Adoption of Vendor-Managed Inventory in the Consumer Electronics Distribution Sector in Lagos

📖 ABSTRACT/OVERVIEW

This study examines the adoption of vendor-managed inventory (VMI) among distributors in the consumer electronics sector in Lagos, South West Nigeria. VMI, a collaborative inventory arrangement in which suppliers assume responsibility for monitoring and replenishing stock at the distributor or retailer level, has been associated in recent literature with reduced inventory carrying costs, improved service levels, and stronger supplier-buyer relationships. The Lagos consumer electronics market, characterised by rapid product cycles, high import dependency, and competitive distribution, provides a relevant context for examining VMI adoption dynamics. Using a descriptive survey design, structured questionnaires were administered to 70 distribution managers and inventory controllers across 18 consumer electronics distributors in the Ikeja and Alaba International Market clusters. The study assesses current awareness of VMI, levels of adoption across product categories, perceived benefits, and barriers to adoption. VMI adoption is operationalised through data-sharing mechanisms, replenishment trigger systems, and supplier involvement in inventory planning. Descriptive statistics and chi-square tests are employed. The study references recent supply chain collaboration and vendor-managed inventory literature applied to emerging market contexts. Findings are expected to indicate low but growing VMI adoption, primarily driven by multinational brand partners. Recommendations are directed at distributors and brand-side logistics managers on scaling VMI arrangements in the Nigerian electronics distribution ecosystem. Keywords: vendor-managed inventory, consumer electronics, distribution, Lagos, supply chain collaboration.

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