The Effect of Road Traffic on Supply Chain Performance of Kwasi Oppong Company Limited in Ghana

Abstract

Nowadays companies have to deal with a business environment that puts more accents on the concept of customer-driven manufacturing. However, the order fulfillment process involves more than just filling orders. It is about designing a network and a process that permits a firm to meet customer requests while minimizing the total delivered cost. Hindrance to effective movement of goods and service in Kumasi to meet consumers need and order fulfillment at appropriate time by the logistics of supply chain management is road traffic congestion. In view of that the study sought to examine the effect of road traffic on supply chain performance of Kwasi Oppong Company Limited. Specifically, the study aimed at identifying the causes of road traffic, assess the effect of road traffic on supply chain performance, examine the effect of road traffic on customer service and assess the effect of road traffic on productivity. The study employed explanatory design of the quantitative approach. Employees of Kwasi Oppong Company Limited were target where 50 of them were selected using simple random sampling technique. Questionnaire was administered to the respondents and the data was analysed descriptively. The study found that road traffic is caused mainly by poor road network/narrowness of road, driving behaviour of drivers, concentration of economic activities in an area, encroachment of roads by residents and street vendors, unauthorized parking vehicles on the roads as well as breakdowns of vehicles on the road. Road traffic affect supply chain performance of Kwasi Oppong Company Limited by making its strategies for marketing strong, very competitive in the market, increase market share comparatively. However, it increased transportation cost, increase prices of goods and service though customer base is not affected. Road traffic increase the price of goods and services, road traffic affect customer satisfaction, cost of transportation is increased and customer complaints are addressed on time as well as customer base is increased despite the incidence of road traffic. Road traffic affect productivity of positively. It increased sales of organization, increase return on investment and market share. Nevertheless, it increased operating costs of vehicles, costs of delays on raw materials. Therefore, it was recommended that Kwasi Oppong Company Limited should maintain or improves upon its strategic management in order to be highly competitive and increase in market share. Also, Kwasi Oppong Company Limited should adopt proper transportation planning and management in order to reduce transportation cost, cost of goods and services and operational cost. Moreover, Kwasi Oppong Company Limited should adopt different time aside peak and rush hours for delivery of goods and services in order to improve upon its service quality and customer satisfaction.