Journal for Business Education and Management 191

ISSN (Print): 2959-099X ISSN (Online): 2959-1007

Volume 4, Issue 1, Page 191-207, June 30, 2024

LEAN SUPPLY CHAIN MANAGEMENT AND ITS EFFECTS ON

OPERATIONAL PERFORMANCE: A STUDY ON FOOD DEPOTS
Ali Hamza Sadaqat
Research Scholar
Bahria University
[email protected]

Z. B. Junaid
Associate Professor
Bahria University
[email protected]

Aiman Majid
Lecturer
Bahria University
[email protected]

Abstract

The firm is trying to get ahead of its competitors in different industries through LSCM
in today’s cutthroat competition environment. By reducing waste, removing risks and
increasing efficiency and cost-effectiveness, it enhances its operational performance.
This research explores food depots’ problems in the food industry and how they can
apply LSCM to minimise wastage, reduce lead time, improve cost-effectiveness,
enhance efficiency and achieve better operational performance within a framework of
constant improvement. As such, an ideal environment, as well as proper care for these
perishable items, is crucial since any deviation may lead to contamination that
ultimately results in reduced productivity and increased cost. Thus, this research
provides insight into the extent to which deployment of lean supply chain management
can help ensure optimal utilisation of resources in terms of achieving maximum
productivity levels with minimal costs involved during the process while improving
operational performances for the food depots. In sum, Lean Supply Chain Management
offers a systematised approach towards daily activities at a food depot with an efficient
distribution system, hence minimum expenditure mitigating unnecessary wastage, thus
achieving topmost production rates.

Keywords: Lean Supply Chain Management, Operational Performance, Food Depots

Stores, Efficiency, Cost-Effectiveness.

Introduction

Lean Supply Chain Management (LSCM) is a burgeoning practice that adds

substantial value by improving performance and consumer satisfaction among many
industrial sectors. Food depots fall into a perishable inventory management category
that relies on strong processes and performance tracking. In this post, we provide the
ultimate guidance to food depots looking for productivity and less waste of perishable
inventory.

LSCM offers a series of practical remedies that can effectively minimise waste
in the supply chain across various industries, from suppliers to distributors and back to

This work is licensed under a Creative Commons Attribution 4.0 International License.
192 Lean Supply Chain Management and Its Effects on
Operational Performance: A study on Food

suppliers, without any resultant loss or contamination of perishable inventories. This

not only helps in achieving operational excellence but also delights customers by
providing them with superior quality products and services.

Management of perishable inventory is essential in every industry, particularly

Food and automobile depots. If management is not automated, this results in a sluggish
process for inventory to rot, which raises operational costs and eventually leads to
productivity-based fidelity. Utilising LSCM techniques in this situation can, therefore,
significantly improve resource efficiency and operational performance.

This article focuses on examining how LSCM practices enhance the

operational performance of food depots, minimising waste and fostering practices that
help these depots reduce costs. How is that? By focusing on key lean principles such
as waste elimination, continuous improvement, and process optimisation, the study
aims to provide valuable insights into how these practices can be effectively
implemented in the Food Industry. The findings of this research can serve as a
benchmark for other military and logistical organisations looking to enhance their
operational efficiency and reduce costs.

The lean idea is roused by thinking of Kaizen (Japanese for development),

which traces all the way back to the 1950s. After the Second Great War, the auto
organisation Toyota was hoping to build the throughput of its creation communities in
Japan to compete with American businesses. To do so, Toyota chose to recognise and
take out exercises that consumed the most assets and, fundamentally, did not add
esteem. The lean way of thinking can be applied to any production network process,
including fabricating, corporate administration and strategies. In like manner, it is
appropriate for an association to pay little heed to the business areas (Mecalux, 2023).

Recently, various sectors embraced LSCM, including manufacturing,

logistics, and healthcare, showing significant improvements in the operational
performance of that sector. The Food depots are a critical component of the Food
Industry supply chain, ensuring that customers receive the necessary assistance to
maintain their operational readiness. Inefficiencies in Food Depots operations can lead
to food wastage, increased operational costs, and reduced morale among Employees.
Therefore, there is a pressing need to explore how LSCM practices can be implemented
in Food Depots to address these challenges and improve overall operational
performance.

