14 Pages
3528 Words
Effectiveness of Lean management principles in operational efficiency within Nigeria's supply chain retail industry.
Introduction
Background of the study
Urbanization and evolving customer tastes have caused enormous growth in Nigeria's retail industry. The supply chain's efficiency in operation, however, continues to be an important issue, resulting in problems like shortages of goods, insufficient stock, and extended wait times. Lean Management Principles (LMP) came to light as a viable remedy in this case. LMP that is based on the production system developed by Toyota has a strong emphasis on reducing waste, simplifying procedures, and improving value delivery (Lee, et. al. 2021). The goal of the research is to evaluate LMP's efficacy in raising operational efficiency throughout the Nigerian retailing logistics system. The research aims to shed light on the degree to which LMP may address the operational difficulties facing the sector by looking at important performance factors including delivery times, turnover of stock, and consumer happiness.
Rationale of the study
The rationale behind carrying out this study comes from the immediate need for improved operational effectiveness throughout the Nigerian retail supplier network. Ineffectiveness within the supply chain may result in higher prices, lower satisfaction among consumers, and hindered productivity, which are all detrimental to the retail sector's capacity to contribute significantly to the growth of the country's economy (Bai, Satir and Sarkis, 2019). The Lean Management Principles (LMP) has been effective across a range of sectors, but little is known about the way they work in the Nigerian retail sector. This research focuses on the relationship among LMP implementation and operational efficacy in an effort to provide concrete proof of LMP's prospective benefits (Buer, et. al. 2021). The findings of the research would aid managers, policymakers, and retail professionals in simplifying procedures, cutting waste, and ultimately promoting the sector's long-term development in Nigeria.
Research questions
- Q.1 What is the concept of LMP and its significance?
- Q.2 What is the current connection between LMP and operational efficiency within Nigerian retail organizations?
- Q.3 What are the challenges and barriers experienced while applying Lean principles into the Nigerian retail supply chain?
- Q.4 Which are the Lean management strategy or principle should be adopted by Nigerian retail organization?
Research aim and objectives
Aim
The aim of this research is to evaluate the effectiveness of LMP in operational efficiency pertaining to supply chain retail industry within Nigeria.
Objectives
- To investigate understanding about the concept of LMP and its significance.
- To evaluate association between LMP and operational efficiency within Nigerian retail organizations.
- To identify the challenges and barriers experienced while applying Lean principles into the Nigerian retail supply chain.
- To propose recommendations and strategy for effectively implementing the concepts of Lean management.
Literature Review
Introduction
A literature review is an in-depth examination of previously published studies and academic works on a particular subject. In order to illustrate present knowledge, gaps, and developments in the area, it summarizes and assesses pertinent studies. This aids in contextualizing research and advances the comprehension of the field as a whole.
Developing an understanding of the concept of Lean Management Principles and their importance
In accordance with the views of Martins (2022) improving operational effectiveness in the Nigerian retail supply chain needs an elementary understanding of the Lean Management Principles (LMP) idea and its significance. On the critical note, Jermsittiparsert, et. al. (2020) said that To start with, understanding the concept of LMP requires an in-depth examination of its theoretical foundations. The ideas behind this are emphasize generating value, constant enhancement, including waste reduction. They have set the foundation for comprehending that LMP may be utilised to improve productivity and simplify procedures.
Osumo (2021) described LMP has significance because of its ability to reduce waste while generating value for customers. The significance of decreasing surplus stock and lead times is echoed by LMP's commitment to ending non-value-added operations. This is important to the retail sector, as minimising stockouts and optimising the amount of stock are essential to preserving high customer satisfaction levels and controlling costs. On the contradictory note, Maria Aslam and Siddiqui (2023) defined that the benefits of LMP's influence on operational efficiency to help people comprehend its relevance in greater detail. For example, applying LMP concepts in manufacturing settings shortened lead times and decrease manufacturing expenses.
However Vadivel, et. al. (2022) argued that, there are challenges to the process of acquiring understanding and putting LMP into practice. Change is commonly opposed by organizations, and changing from established routines may be challenging. Additionally, key LMP ideas may not apply in Nigeria's retail sector due to regional and cultural differences. Recognizing the relevance of LMP needs a methodology that takes into account these facts within the Nigerian context, wherein infrastructure limits and financial factors are different. The ubiquity of LMP's guiding principles necessitates localization of its use in order to optimize its efficacy. It necessitates a multifaceted approach to comprehend LMP and its importance with regard to the Nigerian retail supply chain. Matondang, (2022) defined Organizations can overcome obstacles and use LMP to improve efficiency in operations, reduce waste, and eventually offer value to customers by drawing on theoretical foundations, data from empirical studies, and contextual insights.
