BERNARD Peniel1 DIDIA James U. D.2 AKEKUE-ALEX Nennaaton3
1, 2, 3 Department of Marketing, Faculty of Administration and Management,
Rivers State University, Port Harcourt.
Abstract
This study investigated the relationship between vendor managed inventory (VMI) and logistics performance of quoted oil and gas companies in Nigeria. The study adopted a survey research design.
Primary data was collected from 27 senior managers in operations, logistics, and warehousing from 9 oil and gas firms listed on the Nigerian Exchange Group (NGX). The study employed a structured questionnaire for the collection of data to assess the impact of VMI on 3 indicators of logistics performance: on-time delivery, order fulfilment, and transportation cost. Spearman’s rank-order correlation was utilized for data analysis, with the results revealing significant positive relationship between VMI and all 3 logistics performance metrics. Specifically, VMI was found to have a strong correlation with on-time delivery (rho = .961, p = .000), order fulfilment (rho = .955, p = .000), and transportation cost (rho = .949, p = .000). These findings suggest that VMI improve logistics performance by reducing lead times, enhancing order accuracy, and minimizing transportation expenses. The study recommends the full adoption of VMI, supported by advanced technology and continuous supplier collaboration, to optimize logistics performance in the Nigerian oil and gas sector.
Keywords: Logistics performance, on-time delivery, order fulfilment, transportation cost, vendor managed inventory.