Route Optimisation and Operational Efficiency in Selected Manufacturing Firms in Shagamu, Ogun State, Nigeria.

Abstract Route optimisation has the potential to significantly enhance operational efficiency within Nigeria's manufacturing sector, offering an opportunity for firms to improve productivity, reduce costs, and strengthen competitiveness. However, the sector has faced persistent challenges such as inadequate infrastructure, high production costs, and logistical inefficiencies, all of which hinder performance and global competitiveness. This study seeks to address this gap by examining the effect of route optimisation on operational efficiency in selected manufacturing firms in Shagamu, Ogun State, Nigeria. Using a quantitative research approach, data were collected through structured questionnaires from employees in logistics, supply chain, procurement, and operations departments of six manufacturing firms. The findings revealed that route optimisation has a positive and significant impact on operational efficiency ((β = 0.440, t = 14.849, R² = 0.356, p < 0.05), with a moderate to strong correlation (R = 0.597) and an R² value of 0.356, indicating that approximately 35.6% of the variance in operational efficiency can be explained by route optimisation. The regression analysis further revealed that for every one-unit increase in route optimisation, operational efficiency is expected to increase by 0.440 units (β = 0.440). The study concludes that route optimisation plays a vital role in enhancing operational efficiency in manufacturing firms. It is recommended that manufacturing firms invest in advanced logistics technologies, including AI-driven route planning, real-time GPS tracking, and IoT-enabled fleet management systems, to further streamline logistics operations and improve overall efficiency. Further research should explore longitudinal studies and comparative analyses across different regions and sectors.