Developing Efficient Lead Time Practice in the Supply Chain Process to Enhance Customers’ Satisfaction in FMCGs in Nigeria

Abstract

The production and delivery of high quality goods and services that satisfy customers' expectations are essential elements in determining the long term achievement of manufacturing companies. This paper aims to develop efficient lead time management in the supply chain processes of Nigerian fast moving consumer goods (FMCGs) manufacturing companies as this would enhance the production of indigenous products of high quality thereby satisfying the consumers' needs, moreover, contributing to economic growth and development of the manufacturing industry in Nigeria. The study uses a quantitative approach consisting of a cross-sectional survey and the administration of structured questionnaires to staff of FMCGs in selected study areas of Lagos and Ogun State, Nigeria. The data available for this study was analyzed using ordered logistic regression model with the aid of different statistical tool; SPSS IBM version 24 and STATA 13.0. The outcome of the study indicated the underlying dimensions of lead times and the service response level of customers, with an overall objective to meet customers' needs. Furthermore, the result showed that adequate stock level and reduction in lead times contributed to the availability of quality products to customers on time.

Impact of Information Sharing on Customer Satisfaction Level in the Fast-Moving Consumer Goods (FMCGs) Industry in Nigeria

“…This study also concurs with Ezeoke et al, (2019) on the results of the estimated level of influence an order processing lead time would have in meeting customers' requests (G. Ezeoke et al, 2019). The study indicated a positive and significant influence on both the administration time of order and the average time of order processing signal.…”

“…However, the positive and significant coefficient indicates that a .337 unit increase in the administration time of an order would influence an increase in the log odds of time to meet customer requests. In addition, a 0.323 unit increase in the average time of order processing signal by the fast-moving consumer goods industry would directly influence the log odds of time needed to meet customers' requests (G. Ezeoke et al, 2019), thus the importance of effective planning and sharing of information along the value chain of fastmoving consumer goods industries.…”

“…The logic behind manufacturing firms sharing information and improving their satisfaction levels comprises the need to remain competitive, improve the performance of the supply chain, reduce the product lead time, and satisfy customers' expectations of the firm's product and service offerings (G. Ezeoke et al, 2019;Kohtamäki & Partanen, 2016).…”

“…With the advancement of e-commerce, supply chain networks are better aligned with credible partnerships and interactions along its value chain. Extant studies show how relevant e-commerce impacts the business and market information flow, product, and service flow, as well as the cash flow in a supply chain network (G. Ezeoke et al, 2019;Manyika et al, 2012;Straková et al, 2020). E-commerce accounts for sixty-five percent of growth in the consumerpackaged goods industry, and in recent times, the Covid-19 pandemic is reshaping how customers purchase products and services; opening new horizons on how to effectively communicate and share information among players in the value chain (Manyika et al, 2012).…”

“…A break-down in communication and relationship among supply chain partners suggests an imbalance in demand and capacity, more so, intricacies in order fulfillment, inaccurate demand forecast, supply vulnerabilities, longer product lead time, backlogs of inventory, low returns on investment, and high rates of dissatisfied customers (G. Ezeoke et al, 2019;Lysons & Farrington, 2012). Discrepancies in information sharing between firms and customers indicate low communication and feedback among supply chain partners concerning product performance, warranty, expected delivery date, and service delivery.…”