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Imported Metal Packaging Supply Chain Management in the Manufacturing Industry in Tanzania

A Case of Tinplate Packaging in Dar es Salaam Region

Master's Thesis 2014 100 Pages

Business economics - Supply, Production, Logistics

Excerpt

TABLE OF CONTENTS

Acknowledgement

Dedication

List of Abbreviations

Abstract

vi Table of Contents

List of Tables

List of Figures

CHAPTER ONE: INTRODUCTION AND BACKGROUND TO THE STUDY
1.1 Introduction
1.2 Background of the Study
1.2.1 Profile of metal packaging company
1.3 Statement of the Problem
1.4 Objective of the Study
1.3.1 The specific objectives
1.4 Research Questions
1.5 Significance of the Study
1.7 Scope and Limitations of the Study
1.8 Organisation of the Study

CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.1 Definition of Key Concepts
2.2.1 Packaging
2.2.2 Metal packaging
2.2.3 Metal packaging supply chain
2.2.4 Imported products
2.2.5 Locally produced products
2.2.6 Quality
2.3 Theoretical Perspective
2.3.1 Competitive Advantage Theory
2.3.2 Demand Theory
2.3.3 Chaos theory applied to manufacturing
2.3.4 Theory of Constraints
2.3.5 Kinked-Demand Theory of Oligopoly
2.4 Empirical studies
2.4.1 Studies conducted worldwide
2.4.2 Studies conducted in Tanzania
2.5 Conceptual Framework

CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Paradigm
3.3 Research Design
3.4 Area of the Study
3.5 Target Population
3.6 Sampling Design
3.6.1 Sample size
3.6.2 Sampling techniques
3.7 Data Collection Methods
3.7.1 Secondary data
3.7.2 Primary data
3.7.2.1 Interview
3.7.2.2 Questionnaire
3.8 Data Analysis Plan
3.9 Validity and Reliability
3.9.1 Validity
3.9.2 Reliability
3.10 Ethical Considerations

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF THE FINDINGS
4.1 Introduction
4.2 Descriptive Findings
4.2.1 Gender of respondents
4.2.2 Age Distribution of Respondents
4.2.3 Marital Status
4.2.4 Occupation
4.2.5 Working experience of the respondents
4.2.6 Education Level
4.3 Presentation of Findings and Analysis as per Study Objectives
4.3.1 The influence of human capital employed on Tinplate packaging supply chain in Tanzania
4.3.2 The influence of technology applied on Tinplate packaging supply chain in Tanzania
4.3.3 The price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania
4.4 Discussion of the Study Findings as per Study Objectives
4.4.1 The influence of human capital employed on Tinplate packaging supply chain in Tanzania
4.4.2 The influence of technology applied on Tinplate packaging supply chain in Tanzania
4.4.3 The price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
5.2 Summary of Findings
5.3 Conclusion
5.4 Recommendations
5.5 Limitations of the Study
5.6 Area of Further Research

REFERENCE

APPENDICES

ACKNOWLEDGEMENT

First and foremost, I wish to thank the Almighty God for this achievement for He has given me the strength to go through each day at a time. My indebted gratitude goes to my Supervisor Dr. Mbura for his guidance, patience and advice throughout the study. My sincere gratitude also goes to My Mother Mrs. Rosemary Bwemo for her moral and material support throughout the study. Furthermore, I would like to extend my thanks to all friends and classmates whom in one way or another made this work possible. Thank you all for the support during this period.

Special thanks goes to Edward Mwandu who spent day and night proof-reading and editing this work. God bless you.

Moreover, I cannot find appropriate words to describe my heartfelt thanks to Matilda Hillu for her tolerance, moral and material support throughout my study. I thank you very much.

DEDICATION

This study is dedicated to my late father Chrisostom Bwemo .

LIST OF ABBREVIATIONS

Abbildung in dieser Leseprobe nicht enthalten

ABSTRACT

This study aimed at examining the factors influencing imported metal packaging supply chain management in the manufacturing industry in Tanzania: A Case of Tinplate Packaging in Dar Es Salaam Region. Data were collected using Self- administered questionnaires, interviews and documentary review from 65 respondents, who yielded a 100% percent return rate. The data collected were analyzed using Statistical Package for Social Sciences (SPSS) version 20.0; particularly in cross tabulation. In consequence, the findings were tabulated and summarized, with frequencies, percentages, tables and figures obtained.

The study result shows that, the company was satisfied with the regular mentoring of its employees to improve the production quality, recruiting qualified employees and securing them to enhance quality production. Also, the company considered education or technical skills as factors for an employee to be recruited. In addition, it was revealed that the company was not satisfied with the qualification of the employees, the quality of employees’ training gained before to deliver the desired level of the company’s production. Looking at the technology employed, the study revealed that the adopted technology by the company is suitable for production in Tanzania’s context though lack of human capital made the company not to operate optimally as they fail to operate available machines for production. Moreover, the study results found that the prices of raw materials do not vary much and not significant because of the arrangement and strategy used by the firm to buy raw materials in collective way and in bulk to lower cost and increase negotiation power. The availability of raw material being limited because of the few producers and long period of production. Based on the study findings, it is recommended that policy makers of production should take into account that metal packaging firms depend on imported raw materials and therefore try to smoothen importation procedures and tax rates so as to stimulate development of that sector in the packaging industry. Also policy makers should try to convince the government to start educational courses on metal packaging supply chain. Moreover, firms in the industry should keep enough raw materials because business environment is very dynamic.

LIST OF TABLES

Table 4.1: Gender of Respondents

Table 4.2: Age of Respondents

Table 4.3: Marital Status

Table 4.4 : Work Experience

Table 4.5: Respondents’ Education Levels

Table 4.6: The influence of human capital employed on Tinplate packaging supply chain in Tanzania

Table 4.7: Summary Mean Scores for the influence of human capital employed on Tinplate packaging supply chain in Tanzania

Table 4.8: The influence of technology applied on Tinplate packaging supply chain in Tanzania

Table 4.9: Summary Mean Scores for the influence of technology applied on Tinplate packaging supply chain in Tanzania

Table 4.10: The price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania

Table 4.11: Summary Mean Scores for Price of Raw Material Imported and its influence on supply chain of Tinplate packaging in Tanzania

LIST OF FIGURES

Figure 2.1: Conceptual Framework

Figure 4:1: Respondents Occupation

Figure 4.2: The influence of human capital employed on Tinplate packaging supply chain in Tanzania

Figure 4.3: The influence of technology applied on Tinplate packaging supply chain in Tanzania

Figure 4.4: The price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania

CHAPTER ONE

INTRODUCTION AND BACKGROUND TO THE STUDY

1.1 Introduction

This is an introductory chapter. It provides the background of the study. The chapter also presents the statement of the problem, objectives of the study, research questions, and significance of the study, scope and limitation as well as the organization of the study

1.2 Background of the Study

A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer (Oliver & Webber, 1992)

This epoch of supply chain management was highlighted with the development of electronic data interchange (EDI) systems in the 1960s, and developed through the 1990s by the introduction of enterprise resource planning (ERP) systems. This era has continued to develop into the 21st century with the expansion of Internet-based collaborative systems. This era of supply chain evolution is characterized by both increasing value added and cost reductions through integration (Movahedi, Lavassani, and Kumar, 2009). The global sources in organisations' supply chains can be traced back several decades (e.g., in the oil industry), It was not until the late 1980s that a considerable number of organizations started to integrate global sources into their core business. This era is characterized by the globalization of supply chain management in organizations with the goal of increasing their competitive advantage, adding value, and reducing costs through global sourcing (Ibid).

In the 1990s, companies began to focus on "core competencies" and specialization. They abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies. This changed management requirements, by extending the supply chain beyond the company walls and distributing management across specialized supply chain partnerships. This transition also refocused the fundamental perspectives of each organization. Original equipment manufacturers (OEMs) became brand owners that required visibility deep into their supply base (http://en.wikipedia.org/wiki/Supply_chain_management).

In developed countries, this integration is linked to the introduction of information and production technologies that are directed towards the external integration of different firms in a supply chain. In developing countries, however, it is often difficult to realize supply chain management because basic conditions for it have not been fulfilled. Transportation and distribution networks are underdeveloped, production technologies are old-fashioned and there are no spare parts for defective machines (World Bank, 1994). This is as well applicable in Metal packaging supply chain in Tanzania which is one of the developing countries that face a lot of challenges in production.

1.2.1 Profile of metal packaging company

Prior to privatization, metal packaging company in Tanzania which was known as The Metal box Company of East Africa was owned by the government. The process of privatizing the industry came to the senses of the government after satisfying itself that, it could not run the company profitably. The company was acquired by another company from abroad which has a chain of packaging companies in the world. Since then the company has been doing well despite many operational challenges (http://en.wikipedia.org/wiki/metal).

Metal packaging supply chain in Tanzania has mainly two big companies, Nampak Tanzania Ltd and Insignia Tanzania Ltd. These two companies occupy approximately 90% of the supply chain in that industry. They both import tinplate from Japan, South Africa and China as raw material (Nampak Tanzania& Insignia Tanzania, 2013). They supply beverage companies with metal crowns as packaging. These companies include Coca-Cola, Pepsi, Tanzania Breweries Limited, Serengeti breweries and Local wine producers.

These companies import tinplates and process them to final products. They produce glass soda bottle caps, coffee metal cans, powder milk cans, and alike. Their operations are affected by some factors which limit them to operate at their maximum capacity. Customers of the two metal packaging companies demand world class products due to the reason that they have to uniformly produce the same product worldwide. High quality packaging products is very vital in the metal packaging supply chain.

Companies such as Coca-Cola, Pepsi, Tanzania Breweries Limited, Serengeti Breweries and Local wine producers believe that success depends on the supply of high quality products, packages and services that meet or exceed customer and consumer expectations of premium brand products.

The performance of import oriented metal packaging supply chain is determined by internal and external components. External factors are related to raw materials of which the prices affect the quality of the raw materials. Internal factors refer to technology and the human capital. All these three variables affect the performance of metal packaging companies in Tanzania that have to meet customers’ requirements in order to get more business. Based on that fact, metal packaging companies in Tanzania have the ability of producing metal crowns as packaging but they resort to importing raw materials and end up making final process in packaging of tinplate yet this could be done within the country.

1.3 Statement of the Problem

Inspite of the constraints available, the manufacturing sector in Tanzania achieved an annual growth rate of nearly 2.4 percent in 2008/2009 and there were significant increases in the production of textiles, beverages, clothing, leather goods and footwear (URT REPORT, 2010.

The sector is faced with a number of problems including; limited capacities and capabilities for policy analysis, policy development and Implementation; Inadequate capabilities for effective governance, including corporate governance and economic management; Inadequate industrial support institutions to develop and sustain a competitive industrial sector; Inadequate technologies for the processing of the country’s agricultural and mineral products; Inadequate skilled industrial human resources, in particular, managers, industrial planners, engineers, technologists, technicians; intermediate goods, spare parts and components; Inadequate technological capacities and capabilities, including information and communications capacities and capabilities (UNIDO, 2007).

