VYTAUTAS MAGNUS UNIVERSITY

BIOECONOMY DEVELOPMENT FACULTY

Institute of Business and Rural Development Research

ADEBOYE FUNMI OMOTAYO

IMPROVEMENT OF LOGISTICS MANAGEMENT ON THE

EXAMPLE OF JUMIA NIGERIA

Master’s Thesis

Business Logistics study programme, state code 6211LX055

Business study field

Supervisor Jolita Greblikaite

(Asist. Prof. dr. name surname) (Signature) (Date)

Defended___________________ _____________ __________

(Director of Institute) (Signature) (Date)

Akademija, 2021

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TABLE OF CONTENT

Table of content…………………………………………………………………………………...2

Summary………………………………………………………………………………………......3

Introduction…………………………………………………………………………………….….6

1. THEORETICAL BACKGROUND: CONCEPTUALIZATION OF LOGISTICS

MANAGEMENT ………………………………………………………………………….9

1.1. Concept of logistics process management……………………………………………………9

1.2. The types and components of logistics management………………….…………………….11

1.3. Improving aspects of logistics management…………………………….……………….….15

1.4. Uncertainties in logistics process……………………………………………………………20

2. EMPIRICAL RESEARCH METHODOLOGY………………………………………….24

2.1. Logical sequence…………………………………………………………………………….24

2.2. Research method…………………………………………………………………………….25

3. BACKGROUND TO LOGISTICS MANAGEMENT IN

NIGERIA……………………………………………………………………………………31

3.1. Background to Logistics management in Nigeria (Jumia Nigeria) ………………………32

3.2. Jumia Nigeria Logistics management………….………………………………………….34

3.3. Logistics process management regulation in Nigeria……………………………………….36

4. RESEARCH ANALYSIS AND FINDINGS………………………………………………40

4.1. Challenges of logistics management in Nigeria……………….…………………………….41

4.2. Empirical research result presentation………………………………………………………46

4.3. PESTEL Analysis of improvement of logistics management………….……………………56

CONCLUSION…………………………………………………………………………………63

RECOMMENDATIONS………………………………………………………………………65

REFERENCES…………………………………………………………………………………67

APPENDICES…………………………………………………………………………………75

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SUMMARY

ADEBOYE FUNMI OMOTAYO

Topic: IMPROVEMENT OF LOGISTICS MANAGEMENT ON THE EXAMPLE OF

JUMIA NIGERIA

Final work of MSC thesis- Pages 89, References 79, Tables 5, Figures 8, Pictures 6

Research object - Improvement of logistics management

Research goal – To examine the theoretically the logistics management and analyze on the

example of Jumia Nigeria seeking to identify and propose improvement measures.

Objectives of research –

1. To examine the concepts of logistics management and explore the process and impact of

logistic management;

2. To present the current situation of logistics in Nigeria (Including Jumia Nigeria) and

empirically identify the challenges of logistics management on the example of Jumia Nigeria;

3. To suggest improvement measures of logistics management.

Research method- The study involved collection of data or evidence from both secondary and

primary scientific literature, statistical data sources, using qualitative research method to analyze

in an effort to uncover new information and create better understanding. Also, staff of Jumia

Nigeria were selected using purposive sampling to derive relevant information to enrich the study.

Research result- from the reviewed literature and the outcome of the semi-structured interview,

the logistics management in Nigeria in hindered by challenges ranging from regulatory,

infrastructural deficits, poor logistics management on the part of operators and others. The

PESTEL method for analysis of factors affecting improvement of logistic management was done

to identify the external factors. To improve logistics process management, the gap in infrastructural

development needs to be meet, and this can be realized through effective policies and political will

to provide basic infrastructural development, security, improved regulation and others. The

recommendation includes breeching the gap in infrastructure, proper regulatory frameworks,

investment in new technology among others to improve logistics management in Nigeria.

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LIST OF FIGURES

Figure 1. Components of logistics management

Figure 2. Showing aspects of logistics management

Figure 3. Uncertainties in logistics process

Figure 4. Logical sequence of empirical research

Figure 5. The process of themes derivation from the interview ideas

Figure 6. Internet download speed in some African countries

Figure 7. Logistics performance index: Overall (1=low to 5=High) for Nigeria

Figure 8. PESTEL analysis of factors affecting improvement of logistics management

LIST OF TABLES

Table 1. Definitions of logistics process

Table 2. Criteria for selecting participants

Table 3. Final themes developed from the original interview ideas

Table 4. Category of licensing for operators in Nigeria

Table 5. Theme development from the original interview information

Table 6. Nigerian indicators in comparison with other middle income economies (2016)

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GLOSSARY OF MAIN CONCEPTS

CAGR- Compound Annual Growth Rate

CAMA- Company and Allied Matters Act

CDR - Courier Regulatory Department

FEPA- Federal Environmental Agency

LASAA- Lagos State Structure for Signage and Advertisement Agency

LASEPA- Lagos State Environmental Protection Agency

MVAA- Motor Vehicle Administration Agency

NESREA- National Environmental Protection Agency

NIPOST- Nigerian Postal Service

RFID- Radio Frequency Identification Technology

SME - Small and Medium Enterprise

HDI- Human Development Index

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INTRODUCTION

In the business world today, logistics management is confronted with many challenges, it

is a combination of business, resources and the many core activities of an organization. Logistics

is the doctrine of creating efficient flows as much as possible (Storhagen, 2018). The logistics

activities are formed from the integration of supply and distribution activities being integrated

together (Ghoumrassi and Tigu, 2017). Logistics in businesses is very crucial for effective running

of the business between the producer, supplier and the customers. It involves detailed process of

organization, implementation and operation of businesses (Westland, 2019).

The aspects of business comprise of the process of logistics for the flow of work from the

beginning to the end for the purpose of fulfilling the expectations of customers and also that of the

organization. The logistics activities in a business organization is a move to satisfy customers by

achieving the time and location related to the challenges of the market as well as through the cost

of the provided services also taking quality, customers need and purchase power into consideration

(Ghoumrassi and Tigu, 2017).

Without logistics management, the several phases of markets into products and services

will fall into disordered mess very quickly. Therefore, according to Westland, J. (2019) “logistics

management on businesses requires having the right items in the right amount at the right time and

place for the right cost and also in the right condition and finally to the right customers”.

Businesses utilize logistics management in a process to more efficiently and effectively

move resources and products from conception to completion and to the customer who are the last

on the chain. The idea is to introduce logistics management as a response to the necessity of the

increasingly rise of integrated system, which involves process of planning and coordination of the

materials flow from the sources of supply to the point of consumption rather than managing theses

flows as a series of tasks done independently (Sadjady, 2014).

Logistics management are utilized by online markets places all over the world such as

Amazon, Konga, Jumia, Ebay among others to purchase and distribute products from producers to

customers. For these businesses logistics management typically includes activities of inbound and

outbound transportation management, warehousing, fleets management, materials handling,

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design of logistics networks, order fulfilment, management of inventory, third party logistics

procurement management, packaging and others.

Therefore, Jumia services which is the leading online markets place for consumer’s in

Nigeria is used as an example for logistics management. Jumia services is part of Jumia Group

which is also the leading online market place in Africa involved in market place, logistics and

services and payment services. Jumia logistics were reserved for e-commerce, food vendors and

third party businesses who can leverage on its network, technology and services in Nigeria and 10

other countries in Africa (Alekhougie, 2020).

Thus, the research on improvement of logistics management using Jumia service in Nigeria

as an example is carried out. It examines the concepts of logistics management, impacts of logistics

management and a background to Jumia services. It also identifies the challenges of logistics

operations of the organization through primary sources of data using qualitative research method.

This is necessary for the research in order to suggest ways of improvement of logistics

management based on the outcome of the findings in this research work.

Research problem- the improvement in technology has changed the phase of business which

either adds value to logistics management or becomes chaotic due to adequate or inappropriate

process of management. Given the complexity of the process involvement in logistics

management, it still suffers from many issues in which businesses in developing countries like

Nigeria still battles with. An effective logistics management requires certain factors for smooth

running such as the strategy, logistics technology and others.

Jumia services launched in Lagos Nigeria in 2012 has become a leading online market

places in Nigeria which runs transactions with business and carters for millions of customers in

Nigeria. The challenges of its logistics management is unavoidable due the terrain and inadequate

level of infrastructural development in the country. Thus, in order to improve logistics

management, the barriers affecting logistics management shall be identified and measures for

improvement suggested based on the research outcome.

Research relevance – This research is relevant to given the important role logistics process plays

in improving capabilities of the organizations and enhancing their performance through proper

management. Thus, identifying ways to improve logistics management in line with the research

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questions enables improvement in logistics management and achievement of organizational goals

which is the object of the research.

Research object - Improvement of logistics management

Research goal – To examine the theoretically the logistics management and analyze on the

example of Jumia Nigeria seeking to identify and propose improvement measures.

Objectives of research – The research objectives are as follows:

1. To examine the concepts of logistics management and explore the process and impact of

logistic management;

2. To present the current situation of logistics in Nigeria (Including Jumia Nigeria) and

empirically identify the challenges of logistics management on the example of Jumia

Nigeria;

3. To suggest improvement measures of logistics management.

Research questions- The research questions are the set of questions that the study intends to

answers and improve knowledge based on the subject of study and helps to address the research

problem. The questions arising from the topic, improvement of logistics management on the

example of Jumia Nigeria are:

1. What are the logistics management challenges for market place in Nigeria?

2. How can logistics management be improved?

Research method- The strategies utilized for this thesis is a collection of data or evidence from

both secondary and primary scientific literature, statistical data sources, using qualitative research

method to analyze in an effort to uncover new information and create better understanding on

improvement of logistics management on the example of Jumia Nigeria. Using purposive

sampling, staff of Jumia service in Nigeria are selected to provide data about the ideas, experience

in logistics management for Jumia services through interview and in line with the research

questions.

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1. THEORETICAL BACKGROUND: CONCEPTUALIZATION OF

LOGISTICS MANAGEMENT

1.1. Concept of Logistics management

Historically, the word “logistics” originates from ancient Greek logos which is believed to

be a semantics of the word that originates from the word ‘logistikos’ in which is translated as

‘science of computation in military terms (Leinonen, 2020). It is interpreted as “ratio, oration,

calculation, word, speech, reason”, traced to the military (i.e the French Army General Antoine-

Henri Gemini) who was believed to have written a book on logistics first in history in 1779 to 1869

(Farahani et al, 2011). It is a branch of science having to do with procuring, maintaining and

transporting materials personnel and facilities.

Furthermore, the root of logistics was also perceived to have originated around the farm to

market economics, and was at first documented around the early 1900’s (Globerson, 2014). In

theory, the term “logistics” does not have a particular definition. In defining logistics authors

emphasize on various aspects of defining of the concept, relating both the economic practice and

to the knowledge areas, but some definitions of logistics includes the following. According to the

American Council of Logistics Management, logistics is defined as “a process of planning,

implementing and controlling the efficient, effective flow and storage of goods, services and the

related information’s from one point to another point of consumption for the purpose of

conforming to the customer’s requirements”.

The adopted definition by the European Logistics Association states that “logistics is a

concept that involves the organization, planning, control and execution of the flow of goods from

the manufacturing places (i.e. purchase places), through the sphere of production and distribution,

and finally to the consumers which aims to satisfy the demands of the market with minimal

commitment and capital”. Other definitions of logistics process by various authors are presented

in the table below.

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Table 1. Definitions of logistics (Source: Sai, 2020; Kenton, 2019; Witron Logistik,

2017; AIMS Education, 2016; Kacmary and Fedoko, 2014; Johannensson, S. 2003 and

Rushton et al, 2000)

Authors Definitions

Sai (2020) The definition which states that “logistics it means the work that is

supportive in nature and this logistics supports are essential for marketing

and manufacturing operations”.

Kenton, (2019) The logistics involves the overall ways of managing how the resources

are acquired, stored and transported to the final destinations.

Witron Logistik

(2017)

It is the art and science of managing physical space, time and location.

AIMS Education –

UK (2016)

It is the art and science of obtaining producing and distribution of

materials and products in the process places and in the right proportions.

Kacmary and

Fedorko (2014)

Logistics involves planning, controlling, implementing all done

efficiently, cost effectively and flow of raw materials in the process

inventory, finished goods and other related information from the point of

consumption to the point of origin for the goal of recapturing the values

or effective disposal.

Johannensson, S.

(2003).

It is a process of relation between human, nature, technology and

resources that interact and unpredictably self-organize into emerging

paradoxical pattern with creating potential value.

Rushton et al,

(2000)

It is the various ways and one way to define logistics which equals

materials management and distribution processes.

From the various definition above, it is agreed in the definitions the unifying logic is that

logistics process involves movement from one point to the other. The logistics concept in based

on an overall system view of the many functions in moving materials and goods from location to

another. Thus, logistics works involves management looking for a way to manage the overall

system instead of one aspect of the system. The operations in logistics include planning,

implementing and maintaining the transport and storage of goods, control of

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movement/placements of goods/or people and it also involves supporting services and information

of the initial point to the end point, to achieve specified objectives (Team Lapaas, 2020,

Emmanson’s Blog, 2009). The principal objectives of logistics processes are to ensure:

Services to customers

Efficient planning of demand and supply and purchasing management

Management of transportation

Proficient quality control, insurance and customs

Management of warehouse

Management of inventory

Distribution

Productions (i.e in house logistics management)

Logistics is said to comprise of all steps of that ensures planning, supervision, execution

and control of the time and space transformation of goods and the related transformation in

quantity and range of assortment, the properties manipulation and the degree of logistics

determination of goods (Szymonik, 2012). Logistics involves facilitation of relationship between

production and movement of goods including time, cost and quality.

1.2. The types and components of logistics management

The logistics management activities are classified into two categories namely, inbound and

outbound logistics.

