Management Accounting Techniques and Supply Chain Efficiency: Evidence from Olam Nigeria Limited
DOI:
https://doi.org/10.33003/fujafr-2026.v4i2.353.355-368Keywords:
Activity-based costing, budgetary control, just-in-time inventory management, management accounting techniques, supply chain efficiencyAbstract
Purpose: This study examined the influence of management accounting techniques on supply chain efficiency in Olam Nigeria Limited. Specifically, the study investigated the effects of budgetary control, activity-based costing (ABC), and just-in-time (JIT) inventory management on supply chain efficiency.
Methodology: A quantitative research approach was adopted using a survey research design. Primary data were collected through structured questionnaires administered to employees of Olam Nigeria Limited. The study population comprised 368 staff members, while the Taro Yamane formula was used to determine a sample size of 192 respondents. Data obtained were analyzed to evaluate the relationship between management accounting techniques and supply chain efficiency.
Results and Conclusion: The findings revealed that budgetary control significantly improves supply chain efficiency through effective monitoring and control of costs across procurement, production, and distribution activities. Activity-based costing (ABC) was also found to positively influence supply chain efficiency by enabling accurate cost allocation and identification of cost drivers for better decision-making. Furthermore, just-in-time (JIT) inventory management significantly enhanced supply chain efficiency by reducing inventory holding costs, minimizing waste, and improving material flow. The study concluded that management accounting techniques play a vital role in enhancing supply chain efficiency in organizations.
Implication of Findings: The study implies that organizations should strengthen budgetary control systems, expand the adoption of ABC, and fully integrate JIT inventory management practices to improve operational efficiency, reduce waste, and enhance overall supply chain performance.
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