Supply Chain Disruption and Organisational Performance in Manufacturing Industry

Abstract

The study explored the key dimensions of supply chain disruptions in the manufacturing industry. In the Nigeria manufacturing industry, especially the Nigeria bottling companies experience disruptions that can result from transportation delays, suppliers’ failures, economic instability, or political unrest. Additionally, with the current rising cost of materials, insecurity and changing government policies in Nigeria, there was the need for this study. Supply chain disruption was proxy using these variables: supplier failure, defective products or materials and regulatory changes and then measured against organisational performance of bottling companies in Nigeria. The study further looked at the common causes of supply chain disruptions in bottling companies in Nigeria. The study population and sample size was 208 and 137 respectively. The stratified sampling technique was employed to ensure equal and fair representation of different departments, thereafter, simple random sampling was used to select the respondents. Primary data was collected using copies of structured questionnaire to elicit information from respondents. Data analysis was performed using Pearson correlation and regression analysis and the result showed that supplier failures, defective products or materials and regulatory changes has contributed to a minimal to decline in organizational performance. However, regulatory change was found to be the most significant factor influencing organisational performance.

Keywords: Supply Chain Disruption, Supplier Failure, Defective Products, Regulatory Changes, Organisational Performance.