Tanzania government in collaboration with development partners have combined effort by creating attractive business environment, effective business regulations, creation of attractive trading policy, tax regulation (MOIT, 2006). It has as well attractive business environment to local business industries including Metal Packaging industry. Despite of these efforts made still the industries faced various limiting challenges to production such as technology, human capital as well as raw materials. Gice (2013) stresses that today manufacturing industries are facing many challenges including lack of skilled labour, technology as well as raw material for production process. Porter (1990) asserts that the "key" factors of production (or specialized factors) are created, not inherited. Specialized factors of production are skilled labor, raw materials and technology. World Bank (1994) adds that, in developing countries, however, it is often difficult to realize supply chain management because basic conditions for it have not been fulfilled. Therefore, this study is thought to examine the factors influencing imported metal packaging supply chain management in the manufacturing industry in Tanzania.

1.4 Objective of the Study

The general objective of this study is to examine factors influencing imported metal packaging supply chain in the manufacturing industry.

1.3.1 The specific objectives

i) To examine the influence of human capital employed on Tinplate packaging supply chain in Tanzania.
ii). To examine the influence of technology applied on Tinplate packaging supply chain in Tanzania.
iii). To examine the price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania.

1.4 Research Questions

i). To what extent does the Human capital influence Tinplate packaging supply chain in Tanzania?
ii). To what extent does the current technology applied influence Tinplate packaging supply chain in Tanzania?
iii). How does price of raw materials imported influence Tinplate packaging supply chain in Tanzania?

1.5 Significance of the Study

The researcher believes that the findings of this study will give fore knowledge on metal packaging supply chain management to Tinplate packaging industries before going aboard for product importation. This research is very significant because it will add to the existing literature to the stock of books and works already written on supply chain in general and metal packaging supply chain management in connection to local industries’ development. Also it will act as a foundation for further studies on the same or related fields of import and export particularly on metal packaging supply. Potentially, the study will help local industries develop the sense of development and avoid the notion that imported raw material/product are of better quality and removing the nation of “we can’t manage let us outsource”. Lastly, it will also help the policy makers to improve on importing and exporting policies focusing on developing countries as well as adding more knowledge to the researcher on the current running program of MIB.

1.7 Scope and Limitations of the Study

This study will be only limited to examining factors influencing imported metal packaging supply chain in manufacturing industry. In conducting this study there were some limitations encountered which among others include; delay of the respondents in responding to some of the questions posed to them, time limitation, financial factors and low turn up of respondents.

1.8 Organisation of the Study

This study will be divided into five chapters; with each chapter carrying unique specifics relating to the subject matter of the assignment.

Chapter one carries background of the problem, statement of the problem, objectives, research questions, significance of the study as well as limitations faced and scope of the study and lastly the organisation of the study. Chapter two of this study includes both theoretical and empirical literature reviews connected to the topic. It begins with the conceptualization of key words, different theories in practice and direct relation to the topic and concludes by drawing a conceptual framework.

Chapter three deals with different techniques that the researcher has applied in collecting data necessary for this research. In this chapter, population is defined and sample drawn and different data collection techniques applied for collecting data are discussed. Techniques for data analysis are also discussed.

Chapter four deals with data presentation, discussion and analysis. Data analysis is presented in different formats tables, figures and qualitative statements. All analysis is drawn from questionnaires and interviews.

Chapter five draws summary of the research findings, conclusion and recommendations.

CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter presents the literature reviewed that guides the study. The chapter is divided into four sections. Section one presents the definitions of the key concepts used in the study. This is followed by the theoretical literature. Section three presents the empirical literature. The chapter finally proposes the conceptual framework for the study.

2.1 Definition of Key Concepts

Under this section, three concepts which will be constantly referred to in this study. The concepts are packaging, metal packaging and supply chain.

2.2.1 Packaging

Packaging is the science, art, and technology of enclosing or protecting products for distribution, storage, sale, and use (Twede, 2005). Packaging also refers to the process of design, evaluation, and production of packages (Soroka, 2002). Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells (ibid). In many countries it is fully integrated into government, business, institutional, industrial, and personal use.

2.2.2 Metal packaging

Metal packaging is the packaging process using metal (Soroka, 2002). Metal packaging also refers to the process of design, evaluation, and production of metal packages. Metal packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells (Soroka, 2002). According to Severin (2007), the package materials can be made of metals, glass, ceramics, plastics, rubber and paper. The focus of this study is metal packaging,. Metal packaging consist of three main metals namely: Aluminum, Steel and Tinplate (Brody & Marsh, 1997). In this study, Packaging is defined as the technology of enclosing or protecting products for distribution, sale, storage and use.

2.2.3 Metal packaging supply chain

Metal packaging supply chain is defined as the whole process of movement of purchasing raw materials from the supplier to the plant and turning them into finished products and dispatching to the customers (Caniel, 2011). Metal packaging was invented more than a century ago. Since then it has undergone constant changes and improvements in order to adapt to the needs of modern consumers (ibid). According to Caniel (2011), metal packaging proved its importance due to several advantages namely: Full impermeability to the passage of gases and air as compared to other packaging materials, meaning a long shelf-life, Tamper evidence and total protection against intentional damage to the finished product (poisoning or contamination, biological terrorism), Full compatibility with the strictest demands for direct contact with food, sprays, paints, etc, Low losses in all stages of filling, sealing, packing, distribution, and sale, High speed production rates (for both manufacture and user), Good heat transfer (for canned food), High-quality and varied graphic capabilities, Possibility of interesting shapes, Fully recyclable, environmental friendly packaging.

2.2.4 Imported products

Imported products refer to products that are basically imported from outside the country following the importing rules and regulations of a particular country in which they are exported to. Import can as well be defined as a good brought into a jurisdiction, especially across a national border, from an external source. An import in the receiving country is an export from the sending country. Importation and exportation are the defining financial transactions of international trade (http://en.wikipedia.org/wiki/Import).

2.2.5 Locally produced products

Locally produced products refer to products that are basically produced within the country. Its material for its production may be imported but products for end users are produced within the home country (http://en.wikipedia.org/wiki/Local-product).

2.2.6 Quality

Quality refers to the standard of something as measured against other things of a similar kind, it is a degree of excellence of something. (http://en.wikipedia.org/wiki/quality)

2.3 Theoretical Perspective

Theoretical framework is the collection of interrelated ideas based on theories (Kombo and Tromp, 2006). It attempts to clarify things the way they are based on theories. A theoretical framework is a general set of assumptions about the nature of phenomena.

2.3.1 Competitive Advantage Theory

Porter (1990), in his book “The Competitive Advantage of Nations” developed a model that allows analyzing why some nations are more competitive than others and also why some industries within nations are more competitive than others. This theory seeks to address some of the criticisms of comparative advantage. This model of determining factors of national advantage is now known as Porters Diamond. It suggests that the national home base of an organization plays an important role in shaping the extent to which it is likely to achieve advantage on a global scale. This home base provides basic factors, which support or hinder organizations from building advantages in global competition. Porter's Five Forces Analysis is a tool for analyzing the attractiveness of an industry. It has 5 components -customer, competitor, suppliers, barriers to entry, and threat of substitutes. The tool allows an individual to consider each of these areas and to determine whether this is going to be profitable or not for companies in that industry.

When an organization demonstrates profits that are above average for the industry, this organization is believed to have some form of competitive advantages over competitors. Michael Porter theorized that there are two basic forms of competitive advantages namely, cost advantage and a differentiation advantage. The cost advantage occurs when an organization is able to provide a product or service with similar benefits, but at a lower cost than their competitors. A differentiation advantage occurs when an organization’s product or service provides benefits beyond those of their competitors. In either case, the organization provides a superior level of value to its customers.

Competitive advantages of metal packaging in Tanzania may also be explained within the framework of the market approach (Porter, 1990). That the two companies which take more than 90% of the metal packaging supply chain in Tanzania operate on the advantage of geographic distance, that is it is very expensive to produce abroad and transport to Tanzania, so raw materials are imported for production. Factor Conditions (Contrary to conventional wisdom, Porter argues that the "key" factors of production (or specialized factors) are created, not inherited. Specialized factors of production are skilled labour, raw materials and technology of which this study is examining how these factors influence imported metal packaging supply chain management in the manufacturing industry in Tanzania.

In the theory of national competitive advantage, “diamond system” (1990) supplies a concrete description of environment of investment and innovation. Specifically, the "diamond system" includes the four main factors: factors of production, including the primary factors of production (the general human resources and natural resources) and the created factors of production (including knowledge, capital and infrastructure); demand conditions, including the structure of domestic demand, market size and growth rate, the quality of demand, the degree of internationalization of demand; the performance of related industries and supporting industries, including the vertical support (support from upstream business in the equipment, parts and components) and the horizontal support (production cooperation and information sharing between similar enterprises); firm strategy, structure and competition, including operational Philosophy, goals, employee motivation.

Based on the fact that this study is focusing on examining factors influencing imported metal packaging supply chain in manufacturing industry, therefore Competitive Advantage Theory will be of a great use since it addresses Porter's Five Forces which support or hinder organizations from building advantages in global competition and highlight on analysis for the attractiveness of an industry focusing on components -customer, competitor, suppliers, barriers to entry, and threat of substitutes.

2.3.2 Demand Theory

The Demand Theory (DT) was developed by English economist Alfred Marshall (1890). This theory analyses the relationship between the demand for goods or services and prices or incomes, hence it examines purchasing decisions of consumers and the subsequent impact on prices. However, the level of demand at each market price reflects the value that consumers place on a product and their expected satisfaction gained from purchase and consumption. For every product that exists on earth, there is some level of demand. The given demand is represented often in terms of currency. For example, if an item costs a very low amount, many people may want the product, even if they do not truly need it or have a use for it. On the other hand, if an item is extremely expensive, then only those who truly want the item will be willing to pay for it. As a result, the demand for a product is directly affected by how much it costs. However, this theory is of a greater use in this study since it addresses the relationship between the demand for goods or services and this study is focusing at examining factors influencing imported metal packaging supply chain in manufacturing industry

2.3.3 Chaos theory applied to manufacturing

Chaos was first applied to manufacturing in 1991 by R. Morley, Inc. (RMI). The Chaos theory refers to processes that can be defined by nonlinear equations. The theory of Chaos indicates that success can never be achieved by a top-down, command and control approach. Such systems become so intertwined that they are nearly impossible to change. Chaos instead advocates simpler rules applied to components of a process, which in turn come together to create a robust, agile system. These components or "autonomous agents" have behaviors that emerge as the system runs rather than being defined in advance and then rapidly executed as in the top-down system. When the shop floor is viewed as networks of individual agents, each responding autonomously to local conditions, the factory is viewed not as a single machine but as a community of loosely coupled processors. Each of these processors or entities has its own agenda to allow agents to respond locally to changing conditions. Changing to this structure requires management to change from the traditional role of specifying the top level schedule activities to specifying the local decision rules that agents use to schedule their own operation. In connection to this study, the industry needs to restructure its management in order to create more freedom for its suppliers across the countries to match with the demand and supply of the materials to the customers.