This study focuses on assessing the impact of LSCM practices on Food

Depots’ operational performance. It does not cover other aspects of supply chain
management beyond the scope of LSCM. It is limited to the experiences and practices
of supervisors and middle and upper management within the Food Industry. The study
is confined to the food industry, specifically examining food depots and their handling
of perishable inventory.

Rationale of the Study

The current body of literature needs to include comprehensive studies that

examine the impact of Lean Supply Chain Management (LSCM) specifically within
this context, leaving a significant gap that this research aims to fill. LSCM principles,
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such as waste reduction, efficiency enhancement, and cost minimisation, have proven
effective in various industries by streamlining operations, reducing lead times, and
lowering inventory and operational costs. Given the perishable nature of food
inventory, implementing LSCM practices in food depots is anticipated to optimise
processes, reduce waste, and ultimately improve operational performance. This study
seeks to validate these expectations within the specific context of food depot
operations, thereby contributing valuable insights to both academic literature and
practical applications in supply chain management.

Problem Statement

Food depots face significant challenges related to operational inefficiencies,

particularly in managing perishable inventory, which leads to high rates of wastage.
Ineffective handling and outdated processes exacerbate these issues, resulting in
increased operational costs and reduced service levels. There is a need to explore how
Lean Supply Chain Management practices can be applied to enhance the operational
performance of food depots, potentially leading to cost reductions, improved
efficiency, and minimised waste.

Research Questions

This research for the following research questions:

1. What is the impact of LSCM practices on the operational performance of Food

Depots?

2. What difficulties do food depots encounter in meeting the latest trends of Lean
SCM programs into place?

3. What are some potential ways to increase the Lean SCM practices to enhance
efficacy?

Research Objectives

• To evaluate the operations conducted at Food Depots.

• To suggest potential solutions and recommendations about current practices

causing extra costs at Food Depots.

• To assist in eliminating practices which are unnecessary and time-consuming to

help gain more innovation.

Theoretical Framework

This study's theoretical framework is rooted in Lean Supply Chain

Management (LSCM) principles of waste reduction, Just-In-Time (JIT) production and
continuous development. Invented by the manufacturing industry, these agile
processes were designed to be implemented without disturbing day-to-day operations.
LSCM practices may provide these lower costs and more effective operations in the
context of a food depot as well. Cost-effectiveness is achieved by lowering the lead
194 Lean Supply Chain Management and Its Effects on
Operational Performance: A study on Food

time and reducing inventory holding costs while also increasing value but not
efficiency. Slight reductions in lead times may represent operational performance,
another few percentage points off inventory levels and holding costs or a marginal
further widening of revenues to cost. By using the principles of lean, a greater number
of depots and food are able to accomplish their goals with increased efficiency, lower
waste, and higher performance. The adoption of LSCM practices in this vein would
influence the operational performance outcome measure, such that improved resource
utilisation and reduced costs could be attributed to adopting more advanced forms of
SCM design (Womack & Jones, 2003; Ohno, 1988; Liker, 2004; Shah & Ward, 2007;
Christopher, 2011).

Conceptual Framework

The following conceptual framework is a visual example of what this study

aims to achieve. Factors like cost-effectiveness and lean supply chain practices can
help enhance the operational performance of food depots, reducing lead time,
inventory levels, holding costs and operational costs.

Cost Effectiveness
Operational Performance
• Reduce Lead time
• Reduce inventory Level
• Reduce holding costs
• Reduce Operational Cost
LSCM

Research Hypotheses

The following are the hypotheses tested in the article:

Ho1: Implementation of Lean supply chain management practices results in a

significantly decreased lead time for production and delivery.

H1: Implementation of Lean supply chain management practices result in a

significantly decreased lead time for production and delivery.

Ho2: Implementing Lean supply chain management practices results in significantly

decreased inventory levels, which in turn leads to reduced holding costs.

H2: Implementing Lean supply chain management practices results in significantly

decreased inventory levels, which in turn leads to reduced holding costs.

Ho3: Implementation of Lean supply chain management practices results in

significantly decreased overall operational costs.