Inbound logistics- It involves the smooth running and cost effective inflow of materials as

well as other inputs required for production or manufacturing process. It is the network that

brings goods and services to the business (Lerner, 2019). This ranges from the raw production

to the suppliers (vendors) and the plant for production. Therefore, inbound logistics

essentially involves the entire process a business operations require to create the finished

products that is finally sold to customers.

Outbound logistics- It involves the physical distribution management or the supply chain

management. It is concerned with how the finished goods flow and other associated

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information from the company to the customers (Sai, 2020). It involves the way finished

goods to transported to their destinations and it normally works with various partners than the

inbound logistics network (Lerner, 2019). Other types of logistic process are-

Reverse logistics- The process involves transportation of products from to location of

customer to the seller. The reverse process entails collection, sorting, inspecting, refurbishing

and distribution of the goods (Team Lapaas, 2020). Reverse logistics commonly involves the

returning of a products to the manufacturer or the distributors or even forwarding it to the

service section, recycling or refurbishing, it is sometimes referred to as the “aftermarket

supply chain”, aftermarket logistics or ‘retrogistics’ (Essex, 2020).

Third party Logistics (3PL)- The third party logistics (also known as outsourcing) is mainly

focused on movement of products from one location to another location end. This is due to

the fact that it does not give consideration to a seller to customer or customer to the seller.

They take the associated responsibility of delivering the goods or products to the right place

at the expected time. It involves the movement of work, but it is not regularly the transfer of

responsibility and accountability or oversight to the external services provider (Erturgut

2012). The third party logistics helps business owners to focus on their own primary

operations rather than engaging in delivery monitoring which is past to the third party (Team

Lapaas, 2020).

The purpose of logistics is the efficiently enable flow of goods material and services from

their respective place of origin to the final consumer (customer). The goal is to make sure that

there is adequacy of place (moving goods to places where they have been demanded) and the

time (maintaining the right level of stock and the proper distribution) of the goods and

services.

Also, logistics requires proper management and the management involves continuous

interface of activities. There is various definition of logistics management (LM) which all involves

series of processes with the start point to the end in management. Logistics management comprise

of the processes of planning, implementing and controlling the efficient flow of raw-materials,

work in progress and finished goods and related information from the point of origin to the point

of consumption with the outlook to satisfy the customers (Sai, 2020).

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It is also a part of the process of the supply chain which involve planning, implementation

and efficient controls, effective flow, goods storage, various services and require related

information from the point of origin to the point of consumption of the products to meet the

requirement of the customer.

The Council of Supply Chain management defines logistics management as “the part of

supply chain management that plans, implements and controls the efficient, effective forward and

reverse flow and storage of goods, services and related information between the point of origin

and the point of consumption in order to meet the requirements of the customers”. Also, Logistics

management according to Stock and Lambert (2001) is defined “as a part of the supply chain

process that plans implements and control the efficient, and effective flow and storage of goods

and services, as well as related information from the point of origin to the point of consumption in

order to meet the customer’s requirements”.

Logistics process management is considered a more practical, hands on part of the supply

chain where goods are transported into a facility, properly and stored, handled and transported out.

However, the difference is that the logistics management focuses on the short term procedures

while the supply chain management focuses on the long term procedures. The logistics process

requires lots of activities or operations while making up for the inputs of work force /members,

information and technology, finances through actions of management and logistics activities

between the consumers and the suppliers in an effort to ensure the result with output that gives

them competitive advantage, time and movement of place utility efficiently. The component of

logistics process management in shown in figure one below.

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Figure 1. Components of Logistics management (Source: Kamthunsi, E., 2014)

The figure shows the components of logistics management from the one point to another

which may be invisible to the customers who are at the end of the chain but it is of more importance

to the suppliers (ventures) to ensure that the process managed and runs efficiently as at when due

through each of the logistics process management. Thus, the logistics management involves a

system on its own and it is expected to adequately plan an approach for its effectivity and the way

in which the approach is applied as a whole, due to the fact that all the department involved are all

working towards achieving the organization goal as every activities affects each order one way or

the other.

In summary, Logistics management is the control of activities in the process. The

encompass the design of the network, order fulfilment and transportation management in order to

satisfy the customers and also ensure achievement of the objectives of the business. The aspects

of logistics management are reviewed in the next subchapter.

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1.3. Improving aspects of Logistics management

The advent of logistics management brought change in the way businesses are conducted

today. As a result of technological development, logistics process management has advanced and

gave better significance in conducting businesses (Abdul; Aun; Oladipo and Olota, 2019).

Logistics process management is handled as part of the management of the supply chain which

deals with the efficient process of management of goods. It involves logistics processes of

management that integrates moving goods, services information and capital, the right from the raw

materials sourcing, to the customers (Springinklee and Wallenburg, 2012).

The major goals of logistics management according to Mentzer et al, (2004) is the process

of making available the right products at the right quality and at the right time in the right place at

the right price to the ultimate consumer. The flow of information’s is one of the major component

of logistics. The diagram below shows some of the various aspects of logistics management.

Figure 2. Showing aspects of logistics management (Source: Author, 2021)

Aspects of Logistics

management

Information flow

management

Warehousing

Management

Order Manageme

nt

Order fulfilment

Inventory Management

Transportation

Management

Packaging and

Unitization

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Logistics management involves various aspects. According to Ristovska; Kozuharov and

Petkovski (2017) logistics process management includes:

Information flow management -in the competitive business environment today helps in the

effective and timely response to the ever changing taste of customers and preferences which has

become important for the success of business performance (Han and Trienekens, 2009).

Information flow is defined as the flow of data from different directions with content variables

between numerous data base in a company. Information flow within logistics process has become

important because it enables the chain to responds in real time and with accurate data (Abdul; Aun;

Oladipo and Olota, 2019). According to Stevenson and Spring (2009), the flow of accurate and

real time information in logistics process is considered very crucial in the materials flow and

management.

The flow of information allows logistics management become a crucial weapon in

businesses arsenals which adds values to the bottom line (Closs et al., 2005); and a key success to

the performance in the collaboration of logistics management and the business performance

(Abdul; Aun; Oladipo and Olota, 2019). According to Wardaya (2013) states that “the sharing of

information on transfer; exchange of information indicating the level and the position of the

inventory; the sales data and information on the forecast; status orders information, schedules of

production and capacity to deliver and the measurement of business performance became

important to companies” and contributes to the improvement of the logistics management.

Warehousing management – it is a crucial part of the business logistics system that stores

products (such as raw materials, finished goods, sphere parts and goods in process) at and between

location or origin and at the point of consumption; it is made available by warehouse or centers

for distribution (Murphy and Wood, 2008). Also, businesses consider the location of their

warehouse facilities, cost factors, the resources (such as skilled labour) and the accessibility which

has to do with transportation infrastructures (Abdul; Aun; Oladipo and Olota, 2019). All of this is

put into consideration to ensure better proximity of the manufacturing facilities customers and

their suppliers. Management can make sure that the warehouse meets all regulations by checking

to ensure that –

Safety measures complied

Ensure cleanliness

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Effective lighting

Safety of storage facilities

Ensure no obstruction

Inspect equipment’s

Secure stair railings and order measures in place for effectives logistics management of the

warehouse.

Order fulfilment – it is important in the logistics management to ensure that the customer’s orders

are orchestrated via shipment on a fast and safe delivery process. As ordering to products might

seem simple, fulfilling the orders can be challenging when the numbers of orders increases. Rather

than a sole supervisor, companies needs to implement a comprehensive logistics process and

management to efficiently fulfil the request of customers. With a detailed standardized fulfillment

logistics management an accurate and efficiently delivery process can be ensured. According to

Henderson (2020) the logistics management to successfully prepare and deliver orders will

involve-

Recording details of order

Receiving payment

Checking the stocks

Requesting items from inventory

Checking quality of items

Print packing lists

Securely packaging items

Weighting/measure packages

Scheduling the delivery etc.

Order processing- order processing can be used for business that are direct and do not require

extended order fulfilment system (Henderson, 2020). Order processing is focused more on the

customer’s feedback while other operations essentially performs the same function. Order

processing is an excellent alternative to make sure that the consumers are pleased with the products

they buy which requires a process of supervision instead of multiple employees. According to

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Henderson (2020) the logistics management required in carrying out a successful transaction with

the customers and managers involves-

Taking notes of client/order details

Checking stocks

Receiving payment

Scheduling delivery

Contacting the warehouse

Passing forward the tracking information to the customers

Doing follow ups on customer’s order

Inventory management- it is a strategic area in logistics operation process and it has the

efficiency impact and effectiveness of the overall system of the supply chain. Inventory

management provides some level of security against fluctuations of the demands by customers.

Inventory management involves utilizes various data and information to keep track of the goods

as they are moved through the production process, with IDs, lot number, serial numbers, cost of

items, numbers of goods and accurate time and date when the goods are moved through every

stage of the process (Abdul; Aun; Oladipo and Olota, 2019). Inventory management involves four

categories which are:

Raw materials- seller carries out the purchase of the raw material to fulfil the goal of

production which is transformed into consumer goods;

Inventory on work in progress- it involves utilization processes and transformation of the raw

materials while making them finished goods;

Finished goods- this is the complete products for consumers which are ready to be shipped for

consumption, after being checked for quality and available for purchase;

Maintenance, repair and operation goods- are items that are used for the support in the process

of production of finished goods to be made available for sales in future (Assestinfinity, 2019).

Inventory management involves managing various assets in the business. It helps link

customers indirectly to grow business in the market. The process also involves ensuring that

various elements when placing and receiving order are efficiently management such as-

The current levels of stocks

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Budget of the company

List of orders

Approval of Purchase order

Details tracking

Time of arrival

Returning of goods damaged

Records of stock updates etc

Inventory management is beneficial as it ensures improved inventory and planning, organized

warehouse, improved productivity and services and others. It enables enhancement of productivity

through effective logistics management process to deliver high quality and upsurge in satisfaction

of customers.

Transportation management- it is a subdivision of logistics and it has symbiotic relationship

that requires care due to the fact that it is required by the entire production procedures to the end

point (consumers) and returns. Transportation is expensive and complex which requires

management, planning, controlling and smart strategies making decision on the areas of operations

of logistics that are geographically moved and positioned inventory (Hughes, 2017; Bowersox;

Closs and Cooper, 2010).

The management of transportation in logistics is crucial because it takes about one third to two

third of the entire logistics process (Bowersox, et al., 2010). In the logistics management point of

view, transportation management has three major factors which are the performance in: cost, speed

and consistency; therefore, logistics management involves utilizing transportation that enables

minimization of cost of the total system (Bowersox, et al., 2010), some of which are-

Annual inspections of vehicles

Long term repair cost

An overview of the conditions of the fleets etc

Packaging and unitization – the logistics management involves the care and condition of

products. Therefore, packaging management is an important part of it. The Unitization is also

considered crucial because it assists in storage and transportation of products. The simplest goods

to move to the store is a cube, thus the attempt at packaging and unitization takes all various sizes

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and shapes of the products and pack them as near as it is possible into packs cuboid in shape

(Future Learn, 2017).

Logistics management helps businesses to manage how they move products and other

information related through multi-faceted supply chain operations from the destination source

(either at national or international) scale through using systems that ensures safety, reduces time

and cost in a manner efficient (CITT, 2020).

In summary, the availability of information technologies enables the capacity to see data that

are private in the system of collaboration and monitor the products developments, where there is

information flow passing in all procedures in logistics management is improved. The management

of warehouse, inventory, packaging and transportation are all processes that ensures smooth

logistics operation without which can result in customer’s complaints and hampers the goal of the

business and impact the business negatively.

The sustainability concept in logistics management emphasizes meeting the needs of

individuals without hampering the ability to meet such need in the future, this is as to do with

ensuring balanced environment for business and its logistics operations. Logistics management in

Nigerian context (an example of Jumia Nigeria) is reviewed in the next subchapter.

1.4. Uncertainties of logistics process

There are uncertainties in the logistics process due to the complexities in the overall

logistics process. Since logistics process management is sometimes measured based on means

quantifiable and based on the notion of the various actors and parts which are all interconnected

in the logistics process management. Logistics process management complexity is such that is

comprise of interdependent actors interconnected and in the current situations transform their

perception, update their goals and adapt to the context of both individual and collective given the

various aspects of the logistics process management.

According to Nelson (2006) uncertainties in logistics process in divided into given in the

figure below.

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Figure 3. Uncertainties in logistics process (Source: Nelson, F., 2006)

Customers demand and expectation -The first dimension here relates to rise and changes in

demands from customers, in which it results is increasingly affecting the logistics process. Since

demands is not constant as its effects on logistics process is felt in the shrinking time windows for

deliveries, customized order bookings, rise in the number of types of packaging, variations in

numbers of products per pallets and order, rise in the frequency of deliveries etc.

The situation at times leads to rise in cost incurred in the logistics process just to meet with

the service requirement and satisfy the customers and also build relationship with the customers.

Thus logistics process provides crucial opportunities to build relationship and gain the trust of

customers from the confidence built by meeting up with delivery demands including time. Also

the contradiction between other part of the logistics company affects the logistics process of

delivery of products, this is because the marketing or sales unit might take in orders that may be

difficult to meet up. It thereby mounts more pressure on the logistics distributing channels who

work hard to meet up with the customer’s expectation (Nelson, 2006).

Uncertainties in logistics process

Custumers demand and expectation

Internal processes

General Trends

Human Factors

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Thus, effective communication between all interconnected aspects of the logistics process

and management is important to achieve the organizational goal and meet the customer’s

expectation without creating unnecessary constraint in the logistics process.

Internal processes -The internal processes in logistics process management is about the

importance of functional integration (Pagell, 2004), and the importance of integration of

marketing, sales and logistics (Mentzer et al., 2004). There is indication that the internal

communication between marketing, sales and logistics is a source of the major uncertainty in the

daily logistics process management.