2.3.4 Theory of Constraints

Eliyahu Goldratt conceived the Theory of Constraints (TOC), and introduced it to a wide audience through his best-selling 1984 novel, “The Goal”. Since then, TOC has continued to evolve and develop, and today it is a significant factor within the world of management best practices (Goldratt, 1984). The Theory of Constraints is a methodology for identifying the most important limiting factor (i.e. constraint) that stands in the way of achieving a goal and then systematically improving that constraint until it is no longer the limiting factor. In manufacturing, the constraint is often referred to as a bottleneck. The Theory of Constraints takes a scientific approach to improvement. It hypothesizes that every complex system, including manufacturing processes, consists of multiple linked activities, one of which acts as a constraint upon the entire system (i.e. the constraint activity is the “weakest link in the chain”). So what is the ultimate goal of most manufacturing companies? To make a profit – both in the short term and in the long term. The Theory of Constraints provides a powerful set of tools for helping to achieve that goal, including: The Five Focusing Steps (a methodology for identifying and eliminating constraints), The Thinking Processes (tools for analyzing and resolving problems), Throughput Accounting (a method for measuring performance and guiding management decisions). One of the appealing characteristics of the Theory of Constraints is that it inherently prioritizes improvement activities. The top priority is always the current constraint. In environments where there is an urgent need to improve, TOC offers a highly focused methodology for creating rapid improvement. A successful Theory of Constraints implementation will have the following benefits: Increased profit (the primary goal of TOC for most companies), fast improvement (a result of focusing all attention on one critical area – the system constraint), improved capacity (optimizing the constraint enables more product to be manufactured), reduced lead times (optimizing the constraint results in smoother and faster product flow), reduced inventory (eliminating bottlenecks means there will be less work-in-process)

The core concept of the Theory of Constraints is that every process has a single constraint and that total process throughput can only be improved when the constraint is improved. A very important corollary to this is that spending time optimizing non-constraints will not provide significant benefits; only improvements to the constraint will further the goal (achieving more profit). Thus, TOC seeks to provide precise and sustained focus on improving the current constraint until it no longer limits throughput, at which point the focus moves to the next constraint. The underlying power of TOC flows from its ability to generate a tremendously strong focus towards a single goal (profit) and to removing the principal impediment (the constraint) to achieving more of that goal. In fact, Goldratt considers focus to be the essence of TOC (http://www.leanproduction.com/theory-of-constraints.html)

However since this study focuses on factors influencing imported metal packaging supply chain in manufacturing industry therefore the Theory of Constraints will be of much help since it addresses the methodology for identifying the most important limiting factor (i.e. constraint) that stands in the way of achieving a goal and then systematically improving that constraint until it is no longer the limiting factor and it also seeks to provide precise and sustained focus on improving the current constraint until it no longer limits throughput, at which point the focus moves to the next constraint.

2.3.5 Kinked-Demand Theory of Oligopoly

The Kinked demand theory of oligopoly illustrates the high degree of interdependence that exists among the firms that make up an oligopoly. The market demand curve that each oligopolist faces is determined by the output and price decisions of the other firms in the oligopoly; this is the major contribution of the kinked demand theory.

If the oligopolist reduces its price below P, it is assumed that its competitors will follow suit and reduce their prices as well. The oligopolist will then face the relatively less elastic (or more inelastic) market demand curve MD 2. The oligopolist market demand curve becomes less elastic at prices below P because the other oligopolists in the market have also reduced their prices. When oligopolists follow each other’s pricing decisions, consumer demand for each oligopolist's product will become less elastic (or less sensitive) to changes in price because each oligopolist is matching the price changes of its competitors.

The kinked demand theory, however, is considered an incomplet e theory of oligopoly for several reasons. First, it does not explain how the oligopolist finds the kinked point in its market demand curve. Second, the kinked demand theory does not allow for the possibility that price increases by one oligopolist are matched by other oligopolists, a practice that has been frequently observed. Finally, the kinked demand theory does not consider the possibility that oligopolists collude in setting output and price. The possibility of collusive behavior is captured in the alternative theory known as the cartel theory of oligopoly (http://www.cliffsnotes.com). However, this theory to some extent may guide this study since the theory addresses the issue of market demand and this study is basically focusing on the demand of imported products/raw material from outside producers.

2.4 Empirical studies.

This sub-section highlights some related literature on various studies already done on the factors influencing imported metal packaging supply chain management in manufacturing industry.

2.4.1 Studies conducted worldwide

Susanne (2006), conducted her study seeking to understand and analyze how integration changes in one supply chain are influenced by the overlap between chains. The study discusses the concepts of supply chain, firm network, overlap and integration. It further took a dynamic perspective focusing on continuing processes of change in the degree of integration within and between networks. The three examples are based on more than 70 interviews over a long period of time of firms involved in the transportation, automotive and construction industries. The study revealed that the overlap between supply chains in terms of actors, resources and activities could seriously delay, hinder and increase costs to the process when changing the degree of integration in one chain. Therefore, supply chain myopia might lead to an increase in the total costs of a firm. Further, there is a tradeoff between the costs of integration in the focal chain and increasing costs arising from decreased integration in overlapping supply chains. Failure to consider the negative effects and the resistance caused by delays and dissolving relationships within overlapping supply chains can be detrimental. The overlap between chains can be both positive and negative, and can be reversed over time. On the Practical implications she asserts that When changing existing or developing supply chains for new businesses, firms need to take into consideration the effects and reactions of other chains. Integration between two chains might facilitate the development of business but may also actually hinder its future development. Since Susanne’s study focused on analyzing how integration changes in one supply chain are influenced by the overlap between chains, therefore, it will add some needed ideals to this study, because this study also examines the factors influencing importation focusing on metal packaging and supply chain. However, this study intends to fill the gap by intensively looking at the factors motivating the importation of raw materials in metal packaging in industries.

Coleman, Bhattacharya and Brace (1995), conducted a study on supply chain reengineering. They found out that one of the more significant structural changes in Western manufacturing industry is the redistribution of “value addition activities” in product supply chains. Final assemblers are often choosing to subcontract the design and manufacture of large sections of their products in an attempt to focus their effort. In turn suppliers take on more of the design and assembly of the end product and may also choose to delegate some of their own activities to second line suppliers. These changes require that the profile of capabilities necessary to design and manufacture the product is also redistributed among the partners in the chain. Competition between suppliers is fierce, particularly in view of the fact that the changing structure favors fewer sources. The suppliers that survive will probably be those who successfully position themselves in terms of appropriate value adding capabilities and differentiation through high levels of customer service. Their study will be of greater use and will contribute some ideas just because their study evaluated packaging in developing countries by means of identifying and describing supply chain needs regarding packaging. Since this study as well focuses at metal packaging and supply chain. However, the two studies differ in terms of the objectives because this study focuses on addressing on how human capital, technology and raw materials influence importation in the metal packaging industry. Wong, Jan, John and Johansen (2005), conducted as study seeking to explore supply chain management practices, and identify practical and theoretical gaps in toy supply chains at innovative products experience evaluating highly unpredictable and demand. They assert that this is especially valid for the volatile and seasonal toy industry, which produces high obsolete inventory, lost sales and markdown. This article includes a longitudinal and in-depth case study during the past year in an international toy manufacturer, which includes qualitative semi structured interviews and questionnaire with 11 main European toy retailers. They concluded that there are three main supply chain management practices for toy retailers in terms of ordering behaviours (one off, JIT, and mixed model), and one dominated supply chain management practice for toy manufacturers (traditional mass production or push models). These low responsive practices in the toy supply chain are not caused only by slow knowledge diffusion. Supply chain management is not yet capable of managing such levels of volatility and seasonality. Therefore, explanations of these theoretical gaps and what new theories are required for such extreme volatility and seasonality are proposed. It reveals actual supply chain management practices in a volatile and seasonal supply chain, such that theoretical and practical gaps are identified. Also, it proposes a model to match manufacturing supply chain management practices with retailer supply chain management practices. Since Wong et al on their study focused on exploring supply chain management practices, and identify practical and theoretical gaps in toy supply chains in innovative products experience evaluating highly unpredictable and variable demand, therefore their study is useful for this research, though it intends to fill the gap by examining critically the factors influencing the importation focusing at the main areas such as technology, human capital and raw material which their study did not look at.

Rundh (2009), conducted a research to study how packaging and packaging design can contribute to competitive advantage for marketing a consumer product. His study demonstrated influences on the design process of a package from external and internal factors. The outcome of the design process is, to a great extent, dependent on the interaction between the main actors in this process. The study argues for the importance of the interaction with customers for planning and conducting the design. The result of such a process is a package that can trigger customers make a purchase and/or re-inforce the brand name for a re-purchase of the product. Result from Rundh (2009) shows that design can contribute to competitive advantage of supply chain and therefore production companies should pay attention to that detail. Rundh’s study will greatly contribute some required ideas to this study because the author focused on the packaging and its influence on competitive advantage in the market. However, since Rundh’s study only focused on packing, this study intends to look at the factors influencing the importation of metal packing chain in manufacturing industry.

Wacker (1989), conducted a study on the relationship between technology and strategic competitiveness. It is suggested that effective management of employees and equipment can speed technological advances to customers. However, managerial technological knowledge of the production process and technical aspects of equipment are of paramount importance for the successful implementation of any competitive strategy. Future areas of empirical investigation through testable propositions are suggested. Each proposition is a hypothesis and major study in itself, and it is hoped that future researchers will statistically analyse each proposition to confirm or deny its validity. This study will be of use since it addresses issues on Technology as technology is also part of the objective this study is focusing on.

Singh, (2012) conducted a study on the role of plastic additives for food packaging. The purpose of the study was to review the new trends in plastic additives, with special focus on developments in food packaging materials. The findings of this study indicate that packaging of food stuffs is a dynamic process which continually responds to the changes in supply and demand which are the result of adaptations to the varying demands of the consumer, changes in retail practices, technological innovations, new materials and developments in legislation, especially, with respect to environmental concerns. A wide range of additives is available for enhancing the performance and appearance of food packaging, as well as improving the processing of the compound. Polymer additives are important areas of innovation for packaging materials.

Kumar, (2011) conducted a study on global supplier selection process for food packaging study aimed at understanding and developing the supplier selection process and overall cost modeling that facilitates the selection of a high-quality global supplier for low-cost packaging materials used in large quantities for CPF products. The results of his study show a standardized supplier selection process and the total cost of ownership model for a CPF manufacturer which incorporates the different logistic costs such as tariffs, duties, inventory carrying levels and cost of quality. These two models are then merged into a selection matrix to determine with which supplier to enter into a long-term supply relationship. However kumar’s study will contribute some required ideas to this study because the author focused on the global supplier selection process for food packaging study aimed at understanding and developing the supplier selection process and overall cost modeling that facilitates the selection of a high-quality global supplier for low-cost packaging materials used in large quantities for CPF products. However Kumar’s study only focused on supplier selection process for food packaging but this study intends to look at the factors in which packaging influence the importation of metal packing chain in manufacturing industry.

Klevås, (2005) in his study shows how logistics performance and product design can be affected, and improved, by the packaging organization within a company. A single case study has been conducted at IKEA, including on-site interviews and review of internal documents. Along with the case study, a literature study has been conducted within the areas of product development, packaging and logistics. The IKEA case suggests that the packaging function should have a strong link to both the logistics function and the product development function within a product-developing company to be able to improve the logistics performance.

