Supply Chain Management Practices and Retailers Performance in Lagos State

Supply Chain Management Practices and Retailers Performance in Lagos State

Olugbenga Ezekiel Pearse PhD, Olufemi Olumide Oladoyinbo, Olugbenga Sunday Dabiri

Department of Marketing, Lagos State University of Science and Technology, Ikorodu

DOI: https://dx.doi.org/10.47772/IJRISS.2025.906000305

Received: 03 June 2025; Accepted: 07 June 2025; Published: 12 July 2025

ABSTRACT

Retail stores are faced with supply chain management practices and other serious external factors that shape their operating environment and impact on their performance. The fundamental aim of this study was to investigate the influence of supply chain management practices on retailers’ performance in Lagos State. The survey research design was used for this study, A sample size of 300 retailers using a convenient sampling technique and the sample size was determined using a Taro Yamen method. The structured questionnaire was used as the primary source of data and was analyzed, descriptively and inferential statistics were used to draw conclusions from the hypotheses developed. Cronbach’s Alpha was also employed to determine the internal consistency of the scale used along with the research items. The result showed R Square of 42.90% which indicates a very positive and strong model. The overall fitness of the model is established based on the outcomes of the study which showed that the three aspects of supply chain management practices have a joint significant influence on retailers’ performance in Lagos State (F= 141.512, p-value =0.000). The study concluded that the three dimensions of supply chain management practices such as: on-time delivery, perfect order and stock holding) of supply chain management all have significant influence on retailers’ performance in Lagos State. Therefore, this study recommends that various stakeholders that supply chain management practices have influence on retailers’ performance.

Keywords: Supply chain management practice, on-time delivery, perfect order, stock holding, retailers’ performance.

JEL Codes: M3, M39

INTRODUCTION

The ability of any business to consistently deliver high-quality products or services that meet the wants and demands of its customers is a requirement for success and sustainability (Sulaimon, Adeyemi, & Abideen, 2021). Business organisations cannot measure a company’s success solely by the quantity or quality of its output; rather, customer acceptance and satisfaction continue to be a valid yardstick to measure a company’s operational performance (Omoruyi & Mafini, 2016). Since customers will use their products and either voice delight or unhappiness, it is crucial for firms to establish and implement a profitable and effective supply chain (Crandall, Crandall, & Chen, 2015).

Supply chain management (SCM), which deals with the effective management of supply chain activities to ensure and optimise customer value and obtain a competitive advantage, is essential for any organisation. Businesses that use supply chain management (SCM) operate at the greatest level possible in order to properly sell and distribute their resources and products (Omoruyi & Mafini, 2016). Supply chain management is the process of providing the final client with the goods and products they require. In other words, it makes a reference to a business that monitors the delivery of items to customers. SCM is focused on the management of a network of business operations and activities, including the sourcing of raw materials, production, and distribution of finished goods. A capable SCM supplier wants to make sure that the right product is delivered to a customer at the right time, place, and price.

In order to provide products and services to the final client, firms engage in a network of operations known as a supply chain. Participants in a fundamental supply chain are placed from upstream to downstream in a specific order, according to Crandall, Crandall, and Chen (2015). All supply chain management activities are referred to as supply chain management (SCM). These are the combinations of activities that occur within a company to ensure that the management of the value chain is carried out successfully (Sharma & Modgil, 2020).

It seems well established that SCM is important to corporate strategy and, ultimately, to business performance. During the same time period, there has been an increasing recognition of the underlying shift in market power from the production system to the retailing system (Maloni and Benton 2000). Where product and manufacturing previously predominated in the supply chain, organisations closest to the customer have taken the lead. Whole fields of study have been devoted to understanding the shift from a product to a customer orientation (Kohli and Jaworski 1990). Retailers face specific supply chain challenges that call for expertise that upstream manufacturers and suppliers don’t require. Great merchants can thrive and grow thanks to excellent supply chain capabilities (Browna et al. 2005), but the price of disappointing customers is high and the likelihood of a supply chain blip is high.

Nigeria’s retail industry has grown at an average rate of 24% over the preceding five years (Nigeria National Bureau of Statistics, 2021). Nigeria is the second-most developed country in sub-Saharan Africa in terms of the number of retail establishments. South Africa ranks first. With over 442 supermarkets and 20 hypermarkets, Lagos State has the largest retail outlets per capita in all of Nigeria (Business News, 2020). Over the past ten years, supermarkets have dramatically eroded the market share of traditional retailers including neighbourhood stores and public markets, which has caused a huge shift in the formal grocery and basics retail sector.

