Lean Supply Chain Management Practices and Performance of Manufacturing Firms in Mogadishu, Somalia

Abstract

The study's goal was to see how lean supply chain management affected the performance of manufacturing firms in Mogadishu, Somalia. The study had two objectives: to evaluate the level to which manufacturing firms in Mogadishu, Somalia have adopted lean supply chain management practices and to ascertain the association amongst lean supply chain management practices and performance of Manufacturing Firms in Mogadishu, Somalia. The paper used descriptive research design, with all Manufacturing Firms listed by the Ministry of Commerce and Industry in Mogadishu as the study's population. Census was carried out on all the 35 manufacturing companies in Mogadishu, Somalia. The study used primary data drafted by questionnaires which were administered through electronic email by use of google forms. The findings indicate that Manufacturing Firms in Mogadishu, Somalia, adopted lean production and lean transportation to a large extent while lean procurement was adopted to a medium extent. The results reveal that lean production, lean procurement and lean transportation influences performance (profitability and market share) of manufacturing firm’s in Mogadishu. Lean supply chain management thus has an affirmative and substantial relationship with performance of manufacturing firms in Mogadishu. The managers and decision makers can use the outcome to establish lean supply chain management practices that influences performance and adopt them in their manufacturing firms. Future research should concentrate on the impact of lean supply chain management on supply chain performance of small, medium and manufacturing firms in Mogadishu Somalia to see if the results will be the same.