Strategic procurement in the 21st century business and its impact on corporate performance of firms in the Nigerian manufacturing sector

Procurement plays a crucial role in every business organisation, yet many local enterprises in Nigeria face significant challenges in implementing efficient procurement strategies. The purpose of this study was to examine the effects of strategic procurement on the performance of Lafarge Cement Plc., a prominent manufacturing firm in Nigeria. Data from the study was analysed using the structural equation modelling and the findings revealed a significant relationship between the variables of interest. Specifically, the path analysis revealed that e-procurement plays a crucial role in enhancing operational performance. With strong path coefficients for key components such as data visibility (0.853), cycle time (0.816), and supplier relationships (0.822), e-procurement had a total effect coefficient of 0.623 on operational performance, which suggested that 63% of Lafarge Cement Plc. operations could be improved, if adequate consideration was given to e-procurement system like electronic Purchase Orders and procurement through other digital Sourcing Platforms. In a similar context, procurement integration was also found to substantially influence the competitive advantage, with a total coefficient of 0.703. This showed that by focusing on procurement efficiency such as cost savings and time reductions, Lafarge Cement Plc. can strengthen its market position to improve responsiveness to market demands. Supplier integration (0.907) was shown to positively influence service delivery quality. The analysis confirmed that strong supplier relationships, supported by effective contractual agreements and feedback mechanisms can enhance consistency and superior service delivery of the institution. The practical implications of this study were that by integrating e-procurement and supplier’s integration into its procurement system, Lafarge Cement Plc. can efficiently adapt to changing market conditions in Nigeria, such as the everyday fluctuations in the cost of raw materials, thereby minimising supply disruptions and ensuring greater stability in its production

Publication Details

Journal
SHILAP Revista de lepidopterología
Published
2024-10-01
DOI
https://doi.org/10.62763/cb/4.2024.55
Primary Topic
Public Procurement and Policy
Type
article
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article

Strategic procurement in the 21st century business and its impact on corporate performance of firms in the Nigerian manufacturing sector

SHILAP Revista de lepidopterología
Public Procurement and Policy
article

Strategic procurement in the 21st century business and its impact on corporate performance of firms in the Nigerian manufacturing sector

article en

Abstract

Procurement plays a crucial role in every business organisation, yet many local enterprises in Nigeria face significant challenges in implementing efficient procurement strategies. The purpose of this study was to examine the effects of strategic procurement on the performance of Lafarge Cement Plc., a prominent manufacturing firm in Nigeria. Data from the study was analysed using the structural equation modelling and the findings revealed a significant relationship between the variables of interest. Specifically, the path analysis revealed that e-procurement plays a crucial role in enhancing operational performance. With strong path coefficients for key components such as data visibility (0.853), cycle time (0.816), and supplier relationships (0.822), e-procurement had a total effect coefficient of 0.623 on operational performance, which suggested that 63% of Lafarge Cement Plc. operations could be improved, if adequate consideration was given to e-procurement system like electronic Purchase Orders and procurement through other digital Sourcing Platforms. In a similar context, procurement integration was also found to substantially influence the competitive advantage, with a total coefficient of 0.703. This showed that by focusing on procurement efficiency such as cost savings and time reductions, Lafarge Cement Plc. can strengthen its market position to improve responsiveness to market demands. Supplier integration (0.907) was shown to positively influence service delivery quality. The analysis confirmed that strong supplier relationships, supported by effective contractual agreements and feedback mechanisms can enhance consistency and superior service delivery of the institution. The practical implications of this study were that by integrating e-procurement and supplier’s integration into its procurement system, Lafarge Cement Plc. can efficiently adapt to changing market conditions in Nigeria, such as the everyday fluctuations in the cost of raw materials, thereby minimising supply disruptions and ensuring greater stability in its production

SHILAP Revista de lepidopterología
Industry, innovation and infrastructure
Openalex Percentile: Top 37%
Public Procurement and Policy
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