Super retail shops operate in an environment that is influenced by competition and other important external factors that have a negative impact on performance. The state’s major retailers are forced to compete with one another in order to benefit from the market’s strength. Government rules and commercial practices have also long required respectable retail businesses to battle for a competitive edge in order to grow their market share. This suggests that businesses must improve their performance through the creation and application of supply chain management strategies that are nimble and responsive in order to provide clients with outstanding services that will always encourage and keep the clients coming back.

Statement of problem

The benefit of supply chain management for enterprises is that performance may be significantly enhanced all around when all channel participants—suppliers, manufacturers, distributors, and customers—behave as though they are a single entity (Copacino, 1996). As the supply chain functions more effectively, customer satisfaction levels increase. The lack of empirical evidence supporting the benefits of supply chain management, particularly in the context of Nigeria, is a serious problem. In the past, researchers have looked at the effects of computerised inventory systems on delivering customer service and creating strategic responses to shifting external environments, such as the research done in Kenyan supermarkets by Charles, Josephine, and Ambrose in 2016. Additionally, SCM practises and customer satisfaction in Bangladeshi pharmaceutical enterprises were the subject of research by Hague and Islam (2013).

This is similar to how most research on strategic relationships has a dynamic nature. Although a real supply chain is rarely mentioned, it mostly focuses on how two organisations can build their relationships. The majority of research on supply networks is operational in nature and is centred on case studies of important firms like Benetton, Toyota, and Nissan, similar to the prior example (Stock et al., 2010). One problem with these studies, according to Lamming et al. (2000), is that they frequently concentrated on the vehicle industry. Managers in other industries lack the theoretical foundation for managing their unique firms since networks vary not only between sectors but also along a range of other dimensions.

The exponential revolution in the global retailing industry and the complexity of today’s consumers seriously hamper retailers’ effectiveness and efficiency in carrying out the task of providing their customers with prompt delivery, appropriate assortments of merchandise needed in the right place, at the right time, and in the right form required. In the context of the retail industry, each of these variables is an important determinant of retailer performance. The majority of research work has been done without much consideration for the retailer as a significant player in the retail industry, whose effectiveness and efficiency can be measured on the bases of the level of stock held against demand, order complete perfectly in good condition, as well as delivery meant timely as expected and concentrated on SCM procedures and client performance.

The study found that most Lagos-based retailers frequently deal with the primary activities that ultimately define how successful their businesses would be. This study was created to investigate the connection between retailers’ performance in Lagos State and supply chain management (SCM) practices.

Objectives of the Study

The main objective of this study was to examine the relationship between supply chain management (SCM) practices and retailers’ performance in Lagos State. The specific objectives of the study were to:

1. examine if on-time delivery affects retailers’ performance in Lagos State;
2. investigate the effect of perfect order on retailers’ performance in Lagos State; and
3. find out whether stock holding affects retailers’ performance in Lagos State.

Research Questions

In relation to the objectives of this study, this study provided answers to the following questions:

1. what is the effect of on-time delivery on retailers’ performance in Lagos State?
2. how does perfect order influence retailers’ performance in Lagos State?
3. what is the effect of stock holding on retailers’ performance in Lagos State?

Research Hypotheses

The following hypotheses were tested and states in null form:

H0₁: There is no significant effect of on-time delivery on retailers’ performance in Lagos State

H0₂: There is no significant effect of perfect order on retailers’ performance in Lagos State

H0₃: There is no significant effect of stock holding and retailers’ performance in Lagos State

LITERATURE REVIEW

Conceptual Review

The performance of retailers is the dependent variable; on-time delivery, faultless order, and stock holding are the independent variables in the section’s discussion of supply chain management practices.

Supply Chain Management

Reddy and Reddy (2021) define a supply chain as a network of facilities and distribution channels that collaborate to create, produce, market, and support products for the network of businesses as a whole. Tarigan et al. added it in 2021. Supply chain management is an effort to organise and control all operations connected with the procurement of materials of any kind, changing forms, and all logistics management activities, claim Tarigan et al. (2019). SCM also covers the coordination and cooperation with related partners, such as suppliers, middlemen, outside service providers, and clients or consumers. The simplest approach to describe supply chain management (SCM) is as the natural continuation of the downsizing and re-engineering initiatives conducted by the organization(s) in the past. Alahmad (2021) added to the discussion by defining SCM as the planning and management of all sourcing, procurement, and conversion-related operations as well as the coordination and cooperation amongst supply chain participants. SCM practices, according to Karimi and Rafiee (2014), are a group of decisions an organisation makes to promote effective supply chain management. Outsourcing, information technology sharing, and supplier alliances are recent innovations in SCM techniques (Zhao & Lee, 2009). The Association of Supply Chain Management (2019) defines SCM as the design, planning, execution, control, and monitoring of supply chain activities with the objectives of creating net value, creating a competitive infrastructure, utilising global logistics, synchronising supply with demand, and measuring. SCM practises relate to all actions taken by organisations to improve the efficiency of their internal supply chains. This will help the company continue to function well and offer excellent customer service (Omoruyi & Mafini, 2016).