Therefore, the perception of this in general is that the understanding of logistics process in

an organization is a valuable activity which must not be limited. This is because it is essential to

enable a smooth, accurate and efficient work that is not associated with more costs. The

uncertainties in the internal process is a factor in logistics that occurs based on customers are

invited into the arrangement rather late which is unnecessary.

Thus, the logistics process becomes a function of complying with instead of providing an

effective solution from its inception. Furthermore, discrepancies do not only occur in the marketing

and sales aspects, it also occurs between the IT and logistics units due to lack of effective

communication (Nelson, 2006).

Human factors- the human factors comes up given the fact that humans are not robots and

mistakes do happen in logistics processes. This human factors occurs in the aspects of influence

in perception of human related uncertainties that may happen. Such uncertainties include truths

hidden, power and also protectionism when an incident occurs.

According to Nelson (2006), the scenario of ‘power’ is an uncertainty factors which

happens the process of making decisions, and it also makes communication harder, i.e. it was

merely an obstacle that creates more problem in various situations. Also, the scenario of powers

occurs due to fear, as individuals might be afraid of making decision due to internal structures of

powers.

General trends – the general trends points at related general developments of new technology,

concepts and ideas. This is due to the global environment that is ever changing and it necessitates

continual checks for improvement effort made in the logistics process. Some of this changes are

23

in the radio frequency identification technology (RFID) and how to apply it to the process of

logistics management as well as cost implications of acquiring new technologies.

Other areas are the rise in amount of ideas and concepts that are trending in the available

markets, because it requires training workers in preparation for the future demands and

requirements of logistics process which is both on short and long term basis.

In summary, human factors create both value and uncertainty in the logistics process. And

it requires more awareness and understanding of the involvement of human to gain more leverage

and improve efforts that creates higher levels of integration with customers and internal logistics

processes. The general trends come with improvements and changes in technology, ideas and

notions for logistic process management, and it requires adapting and training to meet up with the

global trends. From one of the definitions of logistics process, it is a process of relation between

human, nature, technology and resources that interact and unpredictably self-organize into

emerging paradoxical pattern with creating potential value (Johannensson, 2003). This shows that

logistics process involves difficulty in aspects where work of managers relates to the factors that

integrates concepts, technologies, ideas etc during their logistics work activities.

24

2. EMPIRICAL RESEARCH METHODOLOGY

The empirical research methodology chapter comprises of the research methods applied

for improvement of logistics management on the example of Jumia Nigeria research work. It is

concerned with testing the theoretical concepts and the relationship that exist there to see how well

they are reflected in the observation of the reality (Bhattacherjee, 2012). The logical sequence of

the study, research techniques, procedures and sampling size are presented to explain the process.

The ethical consideration for the study is also presented based on the ethics of research observed

in this study as well as the limitations.

2.1. Logical sequence of the research

The logical sequence of this empirical research involves the steps presented with the figure

below.

Figure 4. Logical sequence of empirical research (Source: Author, 2021)

The logical sequence above are the steps applied in the empirical study to achieve the purpose

of this study. The empirical research methods involve a detailed presentation of the methods

applied in the research and the process used to carry out the research as well as the analysis of the

Utilization of logistics management insights to carry-out a semi-structured interview with the example of Jumia

Nigeria

Analyzing the challenges of logistics management using thematic analysis

Identifying the major themes and subthemes and presentation of the challenges of logistics management

with and example of Jumia Nigeria

The PESTEL method, for analysis of logistics management (Jumia Nigeria)

Recommendation for improvement of logistics management

25

research outcome. Thus the above steps are suitable for answering the research questions which

are:

1. What are the logistics management challenges for market place in Nigeria?

2. How can logistics management be improved?

And also achieving the object of the research which is ‘improvement of logistics

management’.

2.2. Research methods for improvement of logistics management

The method of this research involves the strategies, techniques and processes applied to derive

data and analyse data in an effort to discover information’s on improvement of logistics

management, this is to ensure that the subject of study is better understood as well as the cases

looked at.

Thus, to achieve this the selected participants in the research have an understanding and

experience in the logistics management in market places in Nigeria with an example of Jumia

Nigeria. Therefore, the qualitative research methods were applied to gather data about the current

situation, experiences, behaviours and the interpretation of the business (Jumia Nigeria logistics

process management) in Nigeria.

The data derived was analyses using thematic data analysis, which involves analysis of the

main issues or developing the themes arising from the body of evidence of the research work on

improvement of logistics management. The process involves organising and summarizing the

findings (i.e the interview ideas) from the large, diverse body of research (Pope, Mays and Papay,

2007).

The original data will be derived from the interview information’s and then organized and

summarized in a table to form subthemes. The subthemes extracted will be taken from the original

interview ideas gotten from participant through the interview which will then be developed into

initial themes. After familiarization of the interview ideas, the process of developing themes from

the interview information is indicated in the figure below.

26

Figure 5. The process of themes derivation from the interview ideas (Sources: Author,

2021)

The major opinions of the participants from is derived to make the final theme and it guides

the interpretation of the outcome of the interview.

Data collection- The data used for this research is derived from both secondary and primary

sources on the subject of study improvement of logistics management and example of Jumia

Nigeria.

According to Bryman (2012) the “secondary data are that has been collected by somebody else

than the researcher or researcher that are carrying out data analysis (e.g. archived data collected n

higher institutions for it to be available to other researcher as secondary data source”. Thus, the

secondary sources of data are sourced from existing literatures such as journals, reports, works of

authors relevant for the research such as:

Henderson, C. (2020). Complete guide to logistics management – Definition, process and

more.

Ristovska, N.; Kozuharov, S. and Petkovski, V. (2017). The importance of logistic

management practice on company.

Sai, S. (2020). Logistics management: Concept, Significance and key activities.

Springinklee, M. and Wallenburg, C. M. (2012). Improving distribution services performance

through effective production and logistics integration.

While the primary data is derived by carrying out an interview on improving logistics

management on the example of Jumia Nigeria using qualitative method. These data are collected

by the researcher who also conducts the data analysis (Bryman, 2012).

Interview ideas

Original part of interview

Sub-theme Initial Theme Final Theme

27

Qualitative research method- Is a social enquiry that assist in understanding the world around

us and the things that occurs as they are (Hancock, 2002; Patton, 2002). According to Lacey and

Luff (2009), the “qualitative data collection method involves participant’s observation or in-depth

interviews which focus on opinions expressed in words rather than numbers”. It explores ways of

seeking to gather opinions, thoughts while also deriving better understanding of the information

of participants. The questions used during the interview are based on the subject of the study are

prepaid as guide questions to help during the interview with selected participants.

Research technique- The research adopts the qualitative research technique using semi-structures

interview in an effort to derive and in-depth information from the participating respondents on

logistics management in with an example of Jumia Nigeria. The semi-structured strategy

comprises of dialogue between the researcher and the selected participants. This approach give

room for flexibility in interview procedure, it supplements follow up questions, probes and allows

more comments helpful for the research. According to Dejonkheere and Vaughn (2020), semi-

structured interviews allows open ended questions and gives room for exploration of thoughts,

feelings and certainty about a precise subject, the subject in this case is improving logistics process

management with an example of Jumia Nigeria.

The interview will be carried out with selected participants via digital means (i.e Skype,

Zoom, WhatsApp etc.) using the internet based on participant’s choice and convenient internet

platform. The option of telephone discussion will also open if preferred by participants. The semi-

structured for the interview is chosen to give the participants a relative free conservation and also

ensuring that definite issues noted are covered with participants during the interview. The

conservations will be recorded during interview for revisiting and analysis later.

Sample size- In empirical research, carrying out interviews, observing participants and

documentation of the readings is considered as a technique that is effective for putting together

data under ethnographic methods (Creswell, 2013; Hancock et al, 2002). The participants selected

are staffs of Jumia Nigeria. Using purposive sampling, staff of Jumia service in Nigeria are selected

28

to provide data about the ideas, experience in logistics management for Jumia Nigeria services

through interview and in line with the research questions.

Sampling size in qualitative research is mostly much smaller than that of quantitative

research (Interq Research LLC, 2020). The small sampling size does not necessarily reduce the

information given by participants, rather the data realize contains in-depth information that

uncovers a range of opinions of participants which is based on their experiences and knowledge

of the topic instead of have a repetitive information from larger audience. Using a large sampling

size in qualitative research is subject to a risk of repetitions of data which hinders the realization

of the goal of the research.

Thus, there is a risk in using larger sampling size in this research which is why the numbers

of participants from Jumia Nigeria is 5 while relying on the integrity of selected participants in

information sharing during interview. Therefore, 5 participants (managers/supervisors in the

logistics section) are selected from Jumia Nigeria using purposive sampling.

Table 2. Criteria for selecting participants

No Criteria

1 Participants are staffs of Jumia Nigeria.

2 Have worked in the company for more than five years.

3 Within managerial and supervisory levels in Jumia Nigeria

4 Understand fully the subject of study (i.e. improving logistics management).

5 Shown willingness to take part in the research to share knowledge and experience in

logistics management (Jumia Nigeria).

Method of data analysis – The qualitative data analysis is based on ideas, words, description of

opinions by participants using qualitative content analysis. It can be sued to analyze data in several

ways for the amount of information derived for the research which is transcribed and re-grouped

into summarized categories and themes. Therefore, the research data comprise of collecting and

organizing data to enable the researcher arrive at a conclusion about improving logistics

management.

29

The analysis of the data derived enables the researcher find answers to the research

questions, solve problems and gain additional knowledge beneficial to the study. The research

questions are the set of questions that the study intends to answers and improve knowledge based

on the subject of study and helps to address the research problem. The questions arising from the

topic, improvement of logistics management on the example of Jumia Nigeria are:

1. What are the logistics management challenges for market place in Nigeria?

2. How can logistics management be improved?

According to Hammarberg; Kirkman and Lacey (2016) the use of thematic analysis for

research “involves answering research questions about the perspective, experience and meaning

from the stand point of the participants” and it is widely done in qualitative research data analysis

and it is used for this research.

It is reliant on the identified research questions and the theoretical point of view in the

reviewed literature prominent in the study. The data realized will be analyzed to provide answer

to the research questions and cover the outlined objectives in the study (See Annex I).

Ethics of research- Ethics are set of rules broadly written and unwritten that governs the

expectation of personal behavior of people and the behaviors of others. According to Patton (2002)

ethics is important for research works for allow for ethical consideration given consideration to

the participants. It also governs how scientific and other related research works are carried out and

it comprise of issues that arises when human or animals are involved in any research (Resnick,

2015). Thus, it is necessary to give attention to factors used at arriving at decision bounds with

ethics such as morals, commitment or obligations that is binding for proper conduct. Some areas

observe in ethics for this research are-

Objectivity- It is important to avoid biases in research works, hence efforts were made to maintain

objectivity during the research in terms of data analysis and interpretation of the outcome of the

interview ideas.

Respect for intellectual property- It has to do with acknowledgment of sources of information

used during the research, which implies that the contributions of authors are acknowledged in the

literatures and listed as references.

30

Informed consent – The participants permission was first sort in every aspect of the research to

ensure that the principle of informed consent is adhered to.

Confidentiality – The assurance of confidentiality to participants done to provide confidence in

assuring that sensitive or opinions about logistics management with participants from Jumia

Nigeria is ensured. This includes withholding names, contacts etc of participants based on the

agreement and understanding reached before commencing the interviewing.

Giving consideration to the above was necessary to ensure that the participants and process

is done confidentially to achieve the purpose of the research since it is majorly for academic

purpose. The materials from secondary sources used are referenced in the theoretical aspects of

the thesis.

Limitation of study

The main constraint during is the time it took to put together the research given the fact

that assessing data in developing country Nigeria is a major issue. Also, the concerns of

participants about being part of the study as they are skeptical about reason for this study, as given

information may hamper their interest or that of their company (Jumia Nigeria) especially to

competitors in the marketplace. This concerns where laid to rest since the research is majorly an

academic research work.

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3. BACKGROUND TO LOGISTICS MANAGEMENT IN NIGERIA

This section provides information on logistics management in Nigeria showing the impacts in

plays in the economy of the country, a background to Jumia Nigeria logistics process is also

presented showing it functions and operations, and the laws guiding logistics management in

Nigeria.

3.1. Background to Logistics management in Nigeria

Logistics process plays a vital role in the growth of the economy of any nation as it is

interlinked with various sectors of the economy such as health, manufacturing, transportation and

others. It also thrives on certain resources such as infrastructures, ICT and others with efficient

management for effective performance. The logistics process in business is as a result of the

increasing complexities of the manufacturers suppliers with materials and shipping the goods out.

Logistics processes on companies mostly specialize in the transportation, distribution, storage and

packaging of goods. Most manufacturing company’s uses external organization for logistics

processes.

Since, there are rarely any aspects of the development of a country that those not require

logistics as an ingredient essential since its involves the collection, assembling, transfer,

warehousing, customer clearance and distribution of goods, services and others to individuals or

groups from one point to another (Ajiboye, 2011). The logistics is a very important aspects of

production process which is not complete without the goods being transferred to the consumers in

quest of the products (Ajiboye and Ayantoyinbo, 2009).

According the World Bank, logistics performance is captured by six main performance

index which are: the logistics competence, customs, international shipping, infrastructure,

timeliness and the tracking and tracing performance. These are the standards used for measuring

logistics overall index for countries, regions etc perform in terms of facilitating businesses or trade.

Thus, there is regular need for improvement of logistics to increase its competitiveness and

effectiveness as logistics plays crucial role in the success factor of the flow of goods services with

32

regards to the time, cost and the variability in related trade activities which determines the countries

potential to attract and maintain trade (Onyemejor, 2015).

