1.1 Introduction
Supply chain resilience is defined as the ability of a supply chain to anticipate, prepare for, respond to, and recover from disruptions while maintaining its essential functions and structure (Christopher & Peck, 2004). In an increasingly globalized and volatile business environment, organizations face numerous challenges including economic fluctuations, political instability, natural disasters, and technological disruptions that threaten the stability of supply chains (Sheffi, 2005).
For companies such as Guinness Nigeria Plc, which operates within complex production and distribution networks, building a resilient supply chain is essential to maintain consistent product availability, optimize operations, and meet customer expectations. Digital tools are technologies and platforms that facilitate the collection, processing, and analysis of data to enhance decision-making and operational efficiency in supply chain management (Büyüközkan & Göçer, 2018).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
Supply chain management has evolved over several decades, originating from traditional logistics and materials management practices. According to Christopher (2016), supply chains initially focused primarily on cost reduction and efficient movement of goods from suppliers to customers. Over time, however, the complexity of global markets, technological advancements, and increased competition necessitated a shift toward integrated supply chain strategies that emphasize agility, responsiveness, and resilience. Ivanov et al. (2019) stated that the early 2000s marked the rise of Enterprise Resource Planning (ERP) systems, automated inventory management, and digital tracking solutions, which transformed supply chain operations by enhancing visibility and coordination. Büyüközkan and Göçer (2018) asserted that the evolution of predictive analytics, blockchain technology, and Internet of Things (IoT) applications further strengthened the capability of firms to monitor, predict, and respond to supply chain disruptions in real time.
Supply chain management is a critical function for organizations, particularly in manufacturing and distribution industries, where the efficiency and reliability of supply chains directly impact business performance. According to Christopher and Peck (2004), supply chain resilience is the capacity of a supply chain to anticipate, respond, and recover from disruptions while maintaining its core functions. They reported that resilient supply chains are essential for organizations operating in dynamic and uncertain environments to sustain competitive advantage.
Digitalization of supply chains has increasingly become a strategic necessity. Büyüközkan and Göçer (2018) asserted that digital tools such as real-time tracking, predictive analytics, and enterprise resource planning (ERP) systems significantly enhance supply chain visibility, coordination, and decision-making. Similarly, Ivanov et al. (2019) stated that integrating digital solutions into supply chains reduces operational vulnerabilities and allows firms to adapt quickly to unexpected disruptions, such as supply shortages, transportation delays, and fluctuating demand.
In Nigeria, manufacturing companies face additional challenges including infrastructural deficits, inconsistent power supply, and logistical inefficiencies. Sheffi (2005) affirmed that these contextual factors exacerbate supply chain risks and necessitate innovative approaches to ensure continuity and efficiency. Chopra and Sodhi (2014) contended that companies that fail to adopt resilient practices, including digitalization, are prone to higher operational costs, delayed deliveries, and decreased customer satisfaction.
Guinness Nigeria Plc operates within a highly competitive beverage market, relying on a network of suppliers, distributors, and retailers. According to Ivanov (2020), the beverage industry, particularly in emerging markets, is sensitive to both local and global supply chain disruptions. It is reported that disruptions in procurement, production, and distribution processes often lead to product shortages and loss of market share. On the other hand, companies that implement digital tools experience improved forecasting, inventory management, and operational flexibility, which are critical to sustaining production schedules and meeting consumer demands (Saghafian & Van Oyen, 2019). It is against this backdrop that this study is set to investigate how digital tools are improving supply chain resilience at Guinness Nigeria Plc.
1.3 Statement of Problems
In today's dynamic business environment, supply chains are increasingly exposed to disruptions arising from global economic shifts, political instability, technological changes, and unforeseen crises such as pandemics (Christopher & Peck, 2004). For multinational companies like Guinness Nigeria Plc, the complexity of their supply chains, which involve multiple suppliers, distributors, and retail outlets, is susceptible to inefficiencies and interruptions that directly affect production, inventory management, and service delivery (Sheffi, 2005).
Furthermore, traditional supply chain approaches are not sufficient to absorb shocks or respond promptly to changes in demand, leading to delays, increased operational costs, and reduced customer satisfaction (Ivanov et al., 2019). On the other hand, the adoption of digital tools in supply chain management, such as real-time tracking systems, predictive analytics, and automated procurement platforms, is becoming essential to improve visibility, responsiveness, and overall resilience (Saghafian & Van Oyen, 2019). It is against this backdrop that this study seeks to examine how digital tools are improving supply chain resilience in Guinness Nigeria Plc.
1.4 Aim and Objectives of Study
The aim of this study is to investigate the role of digital tools in enhancing supply chain resilience at Guinness Nigeria Plc. The specific objectives of the study are to:
- Examine the current supply chain system at Guinness Nigeria Plc and identify existing inefficiencies.
- Assess the extent to which digital tools are integrated into supply chain operations.
- Evaluate the impact of digital tools on improving supply chain responsiveness and efficiency.
- Identify challenges and barriers to the adoption of digital tools in the supply chain.
- Recommend strategies for optimizing supply chain resilience through digital technologies.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What inefficiencies exist in the current supply chain system at Guinness Nigeria Plc?
- To what extent are digital tools integrated into the supply chain operations of Guinness Nigeria Plc?
- How do digital tools improve the responsiveness and efficiency of the supply chain?
- What challenges does Guinness Nigeria Plc face in implementing digital tools in its supply chain?
- What strategies can be employed to optimize supply chain resilience through digital technologies?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: The adoption of digital tools does not significantly improve the resilience of the supply chain at Guinness Nigeria Plc.
- H1: The adoption of digital tools significantly improves the resilience of the supply chain at Guinness Nigeria Plc.
1.7 Significance of Study
The outcome from the findings of this research will hold significant relevance in the following ways:
- The study will provide strategies for integrating digital tools to streamline operations and reduce inefficiencies.
- It will offer guidance on adapting to digital systems and enhancing productivity through technology-driven processes.
- The study will inform policy decisions and investment in digital infrastructure to support resilient supply chain operations.
- The research will contribute to the body of knowledge on digitalization and supply chain resilience in emerging markets.
- Finally, the research study will provide empirical intuitions into the benefits of digital tools in mitigating supply chain disruptions, informing policies that support technology adoption.
1.8 Scope of Study
The study is limited to supply chain operations of Guinness Nigeria Plc in Ogun State, focusing on the integration and impact of digital tools. The research does not cover supply chains of other companies or other states in Nigeria.
1.9 Limitations of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definition of Terms
Supply Chain Resilience:
According to Christopher and Peck (2004), supply chain resilience is the ability of a supply chain to anticipate, prepare for, respond to, and recover from disruptions while maintaining its essential functions.
Digital Tools:
Stated by Büyüközkan and Göçer (2018), digital tools are technology-driven systems, platforms, and applications that facilitate data collection, processing, and analysis to improve supply chain efficiency and decision-making. Examples include ERP systems, real-time tracking, predictive analytics, and blockchain applications.
Disruption:
Ivanov et al. (2019) contend that disruptions are unforeseen events or conditions that interrupt the normal flow of goods, services, or information across the supply chain, affecting performance and operational efficiency.
Operational Efficiency:
Sheffi (2005) asserted that operational efficiency refers to the ability of an organization to deliver products and services in a timely and cost-effective manner while minimizing waste.
Inventory Management:
According to Chopra and Sodhi (2014), inventory management involves supervising and controlling the ordering, storage, and use of materials to ensure optimal stock levels and reduce shortages or surpluses.
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