Effects of Upstream Supply Chain Integration on Production Logistics: A Case Study of Dangote Cement Plc
DOI:
https://doi.org/10.47941/ijscl.3636Keywords:
Supply Chain, Production, Logistics, Integration, Effectiveness, Dangote Cement.Abstract
Purpose: The study aimed to determine the effects of upstream supply chain integration on production logistics.
Methodology: The study utilized qualitative research method. Interviews were conducted with samples collected purposively based on their knowledge of the subject area. Reflexivity shaped the ethical and methodological rigour and aided the thematic analysis of data collected.
Findings: Findings from the study showed that upstream supply chain integration has positive effects on production logistics effectiveness. Effective planning, coordination and control by Central Procurement of Dangote are listed as the critical links between supply chain integration and production logistics effectiveness.
Unique Contribution to Theory, Practice, and Policy: The outcome of the study highlighted factors that manager need to aid supply chain integration and production logistics effectiveness. These factors include conducting due diligence on all suppliers to aid the use of only pre-qualified vendors, centralization and consolidation of strategic business units’ requirements by centralizing procurement for effective coordination and control of supplies received into the central warehouse and storage facilities, as well as the timely payment of purchase orders and letters of credit to motivate supplier performance. Study results further showed that suppliers benefit immensely from supports extended to them in the areas of documentation and upfront payments.
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