Effective Supply Chain Management: A Strategic Tool for Profitability Enhancement in the Competitive Marketing Environment (An Empirical Evidence in the Nigerian Food and Beverage Industry 2005- 2014)

To compete successfully in today’s fierce and challenging business environment, companies need to focus on supply chain management components that have impact in enhancing profitability. The study examined Effective Supply Chain Management: A Strategic tool for Profitability Enhancement in the Competitive Marketing Environment ( An Empirical Evidence in the Nigerian Food and Beverage Industry 2005-2013). The problem x-rayed here stems from the huge cost burden and poor performance of industries in Nigeria which was made manifest by its low Profit After Tax and poor contribution of 6 % to the Gross Domestic product (GDP) and also holding the fact that many firms have gone extinct from the marketing environment and only four companies (Honeywell flour mills Plc, Flour mills of Nigeria Plc, Northern Nigeria Flour Mill Plc and Lafarage Dangote Flour Mill Plc) control 50 % of the entire flour mills market share among the 22 surviving firms. The major objective of this study is examining the relationship between Supply Chain Management cost components and Profitability of Food and Beverage industry in Nigeria and their impact on firm’s survival as measured by the Profit After Tax (PAT) and other source document. Specifically, the objectives were to; examine the nature of relationship existing between supply chain management and profitability of the flour mills, ascertain if the volume of Goods in Transit affects the profitability of the flour mills and ascertain the supply chain managemen