Accepted 5th October, 2017
The purpose of this study was to examine the adoption of the Supply Chain Management on the project profitability: A case study of Teuscher investment project in Rwanda. The study employed descriptive design. Pre-tested questionnaires, interviews, focus group discussions, questionnaires were administered to the selected respondents through drop and pick later technique in a period of six months. A sample size of 50 respondents was drawn from the sample frame using simple random sampling technique. Data were entered in SPSS statistic version 16, cleaned and sorted and then analyzed into descriptive statistics that included frequencies, percentages that was presented in tables, charts and histograms. There was inferential statistics carried out to determine levels of statistical significance using chi square. Despite all the interventions, in Rwanda, there is limited information/data available on the effect of supply chain on product profitability, up-to-date information on challenges and if it serves as a driving force for agriculture project to be more profitable in international market. The result indicated that majority 64% of the respondents were male and 36% were female while 54% of the respondents were degree holders, 24% diploma, 6% postgraduate and 16% certificate and below This difference may be due to the nature, employment policy of the work which involves dealing with machines, skills, knowledgeable and carrying heavy loads which females and low levels of education may not prefer doing or employed. Most of respondents were from department, 46% from production department, 52% worked with the company between 1-5years implying that they have worked for a reasonable period to know about supply chain management, coffee production of and the profitability. On supply chain management systems 76% of the respondents agreed that was used in Teuscher Investment, 84% agreed its contribution to the profitability of a company with 28% selected ERP system as very efficient 44% it reduces the chances of human error, shorter planning times and faster inventory turnover. There is a strong positive correlation between supply chain management and profitability since r = 0.914*and significant level = 0.01 meaning that when supply chain management is effective profits will increase. In conclusion SCM system used in Teuscher Investment is ERP system that was an effective realistic and flexible SCM system and had significant benefit for any business when implemented well the main challenges were maintenance, implementation costs and selected training costs. Teuscher Investment should try and improve on supply chain management to meet its set vision, mission and objectives, respond quickly to changes in demand and determine accurate customer delivery dates, partnerships and reduction of long supply chains, putting suggestion boxes for the organization and do more networking and advertising of their products.
Keywords: Profitability, Price, Coffee, Management, Supply chain, Rwanda