The Effect of Lean Procurement in Improving Supply Chain Performance in Jumia Uganda

Abstract

The study examined the effect of lean procurement practices on improving supply chain performance at Jumia, focusing on three main objectives that is the impact of waste reduction on cost efficiency, the relationship between process optimization and lead time reduction, and the impact of supplier collaboration in inventory management within the e-commerce industry. Using quantitative data collected through 70 questionnaires filled by the key stakeholders at Jumia, the study provided insight into the practical effects of implementing lean procurement both positive and negative. The findings reveal that waste reduction practices, such as optimized packaging and just-in time inventory management have significantly contributed to cost savings and operational efficiency. Process optimization, particularly through automation and improved supplier communication, has led to substantial reduction in lead time, resulting in faster order fulfillment and improved customer satisfaction. Furthermore, supplier collaboration practices, including vendor-managed inventory and real-time tracking, has better enhanced inventory record accuracy, consequently reducing stockouts and further enhancing supply chain performance. The study therefore established that where appropriately executed, lean procurement practices will enhance the efficiency of the supply chain, reduce costs and provide firms with a competitive advantage. Recommendations for Jumia include further investment in advanced procurement technologies, standardization of lean practices. Just as the various departments migrate to improvement initiatives, so does sustaining of the benefits. Other areas that are suggested for further research concern the investigation of the long term impact assessment of lean procurement on supply chain performance.