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1. INTRODUCTION
As competition in the development sector is intensifying, just as companies, not-for- profit
organisations have begun to realise that it is not enough to only improve efficiencies within an
organization but that to be competitive their whole supply chain also has to be made
competitive. Therefore the understanding and practicing of supply chain management has
become an essential prerequisite for staying competitive, winning donor confidence and
attracting more funding.
Council of Logistics Management (CLM) defines Supply Chain Management (SCM) as the
systemic, strategic coordination of the traditional business functions and tactics across
businesses functions within a particular organization for the purposes of improving the long-
term performance of the individual organizations and the supply chain as a whole. SCM has
been defined to explicitly recognize the strategic nature of coordination between trading
partners and to explain the dual purpose of SCM: that are improving performance of both
individual organizations and whole supply chain. The goal of SCM is to integrate both
information and material flows seamlessly across the supply chain as an effective competitive
weapon (Li).
This study therefore aimed at establishing supply chain management practices adopted by not-
for-profit organisations in Malawi and establishing the effect of the adopted supply chain
management practices on the performance of the organisations. The study was conducted by
reviewing the operations of NGO in Malawi and specifically the operations of Mangochi
Climate Proofing Project (MCPP) being implemented in partnership with Mangochi District
Council, Local Organisations and CBO’s in Mangochi District.
In brief Mangochi Climate Proofing Local Development Gains Project is a project being
implemented by the Government of Malawi, through the Ministry of Natural Resources Energy
and Mining with support from Global Environment Facility (GEF) and United Nations
Development Programme (UNDP). Mangochi Climate Proofing Project has a goal of securing
the development and food security gains from baseline programs that government and
organisations have implemented in Mangochi by empowering communities to integrate climate
risk considerations in the development policies, plans, projects and actions. The project
objective is to provide knowledge, tools, capacities and methodologies for the adoption of an
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ecosystems and community based approach to adaptation, which is more effective in enabling
climate vulnerable people to plan for and adapt to the impacts of climate change. The project
started in November 2015 and is in its second year of implementation.
2. STUDY OBJECTIVES
The study had two main objectives and these are to establish supply chain management
practices adopted by Mangochi Climate Proofing Project and to determine the effect of Supply
Chain Management practices on the performance on Mangochi Climate Proofing Project.
3. SIGNIFICANCE OF THE STUDY
The study will help the project to establish the effect of supply chain management practices on
project performance as well as increase the project understanding of supply chain management
and how project can take advantage of the same to ensure effective and efficient project
performance.
4. LIMITATIONS
4.1 Time: The researcher had only 4 weeks within which to conduct the research and produce
a report as a result the research was carried out in a rapid manner.
4.2 Academic Pressure: The researcher had a challenging task of dividing his limited time
resource between carrying out the research exercise and satisfying work and academic
undertakings.
4.3 Limited Literature: The researcher had challenges finding SCM literature related to not–
for-profit operations.
5. LITERATURE REVIEW
5.1 Introduction
The following chapter reviews literature on supply chain management practices, organisation
performance, and competitive advantage as well as how supply chain management affect
performance. The chapter also defines and describes the nature of not-for-profit organisations.
On SCM it defines supply chain management concept and SCM practices then goes on to discus
organisation performance in relation to SCM as well as competitive advantage in not-for-profit
organisations.
5.2 Supply Chain Management
The term, “supply chain management,” has risen to eminence over the last years. Some authors
define SCM in operational terms involving the flow of materials and products, some view it as
a management philosophy, or a management process while some view it as integrated system.
Generally authors conceptualize SCM differently for example as a management philosophy on
the one hand and as a form of integrated system between vertical integration and separate
identities on the other hand. For the purposes of this study SCM was looked at as a process.
A supply chain is a network of organizations that are involved, through upstream and
downstream linkages, in the different processes and activities that produce value in the form of
products and services in the hands of the ultimate customer. The supply chain includes
suppliers, manufacturers, distributors, retailers, and customers. In the supply chain, the
customers are the main focus of the chain, since the primary purpose of the existence of any
supply chain and businesses is to satisfy customer needs in the process of maximising utility
