Supply Chain Management and Cost Efficiency of the Food Manufacturing Industries in Gasabo District Rwanda

Abstract

This research aimed to examine the effects of supply-chain management on cost efficiency with emphasis on African Improved Food during the period from 2017 up to 2022. The management is being tasked with achieving greater financial returns despite a smaller headcount. This challenge is further compounded by the fact that many institutions are not entirely clear on how to attack them spend cube to achieve greater spend under management or compliance goals, particularly in supply-chain efficiency. The need for market data and intelligence has never been more important. The main challenge in supply-chain management is the procurement fraud that can be distinct as dishonestly obtaining an advantage, avoiding an obligation or causing a loss to institutional property or various means during supply-chain efficiency of procurement servants, contractors or any other person involved in the procurement. Poor risk management and less communication are the problems that hinder the effective procurement guidelines into organization. Indeed, lack of proper internal audit related to the procurement function and effective workforce engagement in institutions continue to be big challenges that has made organizations fail to achieve their intended objectives of being going concerns making surplus, delivering services to the institutions as well as satisfying the needs of all stakeholders. The study took theoretical references including strategic supplier agent theory; logistics management agent theory; information technology theory of change and the cost-efficiency theory. The sample size is 210 respondents. Therefore, the questionnaire research technique was used during data collection, and SPSS was used during data analysis. During the collection of answered questionnaire sheets, findings showed a participation rate of 93% of responding to research questions means 196 respondents. The model summary indicates that R-squared (R²) equals to 0.806 means that up to 80.6% of long-run appreciation in cost-efficiency is influenced by changes in strategic supplier integration; logistics management and information technology as implemented by AIF. The other remaining 19.4% can be explained by other factors not examined in this study. Basing on result the model for instance, a one-unit increase in Strategic supplier integration corresponds to a 0.258-unit increase of cost-efficiency in Africa Improved Foods (AIF) (β=0.258 t=3.556 p value = 0.000). Similarly, a one-unit increase in logistics management corresponds to a 0.437 unit increase of cost-efficiency in Africa Improved Foods (AIF) (β=0.437 t=7.678 p value = 0.000). And a one-unit increase in information technology corresponds to a 0.252 unit increase of cost-efficiency in Africa Improved Foods (AIF) (β=0.252 t=3.496 p value = 0.001). Therefore, the p-values are less than 0.05 and there is significant determinant of cost-efficiency in AIF means the study findings conclude that good cost-efficiency in AIF scored is directly related to effective independent variables. African Improved Foods is recommended to improve the way they sharing information about production and demand forecasts with suppliers in order to enhance quick production and reducing production costs.