Examination of the Effect of Supply Chain Management on Operational Efficiency in Indomie Noodles Plant, Kaduna State

Effective supply chain management is a critical determinant of operational efficiency in fast-moving consumer goods manufacturing, and examining this relationship at the Indomie noodles plant in Kaduna State, North West Nigeria, provides practical evidence for production management improvement. This study examined the effect of supply chain management practices on operational efficiency at the De United Foods Industries Limited (Indomie) plant in Kaduna. Data were collected from 150 supply chain, logistics, and production managers through structured questionnaires and supplemented by plant operational records for the period 2020 to 2023. Supply chain management dimensions assessed included supplier relationship management, inventory management, demand forecasting accuracy, and logistics coordination. Operational efficiency was measured by production cycle time, raw material waste rate, and order fulfilment rate. Multiple regression analysis was employed. Results showed that inventory management (beta = 0.44, p < 0.001) and supplier relationship management (beta = 0.38, p < 0.01) were the strongest predictors of operational efficiency. Improved demand forecasting reduced production cycle time by 19%. Supply chain disruptions attributed to imported raw material delays accounted for 27% of production downtime during the study period. The study concludes that supply chain resilience, particularly local raw material sourcing development, is the most impactful lever for improving operational efficiency at the Kaduna plant. Recommendations include dual sourcing strategies for key imported ingredients and a supplier development programme for local agricultural suppliers in the North West zone. Keywords: supply chain management, operational efficiency, FMCG manufacturing, Kaduna State, inventory management