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Impact of strategic outsourcing of transportation on selected manufacturing companies in Nigeria

 Department: Transportation Planning and Logistics  
 By: usericon muhalhq  

 Project ID: 7351
   Rating:  (5.0) votes: 1
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   Price:₦4000
Abstract
This study examines the impact of strategic outsourcing of transportation by selected manufacturing companies in Nigeria. Objectives of this study are to examine the relationship between production cost and transportation cost, determine the level of demand since the selected firms outsourced their transportation, assess the lead time with outsourced transportation and compare the price of manufactured products since the usage of transportation outsourcing by the selected companies. Minimum of ten fleets of outsourced transportation was the criteria for choosing manufacturing companies across Nigeria from the population of Nigerian Stock Exchange (NSE) database. Aggegate data on production cost, transportation cost, delivery time via waybills and price of manufactured products were collected. Pearson Product Moment Correlation, multiple regression, Chi-squre and paired sample T-test were used to analyse the collected data. Results show that production and transportation costs are not related. R2 value of 67.2% of sales of products by the manufacturing companies is affected by the combined effects of the outsourced fleet with the distance covered to distribute the product. Chi-square value of 22.950 shows that null hypothesis (no difference in lead time with outsourcing of transport by manufacturing companies) should be rejected with p 0.05. The research concluded that, the more the coverage distance, the more the sales. Manufacturing companies will continue to use outsourcing firms in the distribution of their goods. Keywords: Outsourcing, manufacturing, transportation, production, cost...
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