During the last decade, the term logistics has been increasing used in the world of business

as it is viewed as an important means of ensuring profitability. Organizations are now integrating

their aspects of management and distribution process into the logistics supply chain and Nigeria is

not left out of this new trend. This has led to growth in Logistic management in Nigeria over the

years, it has become a fast growing business, this is shown by the value of the logistics sub-sector

of the Nigerian economy which was put at about 250billion naira ($696 million US dollars) as

reported by the Logistics and Supply Chain Industry report for 2018 (Oritse, 2019). The sum for

2018 was a rise of N50billion Naira ($140million US dollars) from that of 2017.

It has also led to the establishment of various logistics businesses in Nigeria who carry out

logistics process management bridging the gap between the manufacturers or producers with their

customers in Nigeria. This move by businesses in Nigeria is crucial to enable to have increased

offer in the market due to the intensive competition and to survive the problems faced in the

Nigerian market. It is also to enable these businesses meet up with the broadening marketplace

and rise in competition, globalization which has resulted in greater demand by customers putting

pressure on these manufacturers to increase their quality, flexibility and serviceability at a

competitive cost (Abdul; Aun; Oladipo and Olota, 2019).

Having logistics process management team in businesses in Nigeria provides the

organizations with the total operations cots and it increases their business activity efficiency. Some

of the essentials of these logistics operators is their capacity to connect to materials, manage

imports and exports, distributions, shipments, storage, cost freight handling, goods distribution

and other related services.

Nigerian logistics industry has been on the rise due to the development of E-Commerce in

Africa and by extension Nigeria. There has been a change from the traditional market with the

current rise on online shopping which requires services of logistics sub-sector of the country’s

economy. Various types of items are now being sort and bought online by consumers which ranges

from house hold appliances, groceries, clothing, furniture and others which are purchased from

online markets from both local and international businesses.

33

For instance, the Nigerian E-Commerce markets stands at $4,885.7 million US dollars in

2019 which resulted in a volume of market still expected to grow at a CAGR of 20.5% in the

projected period of 2019 – 2023 in Nigeria (Mordor Intelligence, 2020). It resulted in the market

volume of about $10,290.6 million US dollars’ projections by year 2023.

The Nigerian market’s largest section was the fashion industry with a market volume of

$1,761.9 million US dollars and a user penetration was put at 52.2percent and is still expected to

reach 75.2percent projections by year 2023.

Thus, the ease of payment by mobile money and debit cards also internet penetrations is

expected to assist the E-Commerce in the country and it is also synonymous to the growth of

Logistics sub-sector in Nigeria. The increase in E-Commerce in requires the services of market

places such as Jumia, Konga, JIJI and others which makes the future of logistics services for this

market places in Nigeria more important to meet customer’s expectation. An introduction to Jumia

Nigeria with regards to its logistics operations is done below.

3.2. Jumia Nigeria Logistics management

Jumia services is part of Jumia Group which is also the leading online market place in

Africa involved in market place, logistics and services and payment services. Jumia logistics were

reserved for e-commerce, food vendors and third party businesses who can leverage on its network,

technology and services in Nigeria and 10 other countries in Africa (Alekhougie, 2020). The

company was established by Jeremy Hodara and Sacha Poignonnec in 2013 with its headquarters

currently at Yaba, Lagos Nigeria.

Jumia Nigeria still remains one of the major online shopping destinations in the country

where customers have access to a wide range of items selection for house appliances, items for

children, electronics and many others (Jumia Group 2021). Jumia Nigeria ensures that these items

are shipped directly to the homes or other locations at the convenience of respective customers

which involves lots of logistics processes.

The company in 2015 generated about $234million US dollars revenue, the figure stands

at 265percent growth for the revenue in 2014. By 2016, Jumia became Africa’s first unicorn being

34

valued at over $1billion US dollars. Jumia offers delivery of goods to customer’s nationwide, it

also has free returns and offer opportunities to various convenient payment options for customers

to choose from (i.e. cash payment on delivery, debit cards, Paypal etc.) which has been a boost to

the increase online shopping in the country.

The goal of the company is to give shoppers opportunity to access affordable prices of

great products, enjoy awesome shopping experiences with items ordered being delivered secure at

the door step of the customers. The processes also involve supporting the evolution of the online

culture of Africans and by extension Nigeria with partnership with vendors where buyers meet the

sellers. But meeting the task of selling over 6,000, 000 products, dealing with over 50,000

international and local brands, over 10,000 active vendors and 4milllion subscribers requiring a

range of logistics management process is particularly daunting in a developing country like Nigeria

(Jumia Group, 2021).

The company utilize technologies to offer a wide coverage of services at a fast turnaround

time by handling products reliably to ensure the success of their operations in rural and urbans

areas in the country. The Jumia Logistics market place is based on proprietary of technology with

aggregate to the supply capacity through the parameters of service quality, reachability of network

and cost of delivery of these products (Jumia, 2020). It also offers logistics network, which

involves its physical sites of over 20 warehouses (North of 110, 000 SQM) and over 1,300 drop

off stations and pick up stations located across Jumia in 11 country market (in both urban and

remote areas). Jumia Group comprise of the marketplace, Jumia logistics and Jumia pay. The

Jumia market place enables millions of people to access thousands of sellers around the world and

connect and transact businesses online. The Jumia logistics enables the delivery of items purchased

by millions of customers as their packages are delivered to them through the network made

available by their local partners (Jumia, 2020).

With unified integration of over 300 logistics partners Jumia Nigeria was able to package

over 20 million products in 2019 (Jumia, 2020). Jumia Nigeria recognized the fact that logistics is

the main cost driver of their business and they re-examine their cost but also seek the right

partnerships and, people, technologies and infrastructures to manage the logistics process

challenges. As part of the effort to boost logistics management for Jumia Nigeria, the company

35

adapted apps to drive the rider’s efficiency and ensure that their customers get a good experience

while also receiving more orders from customers and growing the business in Nigeria.

Caring out businesses that is every depended of logistics process such as Jumia Nigeria is

not an easy task as many challenges hinders the smooth operations of the logistics process

management in Nigeria. The challenges confronting logistics management is reviewed in the next

sub-chapter.

3.3. Logistics management regulation in Nigeria

The regulatory aspects of logistics for operators is usual just like regulation of operators of

other sectors of the Nigerian economy. The logistics operators in Nigeria are guided by the

NIPOST ACT, section 62, CAP 127 (i.e. The Nigerian Postal Services Act, 2004) which has been

in existence since 2001. But in July 2020, the Nigerian minister of communication and digital

economy, “Dr Isa Ali Ibrahim Pantami” approved a new guideline for the regulation of the courier

and logistics sector (Balogun, Mbah and Omoniyi, 2021).

The essence of the new regulation 2020 is to repeal the rigid old one, according to the

minister of communication and digital economy for the couriers and logistics sector was to

enhance the operations of this sector in Nigeria. the old law was focused on the big players in the

courier and logistics services, but the new law opens opportunities for various operators. The new

guideline was also aimed at making it possible for operators irrespective of their category to have

ability to be identified with specific address and location that is traceable to before and after

engaging their services (Elebeke, 2021). This move is expected to eliminate the risk of dubious

operators who may want to take advantage of the poor control of the sector to operate illegally.

Application for Licensing in logistics services in Nigeria -The regulations apply to licensed

courier and logistics services operators and also the companies seeking license to either operate a

logistics company or courier services in Nigeria. the Logistics service in this sense includes:

Conveyance

Haulage

36

Dispatch or delivery of goods and other items (weighing not less than 50kg).

The courier services aspects include-

Merchandise delivery

Door to door time sensitive and secured services (document, parcel delivery etc)

Cargo delivery (weighing a total of note less than 0.5kg/not more than 50kg)

The purpose of the regulation was to make available a regulatory framework that ensures

an effective and efficient courier and logistics services licensing and procedure as well as

regulation of these courier and logistics operations in the country (NIPOST, 2020). Thus, to

achieve this goal, the new regulations provides for the following six categories of licenses-

Table 4. Category of licensing for operators in Nigeria (Source: Balogun, Mbah and

Omoniyi, 2021)

Categories Fee for

Licensing

(Naira)

Fee for Renewal

(Naira)

Licensing Scope

International

courier License

20, 000, 000 8, 000, 000 Logistics services carried out

across international borders

National courier

license

10, 000, 000 4, 000, 000 Logistics services carried out

nationwide

Regional courier

license

5, 000, 000 2, 000, 000 Logistics services carried out

within the geo-political zone in

Nigeria, such as south-west geo-

political zone, North-east geo-

political zone etc.

State courier

services license

2, 000, 000 2, 000, 000 Logistics services within a state

e.g. Lagos, Ogun state etc.

Municipal courier

services license

1, 000, 000 400, 000 Logistics services carried out

within specific city within states in

Nigeria

37

Special SME

courier services

license

250, 000 100, 000 Logistics services that are in

operation within a specific city

and do not have more than 5 motor

bikes/motorcycles for its

operations.

The six categories in the table above are the classes of operators in the country with fees

for new operators who want to register and stipulated fees for the operators who are already in the

business of logistics and courier services in Nigeria. also, the regulation benchmark stipulates that

the courier and logistics service operators must maintain guidelines of the new regime.

The operators are also required to contribute the total sum of 20percent of their total annual

revenue to the Postal Fund for the development of postal services in the rural areas as well as the

underserved areas according to the NIPOST Act of Nigeria (Balogun, Mbah and Omoniyi, 2021).

Part the new guideline also stipulates that the licensed courier and logistics service operators

through the ‘Postmaster General’ effect free delivery for ‘Universal Postal Service’ obligation or

any “Social Delivery’ for the interest of the country (NIPOST, 2020). The new guidelines are also

to help ensure trustworthiness and diligence in logistics process and operations in the country.

The ethical benchmarks for operators - The Nigerian ethical benchmarks for logistics/courier

service operators in the country are expected to be met under the new regulations, such as-

The operators must establish clear procedures and maintain a customer care unit to manage

complaint;

The non-compliance with these ethical benchmark or the whole regulation shall constitute a

ground for revocation the license or the refusal to renew the licenses of an operator;

False declaration by an applicant in the process of obtaining their license shall constitute a

ground for revocation of a license, refusal to renew their license and even total rejection of the

offer of application for the license.

In a situation where any operator given license is convicted of criminal offence under the

NIPOST Act under any enactment, law or regulation, it shall constitute a ground for rejecting the

application of revocation of the license given. An operator that fails to renew its license within

38

three months before its expiration may also constitute a reason for revocation of such license. And

if an operators persist in providing services after the deregistration or during its suspension, the

entity shall pay the fine that is equivalent to the previous fee for the category of license paid for

and an additional fine of 25,000 naira for every day after the suspension of deregistration of the

operator (Balogun, Mbah and Omoniyi, 2021).

The department that handles the requirement for the operators of carrying out services is the

`Courier Regulatory Department (CRD)’. The CRD is a specialized arm of the NIPOST that is

given the responsibility of developing the courier/logistics sector in Nigeria. The CRD required

are expected to be submitted with application for the license or renewal license by the operators

(NIPOST, 2020). Apart from the federal laws (NIPOST Act, 2020), at state levels the requirements

vary based on the state laws guiding operators and mobile vehicle licenses. For instance, the Lagos

State stipulates that operators of courier/logistics services have their branded vehicles. The

LASAA agency requires all persons that intends to sue branded vehicles to submit an application

to get permits for such purposes.

Thus, the two types of branding recognized are partial and full branding. While the companies

that needs to brand vehicle are expected to get ‘mobile advert permit’ which allows them use

signage and branding on their vehicles for advertisement in Lagos state. The fees vary from heavy

duty vehicles to as low as bicycle and push cart from N50,000 to N19,000 for full branding and

N9,900 to N1,900 for partial branding of these vehicles. The fees for branded vehicles are also is

required to be paid by operators at the local government tier of the Nigeria (Balogun, Mbah and

Omoniyi, 2021).

In summary, the introduction of new regulations for the courier and logistics sector in Nigeria

has rather raised more concern for operators given the cost implication of new licensing and

renewal of licenses by existing operators. The first of this concerns is if the CRD requirements

which exists even before the new regulations are still applicable with for announcement made

officially by the Ministry of Communication and the Digital Economy in this regard. It seems as

if the requirements for obtaining the license under the new regulation and the requirements for the

CRD is expected to run concurrently until clarification are made by the ministry. Main while, the

major issues is the cost implication for the courier and logistics operators in Nigeria as the amount

stipulated by the regulators for operators is rather exorbitant. The cost further makes the overhead

39

cost of logistics services in the country higher which is not beneficial for both the logistics

operators and the customers alike. Finally, the issue of regulation if properly effected for logistics

operation in Nigeria also results in trust by customers.

40

4. RESEARCH ANALYSIS AND FINDINGS

The research analysis is presented in this section. The research data analysis is a very

important aspect of the research as it comprises of the systematic application or logical technique

of describing and explaining, condensing and a recap as well as evaluation of the data derived from

the semi-structured interview. Since the research is a qualitative study involving interview with

participants, the interview was done using the interview guard questions to help pay attention on

the subject of the research.

All the information presented by participants are based on their opinions and knowledge

of the subject of study which helps to find answers to the research questions (Please see annex I).

The participant’s opinions derived from the interview is developed and summarized into theme as

shown in the table below.

Table 3. Final themes developed from the original interview information (Source:

Author, 2021)

No Final themes

1 Logistics process management

2 Regulation challenges

3 Economic and skills challenges

4 High logistics operating cost factors

5 Logistics limitations

6 Regulation challenges

7 Improvement of logistics process management

8 Taxation laws improvement

9 Roles of policies by government and legislators

10 Management roles

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4.1. Challenges of logistics management in Nigeria

Generally, the logistics management in Nigeria is confronted by numerous challenges even

though many opportunities are available in Nigeria for businesses to tap into. According to the

Nigeria country guide report (2020) states that “a huge deficit and anti-business climate and

government policies, poor road network, unstable electricity and others has led to the challenges

in various processes of logistics, making it difficult for logistics business owners in Nigeria to

achieve efficiency for the benefits of their business. With local stakeholders unable to meet with

their financial obligations, transferring costs and charges to the end users (customers) which makes

them uncompetitive and it gives room for the foreign owned business operators with better

financial abilities to absorb higher levels of the risk in business to enter into Nigerian market and

entrenched corruption, and others being the additional factors”.

