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ABSTRACT
The study examined the impact of supply chain costs on the financial performance of quoted manufacturing firms in Nigeria using panel secondary data from the year 2013 to 2017.
Specifically, the study investigated how the cost of ordering raw material, cost of processing orders, cost of holding inventory (warehouse cost) and cost of delivery orders (finished products) influence the financial performance of quoted manufacturing firms in Nigeria. In doing this, the time series research design was adopted. The population was made up of the fifty-six (56) quoted manufacturing firms in Nigeria while data were collected from 10 (ten) of the sampled quoted manufacturing firms within the five (5) Year period of the study, making up 50 observations. The data were subjected to a panel regression analysis with fixed (time) and random (time) effects in examining the ten (10) quoted manufacturing firms in Nigeria from 2013 to 2017 financial year.
From the analysis, it was discovered that the cost of ordering raw material and cost of holding inventory (warehouse cost) negatively and significantly influenced the performance of quoted manufacturing firms in Nigeria, However the cost of processing orders and cost of delivery orders though negatively related to the performance of quoted manufacturing firms in Nigeria had no significant influence on the performance of the firms. On the basis of these findings, it is recommended that management of the concerned manufacturing firms should comprehensively address costs of ordering raw materials and costs of holding inventory (warehouse) by sourcing raw material in local markets except where such raw materials are not available locally. They should also use cost-effective means to transport their raw materials and ensure that finished products are delivered directly to wholesalers.