Downsizing and re-engineering transformed the enterprises into “lean and mean competitive units” by lowering expenses and streamlining procedures. The “optimisation” of business “units” (functional and/or administrative domains) over which the organisations had complete control (in terms of the number of people engaged, the amount of time used, the complexity of the task, etc.) was required for these operations (of downsizing and re-engineering). These strategies did increase the organisations’ productivity and profitability, but after these impacts peaked, it became obvious that a new strategy for conducting business was necessary. The aforementioned changes were a result of the businesses participating in the entire value chain’s “isolationist” (closed system) worldview, which saw systems as organisations attempting to survive in a hostile environment and presuming that all other organisations were the same. Even if the operations carried out by the various organisations may be additional rather than complimentary in character, participants in the value chain were competitors with whom the organisation had to engage in competition. SCM integrates supply and demand strategies within or between enterprises (Siagian et al., 2020).

SCM strives to combine suppliers, distributors, and customers into a unified process, according to Gandhi et al. (2017). Each link in a supply chain symbolises a relationship between a particular customer and a particular provider; this association seeks to satisfy direct customer delivery requirements before reproducing processes along the whole supply chain for the advantage of the final consumer (Gorane & Kant, 2016). SCM seeks to regulate the quantity of raw materials and other ingredients required to generate finished or semi-finished goods that are then stored in inventory and prepared for client distribution. The supply chain, on the other hand, starts at the site of production and ends at the place of consumption. In order to produce value in the form of goods or services, a number of firms and organisations work together to form the supply chain (Vural, 2015; Ketchen & Hult, 2007). Producers, suppliers, transporters, warehouses, retailers, and customers are all a part of an ongoing but constantly shifting flow of information, goods, and money (Sundram et al., 2018). SCM has developed into a supply network or supply web because it can show how different parts of a supply chain interact with one another.

Suppliers and distributors, who were once competitors, are now allies for the good of both parties. According to Truong et al. (2017), SCM is the process of effectively managing each stage of a complex chain while continuously improving product quality and customer satisfaction.

Supply Chain Management Practice

According to Tarigan et al. (2019), supply chain practises are a specific activity that companies in the supply chain flow take to improve their business performance and competitiveness. Supply chain practises that can improve supply chain performance through practical activities include creating strategic alliances, establishing customer relationship management, exchanging information with business partners, the quality of information exchanged between internal and external companies, and implementing lean thinking (Kyeremeh, & Dza, 2018). Since SCM processes are crucial to corporate success, both academics and practitioners have exhibited a large amount of interest in them during the past 20 years (Narasimhan & Kim, 2007). Businesses are recognising the possibility of integrating their external supplier-firm-customer interactions and internal operational practises in order to raise their level of competitiveness, performance, and customer happiness. This is so that entities on both the upstream and downstream sides can profit from good SCM practises (Ou et al., 2010). Therefore, it is essential to have a firm grasp of SCM procedures in order to compete with the global competition and sustain profitability (Power et al., 2001; Moberg et al., 2002). Only three core supply chain procedures—delay, customer connections, information exchange, and strategic supplier partnerships—were the subject of this study, Suhong, et al. (2009) state that retailer success is measured through supply chain approaches such strategic supplier collaborations, information sharing, information quality, and integration intensity (Gorane & Kant, 2016, Hamister 2012). Upstream, which focuses on suppliers, and downstream, which focuses on consumers, are the two streams of supply chain management techniques (Tariganet al., 2020). When supply chain operations are put into practise, merchants’ performance in relation to their rivals might increase competition. Supply chain practises, according to Jie and Gengatharen (2019), can improve the effectiveness and efficiency of the supply chains for Australian food store operations. Supply-chain operations involve strategic supplier alliances with company suppliers.