Morgado (2008), conducted a study on how an innovative plastics packaging company in Portugal integrates itself into the value chain of company clients. The study focused on technological, processes and business innovation. The study identified technological, processes and business innovation as issues that influence development of the firms. However Morgado’s study will contribute some required ideas to this study because the author focused on the innovative plastic packaging. However, since Morgado’s’ study only focused on Innovative plastic packaging, but the current study intends to look at the factors in which packaging influence the importation of metal packing chain in manufacturing industry.

Kenneth (2007), contends that Metal packaging supply chain is the most versatile of all packaging forms in the supply. It offers a combination of excellent physical protection and barrier properties, formability and decorative potential, recyclability, and consumer acceptance. The raw materials most predominantly used in metal packaging supply chain are aluminum and steel. Human capital involves the management of inventories, reducing surpluses and preventing losses in the metal packaging supply chain. Metal packaging companies have adopted the collaborative strategy on production planning, demand forecasting and inventory replenishment by use of Technology.

Macher and Mowery (2004), conducted a study examining the evolution of vertical specialization in three industries: chemicals, computers, and semiconductors. Vertical specialization is the restructuring of industry-wide value chains, such that different stages are controlled by different firms, rather than being vertically integrated within the boundaries of individual firms. In some cases, vertical specialization may span international boundaries and is associated with complex international production networks. After decades of vertical specialization, firms in the chemical industry are re-integrating stages of the value chain. By contrast, the semiconductor and computer industries have experienced significant vertical specialization during the past ten years. Authors examined how and why these contrasting trends in vertical specialization have co-evolved with industry maturation and decline, and underscore the importance and role of both industry factors and business strategies necessary for industries to become more specialized. Authers also considered the effects of vertical specialization on the sources of innovation and the geographic redistribution of production and other activities. Authors concluded that the evolution of vertical specialization in these three industries has both reflected and influenced the strategies of leading firms, while also displays industry-specific characteristics that are rooted in different technological and market characteristics. This study will be of use since it addresses issues on Technology as technology is also part of the objectives this study is focusing on.

Suer (1995), on the study entitled Technological change and productivity in the UK food, drink and tobacco industries: a translog cost function approach analyses the production function of the UK manufacturing industries by estimating a translog cost function for the period 1955-1981. Among the conclusions arising from this estimate are: that indications are that technological change is input biased in the food, drink and tobacco industries; and that these industries seem to have experienced deterioration in scale economies during the 1970s. Also it finds that energy and capital inputs are complementary. This supports the argument that reductions in energy price will be accompanied by higher levels of investment. Also the study will be useful since it addresses issues on Technology as technology is also part of the objectives this study is focusing on though it differs in terms of area of the study and study participants. However Suer’ study will contribute some required ideas to this study because the author focused on the Technological change and productivity , current study intends to look at the factors in which Technological change and productivity are just a part among the factors influencing the importation of metal packing chain in manufacturing industry.

Felício , Couto and Caiado (2014), on the study entitled “Human capital, social capital and organizational performance", focusing on human capital and social capital of managers and the influence of these attributes on the performance of small and medium-sized Portuguese companies. The structural modeling approach was applied to a sample of 199 small and medium-sized companies aged between 3 and 15 years, from five different sectors. It was found that human capital affects social capital, and that experience and cognitive ability influence personal relations and complicity. Organizational performance is strongly influenced by human capital through the cognitive ability of the manager. This work is innovative in the sense that it confirms the influence of human capital on social capital, and shows that it is cognitive ability that affects organizational performance. This study will buy some ideas from this study the study aimed at examining the human capital, social capital and organization performance in business environment into which this study focuses as well particularly on metal packaging and supply. However their study only focused on three elements, that is human capital, social capital and organization performance that this study aims at examining at human capital, technology and raw material, therefore it differ with heir study in terms of the objectives yet it focused on addressing how human capital, technology and raw materials influence the importation in the metal packaging industry.

Wilson (1975) conducted a study on “The influence of energy and other cost inflations on raw materials", There is still much uncertainty in Processing industries resulting from rapidly increasing costs of raw materials, energy and labour and from the general inflation in all European countries. Many companies have themselves carried out studies aimed at assessing the likely influence on their business resulting from the dramatic increase in crude oil prices in the recent past. However, other inflationary pressures are also at work — e.g. rapidly increasing costs of labour and capital — which will contribute at differing levels to the increasing costs and, therefore, prices of industrial raw materials such as chemicals, plastics and the other materials. Based on the nature and focus of this study, therefore Wilson’s study will be of use though these two studies may differ in terms of participants, area of the study and objectives of the study. This study will use some ideas from Wilson’s study since it addresses issues on raw material which is also part of the objectives this study is focusing on.

2.4.2 Studies conducted in Tanzania.

Sohrabpour e t al (2005) conducted a study on exploring packaging in developing countries by means of identifying and describing supply chain needs regarding packaging. They used qualitative research approach and include an embedded single case study of ambient milk supply chains in developing countries. Their findings show that secondary packaging is a vital supply chain component in these countries and that there are extensive interactions between packaging and the supply chain. The findings constitute a list of supply chain needs regarding secondary packaging broken down into categories. Moreover, propositions for managing the supply chain needs and challenges of packaging in developing countries are presented. Their study based on packaging as this study and it used analysis on milk supply chain while this study aim at factors influencing import oriented metal-packaging supply chain in Tanzania. Their study will be of greater use and will contribute some ideas just because their study evaluated packaging in developing countries by means of identifying and describing supply chain needs regarding packaging. Since this study as well focuses at metal packaging and supply chain. However the two studies differ in terms of the objectives because this study focuses on addressing on how human capital, technology and raw materials influence the importation in the metal packaging industry.

Hellström & Fredrik, (2011) identify and describe the strategic potential of logistics- driven packaging innovation in retail supply chains. Their study provides detailed insights into the impact of an innovative unit load carrier on different supply chain echelons. These insights emphasize the need for a systems perspective in order to understand the total impact of packaging innovations on supply chains. Identification of logistics-driven packaging innovation in retail supply chains as one of the key successes of the industry bring attention to the details of the metal packaging supply chain in Tanzania under that aspect.

Danie, (2004), did a study on Production of Indigenous Fruit Juice Concentrate at Tabora in Tanzania. The study determined the viability of a fruit juice concentrate processing enterprise located at Tabora, Tanzania. The feasibility of the proposed enterprise was assessed in four core areas namely market and financial feasibility, technical feasibility, resource and environmental feasibility and social and institutional feasibility. A market opportunity was identified for the domestic production of good quality fruit juice concentrates in Tanzania to be sold to manufacturers in the growing fruit juice nectar-producing sector in Tanzania. The analysis of the financial feasibility of the proposed enterprise revealed that (based on the assumptions that were made) the enterprise is only marginally profitable but would have a positive cash flow and is potentially viable over the longer term. The biggest constraint faced by the enterprise is the costs of transporting finished products from Tabora to the main industrial centres in Tanzania. As a result of a lack in comprehensive analysis of the current natural resources that are available in Tanzania, this feasibility study has made a number of assumptions regarding the environmental and/or natural resource feasibility of the enterprise. Based on the limited information, it was concluded that the proposed enterprise could be environmentally feasible. This study was conducted in Tabora and focused on the Production of Indigenous Fruit Juice. This study focused on metal supply chain in Dar es Salaam, Tanzania. Therefore, the scope and context of the study were different.

2.5 Conceptual Framework

Conceptual framework provides the structure content for the whole study based on literature and personal experience (Voughan, 2008). This study was guided by the researcher’s conceptual model as designed because it took into account many aspects in relation to imported metal packaging supply chain in manufacturing industry. From the literatures reviewed above, the relationship between variables can be developed in figure below to save the purpose of the study.

Other variables are availability and quality of human capital employed in the companies since there is no college teaching metal packaging but teaching packaging and metals, these variables have influenced the development of the organization. Lastly suitability and adoptability of Technology employed in metal packaging in Tanzania. Technology is an issue because it is adopted from Asia & Europe and Tanzania is a different environment. Good adaptation and suitability/relevance of Technology influences development of the supply chain.

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Figure 2.1: Conceptual Framework

Source: Own developed conceptual model, 2014

The researcher has developed own conceptual model of the three variables of which all lead to smooth Metal Packaging Supply chain In Tanzania.

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter discusses the research design, research approach, area of study, target population, sample size of the study and sampling procedures. In addition, the chapter presents the data collection methods and procedures which were used to validate the instruments of data collection, data analysis plan and researcher’s ethical consideration.

3.2 Research Paradigm

The research proposal is based on the positivist philosophy. It employed a research approach in which rigorous empirical techniques were used to discover generalized explanations and laws (Engel, 1995). Positivism is the view of reality using some established formulae, knowledge, by rules and principles. The results obtained were not influenced by the researcher. The researcher’s role was to test the rules/ laws while being detached from what is being studied. The hypotheses anchored the method of verification (Omari, 2011).

3.3 Research Design

Research design is a conceptual structure within which research is conducted. It constitutes the blue print for the collection, measurement and analysis of data and gives a guideline or specific steps to be followed in the collection and analysis of data (Kothari, 2004). Moreover, research design is the road map which helps researchers to understand where they are and where they want to be at completion of the journey, therefore it help to determine the best way to reach the destination (Loudon et al., 2007).

Based on the nature of the study and study participants’ descriptive design was employed in order to assess the influence of imported raw materials on supply chain of metal packaging in Tanzania. The case study helped in finding course materials, assignments and other information. Therefore the in depth studies of this descriptive led to the accumulation and analysis of the data related to the study.

3.4 Area of the Study

The study was conducted in Dar es Salaam Region. Dar es Salaam has three districts namely, Kinondoni, Ilala and Temeke . Kinondoni District is found in the northern part of Dar es Salaam, whereas Temeke is found in the Southeast while Ilala is in the downtown. On the eastern part, there is the Indian Ocean while in the northwest, there is coast region. The 2012 Tanzanian National Census showed that the population of Dar es Salaam Region was 4,364,541 with 1,393 km² in 2012. The original inhabitants of Kinondoni were the Zaramo and Ndengereko, but due to urbanization the district has become multi-ethnic. The selection of area is based on the fact that there are big industries including the Nampak Tanzania Ltd and Insignia Tanzania Ltd where this study focuses.

3.5 Target Population

Shaughness and Zechmeister (2000) assert that, target population is a set of all cases a researcher is interested in and from which the research intends to make a generalization of findings. The target population for this study included Nampak Tanzania Ltd and Insignia Tanzania Ltd top management staff and other co-workers.

3.6 Sampling Design

This part includes simple size of the study, Sampling techniques, as well as data collection methods

3.6.1 Sample size

A sample is “a small portion of the study population” (Awuondo, 1994). According to Cohen et al., (2007), researchers are required to collect data from a smaller number of participants who are part of the large population or group and that smaller number is what is referred to as a sample. Kothari (2006) defines sample as a collection of some parts of the population on the basis of which judgment is made small enough to convenient data collection and large enough to be a true representative of the population from which it had been selected

The sling techniques, as well as data c65 respondents from both industries, out of which 10 respondents were top management staff and the remaining 55 l others were staff members. The sample size of this study is set to be 65 based on the nature of the study where people are very busy working in the industry.