Relationship between LMP and operational efficiency
Ibikunle, Rajemi and Zahari (2023) examined The association among LMP and operational efficacy in various industries has become the subject of many studies research. For example, a favourable relationship among the deployment of LMP and operational efficiency results into shorter lead times and better quality of the product. These results imply that the LMP's inherent reduction of waste and procedure optimization concepts can really boost productivity. Menon and Ravi (2021) mentioned in their study that The retail sector shows similar trends. To Brazilian grocery store chains, the introduction of LMP resulted in higher stock rotation rates and lower stockout rates. This is in line to the objectives of the Nigerian retail sector, where fulfilling client demands require reducing stockouts and optimizing inventory levels. In addition, empirical studies that focus upon emerging economies provide useful data.
However Buer, et. al. (2021) argued that, challenges with LMP execution within Nigerian retailers must be taken into consideration. According to research, organizational culture and staff acceptance constitute significant factors. A supporting organizational environment that promotes staff involvement and ongoing development is necessary to ensure effective LMP implementation. This is important to the retail industry, because staff participation in process improvement is important. Leksic, Stefanic and Veza (2020) identified in their study that Nigerian-specific cultural and environmental factors may have an impact on the way the LMP is carried out. a personalized approach is essential for effectiveness and that LMP practices should be in line with indigenous beliefs and practices. A review of the literature demonstrates a strong correlation with LMP and efficiency in operation, both inside and outside of the retail sector. On the critical note, Sahoo (2020) said that it is impossible to disregard the implementation's difficulties, particularly in light of Nigeria's unique economic environment.
Challenges and barriers encounter when applying Lean principles to retail supply chain
According to the views of Almutairi, et. al. (2021) most significant barrier that jumps out is resistance to change. The principles of Lean may encounter opposition from executives and employees in Nigeria because of the country's potentially deeply entrenched traditional practices. Challenges with staff engagement along with instruction are prominent in the setting of retail. The requirement for staff participation and training in order to apply Lean practices is essential. The varied population and distinct abilities in Nigeria make it difficult to provide efficient instruction and promote a culture for ongoing growth.
Nayak (2020) examined applying Lean might also be complicated given supply chain complexity and infrastructure constraints. The absence of a reliable flow of products and data, which is essential for lean operations, might be hampered by Nigeria's poor communication and transportation infrastructure. The retail industry in Nigeria also has distinctive features, such as informal marketplaces, which may call for particular methods to Lean integration. However Argiyantari, Simatupangb and Basri (2020) argued that cultural considerations may impact Lean adoption.
It has been shown that reducing resistance may be achieved by fostering an organizational culture that recognizes employee contributions and ongoing progress. Utilizing local champions who are aware of cultural quirks and are willing to promote Lean concepts may help increase the efficacy of adoption. Major problems include resistance to change, employee participation, training, infrastructural constraints, and cultural factors.
Conclusion
The beneficial effect of Lean management principles (LMP) inside Nigeria's retail supply chain is made clear by this study's findings. Concerning the precise use of LMP in this situation, an important gap in the literature has been identified. These results support and add to the current research by highlighting the concrete advantages of LMP in improving the effectiveness of operations. By filling up this knowledge vacuum, this research advances the state of knowledge in the area and fosters an increased awareness of LMP's potential in the Nigerian retailing supply chain. It offers valuable information to both practitioners and researchers.
Research Methodology
Introduction
The research methodology over this research involves using the Saunders Research Onion Model, focusing on interviews. The chosen steps include a pragmatic research philosophy, a qualitative method to explore the experiences of participants, a case study strategy cantered on Nigeria's commerce supply chain, purposive sampling for participant's selection, an adaptable timeframe accepting participant availability, and systematic procedures, such as gathering participant approval, interviews, the transcription process, and evaluation.
Research philosophy
Out of the two concerned philosophies, interpretivism will be used by the researcher to evaluate research questions. Understanding social issues from the viewpoint of people who are affected is emphasized by interpretivism, which recognizes the importance of setting, culture, and one's own interpretations. An interpretivist approach is in line with the requirement to investigate these complexities given that organizational culture, personnel behaviours, and environmental variables all affect LMP efficacy in the supply chain of retail business (Newman and Gough, 2020).
