The Impact of Supply Chain Digitalization on Operational Efficiency: A Study of Dangote Cement in Kano State
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Background of the Study
Supply chain digitalization refers to the integration of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and blockchain into supply chain operations to enhance efficiency, transparency, and decision-making processes. For large manufacturing companies like Dangote Cement, digitalization can significantly streamline operations, reduce costs, and improve customer satisfaction by optimizing production, distribution, and logistics (Oluwaseun & Okwuosa, 2023). Kano State, a major industrial hub in northern Nigeria, is home to several cement factories, including Dangote Cement, which plays a key role in the region's economic development. The adoption of digital tools within Dangote Cement’s supply chain has the potential to transform its operational efficiency, making it an ideal case study.
Kano State’s evolving infrastructure and the increasing adoption of digital technologies provide a relevant setting to explore the impact of digitalization on supply chain processes in the manufacturing sector. As Dangote Cement continues to expand its market reach across Nigeria, understanding how digital tools enhance supply chain operations is essential for optimizing business strategies and maintaining a competitive edge (Aliyu & Mustapha, 2024). This study aims to assess the impact of supply chain digitalization on operational efficiency at Dangote Cement in Kano State.
Statement of the Problem
Although supply chain digitalization has been acknowledged as a key factor in improving operational efficiency, the specific impact on manufacturing companies in Nigeria, especially in Kano State, has not been adequately studied. The challenge remains in understanding how Dangote Cement’s adoption of digital technologies has affected its supply chain operations and whether the expected improvements in efficiency are being realized.
This study will focus on evaluating the impact of digital tools on Dangote Cement’s supply chain operations in Kano State, providing insights into the practical benefits and challenges of digitalization in the Nigerian manufacturing sector.
Objectives of the Study
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To assess the impact of supply chain digitalization on operational efficiency at Dangote Cement in Kano State.
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To examine the role of digital technologies in optimizing Dangote Cement’s production and distribution processes.
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To identify the challenges and benefits of implementing supply chain digitalization at Dangote Cement in Kano State.
Research Questions
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How does supply chain digitalization impact operational efficiency at Dangote Cement in Kano State?
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What role do digital technologies play in optimizing Dangote Cement’s production and distribution processes?
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What challenges and benefits are associated with the implementation of supply chain digitalization at Dangote Cement in Kano State?
Research Hypotheses
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Supply chain digitalization significantly improves operational efficiency at Dangote Cement in Kano State.
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Digital technologies positively impact the production and distribution processes at Dangote Cement in Kano State.
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There are significant challenges in implementing supply chain digitalization at Dangote Cement in Kano State, including technological and infrastructural barriers.
Scope and Limitations of the Study
This study will focus on Dangote Cement’s supply chain digitalization efforts in Kano State. Limitations include potential data availability issues, as well as challenges in isolating the impact of digitalization from other factors influencing operational efficiency.
Definitions of Terms
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Supply Chain Digitalization: The integration of digital technologies such as IoT, AI, and blockchain into supply chain management processes to enhance efficiency and transparency (Oluwaseun & Okwuosa, 2023).
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Operational Efficiency: The ability of a company to deliver products and services in the most cost-effective manner without sacrificing quality (Aliyu & Mustapha, 2024).
Supply Chain Optimization: The process of improving supply chain operations to maximize efficiency, reduce costs, and improve service delivery (Oluwaseun & Okwuosa, 2023).
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