Thus, infrastructure is a major requirement for logistics operation and the supply chain

development objective (such as good roads, modern transport networks, availability of steady

electrical power supply etc.). To maintain a competitive logistics, a constant upgrade of the

regional infrastructural mix is required. In developed countries like US, Japan, EU countries and

Canada they have a highly developed national highway systems, port facilities, state of the art air

freight handling system, sophisticated information systems, communications facilities that are very

advanced, elaborate rail networks and multimodal transportation which is very beneficial to

logistics process management and operations in these countries (Madu, 2015).

Therefore, Logistics can be attributed to the major indicator for the advancement of a

country’s economy which is expressed boldly in the trades facilitation and business

competitiveness. But, it is rather unfortunate that there are deficits in the regional and national’s

infrastructures advancement in Nigeria. The cost of assessing internet facilities is the country is

still generally very high and standard of connectivity is still poor when compared with developed

countries with fast 4G networks and gradually moving towards 5G. According to the M-Lab report

of (2019) in Nigerian National Broadband plan 2020-2025 it was indicated that the “internet

download speed for Nigeria is still low when even when compared with other African countries is

shown in the figure below.

42

Figure 6. Internet download speed in some African countries (Source: M-Lab, 2019)

The figure above shows that internet down load speed in South-Africa at 8.4percent, Kenya

at 7.63percent, Rwanda at 2.34percent, Ghana at 3.2percent, while the download speed for Nigeria

still is at 1.56percent lower than its counterpart. This are some of the constraint for logistics process

management which considers time and cost management important for customer’s services

delivery.

According to Flex Space report (2017) the “Nigerian logistics and supply chain industry

has suffered setbacks in the last two years indicated in the logistics performance index of the World

Bank Group bi annual metrics reports”. The continual under performance of Logistics in Nigeria

was still in existence in the World Bank Logistics Performance Index which reflected poor ranking.

According to Oritse (2019) states that the survey carried out by the Lagos Chamber of Commerce

and Industry (LCCI) in 2018 shows that “Nigerian economy lost an estimated annual revenue of

about N3.46 trillion (naira) due to the current crisis of poor infrastructure, poor implementation

and corruption at the Nigerian ports, of which about N2.5trilliion (naira) are corporate earnings

losses across the various sectors of Nigeria economy”. The Nigerian logistics performance index

was put at 2.53 according to the World Bank: Economics Trading (2021) shown in the figure

below.

0

2

4

6

8

10

South AfricaKenya

RwandaGhana

Nigeria

8,4

7,63

2,34 3,2

1,56

43

Figure 7. Logistics performance index: Overall (1=low to 5=high) for Nigeria

between 2009 and 2019 (Source: World Bank: Trading Economies, 2021)

The essence of the logistics performance index score is to reflect perceptions of the country’s

logistics based on its efficiency in customs clearance process, ease of arranging competiveness of

priced shipment, quality of trade and transport related infrastructures, ability to track and trace

consignment, logistics service quality and the frequency of the shipment getting to the consignee

with the period scheduled. This implies that a current performance for Nigeria has not reached it

mark yet to gain higher score (5=high) given it current challenges. The logistics performance

index: overall (1=low to 5=high) in Nigeria is 2.53 1=low to 5=high in 2019 (World Bank, 2021),

which is rather on the average. The issue is that it has gradually dropped from 2.8 around 2014 to

2.53 in 2019 rather than improving.

Another challenge in logistics management in Nigeria is the issue of logistics education.

The major corporate growth and profitability in many years from now is through providing top

quality customer services at the lowest overall logistics cost. This requires adequate logistics

professionals, with analytical and technological skills, practical down to earth logistics experience,

supply chain knowledge and line management leadership skills (Madu, 2015). Therefore, it

demands a high performance of government institutions in financing and development of skills for

the Logistics industry. Logistics management requires professional at every level which includes

–

Analysts

2,4

2,59

2,45

2,8

2,64

2,53

2,2

2,3

2,4

2,5

2,6

2,7

2,8

2,9

2007 2010 2013 2014 2016 2019

44

Stock controllers

supervisors

IT professionals

Managers

Sales professionals

Directors and vice presidents etc

The above skills have been lacking to some extend in Nigerian logistics market place due to

the fact that some of these areas of logistics operation requires specialty in skills to function

efficiently. This situation in logistics process management would be more efficient when the

business invests in training of their workforce rather than employing hands from abroad who are

not familiar with the Nigerian logistics systems. Thus, the Nigerian logistics industry in confronted

with the following challenges in its logistics process management -

International shipment time delays;

Poor capabilities for tracking and tracing of goods;

The logistics quality and competence is poor;

Customs clearance and process efficiency is poor;

The poor quality of related transportation infrastructures and trade;

The ease of competitive priced shipment arrangement;

The logistics services quality;

Poor investment in logistics education/training

Tracking and tracing consignment ability;

The frequency at which the shipment reaches the consignee with the scheduled time frame.

According to the World Economic Forum (2016-2017), “the global competiveness index ranks

Nigerian infrastructure is at the bottom as the country is ranked 132nd out of 138 countries, the

report also states that the poor state of supply of infrastructure is the largest constraint to carrying

out business in Nigeria.”. Also in 2017, the Economic Recovery and Growth Plam (ERGP) states

that the deplorable condition of infrastructure is one of the major factors that seriously undermine

economic performance.

45

Table 6. Nigerian indicators in comparison with other middle income economies (2016),

(Source: UNPD, 2016)

Country Population

in millions

Population

density

(person per

hectare)

Land

Area

Percentage

per persons

living in

urban area

GDP per

capital

(PPP)

(Thousand

USD)

GDP per

capital

(MER)

(Thousand

USD)

HDI

India 1327.0 4.5 297.3 42.0 6.0 3.9 131

Indonesia 260.6 1.6 181.2 10.6 10.6 4.4 113

Nigeria 186.7 2.1 91.1 5.3 5.3 2.7 152

Pakistan 192.6 2.5 77.1 4.8 4.8 1.4 147

Countries like Pakistan, Indonesia and India are comparable to Nigeria in terms of economy,

land area, size of population, urbanization level and population density as shown in table 6. But,

Nigeria’s Human Development Index (HDI) is still very poor at 157th out of the world when

compared with these countries. These are some of major gray areas in the logistics process

management in Nigeria.

In summary, the there is a huge opportunities available for the logistics sub-sector in Nigeria

given the business potentials available due to the markets in Nigeria. the country was named the

biggest economy in Africa which is an indicators of the part the logistics operation holds in

ensuring that consumer’s services are carried out between sellers and buyers in the country

efficiently.

However, based on the above challenges and others the logistics management in Nigeria

currently has not performed optimally. The complex natures of logistics management require that

there should be provision of resources to meet with the demands of the various aspects of Logistics

process management. However, the characteristics of a country’s infrastructures (both soft and

hard infrastructures) and institutions determines how logistics performs. These includes how well

their imports, procedures, regulations and behaviors are.

46

The subject of this study is the improvement of logistics management on the example of Jumia

Nigeria which will involve an empirical study of Jumia Nigeria to identify the challenges

experienced in their logistics management.

4.2. Empirical research result presentation

The object of this study is improvement of logistics management. To achieve this, the

process comprised of identifying participants willing to partake in the research to provide their

opinions on logistics management with Jumia Nigeria as an example. Thus, the result of the

empirical research is presented in line with the final themes (table 3) developed from the excerpts

of the interview ideas. The final themes are used in the empirical research result presentation as

follows for easy understanding of the outcome of this research.

Theme: Logistics process management

The logistics management in Jumia Nigeria from the interview opinions reveals that it

involves managing activities between sellers and buyers of the products on the Jumia Nigeria

market place. This logistics process management according to the participant opinion reveals that

it involves “more of how we manage the activities within our company and outside with clients

connecting sellers and buyers, which involves transportation”. Jumia Nigeria logistics were

reserved for e-commerce, food vendors and third party businesses who can leverage on its network,

technology and services in Nigeria and 10 other countries in Africa (Alekhougie, 2020), it reveals

the wide service coverage their logistics process covers such as warehouse management, supply

chain management, inventory management, order tracking, ensuring accurate delivery to

customers, maintenance operations etc. The complexity of logistics activities makes it important

for adequate planning, controlling, implementing all done efficiently, cost effectively and flow of

materials in the process inventory, goods and other related information from the point of

consumption to the point of origin for the goal of recapturing the values or effective disposal.

Another participant says that “logistics process management is broad. It depends on which

area of operation the personnel belong. It entails, ensuring the warehouses are run effectively,

47

fleets managed, IT and marketing unit’s integration, personnel’s take inventories etc.”.

Furthermore “It usually involves aspects of inventory, maintenance, stock taking, cost

management, fleets operations etc. given the various aspects, team work is essential for every

aspect of our logistics process to run smoothly within and outside with the other parties”.

Thus, since the logistic aspects of business comprise of the process of logistics for the flow

of work from the beginning to the end for the purpose of fulfilling the expectations of customers

and also that of the organization, integration and management operation of every unit are necessary

to actualize the effective management and customer satisfaction. The logistics activities in a

business organization is a move to satisfy customers by achieving the time and location related to

the challenges of the market as well as through the cost of the provided services also taking quality,

customers need and purchase power into consideration (Ghoumrassi and Tigu, 2017). The Jumia

Nigeria market and other online market place has been increasing in customers visits and in

purchase over the years, thus there is need to meet the rising needs for logistics services in Nigeria.

And given the position of Nigeria as the largest economy in Africa, the logistics process

management (i.e efficient human resources, materials resources, effective regulations etc) is

essential to meet up with the demands of customers which is continually increasing in the country.

But the logistics process management is however confronted with many challenges in Nigeria

given the Jumia example.

Theme: Regulation challenges

The challenges regulation in in logistics process management according to the participant’s

opinions entails the challenges encountered during operation due to the enforcement of regulations

by various offices working with the federal, state and local government agencies. One of the

participants stated that “Often the logistics process from ports for imported goods, due to

regulatory issues at the ports affects movement and supply of these goods to our customers. Which

is beyond our own control has time and cost in this cases are hampered”. The inefficiency among

officials of government and corruption during services impedes the logistics process.

For example, one of the participants mentioned issues of policies “The challenges with

regards to policies is the instability and lack of thoughtfulness of the legislature in laws as regard

license renewal. And other state laws which makes the fees quite high. The new levies for renewal

of license for logistics operators is outrageous”. Regulation bureaucracies in Nigeria at federal,

48

state and local government rather than helping business to run smoothly in terms of regulation

raises concerns due to overlapping of government agencies (in the case of the NIPOST Act and

CRD regulations for logistics operations in Nigeria), it also in result financial burdens for operators

due to multiple levies. The participant’s states that “the government policy those not make room

for effective logistics operations and sustenance of logistics business as it is done in modern

countries. Also the bottle necks affecting logistics also have to do with government tariffs systems,

trade restrictions and business regulation is a major constraint to logistics process management”.

This regulatory issues should strengthen logistics processes in the country to help business

grow and strengthen trust and confidence of customers in need of logistics services in Nigeria

rather than weaken these processes, overlapping or duplicity of agencies and regulations adds

constraint to the already complex logistics process management.

Theme: Economic and skills challenges

The opinion of the participant’s reveals that the logistics process management in Jumia

Nigeria alongside other logistics outfit in operation in the country are confronted with economic

and skills challenges. The participant states that “some limitation we experience is in trained

personnel’s. Due to the economic realities most often our staffs leaves for personnel’s reasons,

thus it affects smooth running of our logistics process due to retaining of staffs and cost and time

involved”. According to Madu (2015) states that “a broad base of business skills, knowledge of

the logistics process and relevant work experience open better opportunity to have a carrier with a

logistics services provides and others organizations, such as the stock controller, fork-lift truck

drives or staffs who operates ta the warehouse. This implies that an effective logistics process

management requires skills to efficient carry out the numerous activities in operations. But the

economic situation in the country according to the respondent’s opinion makes it difficult to retain

already trained staff, as they continue to seek better employment opportunity in other organization

as a result of the inadequate remuneration to get at the current employment.

According to Madu (2015), in an effort made by organizations to be competitive in the

global market, they require to move the services or products around the world to meet customer’s

needs and demands; this however cannot be achieved without efficient human resources. Giving

49

the staff a conducive working condition, fair wages to meet up with their socio-economic

obligation and investment in training and equipment can help gain commitment of staff to achieve

the goal of the logistics company and retain capable hands in the logistics company longer.

Theme: High logistics operating cost factors

The logistics process management is particular time, cost and efficiency to satisfy

customers. According to Kacmary (2014) states that “logistics process involves planning,

controlling, implementing all done efficiently, cost effectively and flow of raw materials in the

process inventory, finished goods and other related information from the point of consumption to

the point of origin for the goal of recapturing the values or effective disposal”.

Thus, the ability to reduce cost minimally is important in logistics process management.

The opinions of the participant reveals that “inadequate infrastructures affect our business, as

most of our logistics operations in done via road transportation. Other alternative such as train,

light rail etc is available in developed countries helps to meet up with time, and reduce cost of

transportation of goods”. The implies that the cost incurred due to poor and congested roads

transportation affect the overall cost of operations.

Also another participants reveals that “one of our major limitation is cost of logistics

operations which contributes to the prices paid for delivery and cost of products. The inflation

rates, cost of maintenance and running of operations is always on the rise. Without reduction is

cost the logistics process cannot be sustained”. This implies that a lot of funds goes into vehicle

operations and maintenance of vehicles due to the poor roads, poor road networks and congestion

on roads during logistics operations. This would have otherwise been the case if the road networks

are good and alternative transportation facilities are available making it less depend on vehicular

movements.

