Digital Supply Chain Integration and Operational Performance in the Fast-Moving Consumer Goods Sector in South West Nigeria

📖 ABSTRACT/OVERVIEW

Digital supply chain integration, encompassing real-time information sharing, electronic procurement, and technology-mediated logistics coordination, has been associated with improved operational performance in global manufacturing and distribution contexts. This study examines whether these associations hold in the fast-moving consumer goods sector in South West Nigeria, analysing a sample of 25 FMCG manufacturing and distribution companies operating in Lagos and Ogun States. A quantitative survey of 130 supply chain and operations managers assessed the degree of digital integration across four supply chain functions: demand forecasting, inventory management, order processing, and logistics coordination. Operational performance was measured through order fulfilment rates, inventory turnover ratios, and on-time delivery performance. Partial least squares structural equation modelling results indicate that digital integration in demand forecasting and inventory management has the strongest positive effect on operational performance, while logistics coordination integration, though positive, is constrained by the underdevelopment of third-party logistics technology in Nigeria. The study extends the digital supply chain integration literature to a West African FMCG context and identifies the role of infrastructure quality as a moderating variable. Managerial recommendations focus on phased integration strategies prioritising internal functions before extending integration demands to suppliers and distributors. Keywords: digital supply chain, FMCG, operational performance, South West Nigeria, supply chain integration.

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