The Effects of Lean Supply Chain Management on Organisational Performance in Case of FAFFA Food S.C.

Abstract

Lean supply chain management enables firms to tailor their processes and organisational roles to support lean supply chain principles. The study aimed to investigate the effect of lean supply chain management on organisational performance in the FAFFA Food S.C. The study employed descriptive and explanatory research design. Out of the study population of 151 enterprise employees, a sample size of 110 was taken using a stratified sampling technique. Questionnaires were used with a response rate of 85%. Data was analysed using descriptive statistics, correlation and regression analysis with the help of SPSS software. The study indicated that lean supply chain management is practised in FAFFA Food S.C. occasionally. The study revealed that lean supply chain management practice contributed to FAFFA Food S.C. organisational performance to a moderate extent, and there is a significant relationship between lean supply chain management practices and FAFFA Food S.C.’s organisational performance. The study further revealed that lean procurement, lean supplier, and lean warehousing practices had a powerful influence on the organisational performance of FAFFA Food S.C. The study also showed that FAFFA Food S.C. faced challenges, misunderstanding of lean, and resistance to broad change. The study recommended giving priority and enhancing the lean supply chain management practices to improve its organisational performance from the current position significantly.

Keywords: Lean Supply Chain Management, Lean Procurement, Lean Production, Lean Transportation, Lean Warehousing, Lean Supplier, Lean Customer

View PDF