An assessment of demand-driven supply chain strategies in the retail sector: A study of Jumia Nigeria in Jigawa State.
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Background of the study
In today's retail environment, supply chains must be responsive and adaptable to meet the dynamic and often unpredictable nature of consumer demand (Soni et al., 2023). Demand-driven supply chain strategies, which focus on aligning supply chain operations with actual consumer demand, have become increasingly crucial in the retail sector. This approach contrasts with traditional supply chain strategies that rely on forecasting to predict demand (Agarwal et al., 2024). Retailers are increasingly adopting demand-driven strategies to enhance efficiency, reduce inventory costs, and improve customer satisfaction (Huang et al., 2023).
Jumia Nigeria, as one of the largest e-commerce platforms in the country, has integrated demand-driven supply chain strategies to cater to the needs of its diverse customer base across various regions, including Jigawa State. Jigawa State, characterized by a growing population and increasing internet penetration, presents unique challenges and opportunities for Jumia’s operations (Adeyemi et al., 2024). The company has to consider factors such as local infrastructure, consumer behavior, and regional demand patterns when designing and implementing its supply chain strategies (Ojo & Adebayo, 2025).
The adoption of demand-driven supply chain strategies by Jumia Nigeria is crucial for understanding how the retail sector in Nigeria is evolving, particularly in less urbanized states like Jigawa. The strategies employed by Jumia in this region could provide valuable insights into how demand-driven approaches can improve the efficiency and responsiveness of supply chains in emerging markets (Akanbi et al., 2023). The study will examine how Jumia’s demand-driven supply chain strategies contribute to meeting customer needs, optimizing inventory, and enhancing operational performance in Jigawa State.
Statement of the problem
Despite the growing importance of demand-driven supply chain strategies in the retail sector, there is limited empirical research on their application in Nigeria, particularly in less-urbanized states like Jigawa. While there have been studies on the general effectiveness of demand-driven supply chains in the retail industry (Feldmann & Olhager, 2023), there is insufficient understanding of how these strategies function in Nigeria’s e-commerce context. Specifically, the challenges faced by Jumia in Jigawa State, such as limited infrastructure, fluctuating demand, and regional disparities in consumer behavior, have not been thoroughly examined. This study aims to bridge this gap by assessing how Jumia Nigeria implements demand-driven supply chain strategies in Jigawa State and the impact of these strategies on efficiency, customer satisfaction, and operational performance.
The problem lies in the lack of data on the operational effectiveness of demand-driven supply chain strategies in the retail sector within Nigeria’s e-commerce industry, particularly in rural and semi-urban regions. This research will provide insights into the nuances of managing supply chains in a growing but relatively underserved market, contributing to the broader understanding of supply chain management in developing economies.
Objectives of the study
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To assess the impact of demand-driven supply chain strategies on Jumia Nigeria’s operational efficiency in Jigawa State.
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To evaluate the role of demand-driven supply chain strategies in improving customer satisfaction and service delivery in Jigawa State.
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To identify the challenges and opportunities associated with implementing demand-driven supply chain strategies in Jigawa State.
Research questions
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How do demand-driven supply chain strategies impact Jumia Nigeria’s operational efficiency in Jigawa State?
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In what ways do demand-driven supply chain strategies enhance customer satisfaction and service delivery in Jigawa State?
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What are the key challenges and opportunities in implementing demand-driven supply chain strategies in Jigawa State?
Research hypotheses
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Demand-driven supply chain strategies significantly improve operational efficiency in Jumia Nigeria’s Jigawa State operations.
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Demand-driven supply chain strategies positively influence customer satisfaction and service delivery in Jigawa State.
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The implementation of demand-driven supply chain strategies in Jigawa State is influenced by local infrastructure and consumer behavior patterns.
Scope and limitations of the study
This study focuses on Jumia Nigeria’s operations in Jigawa State, specifically examining the impact of demand-driven supply chain strategies. Data will be gathered through surveys, interviews with Jumia’s logistics and supply chain managers, and consumer feedback. The study's scope is limited to the retail sector, excluding other sectors such as manufacturing and agriculture. A limitation of the study is the potential difficulty in accessing data from consumers in more remote areas of Jigawa, where internet penetration is still growing. Additionally, the study may be constrained by the availability of reliable secondary data on Jumia’s supply chain operations.
Definitions of terms
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Demand-driven supply chain strategies: A supply chain approach that focuses on aligning supply chain operations with actual consumer demand rather than relying solely on forecasts.
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Operational efficiency: The ability of a company to deliver products to customers in the most cost-effective and time-efficient manner possible.
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E-commerce: The buying and selling of goods and services over the internet.
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