Evaluating the Impact of Material Management on Organizational Profitability (a Case Study of Nigeria Bottling Company, Lagos.)

Effective material management is a cornerstone of operational efficiency and financial success in the manufacturing sector, especially for large-scale producers like the Nigeria Bottling Company (NBC) operating in a dynamic economic landscape. This study evaluates the impact of material management practices on organizational profitability at NBC, addressing the problem of how inefficiencies in procurement, inventory control, and logistics can erode profit margins. Employing a descriptive research design, the study collected primary data through structured questionnaires administered to a sample of 100 employees selected via stratified random sampling. The data were analyzed using descriptive statistics and Chi-square to test the formulated hypothesis. The findings reveal a statistically significant positive relationship between effective material management and profitability. A significant majority of respondents (over 80%) affirmed that practices such as accurate demand forecasting, efficient inventory control, and proper storage directly contribute to reduced production costs, minimized waste, and uninterrupted production. However, the study also identified challenges, including supplier delays, inadequate storage, and skill gaps, which moderately impede optimal performance. The study concludes that material management is a strategic driver of profitability at NBC, crucial for maintaining a competitive edge. Key recommendations include the adoption of modern inventory technologies like ERP systems, continuous employee training, and strengthening supplier relationship management to mitigate identified challenges and further enhance financial performance.