An investigation of inefficiencies in the supply chain management system at Freda Rebecca Gold Mine.
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This research addresses an investigation of the inefficiencies in the supply chain management system at Freda Rebecca Gold Mine (FRGM). The objectives of the research were: to examine the causes of supply chain management inefficiencies at Freda Rebecca Gold Mine, to investigate the impact of supply chain management inefficiencies on FRGM and to evaluate the extent to which the supply chain management inefficiencies affect organisational profitability. Descriptive research design was used. An interview, observation and documentary analysis research instruments were used for gathering data. Stratified random method of sampling was used to come up with the individuals that were used as a sample. The data was analysed and interpreted using tables, graphs and pie charts. Major findings of the research show that forecasting, planning for inventory procurement, and the overall supply chain are still at a very nascent stage of development and these give a perfect match for supply chain inefficiencies to escalate. Knowledge gap concerning mining materials on part of the outsourcer was cited as a cause of supply chain inefficiencies. This knowledge gap results in wrong materials, substandard materials being bought which have a negative bearing on production and profitability. The researcher concluded that there are inefficiencies in FRGM‟s supply chain management system which adversely affects organisational profitability. The researcher recommended that, there should be a procurement planning section which should incorporate experts from various walks within the organisation so that plans would take into account several factors as they affect different functions across the organisation.
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