H3: Implementation of Lean supply chain management practices results in significantly

decreased overall operational costs.
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Significance of Research

This research is important because it contributes to our understanding of the

implementation of Lean SCM Practices within the Food sector, particularly with regard
to Food Depots. This research has successfully gathered insights into Lean SCM in the
context of limited food depots. The results of this study have provided some insights
into the efficacy of Lean SCM practices at Food Depots, as well as the barriers that
they face during their implementation. This research will propose some potential
solutions to enhance the efficacy of these programs in food depots, which could be
applicable to other organisations/Depots in the sector of Pakistan. The Food depots that
implement LSCM practices can improve their operational efficiency, reduce waste,
and lower operational costs, which will ultimately contribute to enhanced operational
performance. Additionally, the research will provide insights into managing perishable
inventory more efficiently, reducing the risk of spoilage and contamination. The
research will provide food Depots with insights into areas where they are able to reduce
costs without compromising quality, which ultimately helps to increase financial
sustainability. The research can be used as a benchmark for other military and logistic
organisations that are looking to enhance their supply chain operations and offer a
model to adopt LSCM practices. In improving operational performance and efficiency,
food depots can ensure the timely and quality delivery of food products, which results
in higher customer satisfaction.

Literature Review

The literature on Lean Supply Chain Management (LSCM) is vast, covering

its origins, principles, and applications in various industries. This review will focus on
the evolution of LSCM, its core principles, and how it has impacted operational
performance, with an emphasis on the context of servicing stores and Food Depots.

Origins and Evolution of Lean Supply Chain Management

Lean is a methodical approach consisting of a sequence of strategies focused

on identifying and eliminating non-value-added tasks or waste through continuous
improvement. Waste goes beyond the system's essential inputs, such as components,
labour, supplies, and materials critical to the assembly process.

Toyota was the pioneer in the 1950s of lean model-aheo "lean assembling"
with its "Just in Time" approach. This approach is known as the Toyota Production
System (TPS) of assembly, which "eliminates waste or no value-added activities to
reduce costs and enhance productivity" (Womack et al., 1991).

Core Principles of Lean Supply Chain Management

Lean supply chain administration is the process of organising and streamlining

supply chain processes and activities using lean concepts. A supply chain organisation
using this type of management must assess and analyse its current practices before
making any necessary changes or eliminating any inefficient ones. (Prodan, 2023).
According to (Ramesh, 2020) The four main pillars to pay attention to are:
196 Lean Supply Chain Management and Its Effects on
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● Get Rid of Waste

The goal of lean principles is to find waste in almost any kind of business and
reduce or eliminate it wherever feasible. The six pillars listed below are where
businesses find the most waste.

● Defects

Defects can result in scrap and rework/salvage. It is the most expensive kind
of waste, particularly if a damaged product is delivered to the client. Defective products
may also indicate additional problems with vendors or with product development.

● Over- or under-production

When the sizes of production batches need to meet client requirements,

company margins fluctuate in response to changes in the amount of money and labour
invested across the value chain.

● Waiting in multiple ways

Delays waste money and effort that could have been better used on other
projects. They may take many various forms, ranging from stopping production to just
waiting for information from partners or members of the internal team.

● Insufficient utilisation of people's abilities

People's skills are wasted when their talents are not used, and this might
eventually cost the company creative talent. Businesses must reach the full capabilities
of all of their stakeholders to avoid those stakeholders choosing another company that
appreciates their whole skill set.

● Transportation

It occurs across the whole supply chain. Businesses that are currently
developing a strategically diverse network have longer lead times, lower profit
margins, and greater transportation expenses. The five primary areas of inventory are
office supplies, raw materials, finished goods, sub-assemblies, and operations, repair,
and maintenance (MRO). All of these places may amass out-of-date or unused items,
which can take up valuable space and negatively impact your cash flow.

