The Extent of Logistics Outsourcing Practices among Manufacturing Companies in Southwestern Nigeria

Saka Adesina Nurain; Sherifat Omolola Adesunkanmi

doi:10.37284/eajass.5.2.994

Saka Adesina Nurain Nigeria Flour Mills
Sherifat Omolola Adesunkanmi, PhD Obafemi Awolowo University

DOI: https://doi.org/10.37284/eajass.5.2.994

Keywords: Outsourcing, Logistics, Performance, Product, Manufacturing

Share Article:

Abstract

The study evaluated the extent of logistics outsourcing practices among manufacturing companies in Southwestern Nigeria. This was with a view to providing information on the logistics outsourcing operations of the selected manufacturing companies in Southwestern Nigeria. The study adopted a descriptive survey design. Primary data on variables such as haulage, storage, facility/asset management and operational performance were obtained through the administration of questionnaires to respondents. The population of the study comprised six hundred and twenty (620) senior managers, middle-level officers, and supervisors who were employees of the selected food manufacturing companies in Lagos, Oyo and Ogun states of southwestern Nigeria. A sample size of two hundred and sixty (260) employees of manufacturing companies in Southwestern Nigeria was selected for the study using Taro Yamane’s formula. Data obtained for the study were analysed using tables, percentages, and regression analysis. Results from the study showed that logistics outsourcing practices such as transportation management (????̅ = 4.00), storage management (????̅ = 4.11), and facility/asset management (????̅ = 4.39) were averagely high among manufacturing firms in Southwestern Nigeria. The study concluded that logistics outsourcing is highly in use among manufacturing companies in Southwestern.

Downloads

Download data is not yet available.

References

Bajec, P. (2013). The possibility of developing intelligent logistics outsourcing in Slovenia. Transport Journal, 28 (3), 244-255.

Bali, O. (2015). A Multi-Period Decision Making Procedure Based on Intuitionistic Fuzzy Sets for Selection Among Third-Party Logistics Providers. Journal of Multiple-Valued Logic and Soft Computing, 24 (5-6), 547-569.

Chete, L. N., Adeoti, J. O., Adeyinka, F. M., & Ogundele, O. (2021). Industrial development and growth in Nigeria: lessons and challenges. https://www.brookings.edu/wp-content/uploads/2016/07/L2C_WP8_Chete-et-al-1.p

Cochran, W. G. (1963), Sampling Techniques, 2nd ed.. John Wiley & Sons

Council of Logistics Management Professionals. (2004). Council Of Logistics Management To Become Council Of Supply Chain Management Professionals In 2005. Supply Chain Market. https://www.supplychainmarket.com/doc/council-of-logistics-management-to-become-cou-0001

Gadde, L. E., & Hulthén, K. (2009). Improving logistics outsourcing through increasing buyer– provider interaction. Industrial Marketing Management, 38, 633-640.

Gotzamani, K., Longinidis, P., & Vouzas, F. (2010). The logistics services outsourcing dilemma: quality management and financial performance perspectives. Supply Chain Management: An International Journal.

Hilletofth, P., & Hilmola, O. P. (2010). Role of logistics outsourcing on supply chain strategy and management: survey findings from Northern Europe. Strategic Outsourcing: An International Journal. https://doi.org/10.1108/17538291011023070.

Homans, G. (1961). Social Behavior: Its Elementary Forms. New York: Harcourt Brace Jovanovich.

Lee, E. S., & Song, D. W. (2015). The effect of shipping knowledge and absorptive capacity on organisational innovation and logistics value. The International Journal of Logistics Management.

Marshall, D., McIvor, R., & Lamming, R. (2007). Influences and outcomes of outsourcing: Insights from the telecommunications industry. Journal of purchasing and supply management, 13(4), 245-260. https://doi.org/10.1016/j.pursup.2007.07.001

Maurice, M. O. (2017); Effects of Outsourcing on Organisational Performance in Kenya. International Journal of Advanced Research, 5, 1626-1633

McCarthy, I., & Anagnostou, A. (2004). The impact of outsourcing on the transaction costs and boundaries of manufacturing. International journal of production economics, 88(1), 61-71.

Qureshi, M. N., Kumar, D., & Kumar, P. (2008). An integrated model to identify and classify the key criteria and their role in the assessment of 3PL services providers. Asia Pacific Journal of Marketing and Logistics, 20(2), 227-249. https://doi.org/10.1108/13555850810864579.

Rahman, S. (2011). An exploratory study of outsourcing 3PL services: an Australian perspective. Benchmarking: An international journal.

Rajee, F. S., & Akinlabi, B. H. (2013). Outsourcing services as a strategic tool for organisational performance: An exploratory study of Nigerian food, beverage, and tobacco industry. Journal of Management Policies and Practices, 1(1), 1-20.

Reilly, P., & Tamkin, P. (1996). Outsourcing: A Flexible Option for the Future? IES Report 320. BEBC Distribution, United Kingdom.

Rusbult, C. E. (1983). A longitudinal test of the investment model: The development (and deterioration) of satisfaction and commitment in heterosexual involvements. Journal of Personality and Social Psychology, 45(1), 101-117. https://doi.org/10.1037/00223514.45.1.101

Solakivi, T., Töyli, J., Engblom, J., & Ojala, L. (2011). Logistics outsourcing and company performance of SMEs: Evidence from 223 firms operating in Finland. Strategic Outsourcing: An International Journal.

Somuyiwa, A., Odepidan, O., & Dosunmu, A. (2016). Purchasing and Supply Chain Management. European Journal of Logistics, 4, 1-10.

Somuyuwa, A., Odepidan., O., & Dosunmu, A. (2016). Purchasing and Supply Chain Management, European Journal of Logistics, 4(1), 1-10.

Thomopoulos, N. T. (2016). Elements of manufacturing, distribution and logistics. Elements of Manufacturing, Distribution and Logistics.

Töyli, J., Engblom, J. Ojala, L. Solakivi, T., (2011) Logistics Outsourcing and Company Performance of SMEs: Evidence from 223 Firms Operating in Finland. Strategic Outsourcing: An International Journal, 4, 131-151.

Ugwu, K. E., & Okoroji, L. I. (2014). Coping Strategy for Outsourcing Services to Third Party Logistics (3PL) Providers. International Journal of Research in Management, Science & Technology.

Vallespir, B., & Kleinhans, S. (2001). Positioning a company in enterprise collaborations: vertical integration and make-or-buy decisions. International Journal of Production Planning & Control, 12(5), 478-487.

Vanguard News. (2012, November 5). 6 Ph.D, 704 Masters holders among applicants for drivers job in Dangote. https://www.vanguardngr.com/2012/11/6-ph-d-704-masters-holders-amongapplicants-for-drivers-job-in-dangote/

Wanke, P., Arkader, R., & Hijjar, M. F. (2008). The relationship between logistics sophistication and drivers of the outsourcing of logistics activities. BAR-Brazilian Administration Review, 5, 260-274.

Williamson, O. E. (1993). Transaction Cost Economics and Organization Theory. Institutional and Corporate Change, 2 (2), 107-156.

Yamane, T. (1967). Statistics: An Introductory Analysis. 2nd Edition, Harper and Row, New York.