According to Madu (2015) states that “infrastructure can be seen as the basic structure that

fosters the good performances of the countries, states and cities essential services. Hence, a country

requires good investment in the different modes of transportation, constant investment from both

the private and public to have a good logistics infrastructural system. In a global market that is

competitive, infrastructures that are compatible with the demands and needs are compulsory, in

50

order to transmit to customer’s products and services through various producers and demand

centers (like Jumia Nigeria) in different parts of the country and the world at large. Thus, the need

for investment in infrastructural projects and developments cannot be overemphasized for

effective logistic operations and management.

Theme: Logistics limitations

The logistics process management in Nigeria is confronted with various limitation some of

which have been discussed in the themes above. Others limitation according to the opinions of the

participants are “The limitation of logistics is Nigeria is mostly due to the poor infrastructure

conditions in most parts of the country, especially places outside the CBD. This includes roads

and transportation, electricity, internet access, ware house facilities, control of the ports etc.”. The

erratic supply of electricity in the country make it more expensive to generate power for internal

operations as they rely on diesel generators to power equipment’s adding to the fuel consumption

cost for running fleets for their logistics operations.

According to Njoku (2016) states that “in the panel of African progress reports shows that

electricity in Africa, and in Nigeria particularly is stagnant since 2015, when it managed to get up

to 4, 810.70 MW after many years of it hovering around 1000 to 2000MW. It also reports that the

present state of electrical power supply in the country is unacceptable as the country needs at least

30,000MW to the economy of Nigeria”.

As at 2018, the Nigerian average household only have access to uninterrupted power

supply for just six hours a day out of 24hours leading to majority depending on power generators

(Invoice, 2019). The inadequacies and deficiency in Nigeria infrastructures makes it difficult to

efficient run businesses in the country especially the logistics sector that rely heavily on these

infrastructures. The cost and penetration of internet accessibility in Nigeria is also an issue to

makes the logistics process management difficult and incur higher cost.

According to Vincent and Yusuf (2014) the electrical power supply in Nigeria in terms of

the voltage and billing systems are very poor. This implies that despite supplying low voltage

electrical power, the consumers still suffers over billing. Also, due to the poor infrastructure

available in the country, several challenges including low-quality distribution lines, inadequate

and weak network coverage, inaccurate system of billing, overloading of most of the transformers

51

and feeder pillars that are inferior, corruption with staffs (i.e illegal practices of employees of the

Power station), inefficient maintenance schemes and adequate logistics facilities (Otuoze et al,

2019; Amuta et al, 2018).

From the outcome of the research (i.e. primary and secondary data), the cumulative of this

infrastructural inadequacies results serves as limitation for logistics process management and the

other consumers/users of these infrastructures, all of which needs improvements.

Theme: Regulation challenges

The purpose regulation is to enable smooth running of sectors of the economy and abiding

by ethics of the business and laws government with regards to the environment, employees, safety

(i.e. staff safety to ensure they work in good working conditions and compensate in case of injury)

among others. The provision of these regulations are to make sure that businesses are kept in-check

and make sure that they abide by a common rule. But currently Nigeria just like most African

country still ranks low in business regulations to ease doing business in the country.

However, the irregularities in government agency makes regulation rather a burden than

beneficial to business entities, it this case the logistics sector of Nigerian economy. The

participants’ opinion reveals that “the government policy those not make room for effective

logistics operations and sustenance of logistics business as it is done in modern countries. Also

the bottle necks affecting logistics also have to do with government tariffs systems, trade

restrictions and business regulation is a major constraint to logistics process management”.

Others reveal that the “limitation we have is delivery of goods by the sellers and the

condition at which they are delivered. Often the logistics process from ports for imported goods,

due to regulatory issues at the ports affects movement and supply of these goods to our customers.

Which is beyond our own control has time and cost in this cases are hampered”.

The lack of professionalism and corruption with some of the government official makes

logistics business suffer delays due to time lost, pay higher fees to move processes faster thereby

incurring more cost in clearance of products before delivery to customers etc. Numerous tariffs

paid at the three tiers (Federal, states and local government levels) of government in Nigeria also

52

hampers logistics business. This means that due to the federal structure of the Nigeria’s political

system, a wide range of regulatory agencies in the country, which gives opportunity for these

public officials to demand bribes for their duty. According to the Transparency International’s

corruption perception index for 2020, Nigeria ranks 149 out of 180 countries and scored 25/100.

The logistics sector is faced with challenges due to these issues in its logistics processes

especially with clearance in ports and others logistics paper works required to operate efficiently

suffers constraint due to regulatory issues.

Theme: Improvement of logistics process management

The logistics process management in Nigeria requires improvement both internally and

externally. In the case of Jumia Nigeria, logistics process management is a crucial component of

the operations of the logistics business as its performance not only affects the internal processes

but it also affects the customer’s relations and trust for further orders received on sales and service

demands. According to the opinion of the participant “logistics process management can be

improved internally if there is provision for improved working conditions and salaries for the staffs

to enable us have experienced hands remain on the job rather than new staffs and repeating the

training circle. This is because we have huge labour force in Nigeria that are mostly unskilled”.

Thus, the staff welfare is important to encourage them in the job and give back to ensure

smooth operations of all logistics activities within and outside the company. According to Akbar

(2016) “the staffers who are habitual of management of the orders and information in the

traditional process requires training on the modern techniques; data management team could

provide weekly insight to the team on the floor and warehouses to provide smooth information

across the value chain”. Thus training of staff is important along with better wages and working

conditions.

Also, externally the availability of basic infrastructure cannot no doubt make room for

better operations. According to the participant, he reveals that “without provision of important

infrastructure, the logistics process management will still be faced with challenges. This is because

some aspects such as time and cost reduction cannot sole be controlled by managers but the

external factors need to be in check”. For instance, the street naming and house numbering in most

53

part of Nigeria is very poor, making it difficult for delivery workers to locate even with GPS, this

are some of the areas that needs attention.

The logistics process management seeks to safe time, reduce cost and ensure smooth

operations as well as customer’s satisfaction, which is difficult achieve without the necessary

infrastructural facilities. Nigeria’s logistics performance index 2012 (global ranking /155) is 121st

2.45 (score1-5) while the Global competiveness index 2012- infrastructure 130 92.28), (global

rank/144 (score 1-7). This is an indication that a lot still need to be done to improve the logistics

process management in Nigeria.

Themes: Taxation laws improvement

The issue of multiple taxation, levies and fees (Nigerian constitution on national tax

policies) takes it roots from the political system of Nigeria (i.e. the federal, state and the local

government agencies), and others are from trade unions etc. There are over 50 taxes and levies

collected by the federal, state and local government in Nigeria which creates hostile environment

for businesses and also reduces the Nigeria’s global competiveness (Ajayi, 2018).

According to the participant opinions “The government have huge part to play in logistics

process management in Nigeria. especially regarding laws of taxation, multiple taxation is a huge

burden in logistics process management”. This implies that the government role in addressing

issues of taxation is huge which begins with addressing the laws on taxation to reduce the burden

of the logistics operators and others businesses.

The heavy burden of multiple taxation also encourages malpractices between business

owners and public officials in an effort to cut down on overhead cost of running the logistics

business which needs to be addressed to improve logistics process management. This is not

beneficial to the government revenue either as some streams of income accruable to the

government ends in wrong hands. Hence, reevaluation of tax laws is beneficial to both the public

and private parties, more important the overhead cost in logistics process management can be

reduced to an extent.

54

Theme: Roles of policies by government and legislators

The government plays a huge role in the socio-economic development of a country as their

popularity is determined by the how impactful the policies of government has been able to

transform lives and the economy of the country. The growth and potential of logistics sector in

Nigeria is enormous if the government are able to facilitate it through effective policies and

infrastructural development to help in improvement of the logistics process management in the

country. The logistics sector has the potential to add about 3.4percent to the nation’s GDP growth

(International Trade Administration, 2020).

Currently the opinions of the participants reveal that logistics management “The key players are

the government and legislators. We need policies that improves logistics process management. In

terms of infrastructures and business friendly environment”. This fact is justified by reports of

experts which states that “the health of available infrastructure and the level of integration between

them directly impacts the success of logistics process management in terms of access, reliability,

cycle of time and the cost implications in operations”.

Thus, a huge infrastructural deficit in Nigeria and the anti- business policies of government,

un-stable electricity from the national grid, poor road networks and facilities, multiple taxation

among others has led to the logistics process management not being able to achieve it potential.

The logistics business operatives are unable to fully meet their financial obligations when

compared with what is obtainable international hence the current position globally (121st in the

logistics performance index). It also leads to cost and charges transfers to the end users (customers)

which makes them uncompetitive, as well as making room for well-known international brands

with better financial capabilities to dominate and absorb higher business levels risk to penetrate

further into the market like Amazon, Alibaba, Konga etc (International Trade Administration,

2020).

Furthermore, the entrenched corruption and other issues are factors that requires urgent

government and legislatives attention to improve the logistics process management in Nigeria.

One of the goals in the logistics process management is to ensure that the customers who are the

end users are satisfied which makes the logistics businesses grow further. But, the inability to grow

also affects the economy of the country which makes it paramount to government commitment to

improvement of facilities to assist in the logistics process in Nigeria through effective policies,

55

constant strategic development plan, better performance of government institutions and political

will to drive economic and infrastructural development and more importantly, an improved

logistics process management activities facilitation in the country.

Theme: Management roles

The management role in the logistics management is critical part of it involving training

and necessary support facilities, incentives and services for improvement of the logistics process

management. According to Ajiboye (2011) states that “there is a widespread realization that

adequate training and development of employees is necessary for rapid economic growth”.

This point was also pointed by the participants as their opinions suggest that “the

management of the company (Jumia Nigeria) can help improve the condition of service, increase

wages to retain skilled and capable workforce of the company. Also constant upgrade and

retraining of staff to meet up with the changes and new trends in the logistics business to remain

competitive”. Training in this case involves a process and a series of activities that is aimed at

empowering a person to assimilate and develop skills, knowledge, understanding and values that

are not only related to a narrow field of activities, but also permits a broad range ability to define

problems, analyze them and find solutions to them. The benefits of taking these initiatives will be

impacted on the logistics process management both on the long and short term. Also, it is important

that management of the logistics business adhere to labour labor in payment of salaries and

protection and compensation of workers in advent of work hazards. This are some of the

management inputs that builds workers moral and dedication to duties.

As much as the external factors are important are important and needs improvement, the

internal coordination are also critical to improve communication during the logistics management

due to its complex nature. This so, especially in terms of interaction and relationship with each

units of the logistics business such as the warehouse, packaging, coordination at pick up centers,

IT, marketing, inventory flow of logistics design, maintenance, transportation, human resources,

administering and control of the system of movement among others who all have specific roles to

encourage smooth operations. The investment on information technology is beneficial because it

56

helps in bridging the gap between all suppliers, manufacturers and customers to reduce the amount

of lead time, paper works and other important activities in the logistics management.

This helps in maintaining a balance between the sellers and buyers of products handled,

while also achieving the goal of the logistics process management (efficiency at time management,

cost reduction, safety, customers satisfaction etc) for the business.

4.3. Analysis of improvement of logistics management

The PESTEL method is used for analysis for improvement of logistics process management is

majorly to identify the external factors affecting the logistics process management in Nigeria, such

as the political, economic, socio-cultural, technological, legal and also the environmental factors.

This factors are those that poses as threats and opportunities to improvement of logistics process

management as shown in the figure below and explained.

57

Figure 8. PESTEL method for analysis of factors affecting improvement of logistics

management (Source: Author, 2021)

Opportunities and threats

Political Factor- the roles of government in political office is very important in improvement of

logistics management as identified in the research findings. Based on the finding opportunities

abound if the government can make deliberate efforts at new policy changes. Some of the critical

steps of the political elites should include-

Implementation of tax reforms- the implementation of tax reform will help tackle the problem

of multiple taxation which results in tax burden on logistics operators and other businesses in

Nigeria. Some of these funds injected into payment of taxes could be investment in human

resources and technological advancement of the business.

Factors affecting improvement of

logistics management

Poltical Factor

Environmental Factor

Socio-cultural Factor

Technological Factor

Economic Factor

Legal Factor

58

Address political interference and instabilities in agencies- the interference by government

officials gives rise to malpractices that hinders the logistics operations especially as it regards

duties of the officials in ports (sea and air cargo ports), LASAA, CRD and other government

agencies.

Reform of corporate laws to avoid the multiplicities in regulations – the reform of laws to

correct multiplicities in regulations is important due to the system of government in Nigeria.

The federal, states and local government agency regulations can be restructured into an entity

to avoid multiplicity of their regulatory roles in the logistics sector.

Development of policies that drives infrastructure and friendly environment for business

development- the importance of infrastructural development to logistics operations cannot be

over emphasized as pointed out in the research findings. Hence, it is a very important that the

government address this problem.

It is a move to reduce the cost of incurred in the logistics management previously due to

inadequacy of electricity power supply, poor road networks and facilities, poor access to internet,

poor legislation and others which culminates to a hostile environment for logistics business in

Nigeria. The opportunities for logistics business is big given the growth in online marketing in

Nigeria and the populations (over 170million people), and as well as investment opportunities

available in the country that can boost the purchasing power of customers in the country.

