Performance the Case of FAFFA Food S.C.
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Date
2020-03
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Addis Ababa University
Abstract
Lean supply chain management enables firms to tailor their supply chain processes
and organizational roles to support lean supply chain principles. The purpose of the
study was to investigate the effect of lean supply chain management on organizational
performance in case of FAFFA Food S.C. The research questions were presented in
order to identify the effect of lean supply chain management on organizational
performance as well as the challenges faced the implementation of lean supply chain
management. The study employed descriptive and an explanatory research design.
Out of the study population of 177 employees of the enterprise, a sample size of 110
was taken, whose elements was selected using a stratified sampling technique.
Questionnaires were used as the primary data collection instrument. The response
rate was 85%, with 94 questionnaires properly filled out of the distributed 110
questionnaires. Data was analyzed using descriptive statistics, correlation and
regression analysis and presented in tables with the help of SPSS 20 software. The
study indicated that lean supply chain management practiced in FAFFA Food S.C
occasionally. The study revealed that lean supply chain management practice
contributed to FAFFA Food S.C organizational performance to a moderate extent.
The study also showed that there was significant relationship between lean supply
chain management practices and organizational performance of FAFFA Food S.C.
The study further revealed that lean procurement, lean supplier, and lean
warehousing practices had predicting power on organizational performance of
FAFFA Food S.C. The study also revealed that FAFFA Food S.C faced challenges
Misunderstanding of lean and Resistance to change to a great extent. The study
recommended giving priority and enhancing the lean supply chain management
practices they can significantly improve its organizational performance from the
current position.
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Keywords
lean supply chain management, lean procurement, lean production, lean transportation, lean warehousing