Supply Chain Cost Drivers and Operational Performance of Manufacturing Firms in Ghana: Moderating Effect of Lean Manufacturing

Abstract

The Food and Beverage industry faces unique challenges and complexities in managing its supply chain operations due to the perishable nature of the products, regulatory requirements, and consumer demand for high-quality and safe food products. One key concern for Food and Beverage manufacturing firms is managing supply chain costs while maintaining operational performance. The study aimed to examine the effect of supply chain cost drivers' effect on operational performance and lean manufacturing's moderating effect on the relationship between IC and OP, TC and OP and QC and OP. The study employed a quantitative research approach and explanatory research design. The data for the study was collected from 110 Food and Beverage manufacturing firms registered with the Association of Ghana Industries. The PLS-SEM technique was used to analyse the data. The SMART-PLS software version 4.0.9.1 was used to process the data for the study. Inventory, transportation, and quality costs were found to have a significant and positive effect on the operational performance of the Food and Beverage manufacturing firms. The study also found that lean manufacturing significantly moderates the relationship between IC and OP and QC and OP of the Food and Beverage manufacturing firms. However, the study also found that LM does not moderate the relationship between TC and OP among the firms. The study concluded that SCCD affects OP, and LM is a significant moderator in the relationship between SCCD and OP. The study recommends that food and beverage manufacturing firms strengthen their lean manufacturing practices to enhance their cost performance, thereby improving operational performance.