On-time Delivery

According to Gorane and Kant (2016), and Hamister (2012), supply chain approaches including information exchange, information quality, and integration intensity are used to gauge retailer success. The two streams of supply chain management strategies are upstream, which focuses on suppliers, and downstream, which focuses on customers (Tariganet al., 2020). When supply chain activities are implemented, competition may increase as a result of merchants’ performance in comparison to their rivals. Jie and Gengatharen (2019) claim that supply chain techniques can boost the efficacy and efficiency of the supply chains for Australian grocery store operations. Strategic supplier connections with business suppliers are a part of supply-chain operations. Retailing companies have previously used a variety of tactics to enhance delivery performance, and it has since been established that delivery performance comprises various characteristics, each of which has its own unique importance. may provide value to various consumers for various factors. It was emphasised that on-time delivery enables retailers to accurately plan, coordinate, and control their chain of retailing activities, covering areas like customer size, product mix, or order size that typically raise endogeneity concerns, with emphases that trade customers are likely to be more concerned about delivery speed because slow delivery frequency

Delivery time is a decision variable in addition to product prices and stock holding decisions in physical and online channels, according to Modak’s (2017) research work, and lengthy delivery times result in dissatisfied customers to quit using the internet channel and detach from purchasing, which typically results in disloyal customers. In their investigations of delivery time and prices in the multi-channel supply chain, Tarigana, Jiputraa, and Siagiana (2020), Hua, Wang, and Cheng (2010), and Berman and Thelen (2004) found that delivery time had a significant impact on the pricing and profit of retailing businesses.

Perfect Order           

A complete, accurate, faultless order is one that is delivered on schedule, is received by the client, and is perfect (Sathvik & Suma, 2021). A perfect order must be delivered on time, in precise quality as intended, without any lost or damaged items, with the appropriate packaging, and with the appropriate documentation (Jacyna-goda1, Kodawski, Lewczuk, Lajszczak, Chojnacki, & Siedlecka-wójcikowska, 2021). From a logistical perspective, it is the order delivered at the proper time and location. Even if this is simply the last step in the supply chain, all order phases must be examined in order to evaluate the performance of the entire supply chain in retail organisations. Additionally, there is evidence that the idea was created to help companies quantify On Time In Full (OTIF), which is now a benchmark by which various organisations, including retailing institutions, evaluate the performance of their supply chains by using complete orders, on-time deliveries, damage-free goods, and accurate documentation and invoicing as benchmarks (APOC, WECR, Lukinskiy & Lukinskiy, 2017, Sathvik & Suma, 2021).

A typical performance indicator called the Perfect Order Index is created by multiplying each of the four elements of a perfect order, which include full orders, on-time deliveries, damage-free deliveries, and accurate paperwork. As a result, for retailers to perform better along the supply chain, the order’s completion is essential. A key element of POI is information delivery, which has evolved into one of the standards by which most customers assess the level of a retailer’s customer service. The only time a client would need to return an item is if it was defective, which is costly for the business and detracts from the customer experience. Accurate documentation serves as a promise to clients of a fruitful business partnership of the purchase order is crucial (Patak, Branska, & Pecinova, 2020; Sathvik & Suma, 2021).

Stock Holding

This is the total amount of stocks or inventories that an individual, group, or organisation had at any one moment. The term “stock holding” or “carrying stock” refers to how long a company may go between restocking or replenishing.

Particular emphasis is placed by Yang, Yang, and Wu (2021) on the goals of inventory holding and management in retail stores, which include providing both internal and external customers with necessary services needed in terms of quantity and quality order rate fulfilment, to also determine the present and future requirements for all types of stocks of different kinds and to avoid under-stocking while avoiding bad in production, and finally to keep the stock holding cost low. Therefore, maintaining the right levels of inventory while spending as little money as possible in order to maximise customer service is the major purpose of stock holding and inventory management.

According to a number of authors, the capacity to efficiently manage inventory and stock holding enables the synchronisation of all major processes in a supply chain management approach. A specific method for the vendor to improve supply chain performance in connection to the retail business is determining the quantities that the vendor’s downstream clients (retailers) should order. The data also showed that vendor-managed inventory (VMI) as a tool might improve supply chain effectiveness by reducing inventory levels and increasing fill rates. Gudka, Singhal, Bose, Poddar & Ramesh; 2022) Yao, Evers, and Dresner (2007)  Today’s international retail marketplaces are seeing accelerated market transitions and increased competition as a result of the expansion of product variety and technical advancements that made it possible for assortments and variants with short life cycles (Darwish & Ertrogal, 2008). If retail organisations wish to compete successfully, they must provide higher-quality products and services at lower prices to customers who have higher expectations (Sparks & Sparks, 2016). Stock holding and inventory management have grown in importance over the past few years across a wide range of retail industries, and ensuring both product diversity and the ideal inventory level is frequently perceived as an operational challenge for retail stores (Sridhar, Vishnu, & Sridharan; 2021).

Retailer performance

Performance indicators, according to Alahmad (2021), demonstrate how well a company is performing in relation to its objectives, mission, and values. Typical business unit performance indicators make up these measurements. Tarigan, Jiputra, and Siagian (2021) define retailer performance as the accomplishment of goals within a specific time frame. A store’s effectiveness can affect how much more aggressively it competes with other retailers.

