An Evaluation of Supply Chain Management Practices and their effect on Organisational Performance: A Case Study of Zambia Breweries

Abstract

The purpose of this study was to examine the relationship between supply chain management practices and organisational performance, focusing on Zambia Breweries. The specific objectives include measuring the effect of effective information management practices on sales growth and cost-saving, assessing the relationship between logistics management practices and sales growth and cost-saving, and evaluating the impact of relationship management practices on these performance metrics. The research utilised a quantitative, descriptive design to explore the characteristics of the population. Stratified random sampling focused on employees directly involved in supply chain management at Zambia Breweries. A total of 71 respondents was sampled. Data analysis was conducted using Microsoft Excel 2016 and Statistical Package for Social Sciences (SPSS) version 26, employing regression analysis. The use of Microsoft Excel added value by providing a user-friendly interface for initial data processing, facilitating descriptive statistics, and aiding in data visualisation before conducting more advanced analyses in SPSS. The findings underscore the pivotal role of effective information management practices, logistics management practices and relationship management practices enhancing sales growth and driving cost-saving initiatives at Zambia Breweries. The findings showed that these practices significantly contribute to operational efficiency and competitiveness within the organisation. The findings demonstrated the substantial impact of optimised supply chain practices on the brewery's performance metrics, emphasising the potential for tangible improvements and operational efficiencies through strategic enhancements in supply chain management. The study specifically revealed that approximately 70% of the variability in organisational performance can be explained by Information Management, Logistics Management, and Relationship Management practices. The coefficients highlight the specific contributions, with Information Management showing an 18% estimated increase, Logistics Management a 14% increase, and Relationship Management a 12% increase in sales growth or cost-saving for every unit improvement. Therefore, each study’s alternative hypotheses were all accepted as Information Management, Logistics Management, and Relationship Management practices relationship with sales growth and cost saving were all significant and positive. Reflecting on these findings, recommendations are made that Zambia Breweries should consider substantial investments in advanced information management systems and data analytics capabilities. Prioritising improvements in logistics management, especially in transportation, distribution, and inventory management, is crucial. Strengthening relationships with strategic suppliers and major customers through partnerships is recommended. Promoting a collaborative culture within the organisation by incentivising teamwork and cross-functional interaction is vital. Making data-driven decisions a core capability by investing in skills development, including training programs in data analysis, visualisation, and interpretation, will empower managers to leverage insights. For future studies, suggestions include broadening the scope across multiple companies in the beverage industry, examining specific information management systems, exploring internal collaboration nuances, and conducting a comparative analysis within the Zambian beverage industry. The research contributes to addressing gaps in the literature by emphasising the need for localised studies, exploring simultaneous impacts on multiple performance metrics, and recognizing industry-specific variations in supply chain effectiveness. Keywords: Supply chain management, organisational performance, information management, logistics management, relationship management.