SUSTAINABLE SUPPLY CHAIN PRACTICES AND OPERATING EFFICIENCY OF CONSUMER GOODS MANUFACTURING COMPANIES

Abstract

The achievement of sustainable supply chain remains a major problem for the manufacturing companies that are into consumer goods in Nigeria. They experience challenge in achieving an equilibrium state in regenerative sourcing and sustainability. They lack proper closed loop system that handles product returns. Their slow involvement in energy-saving technologies can also deter them from operating at efficient level. This study examined the effect of sustainable supply chain practices on operating efficiency of the consumer goods manufacturers. Specifically, it determined the relationship among regenerative sourcing, green product design, energy-saving, closed loop supply chain, and operating efficiency of consumer goods manufacturers. Using a survey research design, the study's population was 10,800 employees from consumer goods manufacturing companies in Lagos State. The sample size was 386. The responses generated were analysed using inferential statistics through the SPSS version 25. The findings were that operational efficiency was significant affected by sustainable supply chain practices, namely regenerative sourcing (B = 1.131, t = 16.835, p = 0.000), energy saving (B = .250, 1, t = 4.909, p = 0.000), and closed loop supply chain (B = .110, t = 3.051, p = 0.000) of the consumer goods sector in Lagos state. The study thus highlights the critical importance of tailored sustainable supply chain practices in optimising operating efficiency within the dynamic context of the consumer goods sector in Lagos State. It is recommended that manufacturers can enhance their operating efficiency by investing in regenerative sourcing practices, strategically balancing energy saving practices, and enhancing closed loop supply chain capabilities.