Abstract:
The Food and Beverage industry faces unique challenges and complexities in
managing its supply chain operations due to the perishable nature of the
products, regulatory requirements, and consumer demand for high-quality and
safe food products. One key concern for Food and Beverage manufacturing
firms is managing supply chain costs while maintaining operational
performance. The study aimed to examine the effect of supply chain cost
drivers' effect on operational performance and lean manufacturing's
moderating effect on the relationship between IC and OP, TC and OP and QC
and OP. The study employed a quantitative research approach and explanatory
research design. The data for the study was collected from 110 Food and
Beverage manufacturing firms registered with the Association of Ghana
Industries. The PLS-SEM technique was used to analyse the data. The
SMART-PLS software version 4.0.9.1 was used to process the data for the
study. Inventory, transportation, and quality costs were found to have a
significant and positive effect on the operational performance of the Food and
Beverage manufacturing firms. The study also found that lean manufacturing
significantly moderates the relationship between IC and OP and QC and OP of
the Food and Beverage manufacturing firms. However, the study also found
that LM does not moderate the relationship between TC and OP among the
firms. The study concluded that SCCD affects OP, and LM is a significant
moderator in the relationship between SCCD and OP. The study recommends
that food and beverage manufacturing firms strengthen their lean
manufacturing practices to enhance their cost performance, thereby improving
operational performance.
