Material Management and Operational Performance Sachet and Bottle Water Manufacturing in Anambra State

Abstract

The study investigated the effect of material management on financial performance on pharmaceutical firms in South-East, Nigeria. Specifically, the study examined the effect of material logistics management on operational performance, material procurement strategy on operational performance and inventory management on operational performance sachet and bottle water manufacturing in Anambra State, Nigeria. Relevant conceptual, theoretical and empirical literature was reviewed taking cognizance of the problem and the hypotheses of the study. The study was anchored on Lean Theory. Descriptive research design was adopted in this study. The study was carried out in Anambra, State. The researcher made use of primary and secondary data. The population of study comprise 1300 sachet and bottle water manufacturing firms in Anambra State, Nigeria. The target sample size consists. The research instrument was questionnaire, which was subjected to face and content validity procedures. The reliability of the questionnaire was established through the test- retest and Cronbach Alpha reliability coefficient of 0.94 was obtained. Simple percentages analysis was use to analyzing the research questions while Simple Multiple Regression Analysis was use in testing research hypotheses. The result reveals that material logistics management has a positive significant effect on operational performance of Sachet and bottle water manufacturing firms Anambra State,(t =16.431, p= 0.00<0.05).Material procurement strategy has a positive significant effect on operational performance of Sachet and bottle water manufacturing firms (t =17.959, p=0.000<0.05). Inventory management has a significant positive effect on operational performance of sachet and bottle water manufacturing firms. (t =22.398, p= 0.000<0.05). The study concluded that material management had a positive significant effect on operational performance of sachet and bottle water manufacturing firms Anambra State, Nigeria. The study recommended that sachet and bottle water manufacturing firms should practice proper logistics planning with suppliers and develop strategies to develop them so that they can be able to deliver the quality required without errors and defects and at the right place without delays. Reliable logistical communication practices should be adopted among the suppliers and the buying organization so as to curb costs from quantity and product deviations. Sachet and bottle water manufacturing firms should adopt the use of information technology that will not only help in information sharing, but also will help in proper procurement procedure of material from suppliers hence improving the material usage.