Logistics Outsourcing Practices and Their Effect on Supply Chain Performance in the FMCG Sector in Nigeria

Logistics outsourcing has become a prominent strategy among fast-moving consumer goods (FMCG) companies seeking to reduce operational costs and focus on core competencies. This study evaluates logistics outsourcing practices and their impact on supply chain performance in the Nigerian FMCG sector, with a focus on companies operating from Lagos and Ogun states in the South West zone. A professional case study design was adopted, gathering data through structured interviews with 30 supply chain managers and logistics directors in six major FMCG companies, including Dangote Foods, Nigerian Breweries, and PZ Cussons. The study examines outsourcing motivations, third-party logistics (3PL) provider selection criteria, contract management practices, performance monitoring systems, and cost-service trade-off outcomes. Findings show that cost reduction and access to specialised transport assets are the primary outsourcing drivers, but 60 percent of surveyed managers report dissatisfaction with 3PL performance on delivery reliability and order accuracy. Contractual enforcement mechanisms are found to be weak in most outsourcing arrangements, with performance penalties rarely enforced. The study identifies the absence of collaborative planning systems between FMCG companies and their 3PL partners as a critical gap. Recommendations include the adoption of formal 3PL performance scorecards, joint operations planning platforms, and regular service reviews anchored on measurable key performance indicators. These findings provide actionable guidance for supply chain practitioners in Nigeria's consumer goods sector. Keywords: logistics outsourcing, 3PL, FMCG, supply chain, Nigeria.