● Continuous Growth

A truly lean supply chain is a dynamic endeavour. An organisation as a whole must

constantly evolve in response to emerging trends and inevitable setbacks. Encouraging
your staff to never settle for mediocrity fosters "lean thinking," which produces better
decisions and an unwavering drive for improvement.
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● Make Use Of 5S

The organisational level of a business determines the effectiveness of its

operations via ongoing changes. Businesses may increase productivity by using the 5S
technique of organisation:

● Put in Order
● Standardize
● Sustain
● Sort
● Shine

The 5S guidelines are a tried-and-true method for maintaining an organised

workstation. The 5S approach may be used to track the supply and shipment of
raw materials and the stage at which certain projects are in the product lifecycle.

Impact of Lean Supply Chain Management on Operational Performance

Numerous studies have demonstrated the positive impact of LSCM on

operational performance across various industries. The adoption of lean practices has
been shown to reduce lead times, lower inventory levels, decrease operational costs
and enhance customer satisfaction.

1. Reduction in Lead Times: A lean supply chain management systematic process

can significantly reduce lead time in the areas of production and delivery. This
results in faster responses to customer demand and better services (Fullerton et al.,
2003).

2. Decrease in Inventory Levels: The LSCM practices like JIT (Just in Time) and
many more practices like that can lead to a significant reduction in inventory
levels, which results in decreasing holding cost for inventory and frees up the
capital for other resource usage (Shah & Ward, 2007).

3. Reduction in Operational Costs: Non-value-added tasks can really eat away all
the productivity and costs which should be eliminated. By eliminating these costs,
organisations can reduce operational costs and improve efficiency. This includes
savings in Labor costs, overhead costs and material costs (Eroglu & Hofer, 2011).

4. Enhancement of Customer Satisfaction: Customer satisfaction is the most

important and crucial in any business or supply chain, and LSCM practices ensure
that by providing better quality products, it can be achieved, which can be much
better for the organisation (Chen & Paulraj, 2004).

Challenges in Food Depots Stores

Food depots must manage the procurement, storage, and delivery of perishable
inventory, and they must handle it with care and caution to prevent it from spoiling.
Also, these depots work under strict budget constraints and diverse demand patterns
(Ruiz-Benítez et al., 2018).
198 Lean Supply Chain Management and Its Effects on
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Benefits of LSCM in Food Depots

The adoption of lean practices in victualling stores can lead to significant

improvements in operational performance. For instance, JIT inventory management
can reduce excess inventory and minimise spoilage. Continuous improvement
initiatives can identify and eliminate inefficiencies in procurement and distribution
processes (McAdam & Henderson, 2004).

Case Studies and Empirical Evidence

Existing studies suggest that lean practices can enhance efficiency and reduce
costs in military supply chains, but more research is needed to validate these findings
and provide actionable insights (Golini et al., 2011).

Research Methodology

The research employs a quantitative design, using surveys to gather data from
Food depot supervisors and middle and upper management. The survey includes
questions on job satisfaction, employee performance, and the perceived impact of
LSCM practices. A purposive sampling method was used, with a sample size of fifteen
supervisors and middle and upper management. The data collection process involved
administering standardised questionnaires and conducting semi-structured interviews.

Research Design

The methodology for this study was a quantitative research design. We

employed a quantitative research methodology to evaluate the impact of Lean SCM
practices on operational performance, but we used that method inside the Food Depot.
Food depot officials will be surveyed as part of the study to find out how they believe
Lean SCM impacts its operational performance. A standardised questionnaire was used
to collect information on the participants' general queries, job happiness, employee
performance, training and development, and demographics. For this issue, a
quantitative research approach is most appropriate since it allows for the collection of
numerical data that can be statistically analysed to yield reliable and accurate findings.

Data Collection Methods

Numerous instruments are employed in data collection, such as questionnaires,

observations, and interviews, which are frequently utilised approaches. However, this
investigation uses a questionnaire, which is the major data collection instrument in this
study.

A standardised questionnaire was used to collect data from the participants on

their demographics, employee performance, training and development, motivation for
their jobs, and work satisfaction. The purpose of the survey's closed-ended questions
is to learn more about supervisors', middle, and upper management's perceptions of
how lean supply chain management practices affect operational performance. The
survey was sent electronically to supervisors and middle and upper management via
email, and to maximise response, a follow-up reminder was sent out in a week. They
also get assurances of the security and privacy of their data.
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Sampling Strategy

This experiment employed Heterogeneous Purposive sampling as the sample

approach. The population under study consists of all supervisors and middle and upper
management stationed at a food depot, regardless of their area of activity. After the
population was divided into categories based on job functions, a proportionate number
of supervisors and middle and upper management were selected via purposive
sampling from each stratum of the population. Before the commencement of the study,
informed consent was obtained from each participant.

