E-commerce Adoption on Inventory Management for Manufacturing Companies in Nigeria: An Econometric

Introduction

E-commerce, or electronic commerce, is rapidly transforming the landscape of logistics activities among manufacturers in Nigeria. It is becoming an essential element of supply chain management, revolutionizing the supervision and control over the ordering, storage, and utilization of components necessary for production, as well as the management of finished goods awaiting sale.

This study investigates the impact of Business to Business (B2B) e-commerce adoption on inventory management, focusing specifically on manufacturers in Nigeria. The issue of inefficient inventory management can lead to increased costs and diminished customer satisfaction. Given the significance of e-commerce in inventory management, this research emphasizes aspects such as inventory accuracy, stock-out frequency, inventory turnover rate, demand forecasting accuracy, storage optimization, inventory holding costs, supplier reliability, inventory audit frequency, and inventory replenishment.

The growth of e-commerce in the logistics sector presents challenges that must be managed effectively to maintain the distribution of goods over long distances. The relationship between e-commerce and inventory management—particularly in terms of stocks and warehousing—has become too significant to be overlooked. This study encompasses data collected from employees of 20 manufacturing companies in Nigeria.

A structured questionnaire was designed for data collection, and the analysis was conducted using both one-sample test analysis and multivariate regression analysis. The results show that e-commerce has a positive and significant effect on various inventory management metrics: stock-out frequency (p = 0.00), inventory turnover rate (p = 0.00), demand forecasting accuracy (p = 0.00), storage optimization (p = 0.00), and inventory replenishment (p = 0.00).

The findings highlight significant improvements in inventory accuracy, reduced stock-out frequency, increased inventory turnover rate, and enhanced demand forecasting accuracy. These results underscore that adopting e-commerce is crucial for optimizing inventory management processes.

To maximize the benefits of these digital tools, it is recommended that manufacturers implement better forecasting methods in inventory management and efficient stock handling techniques to more effectively track stock levels and improve overall inventory control.

Keywords

• E-commerce
• Inventory Management
• Manufacturing Companies
• Nigeria
• Supply Chain Management
• Stock-Out Frequency
• Inventory Turnover Rate
• Demand Forecasting
• Storage Optimization
• Inventory Replenishment

FAQ

Q1: What is the main focus of the study on e-commerce and inventory management in Nigeria?
A1: The study focuses on the effect of Business to Business (B2B) e-commerce adoption on inventory management practices among manufacturing companies in Nigeria.

Q2: What are the key findings of the study?
A2: The study found that e-commerce positively affects inventory management metrics, resulting in improved inventory accuracy, reduced stock-out frequency, increased inventory turnover rate, and better demand forecasting accuracy.

Q3: How was the data for the study collected?
A3: Data was collected through a structured questionnaire distributed to employees of 20 manufacturing companies in Nigeria.

Q4: What statistical methods were used to analyze the data?
A4: The data was analyzed using one-sample test analysis and multivariate regression analysis.

Q5: What recommendations are made for manufacturers based on the study findings?
A5: Manufacturers are advised to adopt digital tools for better forecasting and more efficient stock handling in order to enhance inventory management and control.