Background of the Study
In the digital era, the role of analytics in supply chain management has gained significant attention due to its potential to enhance decision-making processes. Supply chain analytics (SCA) refers to the application of data-driven methodologies and techniques to improve decision-making in supply chain operations, such as forecasting, inventory management, procurement, and logistics (Jagtap & Kamble, 2023). Jumia Nigeria, one of the leading e-commerce platforms in West Africa, leverages supply chain analytics to optimize its operations, streamline processes, and improve customer satisfaction (Ayodele & Olayemi, 2024).
In recent years, businesses have increasingly recognized the need to incorporate sophisticated analytics tools into their supply chain management systems to drive efficiency and remain competitive. Supply chain analytics involves various techniques such as predictive analytics, prescriptive analytics, and descriptive analytics, all of which provide businesses with insights into trends, demand patterns, and potential operational bottlenecks (Nguyen et al., 2023). The effective use of SCA tools enables companies like Jumia Nigeria to respond proactively to supply chain disruptions, improve the accuracy of demand forecasts, and reduce operational costs (Adebayo & Akinyemi, 2023).
The dynamic nature of e-commerce in Nigeria, especially in regions like Benue State, presents unique challenges and opportunities in supply chain management. As one of the most populous regions in Nigeria, Benue has significant consumer demand, which requires a responsive and efficient supply chain. Jumia’s adoption of supply chain analytics is expected to have a substantial impact on its decision-making processes, offering insights that could help optimize resource allocation and improve service delivery. Understanding how SCA impacts decision-making in such an e-commerce giant is crucial for both academic and business communities, as it provides valuable lessons on the practical application of analytics in supply chain operations.
Statement of the Problem
The increasing complexity of supply chains in e-commerce companies, such as Jumia Nigeria, has made it difficult to effectively manage and optimize processes using traditional methods. This complexity is further exacerbated in regions like Benue State, where logistical challenges, inadequate infrastructure, and unpredictable market conditions can affect operational efficiency. Despite the growing trend of using supply chain analytics to optimize decision-making, there remains a lack of empirical research on how SCA specifically impacts decision-making processes in Nigerian e-commerce companies. This gap in literature presents a problem in understanding the practical benefits and limitations of implementing SCA tools in enhancing decision-making. Jumia, being a major player in the Nigerian e-commerce sector, faces the challenge of leveraging its data analytics capabilities to drive better operational and strategic decisions while managing the inherent risks of the Nigerian business environment.
Moreover, while many studies have focused on supply chain analytics in manufacturing and traditional retail settings, there is limited research that evaluates the effects of these tools on decision-making in e-commerce companies in developing countries. The absence of adequate studies focused on the Nigerian context, especially in states such as Benue, makes it difficult for businesses in similar regions to understand the potential value of supply chain analytics. Consequently, this research seeks to fill this knowledge gap by exploring the impact of supply chain analytics on decision-making at Jumia Nigeria, focusing specifically on Benue State.
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
The study focuses on Jumia Nigeria's operations in Benue State, analyzing how supply chain analytics affects decision-making within this specific region. The study is limited to e-commerce supply chain management in Benue State and does not extend to other regions of Nigeria or the broader African market. Limitations include potential bias in the data provided by Jumia Nigeria, given the proprietary nature of the company's analytics systems. Additionally, the study's findings may not be directly applicable to other industries or companies outside the e-commerce sector.
Definitions of Terms