Data Analysis Techniques

Descriptive data analysis techniques are used to analyse the data. The data
obtained from the questionnaires is analysed through descriptive analysis, namely
mean, median, mode, standard deviation, etc. Other techniques, such as ANOVA and
regression statistics analysis, are also used. Through these techniques, the group's
hypothesis can be tested and evaluated.

Ethical Considerations

This study was conducted according to ethical guidelines, such as informed

consent, confidentiality, and anonymity (Ngxesha, 2015). Participants in the study will
be made aware of its objectives, their ability to opt out of it, and the confidentiality of
their answers. The information gathered from the participants is kept private and
anonymous, and it can only be used for research purposes. The identity of the
participants was protected, and their sincere opinions and thoughts were expressed
regardless of their identity.

Validity and Reliability

The validity and reliability of data are ensured through the sampling by taking
samples from food depot supervisors and middle and upper management who have
real-time experience and give their best input for the betterment of the industry.
Although their identity is kept hidden due to ethical considerations, the input collected
from them through questionnaires and by compiling results of that questionnaire
through running descriptive stats, Regression and ANOVA, the validity and reliability
of data is confirmed.
200 Lean Supply Chain Management and Its Effects on
Operational Performance: A study on Food

Data Analysis and Interpretation

Descriptive Stats

Table 01: Descriptives Analysis

Standard
Variable Mean Median Mode
Deviation
LSCM 3.59 3.57 3.85 0.55

Cost Effectiveness 3.56 3.60 2.80 0.69

Operational Performance 3.61 3.75 3.75 0.65

The statistics show symmetrical distributions with no skewness for both "Lean
SCM" and "Cost Effectiveness." For "Lean SCM," the mean (3.59) and median (3.57)
are close, with a standard deviation of 0.55, indicating moderate variability around the
mean.

Similarly, "Cost Effectiveness" has a mean (3.56) and median (3.60),

suggesting symmetry. However, the mode (2.80) deviates, indicating another data
cluster. The standard deviation is 0.69, suggesting variability within 0.7 units of the
mean.

"Operational Performance" shows interesting trends. The mean (3.61) is lower

than the median and mode (both 3.75), suggesting a positive skew. The standard
deviation (0.65) indicates significant variability, with most readings within 0.7 units of
the mean.

Regression Analysis

Table 02: Regression Analysis

Multiple R 0.88

R Square 0.78

Adjusted R Square 0.75

Standard Error 0.32

Observations 15

The Multiple R-value is approximately 0.888, indicating a strong positive

linear correlation between the independent variables (IVs) and the dependent variable
(DV). With an R-squared value of around 0.788, about 78.8% of the variability in the
DV is accounted for by the IVs, suggesting a good model fit. The Adjusted R-Squared,
slightly lower at around 0.753, accounts for the number of predictors, indicating some
predictors may not significantly benefit the model. The Standard Error is around 0.325,
indicating a low average variation between the actual and predicted DV values,
reflecting increased accuracy in the model's forecasts.
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ANOVA

Table 03: ANOVA

f SS MS F Significance F

Regression 2 4.717 2.358 22.359 8.96

Residual 12 1.265 0.105

Total 14 5.983

Coefficients S. E. t Stat p-value

Intercept 0.21 0.57 0.37 0.71

LSCM 0.86 0.19 4.33 0.0009

CE 0.20 0.15 1.28 0.22

The coefficient for the intercept term is -0.21, indicating its impact on the
dependent variable (Operational Performance) when all independent variables are
zero.

The standard error for the intercept coefficient is 0.57, measuring the accuracy
of this estimate. The t-statistic for the intercept is -0.37, suggesting it may not be
statistically significant due to its value being close to zero. The p-value is 0.71, higher
than 0.05, further suggesting insignificance.

