An investigation of the Effects of Supply Chain Efficiency on Business Performance in selected Supermarkets of Lusaka

Abstract

This study investigates the effects of supply chain efficiency on business performance in selected supermarkets in Lusaka. Specifically, it examines how key supply chain efficiency metrics, fill rate, cash to cash time, cycle time, and inventory turnover, affect overall business performance. The research adopts a positivist philosophy and employs a deductive approach, utilizing a quantitative, cross-sectional survey design. Data was collected using Likert scale questionnaires from a sample of 120 employees across 12 randomly selected supermarkets in Lusaka. The analysis was conducted using multiple linear regression to test the relationships between the independent variables (efficiency metrics) and the dependent variable (business performance). The findings revealed that while cash to cash time and cycle time exhibited positive correlations with business performance, their effects were not statistically significant. This diverges from some existing literature that highlights these metrics as critical for performance improvement, suggesting that in Lusaka’s unique operational context, such metrics may be overshadowed by other factors. Conversely, fill rate and inventory turnover showed significant positive relationships with business performance, aligning with prior research that emphasizes the role of high stock availability and efficient inventory management in driving profitability and customer satisfaction. These results underscore the importance of working on specific supply chain metrics to enhance performance in the retail supermarket sector. The study provides practical insights for supply chain managers and decision-makers aiming to improve operational efficiency and competitiveness.