Economic Factor- the improvement of logistics management plays a huge role especially with the

opportunities accruable to the economy of the country as it has in developed countries. As much

as logistics improvement benefits from infrastructure development, it also influences several areas

of the economy like the transport network, storage systems, packing services, devices used for

communication, products and industry, imports and exports services etc. The critical areas of need

that can impact (opportunities and threats) the economy and Nigeria’s logistics management are-

Cost of transportation- logistics business in Nigeria is heavily dependent on road transportation

and given the poor condition of the roads the cost and time expended during movement of

goods and delivery to the end users is much. The cost is transferred to end users, thus making

logistic management in Nigeria not competitive. Therefore, heavily investing in transportation

networks will give a reverse situation of the current challenges will not only benefit the

59

logistics operators as well as the end users both also open opportunities for return in investment

of the government in transportation development.

Fluctuation in commodity prices – the fluctuation in commodity prices and currency affects

the logistics management in the area of maintenance and overhead cost incurred in operation

and management. Mostly due to fall of the Naira to dollar (US$1 is equivalent to 450 naira in

the black market) and inflation rate in the country.

Commodity rates in different locations in the country- there are different rates in commodities

at different locations in the country (e.g. rural areas are cheaper and city centers are much

higher). The fact that majority of the logistics office are located in the city centers makes

delivery pricing defer for end users in the rural areas (i.e. shoppers at lower tiers of the

societies) due to location and accessibility of roads, which is mostly not affordable leading to

decline in such areas.

Thus, instability in the economy is a disservice to the improvement of logistics management

in reducing cost, management of time and satisfaction of end users in Nigeria. Effective policies

and collaboration with private sector can add benefits to

Socio-cultural Factor- it has to do with the areas that comprise of the belief and attitudes of people

in response to issues. They include the negotiations perceptions, general cultural beliefs, collective

cultural difference, career attitudes, negotiations perceptions, age distribution, populations etc. the

socio-cultural factor is of interest as it has a direct impact on how sellers understand buyers, and

how to satisfy these customers through change in needs to change the customers’ orders through

logistics process.

Purchasing power- the purchasing power of consumers determines what they are able to order

through the market place (such as Jumia Nigeria).

Social issues – social issues most times affects logistics management such as security concerns.

Social unrest in some parts of the country affects the safety of goods for distribution and the

personnel’s managing deliveries which in most cases restricts logistics operations into those

areas. Others are cyber security issues very prevalent which is a constraint to logistics

management in terms of ordering, delivery and mode of payment by the end users (preference

to pay in cash rather than payment online using bank cards etc).

60

For instance, Jumia technologies Nigeria is an online market place were buyers can order for

goods online and chose their medium of payments. But the socio-cultural issues hinder the

potential of logistics business in Nigeria due to cyber security concerns, preference for the

traditional marketing mediums, trust of brands (customers prefers to see what they are buying

before purchase etc) are some of the issues. Improvement of the logistics management can help

build trust of customers, increase number of orders and more importantly give room for growth of

the logistics business sector in Nigeria.

Technological Factor- improvement in technology helps with the logistics management with new

improved technologies such as the knowledge of data base, IT for tracking, internet facilities and

other facilities to improve performance. It helps in inventory tracking and filling, security, payment

system, speed etc.

Flow of information- the availability of information makes communication among the units

of the logistics business. Information flow within logistics is important as it enables the chain

to responds in real time and with accurate data.

Adaptation of advancement in technology- The new fast technologies landscape change how

the markets works which also affects the logistics management such distribution channels,

communications services, web communications, visibility such as RFID technologies, use of

tracking, transportation management and technologies, GPS etc.

Transport technologies – this involves access to more efficient vehicles for smooth operations

in the logistics operations.

Environmental factor-environmental factors over the years has become an important discuss

around the world given the emergence of various adverse changes in the environment (i.e. global

warming) due to the activities of man. This has also brought about some important ethical and

sustainable concepts in the business environment without an exception for logistics management

some of which includes-

Emission of CO2 during transportation and warehousing in the company – since logistics

operation in Nigeria is heavily based on road transportation with the sue of both heavy

vehicles and light vehicles, the logistics operations also contributes a considerable amount of

61

CO2 emission to the environment, also contributing to the traffic congestion and noise

pollution in Nigerian environment. This are some of the areas were the adoption of clean

energy alternatives becomes a better alternative to reducing emissions, this however is still

very far in policy consideration in Nigeria (e.g. carbon foot print set by government in

developed societies) for most businesses like in logistics management.

Oil waste during maintenance works- maintenance of vehicles is part of the logistics

management, and automobile oil waste is common occurrence during most maintenance

operations, especially with maintenance of vehicles and or machines used for logistics

operations. But given the awareness of the consequences of some oil spillage, it has become

important this wastage to be properly managed to reduce the negative important it has on our

environment. This are some of the areas of regulation the environmental agency in Nigeria at

the federal, state and local government levels monitors (NESREA, FEPA, LASEPA etc) to

minimize as much as possible.

Safety regulations- the Nigerian labour laws includes safety regulations for employees (e.g.

the federal and states fire service regulation compliance) in the working environment and

guidelines for compensation, should an employee be exposed to danger in the course of

carrying out his/or duties which is to be followed by the logistics company management.

Scarcity of raw materials – the aspect of packaging in the logistics management involves use

of products made from raw materials (i.e. use of cartons made of trees, plastics etc) which

also contribution to deforestation and plastics waste issues.

Therefore, the alternative measures logistics management involves a reverse logistics. This

includes focusing on recycling or reuse of materials important to reduce scarcity of raw material.

The reuse of materials helps led to increase in the importance of reverse logistics operations in

warehouses.

Legal Factor – involves governing laws and regulations for business entities, ethical issues, labour

laws and others. They are laws binding on the establishment and operation of business in Nigeria

such as the CAMA laws (Chapter C20) LFN 2004, Company and allied Matters (Repeal and Re-

enactment) Bill 2018 etc.

62

Corporate laws- the corporate laws in Nigeria at all tiers are binding on the establishing,

operations and compliance to standards practices stipulated by the laws.

Contractual agreement and legal documentation compliance- logistics management includes

activities to deliver on binding agreements (such as the agreements between sellers and the

logistics company, agreements on online purchases etc).

The threats to ensuring improvement of the logistics management is due to the malpractices of

some of the officials of the government agencies who lobby thereby leading to complacency in

working conditions, short cuts on the part of the owners and management of logistics business in

the country, instead of full compliance to ensure ethics of logistics business, adherence to safe

practices etc.

63

CONCLUSION

The subject of this study is improvement of logistics management on the example of Jumia

Nigeria and to achieve the goal of the research and the arising research questions, three clear

objectives were achieved.

1. Concepts of logistics management, process and impact of logistic management - Logistics

process is said to comprise of all steps of that ensures planning, supervision, execution and

control of the time, cost and space transformation of goods and the related transformation in

quantity and range of assortment. It also involves the properties manipulation and the level of

logistics determination of goods. The logistics process involves lots of activities or operations

while making up for the inputs of work force /members, information and technology, finances

through actions of management and logistics activities between the consumers and the

suppliers. It is done in an effort to ensure good result with output that gives them competitive

advantage, time and movement of utility efficiently. The components of logistics management

comprise of the design of the network, order fulfilment and transportation management in

order.

2. The various logistics management in Nigeria helps to bridge the gap between the

manufacturers or producers with their customers in Nigeria. It is crucial to enable increased

offer in the market due to the intensive competition and to survive the problems faced in the

Nigerian market. It also enables these businesses meet up with the broadening marketplace and

rise in competition, globalization which has resulted in greater demand by customers putting

pressure on these manufacturers to increase their quality, flexibility and serviceability at a

competitive cost. For the regulation of logistics operations in Nigeria, NIPOST Act (2020) was

established to ensure effective and efficient courier and logistics services licensing and

procedure as well as regulation of these courier and logistics operations in the country. Using

an example of Jumia services as logistics process management business in Nigeria, Jumia

Group is the leading online market place in Africa involved in market place, logistics and

services and payment services. They ensure that items are shipped directly to the homes or

other locations at the convenience of respective customers which involves lots of logistics

processes. However, the logistics management in Nigeria is confronted by various challenges

some of which are infrastructure, ease of competitive priced shipment arrangement; logistics

64

services quality; poor investment in logistics education/training, tracking and tracing

consignment ability, frequency at which the shipment reaches the consignee with the scheduled

time frame.

3. A qualitative research was carried out to gather information from respondents who are staffs

of Jumia Nigeria to achieve the research object. Based on the knowledge derived from the

reviewed literature and data gotten from the empirical study, a discussion on the findings was

and analysis was done using PESTEL method. The following are some of the suggestions made

for improvement of logistics process management in Nigeria, it include improvement of

security, heavy investment in modern transportation infrastructures, Strict compliance to safety

regulations and standard or practice during logistics process and others.

Logistics management in Nigeria is vital for the economy especially the growing online market

place which is a shift from the traditional method shopping. The logistics management helps to

connect the customers to buyers all around the world by providing alternatives products with

consideration to time, cost during the logistics process which is beneficial to all parties. The

various identified challenges confronting logistics management in Nigeria can be addressed to

improve the sector, when the identified measures in the recommendations presented below which

are suggested to the stakeholders (i.e. government and its private counter parts) are adopted for the

logistics business sector.

65

RECOMMENDATIONS

Based on the research outcome of the research, the following recommendations are suggested

to the government and the logistics management company for improvement of logistics

management in Nigeria.

1. Improvement of security- the provision of adequate security in the country is one of the core

responsibility of the government. The social issues most times affects logistics management

such as security concerns, social unrest in some parts of the country affects the safety of goods

for distribution and the personnel’s managing deliveries which in most cases restricts logistics

operations into those areas. Also, cyber security issues very prevalent which is a constraint to

logistics process management in terms of ordering, delivery and mode of payment by the end

user’s preference to pay in cash rather than payment online using bank cards etc all is which

needs attention by the government and security outfits to improve logistics management in

Nigeria.

2. Heavy investment in transportation networks- the need for more investment in transportation

infrastructure in Nigeria cannot be overemphasized given the fact that logistics process is

heavily dependent on transportation networks, while efficient logistics management is also

crucial for the growth of Nigerians economy. This will also help move logistics process

management in Nigeria up from the 121st index it currently is. Therefore, there is need for the

government political will to develop adequate transport infrastructure to support growth and

efficiency of the logistics business in Nigeria.

3. Strict compliance to safety regulations and standards or practice during logistics process- The

Nigerian labour laws includes safety regulations (according to corporate laws) for employees

at all tiers of the government and states fire service regulation compliance in the working

environment and guidelines for compensation, should an employee be exposed to danger in

the course of carrying out which is really observed. It is importance to introduce strict measures

to be followed by the logistics company management to protect the workers as well as the work

environment.

4. Strict control of officials in government agencies- This is necessary to forestall professionalism

and compliance to regulation while discharging their duties, and it will also guide against

threats to ensuring improvement of the logistics management due to the malpractices (i.e.

66

corruption) of some of the officials of the government agencies who lobby thereby leading to

complacency in working conditions, short cuts on the part of the owners and management of

logistics business in the country, instead of full compliance to ensure ethics of logistics

business, adherence to safe practices etc.

5. Adoption of clean energy- Since logistics operation in Nigeria is heavily based on road

transportation with the use of both heavy vehicles and light vehicles, the logistics operations

also contributes a considerable amount of CO2 emission to the environment, also contributing

to the traffic congestion and noise pollution in Nigerian environment (such as light rails, eco-

friendly vehicles etc). Thus need for policies that promotes investment in clean energy

technologies in the country by both public and private entities in the logistics management.

6. Investment in training and new technologies – The world is constantly evolving which brings

out better measures of operations of logistics management activities. The logistics company

can meet up with market competition through investment in modern technologies for their

logistics operations and training and re-training of staffs to acquire more knowledge and skills

needed to meet up with new challenges in the logistics market. Also the logistics management

should ensure improvement of staff improved remuneration and better working environment,

to encourage a more productive workforce while achieving the overall organizational goal.

67

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APPENDICE I

The interview guide questions were developed from the arising questions from the research subject

“improvement of logistics management on the example of Jumia Nigeria”. The of the questions

arising are-

1. What are the logistics management challenges for market place in Nigeria?

2. How can logistics management be improved?

Therefore, the interview guide questions were developed within the scope of this study which is

to guide the researcher during the interview using semi structure approach. The interview guide

questions are as follows-

1. How will you describe the logistics process in Nigeria from the example of Jumia Nigeria?

2. What are the limitations to efficient logistics management in your company internally?

3. What are the limitations to efficient logistics management externally?

4. What are the challenges of logistics management in the aspects of politics, environment,

social, technology, legal and economic levels?

5. How can the logistics management be improved?

6. Who are the key players in ensuring an improved logistics management?

76

APPENDICE II

The qualitative research involved carrying out a semi structured interview and the

information derived from the participants are presented in the table below. The theme for the

research analysis are developed from the opinions of the participants.

Table 5. Theme development from the original interview information (Source: Author, 2021)

Question Interview idea Original part of

interview

Subtheme Initial theme Final theme

How will you

describe the

logistics

management

in Nigeria

from the

example of

Jumia Nigeria

Our logistics process

management revolves

around activities between

the sellers and the buyers

of the products. So it is

about ensuring the process

are followed with

consideration to safety,

time and cost.

Revolves around

activities between

the sellers and the

buyers of the

products. Ensuring

the process are

followed with

consideration to

safety, time and

cost.

Logistics

process links

sellers and

buyers

Logistics

Process links

sellers and

buyers

Logistics

process

management

The logistics process

involves more of how we

manage the activities

within our company and

outside with clients

connecting sellers and

buyers, which involves

transportation. Taking

inventories, taking orders,

delivery and others

Manage the

activities within our

company and

outside with clients

connecting sellers

and buyers

Logistics

process

connects buyers

to sellers

Logistics

process

connects buyers

to sellers

Logistics

process

management

Our logistics process

management is broad. It

depends on which area of

operation the personnel

belong. It entails, ensuring

the warehouses are run

effectively, fleets

Logistics process

management is

broad. Management

of the warehouse,

fleets, IT,

Marketing.

