CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Globalization and liberalization of trade and rising domestic demand for companies provide new market opportunities for enterprises, particularly in developing countries. However, the situation has exposed firms in developing countries to heightened competition in domestic and international markets (Silva et al, 2009). Simultaneously, the focus of the competition is moving from a firm against firm to competition among supply chains (SC).  Hence, processing firms are continuously engaged in searching for new ways to “achieve competitive advantage and enhance their organizational performance” (Gorane et al, 2015) relative to the competition to survive in the new market environment.

A supply chain is a sequence of processes and flows that is aimed to meet final customer requirements and take place within and between different supply chain stages (planning, procurement, production planning, inventory management, warehousing, and logistics). The supply chain does not only include the manufacturer and their supplier, but also (depending on the logistics flow) transporters, warehouses, retailers, and operations, distributions, finance and customer service (Van der Vorst, J.G.A.J., 2004& Ayawel, B., 2018)

 Supply chain management forms the backbone of most economics and successful multinational companies today and was great importance long before. The term supply chain management was first coined by Keith Oliver in 1982. The aim of supply chain management are to improve on organizational performance and customer’s satisfaction. To achieve this, it focuses on improving the right quantity to deliver to the right location, at the right time in order to maximize cost and meets up customer’s requirement and face global competition. (Robert B et al,1999).

In the intensively competitive world, the competition exists not only between organizations but also among supply chains. Schneller & Smeltzer (2006) and White & Mohdzain (2009) expressed that supply chain management (SCM) plays a very critical role as a key factor for an organization to gain competitive advantage and improve organizational performance. The competitive environment requires organizations to provide high quality products and services, deliver rapid service response, and develop dynamic capabilities that are congruent with the rapid changing business environment (Fawcett and Magnan et al, 2009). Therefore, organizations have begun to realize that it is crucial to have competitive supply chain management practices so that they are able to stay in the competitive global business environment.

Supply chain management (SCM) help an organization to integrate on their internal functions and in force them with external parties like suppliers and customers so that they are able to improve their competitive performance. Supply chain integration advantage can be succeed when the effectiveness use of different supply chain practices are link together on integrating the supply chain. Integrating an organizational internal cross functional boundaries and external integration of suppliers and customers are important aspect in SCM practices so that it can be able to gain superior and successful supply chain performance (Narasimhan, 1997).

The important of supply chain management is no doubt and lots of studies have confirmed the importance of organizational supply chain level that will influence on the manufacturing agility and flexibility. Therefore, it is interest to study the supply chain management practices which has been widely adopted by manufacturing industry.

Rapid urbanization in developing countries and rising living standards brings associated dilemmas threats to sustainability and that may not be taken into account in global business scenarios (Abreu et al., 2012; Jayanti et al., 2014). Since a large part of operations concerning extraction, production, and manufacturing are based in developing countries, it is important to recognize those countries as key players in global supply chain and to analyze their initiatives towards sustainable development, as they have increasing global relevance (Abreu et al., 2012; Zhu and Sarkis, 2006). SCM practices present opportunities for exporting enterprises in developing countries to improve their environmental and social performance ( Luken and Stares, 2005; Park el at., 2010), whilst improving their competitive and achieving business  goals ( McMurray el al.,2014; van Hoof and Thiell, 2015).`

Past studies show that effective SCM improves competitive advantage (CA) and enhances organizational performance (OP) (Tahoon, Bahi, Elsehily, & Nasreldeen, 2017). However, the literature shows mixed results since the “linkage between SCM practices and organizational performance could be, on the one hand, direct or indirect, and on the other hand, sequential, non-sequential, and intra-dependent or reverse” (Okongwu et al, 2015). Hence, businesses and organizations need to comprehend the role of SCM practices on CA and OP competitive advantage and organizational performance. 

So far, only a few studies (e.g. Adebanjo et al., 2013; Ojadi et al., 2017) have Considered Nigeria in the examination of SC related subjects. This is rather surprising because the economy of Africa is constantly evolving, and Nigeria is playing an increasing role in Africa’s evolving economy because of its role as a supplier of some major commodities (Muogboh & Ojadi, 2018). Nigeria is also the 7th most populous nation in the world (UN Projection, 2020), and the largest economy in Africa (IMF, 2019). Similar to other developing countries, it is difficult to manage SCs in Nigeria due to the level of complexity and various manufacturers, retailers, suppliers, and third-party providers responding to the demand of a growing population of over 200 million people (Orji et al., 2019).

Organizations face numerous challenges competing in today’s dynamic global markets. To remain competitive, they must recognize the importance of effective supply chain practices that improve not only their organizational performance but also coordinate with their supply chain partners to improve their joint performance. Despite the significant advances in research and practices, many organizations continue to struggle to understand the complex issues associated with the coordinated planning and supply activities amongst the members of their supply networks (Cook, L. S., Heiser, D. R., & Sengupta, K., 2011).

The brewery industry sector in Cameroon has witnessed remarkable growth in recent years, leading to increased attention from multinational business companies seeking to enter the market. This growth has been driven by rising consumer demand for beer, resulting in a surge in the number of beer manufacturing companies operating within the country. As a consequence of this expansion, the competitive landscape in the brewery sector has intensified, prompting firms to adopt aggressive promotional and marketing strategies to capture market share (World Bank, 2020). However, despite the growing significance of the brewery industry in Cameroon’s economy, there remains a notable gap in research concerning the operational procedures and methods within the brewery supply chain. This knowledge gap poses a significant challenge as it hinders the understanding of the quality, performance, and effectiveness of supply chain management practices within the sector.

Supply chain management (SCM) plays a pivotal role in enhancing competitiveness and efficiency in the brewery industry, yet its specific applications and impacts in Cameroon are underexplored. While multinational brewery firms may bring expertise and best practices from their global operations, the adaptation of SCM strategies to the local context in Cameroon remains understudied. Research on SCM in the Cameroonian brewery sector is essential for identifying the unique challenges and opportunities within the local supply chain, as well as for developing tailored strategies to optimize supply chain performance (World Bank, 2019). By addressing this research gap, stakeholders in the brewery industry can gain insights into how SCM practices can be tailored to the Cameroon context to drive operational excellence and competitive advantage.

Furthermore, the lack of research on supply chain management in the Cameroonian brewery sector represents a missed opportunity for industry stakeholders to enhance their understanding of supply chain dynamics and improve decision-making processes. In an increasingly competitive market environment, where operational efficiency and customer satisfaction are critical success factors, a thorough understanding of SCM practices is essential for brewery firms to maintain a competitive edge (UNCTAD, 2020). Research focusing on the quality, performance, and effectiveness of supply chain operations in the brewery sector in Cameroon can provide valuable insights for industry practitioners, policymakers, and researchers alike. By addressing this research gap, stakeholders can identify areas for improvement, implement best practices, and drive continuous improvement in supply chain performance, ultimately contributing to the overall growth and sustainability of the brewery industry in Cameroon.

1.2 Delimitation of the study

1.2.1 Spatial Delimitation

The aim of the research is to investigate the supply chain management practices of brewery firms in Cameroon and assess how supply chain management practices affect their performance with specific reference to Guinness Mile III Nkwen,. The study makes use of Guinness Mile III Nkwen Bamenda all thanks to the presence of a large number of participants of the study who have experience on the effect of strategic decision making on procurement practices. Also, the study will delimit to the individuals participantsstaffs and, clients of Guinness Mile III Nkwen