3.6.2 Sampling techniques

This study employed both random sampling and purposive sampling techniques to obtain the appropriate institution and respondents to be involved in the study. Random sampling techniques was used in this study simply because it best suits in getting study respondents since through random sampling all people have an equal opportunity of participating, and this is based on game of chance. Thus, respondents who participated in the study during data collection were randomly selected, through simple random sampling; this was conducted by listing all names of the members and selecting by skipping one name to another. Saunders et al., (2007) define simple random sampling as a sampling technique that involves a researcher selecting the sample at random from the sampling frame using either random number tables or a computer.

3.7 Data Collection Methods

This study employed both primary and secondary data collection methods in order to gather and have enough information from various sources . Three instruments for data collection that were employed in this study included; interview, questionnaire, and documentary review. Thus, a variety of methods were used to collect data and therefore supplement each other to ensure validity of the study. Cohen, Manion and Marrison (2001) encourage the use of many techniques so as to get the reality of what the researcher is interested to investigate. Each of these methods is explained further in the following paragraphs.

3.7.1 Secondary data

Published materials were used to collect relevant secondary data. In this aspect, books, working papers, relevant journals, government business reports, statistical publications, business magazines, publications and the alike will be used to enrich the study. Documentary review is useful in this study due to the fact that it help the researcher to get first and second hand information on factors influencing imported metal packaging supply chain in manufacturing industry in Tanzania. Kester and Chambua (1993) argue that documentary review involves any activity in which evidence or data is extracted from documents of any recorded (written or oral) text that contains information about human behaviors, social conditions and social processes.

3.7.2 Primary data

The study used different tools including, in-depth interview, focus group discussion, observation and semi structures questionnaire to collect data from Top managers in the selected industries and staff members.

3.7.2.1 Interview

The interviews involved top managers and other staff members. The technique is suitable for intensive investigation and useful for tapping information about factors influencing imported metal packaging supply chain in manufacturing industry. This allows the researcher to get first hand information about the study.

Hence, in this study face-to-face, semi structured interviews using open-ended questions were used to collect data from the study participants. According to Kothari (2006) interview may be among the best primary data collection strategies to provide information on how individuals conceive their world and make sense of important events in their lives

3.7.2.2 Questionnaire

This study also used questionnaires to collect information regarding this study. A questionnaire is suitable for data collection because it allows the respondent to take his/her time to read and understand and fill in according to one’s understanding. In this study, therefore, both open-ended and close-ended questionnaires were used as well as Open-ended items. Nsubuga (2000), argues that an open-ended form of questionnaires permits respondents to answer freely, fully, in their own words, and in their own frame of references.

3.8 Data Analysis Plan

After data collection, Data presentation, discussion and analyses were performed by passing on various stages including, first step in the data analysis is data preparation. This step consists of data editing, coding, and data entry. The second step was the preparation of descriptive statistical summary, which is a preliminary step leading the researcher to understanding of the data. Representations like tables and charts were used to ensure easy and quick interpretation of data. Responses were expressed in percentages. Data from the completed questionnaire were checked for consistency. The collected data were statistically analyzed, using the Statistical Package for Social Sciences software (SPSS). SPSS is a widely used program for statistical analysis in social science.

3.9 Validity and Reliability

3.9.1 Validity

Content validity has to do with the researchers’ interpretation of what the instrument measures (Spector, 1997). In other words content validity is concerned with whether the instrument “covers the domain or items that it purports to cover” (Cohen et al., 2007). To come up with clear questionnaire and reliable field questions, a pilot study was conducted. The sample size was 10 respondents, where-by 5 respondents were top managers and the remaining respondents were staff members. The researcher decided to have a small sample just because it was only to test questionnaires but avoiding large simple because of cost.

3.9.2 Reliability

According to Spector (1997) the term reliability is defined as the “consistency in measurement. Reliability is the extent to which a test or procedure of data collection yields similar results under constant conditions on all occasions (Onen, 2005). Reliability of this research study were achieved or increased by carefully replicating the research methods that were used in other similar studies and test them before implementing the research process. The entire scores were within the acceptable range since the proposed level of reliability to be used is normally 0.7.

3.10 Ethical Considerations

The researcher adhered to the ethics of a particular place. Human rights and national policies were observed. Therefore, attention was paid to the rules and regulations of research before and during the actual field.

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DISCUSSION OF THE FINDINGS

4.1 Introduction

This study is about examining the factors influencing imported metal packaging supply chain in manufacturing industry in Tanzania with the case of Tinplate packaging in Dar es Salaam Region. The study is comprised of staff working with Tinplate packaging in Dar es Salaaam Region in particularly the Nampak Tanzania Ltd and Insignia Tanzania Ltd. The sample size for this study involved 65 staff working under different departments, both at the managerial level and non- managerial level. The study also considered staff under all terms of employment i.e. on permanent and time defined basis. The data was analyzed using computer based software SPSS 20.0 and the results have been presented in Tables and Figures. The findings are provided in the context of descriptive and findings as per study objectives.

4.2 Descriptive Findings

Findings are presented in the context of Gender, Age, Marital status, occupation, Work experience and Education level.

4.2.1 Gender of respondents

The target number of respondents was 65 to whom the questionnaires were distributed. Of the number of respondents, 65 (100%) returned the questionnaires. The findings show that 52 (80%) were male and 13 (20%) were female respondents as Table 4.1 demonstrates:

Table 4.1: Gender of Respondents

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Source: Field Data (2014)

The results presented in Table 4.1 show that the majority of the respondents selected were male. This also shows that the institution had more male than female employees. This raises questions on the Tanzania metal packaging supply chain in manufacturing industry’s policy of insuring equal opportunities for male and female applicants in the employment process. On the whole, there was gender imbalance.

4.2.2 Age Distribution of Respondents

Respondents were asked to indicate their age in the appropriate space provided. The result shows that the age group between the age group of 18 and 29 years respondents were 12 (19%), 30 and 39 years were 25 (39%), 40 and 49 years were 18 (28%), 50 and 59 were 8 (12%) and those with 60 years and above were 2 (3%) respondents as illustrated in Table 4.2:

Table 4.2: Age of Respondents

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Source: Field Data (2014)

As Table 4.2 illustrates, the majority of the respondents of about 25 (39%) were aged between 30 and 39 followed by those aged 40 – 59 about 18 (28%) and then 18 – 29 years of age who were 12 (18%). This implies that the majority of the respondents were in the productive age and that the Tanzania metal packaging supply chain in manufacturing industry could continue to utilize them for a longer period. Also, this result implies that the respondents were matured enough to give creditable responses based on actual experience.

4.2.3 Marital Status

Respondents were asked to provide the information about their marital status. The study shows that 21 (32%) were married, 36 (55%) were unmarried, 5 (8%) were divorced and 3 (5%) were widow as illustrated in Table 4.3:

Table 4.3: Marital Status

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Source: Field Data, (2014)

Table 4.3 demonstrates that majority of the respondents were in a group of unmarried corresponding to 36 (55%) followed by 21 (32%) respondents who were married. This implies that, the majority of the respondents had family responsibilities which could underpin them not to leave the institutions and run away if they were debited by the banks.

4.2.4 Occupation

Respondents were also asked to indicate their occupation specialty and working position. Figure 4:1 shows the respondents occupation specialties involved in the study.

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Figure 4:1 Respondents Occupation

Source: Field data, 2014

The study findings in Figure 4:1 shows that 47 (72%) of the respondents occupation specialty are non-managerial staff while 18 (28%) of the respondents are of the management specialty. However, these respondents occupations fall under the core functions of the Tinplate packaging and supply chain like operations, suppliers, marketing, accountants, auditors, finance officers, supervisors and managers heading the sections of operations, suppliers, accounts, marketing, finance and other operations and supply related sections. This implies that the institution holds a pyramidal structure of organization, where top managements is occupied by few followed by line managers to maintain the chain of command. The other group of respondents involved the supporting departments to the operation activities, which involved respondents from the chain and supply departments like supply managers, from procurement department like procurement officers as well as IT department which involved the IT managers and System Analysts.

4.2.5 Working experience of the respondents

Respondents were also asked to provide the information about their work experience. The study shows that 16 (24%) had worked within the institution between 1 and 3 years, 22 (34%) had worked between 4 and 6 years, 18 (28%) had worked between 7 and 10 years and 9 (14%) had worked more than ten (10) years as Table 4.4: illustrates.

Table 4.4 : Work Experience

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Source: Field Data, (2014)

Table 4.4 demonstrates that majority of the respondents at Nampak Tanzania Ltd and Insignia Tanzania Ltd had worked between 4 and 6 years which is a good experience for them to know the factors influencing imported metal packaging supply chain in manufacturing industry in Tanzania with the case of Tinplate packaging in Dar es Salaam Region. This implies that, the majority of the respondents had more experience about the factors influencing imported metal packaging supply chain in manufacturing industry in Tanzania with the case of Tinplate packaging in Dar es Salaam Region in Tanzania as majority of respondents had worked between 4 and 6 years, followed by 7 and 10 years of age as illustrated in Table 4.4:

4.2.6 Education Level

The study also set out to establish respondents’ level of education and found that the majority of the respondents were diploma holder by 24 (37%) respondents, followed by 19 (29%) respondents with a bachelor’s degree, 15 (23%) were certificate holders, 4 (6%) respondents others had a master degree while 3 (5%) had other professionals as illustrated in Table 4.5:

Table 4.5: Respondents’ Education Levels

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Source: Field data, 2014

Table 4:5 demonstrates that Nampak Tanzania Ltd and Insignia Tanzania Ltd have a good number of graduates ranging from certificates to higher degrees. This is an indication that about 95% of the staff at these metal packaging supply chain in manufacturing industry in Tanzania have the qualified number of employees. At the time of this study only 3 (5%) of the respondents reported to have different added education profession such as: Certified Public Accountant (CPA); Certified Professional Banking (CPB). This further implies that the respondents had sufficient academic qualifications to read and understand the questionnaire properly and, therefore, provide informed answers.

4.3 Presentation of Findings and Analysis as per Study Objectives

As presented in chapter one, findings, analysis and discussion are presented in these objectives: The influence of human capital employed on Tinplate packaging supply chain in Tanzania; The influence of technology applied on Tinplate packaging supply chain in Tanzania; The price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania.

4.3.1 The influence of human capital employed on Tinplate packaging supply chain in Tanzania.

The aim of this statement was to examine the influence of human capital employed on Tinplate packaging supply chain in Tanzania. To get the required responses, 6 statements were used to explore different aspects of the influence of the human capital employed by the company. The respondents were requested to rate each statement using a five point Likert Scale (1=Strongly Agree, 2= Agree, 3=Neutral, 4=Disagree, 5=Strongly Disagree). The frequency of the response from 65 participants has been provided in percentages (%) as in Table 4:6 and Figure 4:2 provide the summary of the findings as per study focused.