Logistics

process

management

activities

Logistics

process

management

activities

Logistics

process

management

77

managed, IT and

marketing units,

personnel’s take

inventories etc.

Our logistics process

management is

interdependent on one

another. Given the large

area we cover in the

marketplace in Nigeria.

but the bulk of it lies with

the personnel’s

management. Ensuring

that each part of our

logistics activities are

done at the right time as at

when due. Also, the care

of both our facilities and

products

Logistics process

management is

interdependent.

Ensuring that each

part of our logistics

activities are done

at the right time as

at when due.

Logistics

process

management,

interdependent

activities

Interdependent

activities of

logistics process

management,

Logistics

process

management

The logistics process

management is huge and

requires studying the

staffs we work with and

ensuring effective

communication to make

sure that the necessary

activities are carried out as

at when due. It usually

involves aspects of

inventory, maintenance,

stock taking, stock taking,

inventory, cost

management, fleets

operations etc. given the

various aspects, team

work is essential for every

aspects of our logistics

logistics process

management is

huge and requires

studying the staffs

we work with and

ensuring effective

communication.

Involves aspects of

inventory,

maintenance, stock

taking, cost

management, fleets

operations etc

logistics process

management,

effective

communication.

Effective

communication

in logistic

process

management

Logistic process

management

78

process to run smoothly

within and outside with

the other parties.

What are the

limitations to

efficient

logistics

management

in your

company

Some of the limitation we

have is delivery of goods

by the sellers and the

condition at which they

are delivered. Often the

logistics process from

ports for imported goods,

due to regulatory issues at

the ports affects

movement and supply of

these goods to our

customers. Which is

beyond our own control

has time and cost in this

cases is hampered.

Limitation we have

is delivery of goods

by the sellers and

the condition at

which they are

delivered.

Regulatory issues at

the ports affects

movement and

supply of these

goods.

Control has time

and cost in this

cases is hampered

Limitation,

regulatory issue,

control of time

and cost.

Constraint of

regulation, time

and control.

Regulation

challenges

Some limitation we

experience is in trained

personnel’s. Due to the

economic realities most

often our staffs leaves for

personnel’s reasons, thus

it affects smooth running

of our logistics process

due to retaining of staffs

and cost and time

involved.

Limitation we

experience is in

trained personnel’s.

The economic

realities most often

our staffs leaves for

personnel’s reasons.

Economic

challenge of

retaining skilled

workforce.

Economic

challenge, skills

Economic and

skills challenges

The cost of effectively

running the management

of the company’s logistics

operations is a major

challenge. Such as cost of

power generation, parts

for equipment’s, taxes,

cost of effectively

running the

management of the

company’s logistics

operations is a

major challenge.

Cost of power

Operation cost

challenge,

infrastructure

issues

Cost of

operation issue

High logistics

Operating cost

factors

79

other corporate and

imports issues to name a

few.

generation, parts for

equipment’s, taxes,

other corporate

Our logistics process has

more of staff’s

management and fleets

management which is not

easy nor cheap. The

conditions of the roads

result in damages on fleets

that requires for budget on

maintenance which does

not help in reduction of

cost of operations. The

cost incurred during our

logistics

activities/operations also

affects the cost of delivery

of the goods ordered by

customers which they

often complain it too high.

Which results in drop of

demands for products

through Jumia market

place.

The conditions of

the roads result in

damages on fleets

that requires for

budget on

maintenance which

does not help in

reduction of cost of

operations.

The cost incurred

during our logistics

activities/operations

also affects the cost

of delivery of the

goods ordered by

customers which

they often complain

it too high

Cost of

operations,

impact of poor

infrastructure

increase cost of

operation.

High cost of

operation, poor

infrastructures.

High operating

cost factors.

One of our major

limitation is cost of

logistics operations which

contributes to the prices

paid for delivery and cost

of products. The inflation

rates, cost of maintenance

and running of operations

is always on the rise.

Without reduction is cost

the logistics process

cannot be sustained.

Our major

limitation is cost of

logistics operations

which contributes to

the prices paid for

delivery and cost of

products. Inflation

rates, cost of

maintenance and

running of

operations is always

on the rise

Limitation is

high cost of

operation. High

cost of

maintenance

due to inflation.

High operating,

maintenance

cost.

High logistics

operating cost

factors.

80

What are the

limitations to

efficient

logistics

management

in Nigeria?

The limitation of logistics

is Nigeria is mostly due to

the poor infrastructure

conditions in most parts of

the country, especially

places outside the CBD.

This includes roads and

transportation, electricity,

internet access, ware

house facilities, control of

the ports etc.

Limitation of

logistics due to the

poor infrastructure,

includes roads and

transportation,

electricity, internet

access, ware house

facilities, control of

ports etc.

Logistics

process

limitation, poor

infrastructures

Logistics

limitation

Logistics

limitation

The government policy

those not make room for

effective logistics

operations and sustenance

of logistics business as it is

done in modern countries.

Also the bottle necks

affecting logistics also

have to do with

government tariffs

systems, trade restrictions

and business regulation is

a major constraint to

logistics process

management.

Government policy

those not make

room for effective

logistics operations

and sustenance of

logistics business as

it is done in modern

countries.

Bottle necks

affecting logistics

also have to do with

government tariffs

systems, trade

restrictions and

business regulation

Government

policy,

regulation

Government

policy and

regulation

Regulation

challenges

Inadequate infrastructures

affect our business, as

most of our logistics

operations in done via

road transportation. Other

alternative such as train,

light rail etc is available in

developed countries helps

to meet up with time, and

reduce cost of

transportation of goods.

Inadequate

infrastructures

affect our business,

as most of our

logistics operations

in done via road

transportation.

alternative such as

train, light rail etc is

available in

developed countries

Inadequate

infrastructures,

cost, time in

logistics process

Inadequate

infrastructures

affects cost,

time

High logistics

operating cost

factors.

81

helps to meet up

with time, and

reduce cost of

transportation of

goods.

The state of the

infrastructure in Nigeria

affects our business badly.

Especially the

transportation facilities

given the fact that the our

business of logistics

covers large part of

Nigeria where the

customers others their

goods from, meeting up

with their demands at the

right time and within the

appropriate cost is

difficult due to the state of

infrastructure and its

management in Nigeria.

The state of the

infrastructure in

Nigeria affects our

business badly.

Meeting up with

their demands at the

right time and

within the

appropriate cost is

difficult due to the

state of

infrastructure and

its management in

Nigeria

Poor

infrastructure

affects our

business of

logistics badly,

demands of

time, cost.

Limitation of

logistics process

Logistics

limitation

The state of disrepair of

most road curses damages

to out fleets making

maintenance cost high and

also the inflation affects

cost of parts for

maintaining our fleets and

other facilities.

state of disrepair of

most road curses

damages to out

fleets making

maintenance cost

high

disrepair road

curses damages

on fleets

Challenges in

operation

Logistics

process

limitation

What are the

challenges of

logistics

management

in the aspects

of politics,

environment,

The challenges with

regards to policies is the

instability and lack of

thoughtfulness of the

legislature in laws as

regard license renewal.

And other state laws

Challenges with

regards to policies

is the instability and

lack of

thoughtfulness of

the legislature in

policies

instability and

lack of

thoughtfulness

Policies issues Regulation

challenge

82

social,

technology,

legal and

economic

levels?

which makes the fees

quite high. For instance

the new levies for renewal

of license for logistics

operators is outrageous.

laws as regard

license renewal.

The environmental

concern in with regards to

pollution from vehicular

movement and congestion

in cities. The government

is far have not done

anything laudable to

decongest the roads by

better modes of

transportation that we can

also adopt.

Environmental

concern in with

regards to pollution

from vehicular

movement and

congestion in cities.

Decongest the roads

by better modes of

transportation

Decongest

roads, better

transportation

modes.

Better road

infrastructure

Improvement of

logistics process

The economic angle to the

challenges is the continual

inflations leads to high

cost of our operation

despite the existing

burden of multiple taxes.

economic angle to

the challenges is the

continual inflations

leads to high cost of

our operation.

Existing burden of

multiple taxes

Inflation, high

cost of

operation,

multiple taxes

Cost of

operation, taxes

High logistics

operating cost

factors

The world is constantly

involving, hence there are

constant development of

new technologies which

no doubt puts pressure on

out logistics process

management in the area of

need to train and retrain

staff and purchase of new

equipment’s to meet up

with the trend.

Constant

development of new

technologies which

no doubt puts

pressure on out

logistics process

management. To

train and retrain

staff and purchase

of new

equipment’s.

New

technologies,

pressure on

logistics

process,

training,

purchasing cost

Cost of logistics

operation

High logistics

operating cost

factors

83

The legal system is the

country is a major issue

considering the time it

takes to file a suit of cases

that sometime props up in

the course of carry out our

logistics operations and

well as the corruption

eating up the system.

Legal system, issue

of Time it takes to

file a suit of cases.

Corruption eating

up the system.

Time issue,

corruption

issues

Issues affecting

logistics

process.

Improvement of

logistics process

How can the

logistics

management

be improved

Logistics process

management can be

improved internally if

there is provision for

improved working

conditions and salaries for

the staffs to enable us have

experienced hands remain

on the job rather than new

staffs and repeating the

training circle. This is

because we have huge

labour force in Nigeria

that are mostly unskilled.

Logistics process

management can be

improved internally

if there is provision

for improved

working conditions

and salaries, staffs

to enable us have

experienced hands

remain on the job

Huge labour force

in Nigeria that are

mostly unskilled.

Improved

working

condition, retain

skilled staff

Improved

working

condition, retain

skilled staff

Improvement of

logistics process

Without provision of

important infrastructure,

the logistics process

management will still be

faced with challenges.

This is because some

aspects such as time and

cost reduction cannot sole

be controlled by managers

but the external factors

need to be in check.

Provision of

important

infrastructure.

Aspects such as

time and cost

reduction cannot

sole be controlled

by managers but the

external factors

need to be in check.

Infrastructure

provision,

external factors

control

Improvement of

logistics process

Improvement of

logistics process

The government have

huge part to play in

logistics process

Government have

huge part to play in

logistics process

Government

laws, multiple

taxation.

Improvement of

laws on taxation

Taxation laws

Improvement

84

management in Nigeria.

especially regarding laws

of taxation, multiple

taxation is a huge burden

in logistics process

management.

management in

Nigeria. Laws of

taxation, multiple

taxation is a huge

burden in logistics

process

management.

Logistics is very

important for trade

facilitation so it is

important for the

government to provide

infrastructure to meet with

the deficit in overall

transportation networks,

internet penetration,

electrical supply etc which

logistics process thrives

on.

The government to

provide

infrastructure to

meet with the

deficit in overall

transportation

networks, internet

penetration,

electrical supply etc

which logistics

process thrives

Infrastructure

Provision,

improved

internet

penetration,

electric al power

supply

Suggestion for

Improvement of

infrastructure

Improvement of

logistics process

Logistics process

management both

internally and externally

thrives on basic facilities

and services which are not

easily accessible. For

instance, the corruption of

government agency

officials also adds to the

challenges encountered in

our operations. There is

need for overhaul of the

agencies of government

for improved services.

And policies that drives

infrastructural

development.

Thrives on basic

facilities and

services which are

not easily

accessible.

corruption of

government agency

officials also adds

to the challenges

encountered in our

operations.

There is need for

overhaul of the

agencies of

government for

improved services.

Corruption,

improved

services,

infrastructure

development.

Suggestion for

Improvement of

logistics process

management

Improvement of

logistics process

85

Who are the

key players in

ensuring an

improved

logistics

management

The key players are the

government and

legislators. We need

policies that improves

logistics process

management. In terms of

infrastructures and

business friendly

environment.

Key players are the

government and

legislators. Policies

that improves

logistics process

management.

Policies by

government and

legislators

Development of

key policies for

improved

logistics

Role of policies

by government

and legislators.

The government have a

huge role to play to ensure

improvement of existing

infrastructures and

provision of better

transportation networks.

Government huge

role to play to

ensure

improvement of

existing

infrastructures and

provision of better

transportation

networks.

Improvement of

existing

infrastructures

and provision of

better

transportation

networks.

Government

Improvement

and provision of

better

infrastructures

Government

role

Agencies of government

(eg. LASMA officials,

Customs officers at ports

etc) needs overhauling in

their services and duties to

help the logistics process

dealings at ports,

corporate regulations

offices et run smoothly.

To save time and cost of

our operations.

Agencies needs

overhauling in their

services and duties

to help the logistics

process.

Agency

Overhaul for

improved

logistics process

Agency

Overhaul for

improved

logistics process

Government

agency role

Government provision of

improved infrastructures

and access to basic

facilities can help ease the

logistics process

management.

Government

provision of

improved

infrastructures.

Improved

infrastructures

provision

Improved

infrastructures

provision

Government

role

86

The management of the

company can help

improve the condition of

service, increase wages to

retain skilled and capable

workforce of the

company. Also constant

upgrade and retraining of

staff to meet up with the

changes and new trends in

the logistics business to

remain competitive.

Management of the

company can help

improve the

condition of

services to retain

skilled

Improved

working

condition

Improved

working

condition

Management

role

87

APPENDICE III

Array of pictures showing Jumia Nigeria Logistic company Resources

Picture 1: Showing a delivery employee of Jumia Nigeria (Source: Rhodes, 2019)

Picture 2. Showing Jumia Nigeria pick up center (Source: Jumia Nigeria, 2017)

88

Picture 3. Showing some of Jumia Nigeria vehicles for delivery (Source: Jumia, 2019)

Picture 4. Showing an employee pushing pallet of stock inside Jumia Technologies

distribution warehouse in Lagos Nigeria (Source: Bloomberg, 2019)

89

Picture 5. Showing packaging by an employee at Jumia Nigeria warehouse (Source: Jumia,

2019)

Picture 6. Showing packages set for delivery (Source: Alamy, 2021)