The fulfilment of all retailing objectives or targets within a predetermined time frame while taking into account the available resources is referred to as retailer performance. To measure a retailer’s success, look at how competitive they are now compared to other merchants. The variables given by Ltifi and Gharbi (2015), including inventory availability, lack of stock outs, product information, simplicity of shopping or making purchases, and ease of returning things to stores, were used to assess retailer performance. According to Petljak et al. (2017), a retailer’s performance serves as a barometer of its competitiveness and is typically determined by the price of a good or service, how well it is produced, the services it provides, and the retailer’s strategic positioning. Manufacturing businesses should strive to offer a variety of services that fall under the following categories in order to improve retailers’ performance in the retailing industry: an efficient order process, a specific order lead time, consistency of deliveries as promised, speed of delivery before the due date, consistency with the quantity promised, order accuracy, and the company’s ability to deliver undamaged products. There is a positive correlation between SCM practises and retailer performance, according to a number of studies on the topic (Tariganet al., 2020; Kyeremeh, & Dza, 2018; Abdallah et al., 2014; Sukati et al., 2006; Li et al., 2006). These studies also found that there is a positive correlation between SCM practises and value creation. Although the methodologies used in these studies vary, they all reach the same conclusion: SCM practices have an effect on SC performance as it relates to the retail sector.

Theoretical Review

The study is based on the systems thinking idea created by (). The systems thinking hypothesis was supported by the influence of supply chain management tactics on customer satisfaction. The leadership is able to see the organisation as a whole thanks to a management strategy called systems thinking theory. According to Senge (1990), the system thinking methodology promotes treating various system components collectively rather than singly. By assessing patterns or the interrelationships that are in play among various entities of a system in order to approach the problems holistically, the theory supports a better understanding of the problems or challenges at hand (Rubenstein-Montano et al., 2001). According to Senge (1990), these interrelationships or the dynamic features at play throughout the entire system will vanish if and when the whole is separated into pieces. In order to systematically elucidate the dynamics that characterise SCM approaches, this theory was created. Considerations like the strategic supplier alliances, delay, customer interactions, and information sharing that are in place throughout and throughout the supply chain are crucial for a complete knowledge of these practises. Adopting such a comprehensive approach is essential since doing so would ensure that all significant elements are adequately taken into account (Tsoukas, 1996; Schlange, 1995). The systems thinking paradigm provides insight into how different SCM enablers affect organisational outcomes, like customer satisfaction.

Empirical Review    

Alahmad (2021) looked at the connection between supply chain management practises (SCMPs) and supply chain performance (SC performance) in the Kingdom of Saudi Arabia. In an empirical study, information was gathered from supply chain managers and senior executives in various industries across the Kingdom of Saudi Arabia for a sample of 196 firms. In addition to a series of interviews with supply chain managers, a theoretical model was developed to show how SCMPs and supply chain performance (SC performance) are related. Multiple regression analysis was another technique utilised to test this hypothesis. The study found a positive correlation between SCMPs, such as supplier relationship management (SRM), customer relationship management (CRM), and information sharing levels, and SC performance. FFP and SC performance also exhibit a good relationship. In order to evaluate return on investment, revenue, and sales, the research used perceptual performance indicators. Future research may employ hard data to more accurately measure the advantages in this situation.

Tarigan, Jupritan, and Siagain (2021) investigated the influence of supply chain practises on shop performance as mediated by information technology. The study used a questionnaire to interview 86 retailers who resided in Surabaya, Indonesia. Data analysis was done using SPSS software version 25 in order to evaluate the hypothesis. The results showed that supply chain management practises had a direct impact on store performance. Information technology, however, moderated this impact by increasing it by 14.70%. Not least among other factors, information technology enhanced store performance. This study will have an effect on modern merchants as they use information technology to alter and enhance their business practises. Additionally, this finding helps the study of supply chain management.

The authors of this paper, Sandberg and Jafari, (2018), set out to review the literature on the responsiveness of the retail supply chain, provide categories for a framework of retail-specific responsiveness, and suggest possible future research areas. This work presents an inductive systematic literature review of 46 academic, peer-reviewed papers. Based on the two primary review questions on (1) the role of retailers to the growth of supply chain responsiveness and (2) prospective future study topics, an inductive, qualitative content analysis was conducted. Additional analyses were conducted using NVivo 11. The extant research is organised using a framework made up of four groups that collectively cover all of the accessible research. Market concentration, supply chain operations, supply management, and supply chain orchestration are some terms one of the groups. There are two or three subthemes available for each category. Then, promising areas for further research are offered, covering methodological issues, theoretical underpinnings, the inclusion of context elements, and the outcomes of retail supply chain responsiveness.