Table 4.6: The influence of human capital employed on Tinplate packaging supply chain in Tanzania. (N=65)

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Source: Field data, 2014

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Figure 4.2: The influence of human capital employed on Tinplate packaging supply chain in Tanzania. (N = 65)

Source: Field data, 2014

The statements provided as items in Table 4:6 were intended to examine the influence of human capital employed on Tinplate packaging supply chain in Tanzania. The study results show that the company was not satisfied with the qualification of the employees and the employees’ training capability to deliver at the desired level of the company production as some of the influencing human capital for the packaging supply chain in Tanzania as the majority of the respondents disagreed with the statements posed to them as represented in Table 4.6.

The study result show that 22 (34%) respondents disagreed with the statement “the company is satisfied with the qualification of the employees”, 7 (11%) others strongly disagreed while 20 (31%) respondents were neutral. On the other hand, 12 (19%) respondents agreed with the statement and 4 (6%) others strongly disagreed. On the statement that “Employees are well trained to deliver at the desired level of the company production” study result shows that 24 (37%) of the respondents were neutral, followed by those who disagreed with the statement constituting to 19 (29%), 11 (17%) agreed and 3 (5%) other respondents strongly agreed. Also, the study result shows that, 24 (37%) of the total respondents agreed with the statement “The company regularly mentors her employees to improve the production quality”, a nd 15 (23%) others strongly agreed. In additional, 16 (25%) respondents were neutral, 8 (12%) respondents disagreed and 2 (3%) respondents others strongly disagreed with the statement. Looking at ‘the company whether it recruits qualified employees and secure them to enhance quality production’, 12 (19%) respondents strongly agreed, 20 (30%) others agreed, 11(17%) disagreed and 4 (6%) others strongly disagree with the statement.

Furthermore, the study findings show that 18 (28%) respondents strongly agreed with the statement “the company considers Education or technical skills as a factor for an employee to be recruited even without the knowledge of production” 24 (37%) respondents agreed, 13 (20%) were neutral while 7 (11%) respondents disagreed. Only 3 (5%) respondents strongly disagreed with the statement. Moreover, respondents were undecided to the statement “Qualified and skilled personnel are currently needed in the company since the company has no employees with skill” as 38 (59%) respondents were neutral. In addition, 6 (9%) respondents strongly agreed, 16 (25%) others agreed while 4 (6%) respondents disagreed and 1 (2%) respondents strongly disagreed with the statement.

The study findings imply that if the company invests in human capital, the supply chain of the tinplate metals will be effective and efficient, and hence the company will perform better. As a result, the human capital invested particularly the human resources, will enhance the process of supply and the operation of machines as they will be trained enough to set their minds ready to perform effectively and eventually the customers and nation at large benefit. As seen from the study findings, the result also implies that since the company is not satisfied with the qualification of the employees as well as employees being trained well to deliver at the desired level of the company production, therefore there is a possibility of the company not to deliver to its maximum capacity, hence causing the need for mentoring and coaching employees especially the new teacher.

In addition, the study result implies that the company has a good policies that are designed to assist its employeres by developing their knowledge and skills as majority of the respondents agreed with the statement that ‘ the company regularly mentors her employees to improve the production quality ’ by 39 (60%); the company recruits qualified employees and secure them to enhance quality production by 32 (49%); and the company considers Education or technical skills as a factor for an employee to be recruited even without the knowledge of production 92 (65% ).

In supporting the findings, the study result revealed by the Human Resource Manager (HRM) during interview that to analyse relevance of human capital employed in their company. There is no college dealing with metal packaging particularly, it is difficult or impossible to find someone well knowledgeable about metal packaging within the country. HRM Said

“….it is so difficult to find totally qualified recruit for our company, it is even impossible to some sectors especially production…”

He went on saying

“….we are not satisfied with the quality of recruits from Tanzania labor market, major reason is that, there is no metal packaging colleges and therefore make it so difficult for us to find qualified recruits….”

As human resource is very crucial part for development of metal packaging supply chain, the availability of qualified recruits is needed for better performance of the supply chain. Since there is less availability, it becomes the challenge to the supply chain. Not only that but, Quality level of available recruits is also another issue, low quality level means less production and therefore another challenge. Having this prior information Company has to act accordingly, HRM said

“….we recruit people based on the relevance of their experiences and education to the job descriptions to be attached with, example when requite machine mechanics we find someone knowledgeable with machine mechanics in other machines…. …we take the recruits to the sister company in Kenya, South Africa etc for months of training”

That nature of employment and training help to close the gap of lack of colleges of metal packaging. The HRM also explained on strategies to improve employee’s performance, he said

“…. we appraise performances of each employee and give percentage increase in their remunerations according to their performances as the motivation to work hard and the way to stimulate innovation and commitment…”

Human resource being the challenge faced by the supply chain, it affects development of the supply chain, therefore measures taken against that challenge is definitely important. These measures do help to encounter the challenge but there is a need to introduce colleges.

General Manager and Production manager were interviewed on Technology used in production process of metal packaging products from their company. The interview based on suitability and adoptability of the technology used in production.

Table 4.7: Summary Mean Scores for the influence of human capital employed on Tinplate packaging supply chain in Tanzania.

N=65

Abbildung in dieser Leseprobe nicht enthalten

Source: Field Data, (2014)

4.3.2 The influence of technology applied on Tinplate packaging supply chain in Tanzania

The respondents were also asked to provide their views on the influence of technology applied on Tinplate packaging supply chain in Tanzania. To get the data for analysis, six statements were used. The respondents were requested to rate each statement using a five-point Likert Scale (Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree). In all 65 respondents returned the questionnaires duly filled in. The findings have been summarised in Table 4.8 and Figure 4.3.

Table 4.8: The influence of technology applied on Tinplate packaging supply chain in Tanzania. N=65

Abbildung in dieser Leseprobe nicht enthalten

Source: Field data, 2014

Abbildung in dieser Leseprobe nicht enthalten

Figure 4.3: The influence of technology applied on Tinplate packaging supply chain in Tanzania.

Source:Field data, 2012 (N=65)

The statements provided as items in Table 4.7 were intended to examine the influence of technology applied on Tinplate packaging supply chain in Tanzania. The study results show that the technology applied in the company is relevant and that it suits with the conditions for Tanzania context as majority of the respondents agreed with the statements posed to them. The study result shows that 14 (7%) respondents strongly agreed with the statement “The technology adopted by the company is suitable for production in Tanzania’s context” and 28 (43%) others agreed while 20 (31%) of the respondents were neutral. On the other hand, only 2 (3%) respondents disagreed and 1 (2%) strongly disagreed. Also, the study result show that 6 (9%) respondents strongly agreed with the statement “the technology applied in production in the company is not advanced to enhance quality product production”, 8 (12%) others agreed, 9 (14%) respondents were neutral while 25 (39%) of the total respondents disagreed and 17 (26%) more strongly disagreed with the statement. This implies that Tinplate packaging supply chain in Tanzania has the required technology for its services.

In addition, 19 (29%) of the total respondents strongly disagreed with the statement “The available utilities and power are effective enough to operate available machines for production” and 18 (28%) others disagreed while 21 (32%) respondents were neutral. On the other hand, 6 (9%) respondents agreed and only 1 (2%) respondent strongly agreed with the statement. looking at whether ‘lack of advanced technology has a negative effect on quality product production’, 12 (19%) respondents strongly agreed, 6 (9%) others agreed while 32 (49%) respondents were neutral. Only 5 (8%) respondents strongly disagreed and 6 (9%) others disagreed with the statement.

Furthermore, the study result show that 26 (40%) respondents disagreed with the statement “Do you think the company resorts into importing raw material due to insufficient technology applied in the company”, 12 (19%) others disagreed. However, 15 (23%) respondents were neutral with the statement while 8 (12%) respondents disagreed and 4 (6%) others strongly disagreed with the statement. Moreover, 28 (43%) respondents disagreed with the statement “Technology has nothing to do with production”, and 13 (20%) others strongly disagree. Also, 12 (19%) respondents were neutral while 7 (11%) strongly disagree and 5 (8%) others disagreed with the statement. this further implies that, Tinplate packaging supply chain in Tanzania has all qualities of technology necessary to facilitate the supply process as majority of respondents disagree that technology has nothing to do with the production.

Generally, the study result show that technology is a more valued tool at the Tinplate packaging supply chain in Tanzania as a result, the company import a lot of machines to facilitate the operations. Furthermore, the study findings imply that if the company utilizes its technology employed effectively, the company will be more influential to the supply companies in Tanzania and the world at large. This means, human capital needs to be trained on how to use this technology effectively and efficiently to match with the available tools like machines.

The study result was supported by General Manager who said:

“Nampak Africa has Centralized technological activities in Nampak South Africa… All Research and development are done there in South Africa”

He went on saying

“…..the technology adopted from South Africa is adoptable at high percentage in Tanzania and suit needs of production in Tanzania…. …there are few challenges on technical issues because of environmental differences between Tanzania and South Africa… ..issues of climate and compliances in productions affects designs of machines, example in South Africa, there is summer and winter while in Tanzania there is no winter….”

Production manager was more concerned with technical designs and production capabilities, he said,

“…machines designed are suitable and adoptable in a sense that they can produce but they consume a lot of power and they have extremely high production capacity compared to the needs… …they (machines) are less economical”

The use of imported technology also proved to be factor affecting the metal packaging supply chain in Tanzania in a micro level.

Table 4.9: Summary Mean Scores for the influence of technology applied on Tinplate packaging supply chain in Tanzania. N=65

Abbildung in dieser Leseprobe nicht enthalten

Source: Field Data, (2014)

4.3.3 The price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania.

Also respondents were asked to provide their views on the price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania. To get the data for analysis, six statements were used. The respondents were requested to rate each statement using a five-point Likert Scale (Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree). In all 65 respondents returned the questionnaires duly filled in. The findings have been summarised in Table 4.10 and Figure 4.8.

Table 4.10: The price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania N=65

Abbildung in dieser Leseprobe nicht enthalten

Source: Field data, (2014)

Figure 4:4 The price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania (N=65)

Abbildung in dieser Leseprobe nicht enthalten

Source: Field data, 2012

Table 4.8 and Figure 4:4 shows that 22 (34%) of the respondents strongly agreed with the statement “The company regularly outsources raw materials because they are not locally available”, 28 (43%) others agreed while 6 (9%) respondents were neutral. Only 2 (3%) respondent strongly disagreed and 7 (11%) others disagreed with the statement. also, 24 (37%) strongly agreed with the statement “The price of the raw material has a significant impact on the production activities”, 26 (40%) others agreed. On the other hand, 10 (15%) respondents were neutral while 4 (6%) respondents disagreed and only 1 (2%) strongly disagreed with the statement. in addition, 23 (35%) respondents strongly agreed with the statement “The imported materials are not available in the country that is why the company decides to outsource”, 28 (43%) others agreed. 11 (17%) respondents were neutral with the statement while 2 (3%) respondents disagreed and only 1 (2%) respondent strongly disagreed with the statement.

The study result implies that, there is insufficient of raw materials particularly metals, plastics, bottle covers, cane and many others in Tanzania, and that those which are available are not found to be quality as those found outside Tanzania as a result, the company is forced to look for the materials outside the country including Japan and China.

