Manufacturing Supply Chain: The role of Location as a Key Factor in Driving Efficiency in Port-to-Sites Transportation

Abstract

Abstract The literature is unclear about how location plays a crucial role in determining how efficiently containers are transported from ports to manufacturing factory sites in Nigeria. A thorough understanding of the relationships between locations within the port's hinterland and the cost of transportation between the seaport and manufacturing factory sites is therefore necessary. This paper therefore investigates into the significance of a firm's location for effective port-hinterland freight transportation in Lagos and Ogun States, Nigeria. 43 publicly quoted manufacturing firms that frequently import cargo in containers through the seaports in Lagos and have been consistently listed on the Nigerian Stock Exchange (NSE) list for more than ten years (2010-2019) make up the study's population. These firms are located in the major industrial estates in Lagos and Ogun States, which are Ilupeju, Agbara, Ewekoro, Ikeja, Ikorodu, Isolo, and Shagamu. The study used a structured questionnaire to collect primary data. Only 23 of the 43 administered questionnaires were actually completed and returned. This number makes up 53% of the sample size. This percentage is appropriate for analysis and reporting of the study's findings. The results of the Pearson Correlation analysis show that there is a statistically significant correlation (r=0.007) between location, as determined by the distance from the ports, and the cost of transporting containers. For effective container transportation between ports and factories, new firms must seek out strategic locations with access to means of transportation including rail and inland Babatope Gabriel Oni & Ademola Joel Ojekunle & Ohida Muhammed Page 14 of 36 waterways. Existing firms must understand how to focus their plans to avoid having the rising costs of port-hinterland transit have an influence on their revenue and profit.