For the independent variable LSCM (Lean SCM), the coefficient is 0.86,
indicating that a one-unit increase in LSCM predicts a 0.86-unit increase in Operational
Performance, assuming other variables are constant. The standard error is 0.19,
indicating a reliable estimate. The t-statistic is 4.33, suggesting high significance, and
the p-value is 0.0009, confirming statistical significance.

For the independent variable CE (Cost Effectiveness), the coefficient is 0.20,

indicating that a one-unit increase in CE predicts a 0.20-unit increase in Operational
Performance. The standard error is 0.15, which indicates a reliable estimate. The t-stat
is 1.28, which is relatively low, suggesting a potential insignificance in the model. The
p-value 0.22 is higher than 0.05, which indicates that the CE variable may not be
statistically significant in this model.

Discussion

The regression analysis tells us how our dependent variables, Lean Supply
Chain Management (LSCM) and Cost Effectiveness (CE), influence our independent
variable, Operational Performance (OP). By inspecting the results, we can see how
much impact each factor has on the other and whether these impacts are statistically
significant or not.
202 Lean Supply Chain Management and Its Effects on
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The coefficients show the direction and degree of the impact, and the t-
statistics and p-values indicate the reliability of the results. This research clarifies the
significance of both LSCM and CE in determining operational performance.

Lean Supply Chain Management (LSCM)

Coefficient and Significance

The coefficient for LSCM in this model is 0.86, indicating a strong positive
impact on Operational Performance. Given that other factors remain constant, for every
one-unit increase in LSCM, there is an expected increase of approximately 0.86 units
in OP.

t-Statistic and p-Value

The t-statistic for LSCM in this model is about 4.33, which suggests it is quite
high. A higher t-statistic indicates there is a stronger relationship between variables,
which means that LSCM has a statistically significant and positive impact on OP in
this model. Furthermore, the p-value is 0.0009, which is well below 0.05, indicating
there is statistical significance in the estimated relationship between LSCM and OP.

Cost Effectiveness (CE)

Coefficient and Significance

The coefficient for CE in this model is about 0.204223479, which means that
CE has a statistically significant and positive but relatively moderate impact on
Operational Performance. Consequently, increasing CE by one unit will lead to an
approximate increase in operational performance of 0.2042 units, holding all other
variables constant. Although CE is positive and has a relatively small but positive
impact on operational performance, it is quite modest.

t-Stats and p-Value

The t-stat for CE in this model is 1.28, which is significantly lower than the t-
stat for LSCM in this model, which is about 4.33. This finding shows that CE does not
have the same magnitude or impact on OP as LSCM. The associated p-value is 0.22,
which is well above 0.05, suggesting CE does not have a statistically significant and
positive relationship with OP.

Interpretation and Implications

The results from the regression analyses presented in this chapter also provide
insight into the direction of relationships between Dependent and Independent
Variables. The primary results here indicate the impact of Dependent Variables (LSCM
and Cost-effectiveness) on the Independent Variable, which is Operational
Performance. The findings concerning LSCM suggest that LSCM has a statistically
significant and positive impact on OP, as indicated by the large t-stat and statistically
significant, low p-value. In short, the results show that it is important for food depots
to adopt Lean practices in supply chain management in order to improve operational
efficiency and impact operational performance. In comparison, CE does not show a
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statistically significant impact on OP, as specified by its low t-stat and high p-value.
This implies that although cost efficiency could have an impact on operational
performance, it is less strong and consistent than LSCM in the circumstances of this
investigation.

The regression analysis highlights the critical role of LSCM in directing

operational performance improvements. The significant coefficient, t-stat and p-value
for LSCM bring attention to its effectiveness. On the other hand, the Cost Effectiveness
variable, which showed a less significant t-stat and higher p-value, indicates a weaker
and statistically insignificant impact on operational performance. The sample size can
also cause this, as it is limited to only food depot supervisors and middle and upper
management.