Furthermore, 27 (42%) respondents strongly disagreed with the statement “Raw material can as well be obtained in the country but the company decide to import due to reduced prices of buying them”, 24 (37%) others disagreed. 10 (15%) respondents were neutral while 3 (5%) respondents agreed and only 1 (2%) respondent strongly agreed with the statement. also, 28 (43%) respondents strongly disagreed with the statement “It is very easy to import raw materials rather than searching for it in the county”, 25 (38%) others disagreed. On the other hand, 9 (14%) respondents were neutral with the statement while 2 (3%) respondents strongly agreed and 1 (2%) respondent more disagreed.

This further implies that, Tinplate packaging supply chain in Tanzania faces the challenge of the availability of raw materials as a result, the pricing of the product varies and fluctuates sometimes due to price fluctuation in the world market. For example, it was noted that the raw materials found in China were less expensive but of low quality ranging from 1$ to 2$ while the same material found in Japan was sold between 1.5$ to 5$ but with high quality.

In addition, 27 (42%) respondents strongly agreed with the statement that “Low quality of the raw material in the country influences the company to import from outside”, 25 (39%) others agreed while 3 (5%) respondents were neutral with the statement. On the other hand, 8 (12%) respondents disagreed and 2 (3%) others strongly disagreed with the statement.

Table 4.11: Summary Mean Scores for Price of Raw Material Imported and its influence on supply chain of Tinplate packaging in Tanzania (N=65)

Abbildung in dieser Leseprobe nicht enthalten

Source: Field Data, (2014)

4.4 Discussion of the Study Findings as per Study Objectives

4.4.1 The influence of human capital employed on Tinplate packaging supply chain in Tanzania.

In the light of results obtained from data collection as shown in Table 4.6 and Figure 4:6, the respondents in expressing their view on the influence of human capital employed on Tinplate packaging supply chain in Tanzania, majority disagreed with the statement that the company was satisfied with the qualification of the employees by 29 (45%) while on the employees’ training capability to deliver at the desired level of the company production, 27 (42%) of the total population disagreed.

In addition, majority of the respondents agreed that the company is satisfied with the characteristics of the company’s regularly mentoring of her employees to improve the production quality by 39 (60%); the company’s recruits qualified employees and secure them to enhance quality production by 32 (48%); and Considering Education or technical skills as a factor for an employee to be recruited even without the knowledge of production by 42 (65%).

Moreover, the study results as demonstrated in Table 4.6 and Figure 4.6 revealed that Qualified and skilled personnel are currently needed in the company since the company has no employees with skill, the majority were undecided by 38 (59%).

The study findings imply that if the company invests on the human capital, the supply chain of the tinplate metals will be effective and efficiently, and hence the company will perform better. As a result, the human capital invested particularly the human resources, will enhance the process of supply and the operation of machines as they will be trained enough to set their minds ready to performance effectively and eventually the customers and nation at large benefits. Oliver & Webber, (1992) on their study, stress that a supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

As seen from the study findings that, the result also implies that since the company is not satisfied with the qualification of the employees as well as employees being trained well to deliver at the desired level of the company production, therefore there is a possibility of the company not to deliver to its maximum capacity, hence causing the need for mentoring and coaching employees. Gice (2013) argues that today manufacturing industries are facing many challenges including lack of skilled labour, technology as well as raw material for production process. In addition, Porter (1990) assert that the "key" factors of production (or specialized factors) are created, not inherited. Specialized factors of production are skilled labor, raw materials and technology.

Interestingly, the result from the interviewed respondents concurred with the results as

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Having supply chain that depend 100% of its material from abroad and material can take at least a quarter a year to reach at Tanzania, it is real challenging and this eventually affect the supply chain operations in satisfying its customers. The manager also said,

“even with importation arrangements, materials are not easily accessed and therefore make them difficult to supply productions with raw materials….. ….we have decided to join force as Nampak worldwide and order for supplies as Nampak global….the head of this operations is in London, UK where all orders from branches are placed.we have opted to use dedicated suppliersbut one challenge came in place, where suppliers want two months of production, this mean from the placement of an order to the delivery of the material will take up to six months (half a year)….

Thus the researcher discovered that the Tinplate packaging supply chain in Tanzania did not invest much in its human capital. As a result, human capital was not seen as one of the most influencing factors for supply chain in Tanzania and the world at large. Human capital is a very crucial aspect for any company to grow in the market, thus a necessary need for the company or organization to invest in it. The researcher believes that if human capital is well invested in particularly human development, the company becomes capable of operationalizing its product and marketing niche which in turn, contributes to both individuals and organizational performance; this should be regarded as an ongoing process in any company.

Furthermore, the study result correspond to the study by Felício , Couto and Caiado (2014), on the study entitled “Human capital, social capital and organizational performance", who focused at human capital and social capital of managers and the influence of these attributes on the performance of small and medium-sized Portuguese companies and found that human capital affects social capital, and that experience and cognitive ability influence personal relations and complicity. In addition, they stressed that Organizational performance is strongly influenced by human capital through the cognitive ability of the manager.

4.4.2 The influence of technology applied on Tinplate packaging supply chain in Tanzania.

Prior research has empirically found that technology is one of the important factors influencing any company to grow. This study result, is in line with the study by Movahedi, Lavassani, and Kumar, 2009 on the epoch of supply chain management was highlighted with the development of electronic data interchange (EDI) systems in the 1960s, and developed through the 1990s by the introduction of enterprise resource planning (ERP) systems. This era has continued to develop into the 21st century with the expansion of Internet-based collaborative systems. This era of supply chain evolution is characterized by both increasing value added and cost reductions through integration. Considering the importance of technology, and the influence to the company, Tinplate packaging supply chain in Tanzania, has invested enough to enable the company grow.

Evidence from Table 4.7 and Figure 4.4 show that, the technology applied in the company is relevant and that it suits the Tanzania context by 69%. It is obviously that the company is aware of the importance of investing in technology that is why the researcher wishes to examine the rationale of computer technology in the supply and chain marketing.

This implies that Tinplate packaging supply chain in Tanzania has the required technology for its services. Wacker (1989), in his study “the relationship between technology and strategic competitiveness”, suggested that effective management of employees and equipment can speed technological advances to customers. However, managerial technological knowledge of the production process and technical aspects of equipment are of paramount importance for the successful implementation of any competitive strategy.

As shown in Table 4.7 and figure 4.4, 19 (29%) of the total respondents strongly disagreed with the statement “The available utilities and power are effective enough to operate available machines for production” and 18 (28%) others disagreed while 21 (32%) respondents were neutral. On the other hand, 6 (9%) respondents agreed and only 1 (2%) respondent strongly agreed with the statement. looking at whether ‘lack of advanced technology has a negative effect on quality product production’, 12 (19%) respondents strongly agreed, 6 (9%) others agreed while 32 (49%) respondents were neutral. Only 5 (8%) respondents strongly disagreed and 6 (9%) others disagreed with the statement.

Furthermore, the study result show that 26 (40%) respondents disagreed with the statement “the company resorts into importing raw material due to insufficient technology applied in the company”, 12 (19%) others disagreed. However, 15 (23%) respondents were neutral with the statement while 8 (12%) respondents disagreed and 4 (6%) others strongly disagreed with the statement. Moreover, 28 (43%) respondents disagreed with the statement “Technology has nothing to do with production”, and 13 (20%) others strongly disagree. Also, 12 (19%) respondents were neutral while 7 (11%) strongly disagree and 5 (8%) others disagreed with the statement. this further implies that, Tinplate packaging supply chain in Tanzania has all qualities of technology necessary to facilitate the supply process as majority of respondents disagree that technology has nothing to do with the production.

Generally, the study result show that technology is a more valued tool at the Tinplate packaging supply chain in Tanzania as a result, the company import a lot of machines to facilitate the operations. Furthermore, the study findings imply that if the company utilizes its technology effectively, the company will be more influential to the supply companies in Tanzania and the world at large. This means, human capital needs to be trained on how to use this technology effectively and efficiently to match with the available tools like machines. This is different from the study by Porter (1990) who stresses on the "key" factors of production (or specialized factors) are created, not inherited. World Bank, (1994) adds that, in developing countries, however, it is often difficult to realize supply chain management because basic conditions for it have not been fulfilled. Therefore this study is directed at examining the reasons for the persistence of these challenges by focusing on factors affecting metal packaging in production industries.

Production Manager also confirmed that technology has a role to play in development of the supply chain.

“…..we need technology to improve efficiency in production, we need technology to utilize fewer raw materials for higher production…. …technology is cost effective, we use little ink, lacquer, vanish, and higher speed in production.. …technology is very important….”

Therefore all the three factors have proved to be affecting metal packaging supply chain and therefore, import oriented raw material, availability and quality of Human Capital and suitability and adoptability of technology have proved to be significant factors affecting import oriented metal packaging supply chain.

The study result does not correspond with the study by the World Bank, (1994) which state that “the transportation and distribution networks are underdeveloped, production technologies are old-fashioned and there are no spare parts for defective machines.

4.4.3 The price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania

The researcher wanted to obtain the information on the price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania. A demonstrated in Table 4.8 and Figure 4:4 shows that the company was not doing well in dealing with pricing of the materials as a result, the company fail to influence its customers to become royal to the Tinplate metal supply and chain in Tanzania and the world at large. Evidence show that majority of the respondents about 22 (34%) of the respondents strongly agreed with the statement “The company regularly outsources raw materials because they are not locally available”, 28 (43%) others agreed while 6 (9%) respondents were neutral. Only 3 (5%) respondent strongly disagreed and 7 (11%) others disagreed with the statement. also, 24 (37%) strongly agreed with the statement “The price of the raw material has a significant impact on the production activities”, 26 (40%) others agreed. On the other hand, 10 (15%) respondents were neutral while 4 (6%) respondents disagreed and only 1 (2%) strongly disagreed with the statement. in addition, 23 (35%) respondents strongly agreed with the statement “The imported materials are not available in the country that is why the company decides to outsource”, 28 (43%) others agreed. 11 (17%) respondents were neutral with the statement while 2 (3%) respondents disagreed and only 1 (2%) respondent strongly disagreed with the statement.

The study result implies that, there is insufficient of raw materials particularly metals, plastics, bottle covers, cane and many others in Tanzania, and that those which are available are not found to be quality as those found outside Tanzania as a result, the company is forced to look for the materials outside the country including Japan and China. Movahedi, Lavassani, and Kumar, (2009) asserts that this era of supply chain evolution is characterized by both increasing value added and cost reductions through integration.

Furthermore, 27 (42%) respondents strongly disagreed with the statement “Raw material can as well be obtained in the country but the company decide to import due to reduced prices of buying them”, 24 (37%) others disagreed. 10 (15%) respondents were neutral while 3 (5%) respondents agreed and only 1 (2%) respondent strongly agreed with the statement. also, 28 (43%) respondents strongly disagreed with the statement “It is very easy to import raw materials rather than searching for it in the county”, 25 (38%) others disagreed. On the other hand, 9 (14%) respondents were neutral with the statement while 2 (3%) respondents strongly agreed and 1 (2%) respondent more disagreed.