The objective of Kumar and Kushwaha’s (2018) research was to determine the relationship between different supply chain management strategies and the fair pricing stores in India’s operational effectiveness. An exploratory mixed descriptive design was used in the investigation. The study used 200 Fair Price stores that were selected at random from a list on the government website, and it designated the key employees from each company as the responders. The study provides empirical insights into the fair pricing retailers’ operational success and how change is implemented. It suggests that the effectiveness of supply chain management tactics and fair price shops are positively and significantly associated. Their analysis concluded that supply chain management techniques were essential for the day-to-day operations of fair price retailers and showed how valuable these techniques might be if utilised properly. The study evaluates the impact of supply chain management strategies on the operational effectiveness of the India-based fair pricing shops. It satisfies the criterion to look into how supply chain management techniques can impact fair price retailers’ performance. The primary flaw in this study is the quantity of the sample. The study’s conclusions could not be applicable to everyone. Therefore, it is recommended that researchers test the suggested framework on a larger scale.

Karimi and Rafiee (2014) examined how adopting supply chain management strategies affects organisational performance via the perspective of competitive aims. The methods utilised to gather data for this study include comprehensive supply chain management questionnaires, organisational performance, and competitive considerations. Utilising the anticipated methodology and applications, this study was carried out. Scaling any descriptive connection with structural equation modelling (SEM). All of Pump Iran’s employees, of whom 483 were randomly selected as sample participants, are used in research statistical communities. Findings from the research show that Iran Pumps Company uses supply chain management techniques in line with corporate objectives.

Conceptual Framework

The overall objective of the study was to examine relationship between supply chain management and retailers performance in Lagos State. The conceptual framework below depict the relationships of the variables.

Figure 2.1:   Relationship between supply chain management practice and retailers performance; Source: Author’s Conceptualisaton (2023)

RESEARCH METHODS

In this study, the survey research design was used. The study looks at a sizable sample of the chosen population at a particular moment. The Ikorodu and Isolo campuses of the Lagos State University of Science and Technology were used for the study’s execution. Only the stores in Lagos State were included in the study’s target population. These shops provide the sector with nearly identical goods and services as their rivals, allowing the study to be generalised effectively.

Taro Yamane’s (1973) sample size formula was used to choose 296 stores from the target population of 1208 people. Simple random sampling was employed in the study to choose the two locations of the retail markets at Ikorodu and Isolo ln Lagos State University of Science and Technology. A questionnaire that was issued to retailers on the university’s two main campuses was used to gather primary data. The survey included a standardised Likert scale with five points. The wording used in the questionnaire were chosen with care to speak to the main goals of the study. A and B were the two sections of the questionnaire. The respondents’ biographies were presented in Section A, while comments on the study’s goals or hypotheses were included in Section B. Strongly Agreed, Agreed, Undecided, Disagreed, and Strongly Disagreed were the five response options, and they were scored from 5 to 1. A simple frequency table was used for descriptive statistics, while analysis of variance (ANOVA) and ordinary least squares.

The model for this study is stated as follows:

RTP=f(SCMP)

RTP = β₀ + β₁OTD +β₂PFO + β₃STH + Ɛ_t ….1

Where:

RTP = Retailers Performance.

SCMP =Supply Chain Management Practices,

OTD = On-Time Delivery,

PFO = Perfect Order,

STH = Stock Holding

β₀ = Constant,

β₁……….β₃= Coefficient,

Ɛ_t = Error term.

Data Presentation, Analyses and Interpretation

Preamble

The researchers in conjunction with research assistants reached out to Three Hundred (300) retailers in Lagos State questionnaires were administered, the Three Hundred (300) were filled, Two Hundred and Ninety Eight (298) were returned and Two Hundred and Ninety Six (296) were considered to have been satisfactory completed, resulting in a response rate of 98.67%. The study considered this to be representative enough for the data analyses. The summary is provided in table 4.1.

Table 4.1: Distribution of Copies of Questionnaire Administered

(Source: Field Survey, 2023)

Presentation of Data

Data Presentation based on Dimensions of Independent and Dependent Variables

The dimensions of dependent variable for the study are on-time delivery, perfect order and stock holding while the dimensions of independent variable is retailers performance.

Pre-Estimation Test-Homogeneity of Variance

The study conducted Levene’s test of homogeneity of variance to know whether or not Analysis of Variance would be a suitable tool in estimating the specified model. The results of the test are provided in tables 4.2 to 4.14.

