Abstract:
The study explored the supply chain risks management on profitability of manufacturing companies
listed on Tanzania's DSE. Sales volatility, raw materials turnover, days payables outstanding,
logistics ratio and debt ratio are among the variables. Return on equity was taken as measures of
profitability and was considered as dependent variables for the 12-year period between 2010 and
2021. Agency theory and swift even theory are the theories that served as the study's guiding
principles. An ordinary lest squares regression model was used to undertake statistical testing of
parameter estimations. Both descriptive and quantitative approaches were used in the research
design. Purposive sampling was used to choose five for the study's participants from seven
manufacturing listed enterprises, which was the study's target population. The secondary data,
which was taken from the annual reports of the companies under study, was analysed using panel
data. Stata 15 was used to analyse the data. The findings revealed that sales volatility had a
significant positive impact on the profitability of the manufacturing firms at DSE; raw materials
turnover and days payables outstanding had a insignificant positive impact on the profitability of the
manufacturing firms at DSE; and logistics ratio had significant positive impact on the firm's
profitability while debt ratio had positive impact but insignificant. The study concludes that firms
should have to lower logistics expense in order to increase company profitability. The study
recommends that firms maintain optimal debt levels as they rescue supply chain risks to avoid
insolvency risk. Further studies can be conducted for the non-financial firms in Tanzania.
