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An Appraisal of the Effect of Intermodal Transportation on Supply Chain Efficiency: A Study of Olam Nigeria in Kaduna State

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Background of the Study
Intermodal transportation, which involves the seamless integration of multiple modes of transportation such as road, rail, and sea, has become a vital strategy for improving supply chain efficiency in global and local markets (Nguyen et al., 2024). In Nigeria, intermodal transportation plays a crucial role in addressing logistical challenges such as poor infrastructure, traffic congestion, and regional connectivity issues. Olam Nigeria, a leading agribusiness company, relies heavily on intermodal transportation to facilitate the movement of goods, particularly in Kaduna State, where agricultural supply chains are pivotal to the local economy (Adamu & Ibrahim, 2023).

Efficient intermodal transportation offers numerous benefits, including cost savings, reduced transit times, and improved environmental sustainability. However, the Nigerian logistics sector faces significant challenges, such as inadequate transport infrastructure, regulatory bottlenecks, and limited access to advanced logistics technologies (Afolabi et al., 2024). For Olam Nigeria, these challenges can hinder supply chain efficiency and profitability, making it essential to explore the role of intermodal transportation in overcoming these issues.

While intermodal transportation has been widely studied in developed economies, there is limited research on its application and impact in the Nigerian context, particularly in agricultural supply chains. This study examines the effect of intermodal transportation on supply chain efficiency at Olam Nigeria in Kaduna State, providing valuable insights for improving logistics practices in similar settings.

Statement of the Problem
Logistical inefficiencies remain a critical bottleneck in Nigerian supply chains, particularly in the agricultural sector. Despite the potential benefits of intermodal transportation, many companies, including Olam Nigeria, struggle to fully leverage this approach due to challenges such as inadequate infrastructure, high transportation costs, and inconsistent regulatory policies. These challenges contribute to delays, increased operational costs, and reduced competitiveness, particularly in regions like Kaduna State, where agricultural supply chains are essential to the local economy (Bello et al., 2024).

Although intermodal transportation is recognized as a solution for enhancing supply chain efficiency, there is limited empirical evidence on its effectiveness in the Nigerian context. This study seeks to address this gap by exploring how intermodal transportation impacts supply chain efficiency at Olam Nigeria in Kaduna State, highlighting both the benefits and challenges associated with its implementation.

Objectives of the Study

  1. To assess the effect of intermodal transportation on supply chain efficiency at Olam Nigeria in Kaduna State.
  2. To identify the key challenges faced by Olam Nigeria in implementing intermodal transportation systems.
  3. To evaluate the benefits of intermodal transportation in improving logistics and operational performance at Olam Nigeria.

Research Questions

  1. How does intermodal transportation affect supply chain efficiency at Olam Nigeria in Kaduna State?
  2. What challenges does Olam Nigeria face in implementing intermodal transportation systems?
  3. What are the key benefits of intermodal transportation in improving logistics performance at Olam Nigeria?

Research Hypotheses

  1. H0: Intermodal transportation does not significantly affect supply chain efficiency at Olam Nigeria in Kaduna State.
  2. H0: There are no significant challenges in implementing intermodal transportation systems at Olam Nigeria.
  3. H0: Intermodal transportation does not significantly improve logistics and operational performance at Olam Nigeria.

Scope and Limitations of the Study
This study focuses on Olam Nigeria’s operations in Kaduna State, with a particular emphasis on intermodal transportation and its impact on supply chain efficiency. The study is limited to the agricultural supply chain sector in Kaduna State and does not extend to other regions or industries. Limitations include the availability of data on intermodal transportation and the potential biases in self-reported information from Olam Nigeria.

Definitions of Terms

  1. Intermodal Transportation: The use of multiple modes of transportation in a single supply chain operation, such as combining road, rail, and sea transport.
  2. Supply Chain Efficiency: The ability to deliver goods and services in a cost-effective and timely manner, maximizing value while minimizing waste.

Agricultural Supply Chain: The network of activities involved in the production, processing, distribution, and marketing of agricultural products.





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