Table 04: Findings

Research Hypotheses Research Study Findings

Ho1 Rejected

H1 Accepted

Ho2 Rejected

H2 Accepted

Ho3 Accepted

H3 Rejected

Conclusion

This study was conducted in food depots. It has provided valuable insights into
the impact of Lean Supply Chain Management (LSCM) practices on the operational
performance of food depots. The study’s finding highlights the critical importance of
adopting lean practices within supply chain management to enhance efficiency and
overall performance in food depots. This study shows that the lean supply chain is a
crucial and powerful tool for businesses as well as depots and warehouses. The lean
supply chain itself does not add any value to the product or services. Still, a lean supply
chain can certainly enhance operational performance and reduce waste, leading to cost-
effectiveness in business and inventory management.

It can reduce lead time and holding costs, which are crucial milestones for
businesses and warehouses to achieve. Companies implementing the Lean Supply
chain can also see improvements in productivity, efficiency, and costs incurred in
business operations. It not only means less cost but as well as fewer defects to meet
customer’s demands. A lean supply chain helps minimise waste and optimise processes
in the supply chain of a business, leading to significant improvements in inventory,
defects in production, and transportation and reducing overall operational expenses.

Conversely, the study found that Cost Effectiveness (CE) does not have a
statistically significant impact on operational performance. The findings suggest that
204 Lean Supply Chain Management and Its Effects on
Operational Performance: A study on Food

while cost efficiency may influence operational performance to some extent, its effect
is less pronounced or consistent than that of LSCM within the context of this study.

This research consistently shows that a lean supply chain can improve the
performance of the business as well as warehouses in crucial times. Although
implementing a lean supply chain is not about saving money and expenses, it is a clear
set of operations to improve the process. It is just a perk for the businesses and
warehouses to improve performance. Through implementing lean operations,
companies can streamline their processes, which can lead to a positive impact on the
outcomes of the operations conducted in the businesses and warehouses. It helps
increase productivity, shrink lead time, and improve quality. The products or services
have fewer defects, and the financial benefits are undeniable, too. A lean supply chain
is a holistic approach that helps build responsive, efficient, and ultimately successful
businesses. The only drawback is that the initial investment can be too high for the
warehouses, which can affect the ongoing operations conducted at any business or
warehouse.

The findings underscore the pivotal role of LSCM in driving improvements in

operational performance, reinforcing the value of lean practices in the supply chain.
However, the results also suggest that further research, potentially with a larger and
more diverse sample, is needed to fully understand the impact of cost-effectiveness on
operational performance. This study lays the groundwork for future research and
provides practical insights for food depot managers seeking to enhance their
operational performance through LSCM practices.

Recommendations

By implementing these recommendations, food depots can significantly

enhance their operational performance, reduce waste, and achieve greater efficiency.

Process Optimization

• Conduct value stream mapping to identify and eliminate waste in processes.

• Implement Just-In-Time (JIT) inventory practices to minimise holding costs.

• Standardize work procedures to ensure consistency and efficiency in operations by

developing and adhering to standardised processes.

Continuous Improvement

• Foster a culture of continuous improvement (Kaizen) among employees.

Encourage employees to continuously seek and implement improvements in their
work processes.

• Focus on quality management to minimise defects and improve product reliability.

• Use visual management techniques for transparency and real-time monitoring.

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Workforce Development

• Provide training in lean principles, which enhances employee skills in lean

methodologies and problem-solving techniques.

• Promote cross-functional collaboration across departments.

Supplier and Stakeholder Engagement

• Strengthen supplier relationships for reliability and cost efficiency.

• Engage Stakeholders in Lean Practices: Involve stakeholders in Lean initiatives to

ensure alignment and support for continuous improvement efforts.

Performance Monitoring and Metrics

• Establish clear performance metrics to monitor and improve operational

effectiveness.

• Regular Performance Reviews: Conduct periodic reviews of performance metrics

to identify areas for improvement and implement corrective actions.

Limitations
This research has a few notable limitations. One limitation is the study's focus
on a single industry, food depots. This limitation means that the findings of the research
might not apply to other industries with potentially dissimilar operational contexts.
This study also depends on self-reported data from the managers of the food depots,
which might inflate the results. The third limitation is the research's geographic focus,
which is too limited and does not cover a large swath of the United States to generalise
much from. Lastly, the study limits itself to analyzing the short-term impacts of Lean
Supply Chain Management implementations and misses out on assessing the long-term
impacts.

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