Lean Supply Chain Strategy and Performance of Dairy Industry in Iringa Region, Southern Highlands of Tanzania
Abstract
The dairy industry in Tanzania has been experiencing a decline in performance characterized by reduced efficiency, low quality, and quantity as well as increased wastage. This study sought to investigate the influence of lean supply chain strategy on the performance of the dairy industry in the Southern Highlands in Tanzania. The study adopted the descriptive research design. The target population was employees working at the milk processing plant in Iringa Municipality. A total of 60 employees were targeted. A census of all the employees was conducted since the target population was small. Primary data was collected using structured questionnaires. Descriptive statistics including percentages and means were used to describe the data. Regression analysis was used to establish the relationship between the study variables. The results indicated that customer relationship strategy had a positive and significant effect on the performance of the dairy industry. Demand management strategy had a positive and significant effect on the performance of the dairy industry. Supplier relationship strategy had a positive and significant effect on the performance of the dairy industry. The study concluded that lean supply chain strategy significantly influences the performance of the dairy industry in the Iringa Region, Southern Highlands of Tanzania. The recommendations were that stakeholders in the dairy industry including the farmers, distributors, milk processing companies, and the government of Tanzania should collaborate to strengthen lean supply chain aspects. The government of Tanzania should also streamline policy touching on dairy production. In particular, the government should strengthen legislation relating to customer relationships, demand management, and supplier relationship.
Keywords: Lean supply chain strategy, Performance, Dairy industry, Customer relationship strategy, Demand management strategy, Supplier relationship strategy
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