This further implies that, Tinplate packaging supply chain in Tanzania faces the challenge of the availability of raw materials as a result, the pricing of the product varies and fluctuates sometimes due to price fluctuation in the world market. For example, it was noted that the raw material found in China were less expensive but of low quality ranging from 1$ to 2$ while the same material found in Japan was sold between 1.5$ to 5$ but with high quality. This correspond with the study by Gice (2013) who argued that today manufacturing industries are facing many challenges including lack of skilled labour, technology as well as raw material for production process.

Michael Porter theorized that there are two basic forms of competitive advantages namely, cost advantage and a differentiation advantage. The cost advantage occurs when an organization is able to provide a product or service with similar benefits, but at a lower cost than their competitors. And, a differentiation advantage occurs when an organization’s product or service provides benefits beyond those of their competitors.

In addition, 27 (42%) respondents strongly agreed with the statement that “Low quality of the raw material in the country influences the company to import from outside”, 25 (39%) others agreed while 3 (5%) respondents were neutral with the statement. On the other hand, 8 (12%) respondents disagreed and 2 (3%) others strongly disagreed with the statement.

Besides, the responses in Table 4:8 reveal respondents were consistent in their opinions towards the attribute which states that the company informs the staff of the importance of service roles that they do. According to Figure 4:8, about 57% of the respondents strongly agreed on the attribute. About 25% were indifferent as to whether it is. About 15% of the total sample showed disinterest in the attribute. That is to say, the variation of respondents’opinions is statistically insignificant hence close from the mean. As a matter of fact, according to Table 4:8 the responses show that this is the only attribute regarding incentives and motivation which scored a low standard deviation. The rest of the attributes have scored higher standard deviation; this is an indication that the variability of the respondents’ opinions regarding the attributes is higher thus spreading out from the mean.

This is in line with The Demand Theory (DT) as developed by English economist Alfred Marshall (1890). This theory analyses the relationship between the demand for goods or services and prices or incomes, hence it examines purchasing decisions of consumers and the subsequent impact on prices. However, the level of demand at each market price reflects the value that consumers place on a product and their expected satisfaction gained from purchase and consumption. For every product that exists on earth, there is some level of demand. That is why the company is facing some challenges in its operation.

In addition, during interview when the topic of discussion was raw material, the General Manager explain that,

“….. we import 100% of the metal raw material for our productions and almost 35% of colour labeling and decollation. …there is no individual firm producing tinplate sheets in Tanzania… ….actually there are very few producers and suppliers of Tinplate across the global and therefore force us to import from the main suppliers in the global…”

Saying so it proved how import oriented the metal packaging supply chain of Tanzania is. This means no production process will be conducted unless materials are imported.

He went on and said,

“…..we import metal raw material from Japan, China and South Africa….. …it takes up to three month for the materials to reach here (Tanzania)… ..we import colour labeling and decollation from Kenya and Italy…. ….it take around one to two weeks for the products to get here (Tanzania) from Kenya and around three month from Italy…..”

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction

This chapter presents the summary of findings, research contribution, research conclusion and recommendations. It reviews and summarizes the research, main methods used and findings and discusses their implications. The chapter also recommends the way forward in various research issues raised and identifies the areas where further research can be conducted.

5.2 Summary of Findings

The aim of the study was to examine factors influencing imported metal packaging supply chain management in manufacturing industry in Tanzania. To realize the main objective, the following specific objectives were involved: to examine the influence of human capital employed on Tinplate packaging supply chain in Tanzania; to examine influence of technology applied on Tinplate packaging supply chain in Tanzania and to examine the price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania.

The study found that the company was satisfied with the company’s regular mentoring of her employees to improve the production quality, recruiting qualified employees and securing them to enhance quality production as well as considering education or technical skills as a factor for an employee to be recruited even without the knowledge of production. On the other hand, the company was not satisfied with the qualification of the employees, the quality of employees’ training gained before to deliver at the desired level of the company production as a result.

In addition, the study found that the company had invested much in technology as majority of the respondents agreed that the technology adopted by the company is suitable for production in Tanzania’s context and that lack of advanced technology has a negative effect on quality product production while disagreeing that the technology applied in production in the company is not advanced to enhance quality product production, the available utilities and power are effective enough to operate available machines for production, and that the company resorts into importing raw material due to insufficient technology applied in the company.

Moreover, the study result found that the prices of raw materials do not vary much and not significantly because of the arrangement and strategy used by the firm to buy raw materials in collective way and in bulk to lower cost and increase negotiation power. The availability of raw material is limited because of the few producers and long period of production (two months). This is supported by the majority of the respondents who agreed that the company regularly outsources raw materials because they are not locally available, the price of the raw material has a significant impact on the production activities, the imported materials are not available in the country that is why the company decides to outsource and that the low quality of the raw material in the country influenced the company to import from outside while disagreeing that raw material can as well be obtained in the country but the company decide to import due to reduced prices of buying them, and that it is very easy to import raw materials rather than searching for it in the county.

5.3 Conclusion

The main objective of this study was to examine factors influencing imported metal packaging supply chain in manufacturing industry in Tanzania. The study has brought an insight on how these factors (raw material, human capital and Technology) affect metal packaging supply chain in Tanzania. According to the findings it has proved to be so difficult to operate in that industry as a startup company because of the nature of the business itself, due to the following reasons. First: suppliers of raw materials for production are very few and are dominated by large firms which buy in bulk therefore bring less attention to the small firms which may order from the producers. It will be difficult to get access and convince suppliers to supply to the new firm because they are dealing with big firms and their productions are limited.

Second: due to lack of metal packaging colleges these existing firms tend to send newly employed personnel to the other branches abroad to learn. The new firm can’t do that because it lack experience and can’t take employees abroad.

Third: High costs of research and development on technology. Due to high costs of research and development on technology Nampak firms have decided to centralize the process in South Africa and therefore share the cost which couldn’t be easily incurred by individual firms.

5.4 Recommendations

The study recommendations are directed to policy makers, firms (in the industry and those expecting to join the industry).

The study recommends to policy makers that production should take into account the fact that metal packaging firms are dependent on import of raw materials and therefore try to smoothen importation procedures and tax rates so as to stimulate development of that sector in the packaging industry. Also policy makers should try to convince the government to start educational courses on metal packaging supply chain.

Firms in the industry should keep enough raw materials because business environment is very dynamic so that they can serve every new customer they receive failure to do so customers will perceive that firms are not capable to serve them regardless of prior knowledge that raw material are 2 to 3 months away.

Firms expecting to join that industry should be aware that the industry is very much challenged by the supplier of raw material due the fact that they can supply from the interval of two to three months after the order not only that but they are very few and located abroad and much more complicated part is transportation which is three months after order which bring close to six month in total from ordering to the delivery of raw material in Tanzania. Another big challenge is that there is no college of metal packaging in Tanzania therefore firms should not expect to find employees fully equipped with knowledge.

5.5 Limitations of the Study

Despite the fact that this research has provided valuable insights into a somewhat scant area of research, it has been subject to some limitations which should be noted as any other studies. The study focused only on the imported metal packaging supply chain in manufacturing industry in Tanzania, the conclusions needs to be tested through additional research in a broad range of organizations and examined to establish if these results can be generalized to the population. Therefore, the findings of this study are limited to only tinplate Tanzania limited. However, the supply chain requires further theoretical development and elaboration to distinguish it some of the constructs that are described are normally treated as part of human capital.

These limitations restrict the ambitions of this study. However, they are acceptable and to be expected in a subject involving a relationship that has been little studied up to now and therefore, it is considered the study contributions to be significant and relevant for the development of knowledge in this field.

5.6 Area of Further Research

Future efforts should continue to advance our understanding of the imported metal packaging supply chain in manufacturing industry concept and the means to measure it; because it is important for practitioners and theorists to have a clear understanding of what is the imported metal packaging supply chain in manufacturing industry and how to measure the concept. Besides, future studies can examine the effectiveness of technology and the human capital in contributing to the imported metal packaging supply chain in manufacturing industry with specific reference to any other sectors. By so doing, it will gather more knowledge as to which of the factors influencing imported metal packaging supply chain in manufacturing industry in Tanzania and that which factors should be given priority when developing an internal service quality strategy. Lastly, future research is therefore, required to extend these results in other sectors in order to validate the model and findings. By studying other industrial sectors a model could be developed to better represent the industrial sector in more general, rather than focusing on the metal packaging supply chain in manufacturing industry alone.

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APPENDICES

APPENDICES APPENDIX I:

You are kindly asked to participate in this study entitled “Factors Influencing Imported Metal Packaging Supply Chain in the Manufacturing Industry in Tanzania ” conducted by Jean-Marie Chris Bwemo currently enrolled for a Master’s degree in International Business (MIB) at the University of Dar es salaam. The findings of this study will help in the completion of the dissertation which will be submitted in partial fulfillment of the requirements for the attainment of the master’s degree. You have been selected as a possible participant in this study.

The purpose of the study is to explore factors Influencing Imported Metal Packaging Supply Chain in the Manufacturing Industry in Tanzania. If you volunteer to participate in the study, you will be asked to answer the questions/statements in the honest and to the best of your knowledge. The potential benefit of the study is to improve the operation and management of local produced products so that they can gain competitive advantage on the international market as well as improving the country’s economy. The information obtained in connection with this study will remain confidential and will be used solely and only for the purpose of knowledge generation.

APPENDIX II

QUESTIONNAIRE FOR SELECTED STAFF MEMBERS (Top managers and other employee in the company) PERSONAL INFORMATION

1. Name (Optional)

2. Gender

1. Male ( )

2. Female ( )

3. Age

1. 18-29 Years ﴾ ﴿

2. 30-39 Years ﴾ ﴿

3 .40-49Years ﴾ ﴿

4. 50-59Years ﴾ ﴿

5. 60 above ﴾ ﴿

4. Marital status

5. Occupation…Years of Experience in the company ……

6. Level of education

Objective1: The influence of human capital employed on Tinplate packaging supply chain in Tanzania . You are kindly asked to answer the following questions . Please Tick where applicable

Abbildung in dieser Leseprobe nicht enthalten

Objective2: The influence of technology applied on Tinplate packaging supply chain in Tanzania.

In the best of your knowledge, you are kindly asked to answer the following questions. Please Tick where applicable.

Abbildung in dieser Leseprobe nicht enthalten

Objective3: The price of raw material imported and its influence on supply chain of Tinplate packaging in Tanzania

In the best of your knowledge, you are kindly asked to answer the following questions. Please Tick where it applies.

Abbildung in dieser Leseprobe nicht enthalten

Open Questions:

1. Does human capital contribute to the development of metal packaging supply chain in Tanzania? If yes how?

2. Do you think skilled and qualified employees contribute into higher product quality in the company? If Yes how…

3. Do you think importation of raw material is associated with insufficient technology applied by your company in production? If yes how..

4. Do you think the price of the raw material is associated with the company’s importation of the raw materials? If Yes explain…...….

5. Do you think the imported raw materials are not available in Tanzania? If yes or no what do you think

Thank you for your participation in the study

Details

Pages
100
Year
2014
ISBN (Book)
9783668950467
Language
English
Catalog Number
v469982
Institution / College
University of Dar es Salaam – UDBS
Grade
4.2
Tags
imported metal packaging supply chain management manufacturing industry tanzania case tinplate salaam region

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Title: Imported Metal Packaging Supply Chain Management in the Manufacturing Industry in Tanzania