SUPPLY CHAIN ANALYSIS AND DESIGN IN NIGERIA BREWERY

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ABSTRACT

Due to the great importance of supply chain, it is necessary for every company to focus on its supply chain analysis and design. The purpose of this thesis was to explore the core knowledge of how good design of supply chain improves the growth of a company and satisfaction of its customers.

In order to achieve this goal of the thesis, Nigeria’s brewery sector has been used for this project. With the industry being the biggest non-oil sector in Nigeria, this study helped in gaining understanding of how the brewery industry had great impact on Nigeria market with the help of their supply chain after the birth of their pioneer company Nigerian Breweries PLC six decades ago.

Nigeria’s brewery industry was one of the very important non-oil sectors and has contributed greatly to Nigerian economic growth in recent times. Different measures of productivity are used in manufacturing for the technical and other divisions. Productivity was measured in terms of plant operation efficiency and capacity utilization. Accomplishment of assigned responsibilities was used in terms of other division of the sector.

This industry also benefited from hot and humid weather experienced in Nigeria. This factor had an impact on their volume growth and the presence of many branch offices all over the country aided the distribution of products to consumers.


However, the poor infrastructure state and power supply worked against the industry which affects the brewery industry turnover. Cost pressures and higher finance expenses were also among their delicate area which affected their revenue growth and weak earnings.

TABLE OF CONTENTS

1          INTRODUCTION AND THESIS OBJECTIVES

2          KEY PERFORMANCE INDICATORS (KPI)
            2.1       Quantitative performance measures
            2.2       Qualitative performance measures
            2.3       Perfromance measures used in supply chain modelling

3          PROCUREMENT, PURCHASING AND INVENTORY MANAGEMENT
            3.1       Importance of procurement
            3.2       Procurement stages and steps
            3.3       Economic Order Quantity
            3.4       Safety stock
            3.5       Inventory replenishment and rendering

4          SUPPLY CHAIN RISK
            4.1       Risk analysis
            4.2       Risk management

5          NIGERIAN BREWERIES INDUSTRY OUTLOOK
            5.1       Nigerian breweries structure and footprint
            5.1.1 Brewery industrial structure
            5.1.2 Brewery footprint and capacity distribution
            5.2 Nigerian Breweries Plc supply chain network
            5.2.1 Optimization of network theory
            5.3       Comparism between Nigeria and Finland brewery system

6          RESULTS

7          CONCLUSIONS

REFERENCES


APPENDICES


1       INTRODUCTION AND THESIS OBJECTIVES



Supply chain can be defined as co-operation of various business entities which contain suppliers (acquire raw materials), manufacturers (creation of these raw materials to finished goods), distributors (circulate the finished goods to retailers) and retailers (sell it to final customers). These business entities are connected by transportation, storage facilities and they are incorporated through information, planning and integrated activities.

As demonstrated in Figure 1, supply chain can be segmented into two main processes; (1) The production planning and Inventory control which comprises of the suppliers of the raw materials, manufacturer of the goods, then the storage facility and (2) The distribution and logistics which starts from the storage facility to the distributors and the retailers. These processes are combined together to form an efficient supply chain. The extent of impact of supply chain depends on the design procedure and management of these processes.



The objective of supply chain is to create an efficient product line i.e. the right product, the right price, the right store, the right quantity, the right customer and the right time. Efficient supply chain also helps in expanding width/depth of distribution, reduces the transportation cost, reduces warehouse cost, improve the quality of goods, minimizing the time and maximize overall value generated by the right timing and quality. (Beamon 1998, p. 281-294)

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This is a General Thesis for both Undergraduate & Postgraduate Studies. The complete research material plus questionnaire and references can be obtained at an affordable price of N3,000 within Nigerian or its equivalent in other currencies.


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