BENEFITS OF TURNING SUPPLY CHAIN INTO REVENUE CHAIN IN PRODUCTION COMPANIES
This study the benefits of turning supply chain into revenue chain in production companies, is very important using Nestle Nigeria plc as case study. Companies need to understand the business impact of supply chain decisions on their own organizations. However, to what extend do business leaders and supply chain managers understand the impact on the external world. In this work we found out that there are benefits of turning supply chain into a revenue chain in production companies, and there are challenges that deter turning supply chain into a revenue chain in production companies.
BACKGROUND OF THE STUDY
Revenue growth is a top priority on corporate agendas today. Companies are grappling with challenges such as learning how to enter new markets and attract new customers, identifying which new channels to tap in each segment and geography, and determining how to penetrate deeper and wider into the existing customer bases. Retailers are experimenting with novel store formats and fostering new, more intimate relationships with consumers.
Additionally, manufacturers are interacting with consumers and discovering new prospects via mobile apps and social media. Identifying the most profitable approach and determining the most loyal/productive customers and the most advantageous products are important supply chain-related tasks.
The supply chain development of production companies can impact both the environment and local economies, especially in emerging markets. This impact can be positive or negative depending on factors including: market pressure to lower costs and the extent to which companies are focused on responsible supply chains. Changing market dynamics and emerging technologies enable players across the consumer goods value chain to revisit their supply chain strategies to propel growth and gain operational efficiencies. A truly adaptive supply chain requires a shift in approach. For most organizations, this means:
Rethinking supply chain strategies to accommodate new and varied market forces to grow revenues.
Reinventing supply chain operations to achieve or retain optimal cost efficiency and create new business capabilities.
Rewiring supply chain systems to leverage technological advancements that help organizations deal with ever-changing market dynamics reflected by spikes in volume and information variety — while boosting productivity.
This project seeks to determine the benefits of turning supply chain in production companies.
1.2 PROBLEM STATEMENT
The last several years have been challenging for companies across the manufacturing, retail and consumer goods industries. But despite relentless and continuing cost pressures, companies in these sectors are now shifting focus to innovations that fuel revenue growth and maintain, if not extend, hard-earned productivity gains. To do this, these companies need to revisit and reformulate their supply chain strategies. It is in light of this that this project seeks to determine the benefits of turning supply chain in production companies using nestle Nigeria plc as case study.
1.3 OBJECTIVES OF THE STUDY
The main purpose of this study was to examine the benefits of turning supply chain into a revenue chain in production companies. The specific objectives are to;
Have a general overview on supply chain and revenue chain in production companies.
Determine if there are benefits of turning supply chain into a revenue chain in production companies.
Identify challenges that deter turning supply chain into a revenue chain in production companies.
Ho: There are benefits of turning supply chain into a revenue chain in production companies.
Hi: There are no benefits of turning supply chain into a revenue chain in production companies.
Ho: There are challenges that deter turning supply chain into a revenue chain in production companies.
Hi: There are no challenges that deter turning supply chain into a revenue chain in production companies.
1.5 SIGNIFICANCE OF THE STUDY
Companies need to understand the business impact of supply chain decisions on their own organizations. However, to what extent do business leaders and supply chain managers understand the impact on the external world? This project highlights the Benefits of turning Supply Chains into a revenue chain in production companies and to provide guidance in making better decisions to drive shared value.
It is our goal that the results of this project would guide future supply chain decisions towards creating more responsible supply chains for tomorrow’s customers and consumers.
1.6 SCOPE AND DELIMITATION OF THE STUDY
The scope of this study is focused on the benefits of turning supply chain in production companies using Nestle Nigeria plc as case study. The researcher encountered some constraints, which limited the scope of the study. These constraints include but are not limited to the following.
a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
1.7 DEFINITION OF TERMS
SUPPLY CHAIN: The end-to-end system of processes and activities required to deliver product from the supplier’s supplier to the consumer’s shelf.
SUPPLY CHAIN ORGANIZATION: The holistic resources and teams required to deliver products and services to the consumer with excellence. This includes, but is not limited to, procurement, manufacturing, engineering, process control, quality, safety/environmental, innovation program management, logistics (warehousing, transportation, inventory management, order fulfillment), customer service, and planning (materials, production, inventory, and category/customer).
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows Chapter one is concerned with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.