On-Time Delivery Dimension

Results in table 4.2 show that p-value of 0.528 is greater than the level of significance of 0.05. These results compel the acceptance of null hypothesis of homogeneity of variance and the rejection of alternative hypothesis of heterogeneity of variance. These results therefore provide evidence that supports the appropriateness of the use of Analysis of Variance using On-Time Delivery as one of the independent variables.

Table 4.2: Results of Test of Homogeneity of Variance on On-Time Delivery Dimension

(Source: Field Survey, 2023 & Computations Aided by SPSS Version 25.0)

***p-value< 0.01; **p-value< 0.05

Perfect order Dimension

Results in table 4.3 show that p-value of 0.559 is greater than the level of significance of 0.05. This result compelled the acceptance of null hypothesis of homogeneity of variance and the rejection of alternative hypothesis of heterogeneity of variance. These results therefore provide evidence that supports the appropriateness of the use of Analysis of Variance using Perfect order as one of the independent variables employed in this study.

Table 4.3: Results of Test of Homogeneity of Variance on Perfect order Dimension

(Source: Field Survey, 2023 & Computations Aided by SPSS Version 25.0)

***p-value< 0.01; **p-value< 0.05

Stock Holding Dimension

Results in table 4.4 show that p-value of 0.418 is greater than the level of significance of 0.05. These results compel the acceptance of null hypothesis of homogeneity of variance and the rejection of alternative hypothesis of heterogeneity of variance. These results therefore provide evidence that supports the appropriateness of the use of Analysis of Variance using Stock Holding as one of the dimensions of retailers performance.

Table 4.4: Results of Test of Homogeneity of Variance on Stock Holding Dimension

(Source: Field Survey, 2023 & Computations Aided by SPSS Version 25.0)

***p-value< 0.01; **p-value< 0.05

Retailers Performance Dimension

Results in table 4.5 show that p-value of 0.335 is greater than the level of significance of 0.05. This result compels the acceptance of null hypothesis of homogeneity of variance and the rejection of alternative hypothesis of heterogeneity of variance. These results therefore provide evidence that supports the appropriateness of the use of Analysis of Variance using Retailers performance as one of the dependent variables.

Table 4.5: Results of Test of Homogeneity of Variance on Retailers Performance Dimension

(Source: Field Survey, 2023 & Computations Aided by SPSS Version 25.0)

***p-value< 0.01; **p-value< 0.05

Test of Reliability

Cronbach’s Alpha test of reliability was adopted to determine the reliability of the research measures, especially with respect to the internal consistency of the scale used, and by extension, its appropriateness. The results of the test are as shown in table 4.6 below:

Table 4.6: Reliability Coefficient for all Research Statements

(Source: Field Survey,2023 & Computations Aided by SPSS Version 25.0)

From the results in table 4.6, it can be inferred that the scale used in the study is internally consistent, as it shows a coefficient that is above 0.70, a benchmark set by Nunnally (1978), cited in Miidom, Nwuche, and Anyanwu (2016). This implies that the research measures are considerably reliable.

Test of Hypotheses

Based on the three research objectives and the three accompanying research questions, three research hypotheses were formulated and tested. The results are presented in tables 4.7 to 4.9

H0₁: There is no significant effect of on-time delivery on retailers’ performance in Lagos State

Results in table 4.7 revealed that the partial elasticity coefficient of On-Time Delivery with respect to retailers performance is 0.388, indicating that On-Time Delivery has a positive effect on  the retailers performance in Lagos State of the selected retailers. This coefficient is also statistically significant (t=2.509, p-value<0.05) to individually influence retailers performance in Lagos State. With these results, the null hypothesis is rejected, while the alternative hypothesis is accepted. The inference there from is that there is significant relationship between On-Time Delivery and retailer performance in Lagos State

H0₂: There is no significant effect of perfect order on retailers’ performance in Lagos State

Results in table 4.7 revealed that the partial elasticity coefficient of Perfect order with respect to retailers performance in Lagos State is 0.412, indicating that Perfect order have a positive effect on  retailers performance in Lagos State of the selected retailers. This coefficient is also statistically significant (t=.2.541, p-value<0.05) to individually influence retailers performance in Lagos State. With these results, the null hypothesis is rejected, while the alternative hypothesis is accepted. The inference there from is that Perfect order have a significant effect on retailers performance in Lagos State

H0₃: There is no significant effect of stock holding and retailers’ performance in Lagos State

Results in table 4.7 revealed that the partial elasticity coefficient of Stock Holding with respect to retailers performance in Lagos State is 0.235, indicating that stock Holding have a positive effect on  retailers performance in Lagos State of the selected retailers. This coefficient is also statistically significant (t=.2.675, p-value<0.05) to individually influence retailers performance in Lagos State. With these results, the null hypothesis is rejected, while the alternative hypothesis is accepted. The inference there from is that Stock Holding have a significant effect on retailers performance in Lagos State

As noted in table 4.8, the R Square of 42.90% suggests a very strong model. The 42.90% R Square revealed that the total variation in the Retailers Performance is attributed to Supply Chain Management, represented by On-Time Delivery, Perfect order and Stock Holding, while 57.10% of the total variation in the retailers performance in Lagos State is accounted for by other factors not captured in the model. The Durbin Watson statistic of 1.861 in table 4.8 indicates no serious presence of serial correlation as coefficient is approximately equal to 2.

