Supply Chain cost identification as a means of cost reduction strategy. -A case study of Ghana Supply Company Limited

Abstract

This paper examines the concept of supply chain (SC) to explore non-value adding activities in order to offer a firm, a cost reduction strategy. This strategy starts with mapping the SC and identifying each and every activity along it, starting from the last tier supplier to the final consumer. The aim of the paper is to examine the SC processes of Ghana Supply Company Limited (GSCL). A small-scale case study was adopted with both primary and secondary data sources being used. The primary data focused on the use of personal interviews and questionnaires while secondary data was sourced from journals, the internet and other publications pertinent to the topic.  Sample of ten questionnaires were administered on the personnel of the Procurement, Warehousing and Shipping departments constituting a population of twenty-nine (29). Close and open-ended questions were asked to enable respondents to come out with divergent answers. Findings of the study revealed that the supply chain operations of GSCL to a large extent is well coordinated as evidenced by the integration of activities such as procurement, shipping, warehousing and fleet management under the direct control and supervision of the Director of Operations.

Key words: Supply chain, cost reduction, value adding activities