Analytical Study of the Impact of Supply Chain Digitalisation on Operational Performance in Nigerian Manufacturing Firms

Supply chain digitalisation is transforming operational performance possibilities for manufacturing firms, and its impact in the Nigerian manufacturing context, where infrastructure and digital literacy challenges constrain adoption, requires rigorous analytical investigation. This study analytically investigated the impact of supply chain digitalisation on operational performance among 80 manufacturing firms in Lagos and Kano with varying levels of digital supply chain adoption. Digitalisation was assessed by adoption of digital procurement systems, IoT-enabled inventory tracking, demand sensing tools, supplier portal integration, and real-time logistics visibility platforms. Operational performance was measured by order fulfilment rate, inventory turnover, production schedule adherence, and supply chain cost as a percentage of revenue. Data were collected from supply chain and operations managers through structured questionnaires, supplemented by operational data from company records. Panel regression and propensity score matching were employed to address selection bias in digitalisation adoption. Results showed that digital procurement adoption reduced supply chain cost by 12.4% (p < 0.01), and IoT-enabled inventory tracking improved inventory turnover by 31% compared to non-adopters. Propensity score matching confirmed that digitalisation causally improved operational performance rather than reflecting pre-existing capability advantages. Benefits were concentrated in firms with above-median IT infrastructure investment. Logistics visibility improvements were the largest single performance contributor. The study concludes that supply chain digitalisation produces significant operational performance improvements in Nigerian manufacturing but requires foundational IT infrastructure investment, recommending a phased digitalisation road map approach for mid-sized manufacturers. Keywords: supply chain digitalisation, operational performance, manufacturing firms, IoT, Nigeria