The overall fitness of the model is established based on the results in table 4.9, from which it can be inferred that the three dimensions of supply chain management have joint significant influence on the retailers performance in Lagos State (F= 141.512, p-value =0.000).

Table 4.7: Results of Ordinary Least Square for Hypotheses One, Two and Three

(Source: Field Survey, 2023 & Computations Aided by SPSS Version 25.0)

Table 4.8: Model Summary for Hypotheses One, Two and Three

(Source: Field Survey, 2023 & Computations Aided by SPSS Version 25.0)

Table 4.9: Results of Analysis of Variance for Hypotheses One, Two and Three

(Source: Field Survey, 2023 & Computations Aided by SPSS Version 25.0)

Post Estimation Tests

Normality of Residuals

As shown in table 4.10, the mean residual of is 0.0000, indicating that the residuals from the estimated ordinary least square regression are normally distributed and the variance of the residuals is the same for all values of the independent variables.

Table 4.10: Results of Residual Statistics

(Source: Field Survey, 2023 & Computations Aided by SPSS Version 25.0)

Multi-Collinearity

The results in table 4.11 provided evidence that all the three proxies of supply chain management have no strong inter-correlations and inter-associations with one another based on the collinearity statistics of Variation Inflation Factor (VIF) which for all the independent variables are between 1 and 10, suggesting no problem of multicollinearity.

Table 4.11: Results of Collinearity Diagnostics

(Source: Field Survey, 2023 & Computations Aided by SPSS Version 25.0)

DISCUSSION OF FINDINGS

Retailers accepted On-Time Delivery as a component of Supply Chain Management, according to analyses from the previous section. Additionally, it was agreed that Perfect Order and Stock Holding were SCM dimensions. Additional findings demonstrated that the retailers’ performance was highly trustworthy and that they more accurately reflect underlying transactions and events.

According to hypothesis 1, On-Time Delivery has a beneficial impact on the performance of the merchants in Lagos State. Findings from hypothesis two, however, indicated that Perfect Order has an impact on the performance of Lagos State’s shops. The third hypothesis revealed that stock holdings have a significant and favourable impact on the performance of merchants in Lagos State. Overall, the significance of the three SCM dimensions is equal influence on the retailers’ performance in Lagos State.

These findings are consistent with those of Alahmaed (2021), who discovered that supply chain management practices, such as supply chain planning (SC planning), information sharing (IS) level, customer relationship management (CRM), and supplier relationship management (SRM), are all favorably related to SC performance. Additionally, Tarigan et al.’s data from 2021 demonstrated that supply chain management methods had a direct impact on retailer performance; secondly, information technology tempered that effect with an increase of 14.70%. The results of this study concur with those of Kumar and Kushwaha (2018), who found a significant and favorable association between the three dimensions of SCM practices and operational performance.

CONCLUSION AND RECOMMENDATIONS 

Conclusion    

The study’s primary goal was to determine how supply chain management methods affected merchants’ performance in Lagos State. On-time delivery, however, was found to have a favorable impact on the performance of Lagos State’s retailers. Additionally, the performance of Lagos State’s shops is strongly correlated with flawless order. Finally, the performance of the merchants in Lagos State is strongly and favorably impacted by stock holding. In general, the performance of the merchants in Lagos State is significantly impacted by all three aspects of SCM techniques. It is safe to say that SCM techniques have a substantial impact on the success of Lagos State’s retailers.

Recommendations

The study advises the following parties—retailers, wholesalers, customers, agents, producers, governments, policy makers, researchers, and students—that supply chain management techniques have an impact on retailers’ performance. This recommendation is based on the study’s findings. Additionally, it suggests that retailers should measure their performance by how well their products are delivered on time to customers by wholesalers, producers, and agents. As a result, products and services ought to be supplied on time. Additionally, the study suggests that keeping the right amount of stock in relation to demand is important since it serves as a meter for measuring how well shops are performing. Last but not least, this study suggests that ordered items and services should be fully and flawlessly created and delivered in good shape as this serves as performance indicator for retailers.

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