Background of the Study
Efficient logistics management is crucial for the success of manufacturing firms, as it directly influences production schedules, customer satisfaction, and cost-effectiveness. Nigerian manufacturing firms, including Dangote Group, face a dilemma between outsourcing logistics functions and managing them in-house. Outsourcing logistics can provide expertise and reduce operational costs, while in-house management offers greater control and aligns logistics with company strategies (Ahmed & Yusuf, 2024).
Dangote Group, as a leading manufacturing firm in Nigeria, operates in a highly competitive environment where logistics efficiency is a critical factor. The decision between outsourcing and in-house logistics management has significant implications for the company’s supply chain performance, particularly in regions like Katsina State, where infrastructural challenges and operational complexities exist (Olawale & Bello, 2023).
Statement of the Problem
Manufacturing firms in Nigeria face increasing pressure to optimize logistics management to remain competitive. However, the decision to outsource or maintain in-house logistics operations often lacks a structured analysis of their respective benefits and challenges. For Dangote Group in Katsina State, inefficient logistics can lead to increased costs, delays, and customer dissatisfaction. This study aims to provide a comparative analysis of the two approaches to identify the most effective logistics management strategy for the company (Suleiman & Hassan, 2023).
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
The study focuses on logistics management strategies at Dangote Group in Katsina State, analyzing their operational, financial, and strategic implications. Limitations include access to proprietary data and the generalizability of findings to other manufacturing firms.
Definitions of Terms
In-House Logistics Management: The direct handling of logistics operations within an organization.