An Investigation of the Effect of Supply Chain Visibility on Demand Responsiveness: A Study of Dangote Cement in Sokoto State
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Background of the Study
Supply chain visibility refers to the ability to monitor and track the flow of goods, information, and financial transactions across all levels of the supply chain. It enables businesses to access real-time data regarding inventory, shipments, and supplier performance, which enhances their ability to respond to customer demand. Dangote Cement, one of Nigeria’s leading cement manufacturers, has implemented advanced supply chain visibility tools to monitor its production and distribution processes, particularly in Sokoto State, where the company has significant manufacturing and distribution facilities (Adedayo & Lati, 2023).
In Sokoto State, where Dangote Cement faces demand fluctuations, ensuring demand responsiveness is crucial for maintaining customer satisfaction and operational efficiency. Supply chain visibility helps Dangote Cement improve its forecasting accuracy, reduce lead times, and avoid production delays by providing real-time insights into demand trends, inventory levels, and order statuses. As cement production is highly sensitive to changes in market demand and the availability of raw materials, having visibility across the supply chain enables Dangote Cement to adjust production schedules and inventory levels to match demand more accurately (Obi & Ibitoye, 2023). This study seeks to explore the impact of supply chain visibility on Dangote Cement’s ability to respond to demand in Sokoto State.
Statement of the Problem
Without adequate supply chain visibility, Dangote Cement risks production delays, stockouts, and the inability to meet customer demand in a timely manner. The lack of transparency in the supply chain also hinders the company’s ability to make informed decisions related to inventory management and distribution. This study will investigate how supply chain visibility can improve demand responsiveness and enhance operational efficiency at Dangote Cement’s Sokoto plant.
Objectives of the Study
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To assess the effect of supply chain visibility on Dangote Cement’s ability to respond to demand in Sokoto State.
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To evaluate the relationship between supply chain visibility and inventory management practices at Dangote Cement.
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To identify the challenges and opportunities associated with enhancing supply chain visibility at Dangote Cement.
Research Questions
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How does supply chain visibility affect Dangote Cement’s demand responsiveness in Sokoto State?
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What impact does supply chain visibility have on inventory management at Dangote Cement?
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What challenges and opportunities exist in improving supply chain visibility at Dangote Cement?
Research Hypotheses
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Supply chain visibility significantly improves demand responsiveness at Dangote Cement in Sokoto State.
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Enhanced supply chain visibility leads to better inventory management practices at Dangote Cement.
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Challenges in data integration and system implementation reduce the effectiveness of supply chain visibility at Dangote Cement.
Scope and Limitations of the Study
This study will focus on the impact of supply chain visibility on demand responsiveness at Dangote Cement in Sokoto State. Limitations include challenges in obtaining real-time data on supply chain processes and the complex nature of the cement production and distribution network.
Definitions of Terms
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Supply Chain Visibility: The ability to monitor and track all activities, inventory, and processes across a supply chain in real-time (Adedayo & Lati, 2023).
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Demand Responsiveness: The ability of a company to adjust its supply chain operations in response to changes in customer demand (Obi & Ibitoye, 2023).
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Inventory Management: The process of overseeing the flow of goods in and out of a company’s inventory to ensure adequate stock levels without surplus or stockouts (Adedayo & Lati, 2023).
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