An Examination of Supply Chain Challenges in the Nigerian Consumer Goods Industry: A Study of Nestlé Nigeria Plc
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Background of the Study
The consumer goods industry in Nigeria relies heavily on efficient supply chain management to ensure timely delivery of products, reduce costs, and maintain customer satisfaction. Nestlé Nigeria Plc, a leading multinational company, operates in a complex supply chain environment influenced by infrastructural deficits, regulatory constraints, and economic volatility (Ajayi & Chukwuma, 2024).
Supply chain challenges in Nigeria include poor transportation infrastructure, erratic power supply, and currency fluctuations, which increase operational costs and disrupt business processes. For Nestlé Nigeria Plc, addressing these challenges is critical to maintaining its competitive edge and meeting consumer demands (Ibrahim, 2023).
This study examines the supply chain challenges faced by Nestlé Nigeria Plc, identifying bottlenecks and proposing solutions to enhance efficiency and sustainability.
Statement of the Problem
Supply chain inefficiencies in Nigeria’s consumer goods industry have resulted in increased costs, delayed deliveries, and reduced competitiveness. Nestlé Nigeria Plc, despite its global experience and resources, continues to grapple with challenges such as logistical bottlenecks, supplier issues, and regulatory hurdles (Okafor, 2025).
While the supply chain has been widely studied in developed markets, limited research focuses on its challenges in Nigeria, particularly in the context of leading consumer goods companies like Nestlé. This study fills the gap by analyzing the supply chain dynamics of Nestlé Nigeria Plc and offering recommendations for improvement.
Objectives of the Study
1. To identify the supply chain challenges faced by Nestlé Nigeria Plc.
2. To analyze the impact of these challenges on operational efficiency and business performance.
3. To recommend strategies for overcoming supply chain challenges in the Nigerian consumer goods industry.
Research Questions
1. What are the supply chain challenges faced by Nestlé Nigeria Plc?
2. How do these challenges affect the company’s operational efficiency and performance?
3. What strategies can mitigate supply chain challenges in the Nigerian consumer goods industry?
Research Hypotheses
1. Supply chain challenges significantly impact the operational efficiency of Nestlé Nigeria Plc.
2. Poor infrastructure exacerbates supply chain inefficiencies in the Nigerian consumer goods industry.
3. Strategic supply chain management improves business performance and customer satisfaction.
Scope and Limitations of the Study
The study focuses on supply chain challenges within Nestlé Nigeria Plc, analyzing their causes, impacts, and solutions. Limitations include potential difficulties in accessing detailed supply chain data and generalizing findings to other companies.
Definitions of Terms
• Supply Chain: The network of processes involved in the production and delivery of goods to consumers.
• Operational Efficiency: The ability of a company to deliver products in a cost-effective and timely manner.
• Logistical Bottlenecks: Obstacles that impede the smooth flow of goods and materials in a supply chain.
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