Impact of Adoption of Lean Philosophies on Performance Indicators of Third-Party Logistics (3PL) Truck Haulage Companies for Fast-Moving Consumer Goods (FMCG) in Lagos

Sylvester  Aighobahi

doi:10.59890/qbh2hd28

Authors

Sylvester Aighobahi Salford Business School Author

DOI:

https://doi.org/10.59890/qbh2hd28

Keywords:

Lean Philosophy, Third-Party Logistics (3PL), Truck Haulage , Fast-Moving Consumer Goods (FMCG)

Abstract

Truck haulage 3PL firms in Lagos Nigeria play a very significant role in supporting the economy. The cost of movement of goods in Nigeria is five times higher than United States of America. This raises efficiency gap issues in truck haulage sector in Nigeria. The focus of this study was to investigate the impact of adoption of lean philosophy on performance indicators for truck haulage by looking at the role of technology and involvement in product design by 3PL with FMCG using selected 3PL firms based in Lagos. Lean philosophy has its origin in TPS and has also been extended to transport operations and have been seen to improve TOVE. The study adopted a mixed method approach which involved a quantitative survey and qualitative in-depth interview using convergent method approach. Therefore, Government and FMCG partners should collaborate with 3PL to create an enabling environment by providing good infrastructure and policies in place to encourage the set-up of Logistics clusters as this will improve efficiency in the truck haulage section in Nigeria. There is further study needed to look at what discourages freight sharing in Nigeria and fully integrated supply chain with multiple partners. The competition is not inside the truck but in the market place for FMCG firms as this is one opportunity area currently not being explored today resulting in empty mille in most movements thus raising the cost of operating truck haulage in Nigeria. Lean adoption alone can’t close this gap so therefore there is urgent need for more collaboration, integration, freight sharing and resource sharing between all relevant stakeholders in the truck haulage transport chain.

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