Research approach
For this research, an inductive approach will be followed to deal with qualitative aspects effectually. It involves developing concepts and thoughts from the gathered data while allowing natural patterns and themes develop. An inductive technique is appropriate to capture the wide range of experiences and opinions because the goal of this study is to investigate the efficacy of LMP in the Nigerian retailing supply chain. It encourages an in-depth examination of the study subject, enabling an improved understanding of the interaction among LMP and operational efficacy.
Research Strategy
Quantitative and Qualitative are the main research types which can be undertaken for the investigation purpose (Newman and Gough, 2020). Qualitative study will be conducted to evaluate research issue or problem being investigated. Moreover, it provides a greater knowledge of the efficacy into the lean management principles (LMP). Concerned type will also help in evaluating underlying experiences and opinions pertaining to the improvement of operational effectiveness inside Nigeria's supply chain retail business. Qualitative research is selected because it provides opportunity for a comprehensive examination of complex phenomena. They can capture the specifics, events, and viewpoints of the concerned stakeholders through qualitative study, resulting in insightful data that is contextually relevant and rich.
Figure 1: The research onion
Source: Mark Saunders, Philip Lewis and Adrian Thornhill, 2018
Choices
In this study, primary data gathering was selected. Employing the interview method for study, 5-10 participants are going to be participated in online interviews. The method used provides thorough insights regarding LMP's efficacy. The interviews will b transcribed, enabling a careful examination of the viewpoints of the participants. This approach makes sure that the impact of LMP on the retail supply chain business will be thoroughly investigated in a limited amount of time.
Timeframe
The research's chosen cross-sectional timeframe allows a quick review of the way Lean management principles are working in Nigeria's retailing supply chain at one specific point in time. On the basis of this, research problem will be resolved by doing evaluation of views presented by individuals at specific point of time.
Techniques and procedure
The method for data analysis used is thematic analysis. Finding, examining and expressing patterns or themes in the gathered data are each component of thematic analysis. This approach permits an organized review of the textual material and corresponds with the qualitative aspect of the study. Individuals' views and firsthand knowledge about the effect of LMP on productivity within the retail supply chain may be uncovered using a structured framework provided by thematic analysis. By using NVivo software, viewpoints of respondents will be analysed and presented in a structured format.
Research limitations
This study's limitations involve the absence of real-time, primary information collection and possible discrepancies in the secondary data sources that were used. The unique settings and times represented by the secondary data could further restrict the generalizability of conclusions. In addition, the quantity and calibre of the accessible secondary data may have an impact on the amount of insights.
Reliability and validity
To enhance validity and reliability rigid criteria for selection for secondary sources of information will be used to increase trustworthiness while making sure that only reliable, well-researched sources are used (Mukherjee, 2019). To increase openness and replication, the whole study process including the data analysis will be meticulously recorded. The interpretivist approach places a strong importance on comprehending participants' points of view within their framework for validity, which enhance the veracity and reliability of the results.
Business Value
This study has significant consequences for the Nigerian supply chain retail industry because it sheds light on how well Lean management principles (LMP) work to improve the efficiency of operations. It adds significant knowledge to commercial practices by filling up research gaps that already exist. By offering a complex knowledge of LMP's application, this endeavour fosters academic excellence by directing industrial advancements and enhancing scholarly conversation. Considerable economic value may be derived from studies on the application using lean management principles (LMP) for operational efficiency in Nigeria's supply chain retail sector. As this directly targets the pressing problems of ineffectiveness, shortages and extended lead times, this study is essential to enhancing the business atmosphere of Nigerian retailers. The research will provide practical advice for simplifying procedures, improving the management of inventory and improving operational efficiency by examining the effect of LMP. These results will allow retail companies to implement specific methods that reduce waste, raise customer satisfaction levels and eventually increase profitability..
Indicative Timetable
Activities |
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Chapter 1 |
Introduction |
Chapter 2 |
Literature review |
Chapter 3 |
Methodology |
Chapter 4 |
Analysis |
Chapter 5 |
Conclusion |
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Ethical Considerations
A broad spectrum of ethical issues is encountered in this work and is completely addressed. Participants' well-being will be protected by careful assessment of any potential discomfort and injury associated with the process of interviewing. No deceit will be used, and obtaining informed authorisation while clarifying goals and rights is a focus. A wide ethical code that is in conformity with UK laws is guaranteed. The investigation pledges to safeguard the rights and dignity of participants, acknowledging the negative effects of illegal research conduct. Ulster University will meticulously adhere to all instructions, demonstrating a dedication to maintaining the most stringent ethical standards and carrying out research that is consistent with accepted norms.
