Assessment of logistics and inventory management practices as drivers of customer satisfaction in the Nigerian fast-food industry

Fast food businesses require the availability of their inputs, which are largely perishable, to ensure speed, quality, and reliability, but many of the fast-food businesses in South West Nigeria are still experiencing stockout, overstock, and wastage of resources, which are not ideal for customer satisfaction and performance. This research, therefore, investigates the impact of inventory management practices on customer satisfaction as a performance indicator in the fast-food business in South West Nigeria. The study was carried out among fast-food industries across Lagos, Ogun, Oyo, Osun, Ondo, and Ekiti States. 400 respondents were sampled while data were sourced from primary source using structured questionnaire. Exploratory Factor Analysis and Confirmatory Factor Analysis was used to assessed validity and reliability of research data, while Structural Equation Modelling was used to rest the hypotheses of the study. The result showed that the Inventory Management Practices (IMP) had high reliability and validity (CR = 0.976; AVE = 0.893; loadings = 0.889-0.982), and Customer Satisfaction also had acceptable values (CR = 0.950; AVE = 0.826; loadings = 0.846-0.983). The model fit was acceptable (CMIN/DF = 2.6238; GFI = 0.996; AGFI = 0.984; RMR = 0.005; NFI = 0.981; CFI = 0.984). Additionally, the path from inventory practices to customer satisfaction was significant (Estimate = 0.014; C.R. = 23.835; p = 0.000). The study concluded that Inventory management practices have a significant impact on customer satisfaction. Fast food businesses should therefore improve their inventory accuracy, minimize stockout and overstock, maximize flexible reorder policy, train staff, and use simple tracking systems to maintain service quality.