Third-party logistics in Nigeria: the development of a Nigerian third-party logistics decision support framework.
Okeke, Obinna (2024) Third-party logistics in Nigeria: the development of a Nigerian third-party logistics decision support framework. Doctoral thesis, Buckinghamshire New University (Awarded by Staffordshire University).
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Abstract
This research is an investigation into the practice of logistics outsourcing in Nigeria. Preliminary findings indicate Nigeria has a growing yet immature third-party logistics market. Hence, the research investigated the possibilities for growth and maturity of the third-party logistics market in Nigeria. The research also developed a decision support framework, which is useful for helping companies in Nigeria to decide whether to outsource or further outsource all or some of their logistics activities. The decision support framework was developed from the findings of the research into the potentialities of the Nigerian third-party logistics market. An extensive literature review was conducted which explored the various areas, branches and theories of logistics and supply chain management, outsourcing generally, logistics outsourcing and the practice of logistics outsourcing in developed and developing countries. The identified gaps include the dearth of research into logistics outsourcing in developing countries including Nigeria; the dearth of a multi-sectoral research in logistics outsourcing in Nigeria and a lack of research into individual logistics outsourcing activities such as warehousing and inventory management in Nigeria. The literature review also showed that companies in Nigeria outsource among other reasons to share risks. The research used a mixed method design that employed both qualitative and quantitative research methods. A qualitative content analysis comparing the barriers, challenges and problems of logistics outsourcing between the UK and Nigeria was conducted. The findings of the content analysis indicate that poor information flows, management/risk, and exposure of 3PL’s customer secrets to competitors, corruption and dishonesty, differences in organizational cultures, inadequate regulations of the Nigerian third-party logistics industry, a high rate of traffic accidents, congested roads networks and ports and security issues such as robbery and smuggling are among the challenges and barriers to further logistics outsourcing in Nigeria. The findings from the content analysis also indicated that socio-economic and infrastructural limitations which pose risks that are outside the control of 3 | P a g e organizations influence levels of logistics outsourcing. Data was requested from fifty-one large and small to medium Nigerian companies and third-party logistics firms. Six companies across a range of sectors responded representing a mix of large and small to medium companies and one third-party logistics company. Quantitative and qualitative data was collected. Quantitative data was analysed using descriptive statistics and statistical t-tests. The results indicate that the most outsourced logistics activities in Nigeria are last mile delivery, warehouse storage and transportation along with distribution management. Hence, potential for growth exists in logistics activities such as inventory management, order management, packaging, customer service, IT, material handling/management and inbound logistics. Qualitative data was analysed using thematic analysis of structured interviews. The findings indicate that companies keep logistics in-house mainly to control it and mitigate the risks associated, and because they can perform such activity in-house more competently and efficiently. A correlation analysis was done using secondary data sources and the findings indicate that developing countries such as Nigeria with less efficient logistics operations tend to outsource less logistics activities. A decision support framework was then developed based on the literature review and the findings drawn from the content analysis and primary data collection phase. The framework is tailored to Nigerian companies and employs a cost-benefit analysis and a scoring system that aims to assess the potential rewards of outsourcing a particular logistics activity against the potential risks. The weights and scores allocated on each logistics activity reflect the results of the content analysis and statistical t-test results. The decision support framework was tested with one of the research participant company and results further supports findings from literature review and content analysis that logistics activities such as last mile delivery prone to risks outside an organization’s control tend to be outsourced more. The research recommends that third party logistics companies in Nigeria should focus more on working with clients as partners hence adopting a strategic alliance type of relationship with them. This will enable them to offer more integrated logistics functions, share risks, share, and transfer skills with their clients and possibly achieve growth, efficiency, and competitive advantage for both parties. The research was limited by the notoriously challenging nature of conducting primary research of Nigerian companies.
| Item Type: | Thesis (Doctoral) |
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| Keywords: | Nigeria, Third-Party Logistics, Framework |
| Depositing User: | RED Unit Admin |
| Date Deposited: | 09 Oct 2024 11:44 |
| Last Modified: | 09 Oct 2024 11:44 |
| URI: | https://bnu.repository.guildhe.ac.uk/id/eprint/19359 |
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