References
Books and Journals
- Almutairi, A.M., Almanei, M., Al-Ashaab, A. and Salonitis, K., 2021. Prioritized Solutions for Overcoming Barriers When Implementing Lean in the Healthcare Supply Chain: A Saudi Perspective. Logistics, 5(1), p.9.
- Argiyantari, B., Simatupang, T.M. and Basri, M.H., 2020. Pharmaceutical supply chain transformation through application of the Lean principle: A literature review. Journal of Industrial Engineering and Management (JIEM), 13(3), pp.475-494.
- Bai, C., Satir, A. and Sarkis, J., 2019. Investing in lean manufacturing practices: an environmental and operational perspective. International Journal of Production Research, 57(4), pp.1037-1051.
- Buer, S.V., Semini, M., Strandhagen, J.O. and Sgarbossa, F., 2021. The complementary effect of lean manufacturing and digitalisation on operational performance. International Journal of Production Research, 59(7), pp.1976-1992.
- Ibikunle, A.K., Rajemi, M.F. and Zahari, F.M., 2023. Implementation of lean manufacturing practices and six-sigma among Malaysian manufacturing SMEs: intention to implement IR 4.0 technologies. International Journal of Quality & Reliability Management.
- Jermsittiparsert, K., Somjai, S. and Chienwattanasook, K., 2020. Era of industry 4.0 technologies and environmental performance of Thailand's Garment Industry: role of lean manufacturing and green supply chain management practices. In Agile Business Leadership Methods for Industry 4.0 (pp. 285-302). Emerald Publishing Limited.
- Lee, K.S., Nor, N.M. and Ismail, F., 2021. Industry 4.0 and Lean Manufacturing Practices: An Approach to Enhance Operational Performance in Singapore's Manufacturing Sector. Research in Management of Technology and Business, 2(1), pp.456-472.
- Leksic, I., Stefanic, N. and Veza, I., 2020. The impact of using different lean manufacturing tools on waste reduction. Advances in Production Engineering & Management, 15(1).
- Maria Aslam, H. and Siddiqui, D.A., 2023. The Era of Industry 4.0 Technologies and Sustainable Organizational Performance of Pakistan's Garment Industry: The Role of Lean Manufacturing and Green Supply Chain Management Practices with the Moderating Effect of Sustainability Culture. Danish Ahmed, The Era of Industry, 4.
- Martins, f.o., 2022. Effect of lean management practices on the sustainable performances of small medium enterprises in Lagos state, Nigeria.
- Matondang, N., 2022. INDUSTRY 4.0 ADOPTION AND LEAN MANUFACTURING PRACTICES FOR MANUFACTURING PERFORMANCE. International Journal of eBusiness and eGovernment Studies, 14(4), pp.174-196.
- Menon, R.R. and Ravi, V., 2021. Analysis of enablers of sustainable supply chain management in electronics industries: The Indian context. Cleaner Engineering and Technology, 5, p.100302.
- Mukherjee, S.P., 2019. A guide to research methodology: An overview of research problems, tasks and methods.
- Nayak, R. ed., 2020. Supply chain management and logistics in the global fashion sector: the sustainability challenge. Routledge.
- Nazam, M., Hashim, M., Baig, S.A., Abrar, M. and Shabbir, R., 2020. Modeling the key barriers of knowledge management adoption in sustainable supply chain. Journal of Enterprise Information Management, 33(5), pp.1077-1109.
- Newman, M. and Gough, D., 2020. Systematic reviews in educational research: Methodology, perspectives and application. Systematic reviews in educational research: Methodology, perspectives and application, pp.3-22.
- Osumo, M., 2021. Lean Manufacturing Practices and Operational Performance of Large Scale Manufacturing Firms in Nairobi, Kenya (Doctoral dissertation, University of Nairobi).
- Pandey, P. and Pandey, M.M., 2021. Research methodology tools and techniques. Bridge Center.
- Sahoo, S., 2020. Lean manufacturing practices and performance: the role of social and technical factors. International Journal of Quality & Reliability Management, 37(5), pp.732-754.
- Vadivel, S.M., Sequeira, A.H., Sakkariyas, R.R. and Boobalan, K., 2022. Impact of lean service, workplace environment, and social practices on the operational performance of India post service industry. Annals of Operations Research, 315(2), pp.2219-2244.
Online
- Mark Saunders, Philip Lewis and Adrian Thornhill. 2018. The ‘research onion'. Online. Available through. :< https://www.research-writing.com/MRP_projects_files/NAH/file_attech/researchmethodssaunders428.pdf>.