Lean Supply Chain Management and Operational Performance of Almasi Beverages Company Limited

Abstract

Lean is coordinated approach to increasing value to the customers by identifying and reducing wastes of time and material through kaizen processes and initiatives guided by a pull process from the customer. The purpose of this study was to establish the effect of lean supply chain management on operational performance of Almasi Beverages Company Limited, Kenya. The research methodology adopted was longitudinal case study with Almasi Beverages Company Limited as the unit of study. Data was collected by use of interview guides analyzed through content analysis, descriptive and inferential statistics. The research findings were that Almasi Beverages Company Limited had moderately implemented lean supply chain practices in all areas of its functions. The effect of lean practices and concept on operational performance in the organization was cited as generally positive. Most of the leaks in the processes had been sealed off and wastes reduced resulting to improved operational performance in most functions in the business. The main drivers of lean supply chain adoption at the organization were cited as managing wastes to be more efficient, high costs of raw materials and competition from other industry players. Benefits from lean implementation included improved efficiencies across the supply chain, improved housekeeping in the plant and standardization of processes and procedures supported with a new ERP. The major challenge that faces Almasi Beverages Company ltd is general resistance to culture change and adoption of new ways of doing things by employees both junior and senior staff and heavy capital investments in the ERP and automation of supply chain processes to achieve standardization and efficiencies. In summary, application of lean supply chain has not been completely adopted at Almasi Beverages Company Limited as they continue to struggle in some areas and as such it has not realized the maximum gains of lean supply chain practices. Drawing from the findings of the study therefore it is recommended that Almasi Beverages Company Limited completely adopts lean supply chain practices to maximize the gains. The findings should also be learning to other beverage industries in Kenya and by extension the manufacturing industry at large. It is further recommended that future researchers should try to assess the effect of lean supply chain on operational performance and quality of customer service in the Beverage industry in Kenya. Lean implementation in the county Governments can also be evaluated in future studies