The Effect of Logistics Management on the Performance of Small and Medium Pharmaceutical Companies in Southern Nigeria
DOI:
https://doi.org/10.51412/psnnjp.2025.09Keywords:
Logistics management, pharmaceutical SMEs, supply chain, operational efficiency, NigeriaAbstract
Background: Logistics management plays a critical role in the performance and sustainability of small and medium-sized enterprises (SMEs) in the pharmaceutical sector, particularly in developing economies where infrastructural and regulatory challenges persist. This study examined the impact of logistics management on the performance of pharmaceutical SMEs in Southern Nigeria, focusing on
key logistics indicators, service quality, and business growth drivers.
Methods: A quantitative research approach was adopted, employing a structured questionnaire to collect data from 95 pharmaceutical SME owners. The data were analysed using the Statistical Package for the Social Sciences (SPSS), revealing that effective logistics management significantly enhances service reliability, cost efficiency, and overall business performance.
Results: The study identified critical logistics indicators such as real-time tracking, efficient transportation, reduced taxation, uninterrupted power supply, and streamlined communication. However, challenges such as delayed deliveries, high logistics costs, and inadequate infrastructure continue to impede SME growth. The findings underscore the importance of government intervention
in improving logistics infrastructure, reducing importation costs, and enforcing regulatory frameworks to enhance operational efficiency.
Conclusion: The study recommends the adoption of advanced logistics technologies, strengthened business networks, and strategic policy reforms to support pharmaceutical SMEs.
References
Calixto E (2016) Gas and oil reliability engineering:modeling and analysis: Gulf Professional Publishing, Oxford, United Kingdom, 789.
Świtała M, Cichosz M, Trzęsiok J (2019) How to achieve customer satisfaction? Perspective of logistics outsourcing performance. LogForum, 15 (1): 39 - 51. http://doi.org/10.17270/J.LOG.2019.316 DOI: https://doi.org/10.17270/J.LOG.2019.316
Gizaw T, Bogale M, Gudeta T. (2021) Investigating the effect of pharmaceutical logistics service performance on customer satisfaction: a two-step approach with structural equation modeling. Journal of Pharmaceutical Policy and Practice, 14 (1): 64.
https://doi.org/10.1186/s40545-021-00351-6 DOI: https://doi.org/10.1186/s40545-021-00351-6
Chen M-C, Hsu C-L, Lee L-H (2019) Service quality and customer satisfaction in pharmaceutical logistics: An analysis based on kano model and importance-satisfaction model. International Journal of Environmental Research and Public Health, 16 (21): 4091.
https://doi.org/10.3390/ijerph16214091 DOI: https://doi.org/10.3390/ijerph16214091
Li L (2014) Managing supply chain and logistics: Competitive strategy for a sustainable future: World Scientific Publishing Company, Singapore, 432. DOI: https://doi.org/10.1142/9151
Owusu Kwateng K, Manso JF, Osei-Mensah R (2014) Outbound logistics management in manufacturing companies in Ghana. Review of
Business & Finance Studies, 5(1):83-92. https://ssrn.com/abstract=2324316
Kohler JC, Pavignani E, Michael M, Ovtcharenko N, Murru M, Hill PS (2012) An examination of pharmaceutical systems in severely disrupted countries. BMC International Health and Human Rights, 12(1):34. https://doi.org/10.1186/1472-698X-12-34 DOI: https://doi.org/10.1186/1472-698X-12-34
James EE, Inyang IB (2022) Logistics management and marketing performance of small and medium-sized manufacturing firms. International Journal of Entrepreneurship and Business Innovation, 5 (1): 1 - 15. DOI: 10.52589/IJEBI D1D3KF26 DOI: https://doi.org/10.52589/IJEBI-D1D3KF26
Lartey PA, Graham AE, Lukulay PH, Ndomondo-Sigonda M (2018) Pharmaceutical sector development in Africa: progress to date. Pharmaceutical Medicine, 32 (1): 1 - 11. https://doi.org/10.1007/s40290-018-0220-3 DOI: https://doi.org/10.1007/s40290-018-0220-3
Isola WA, Mesagan EP (2016) Determinants of pharmaceutical industry's performance in Nigeria. Managing Global Transitions, 14 (3): 267–282. https://ir.unilag.edu.ng/handle/123456789/9947
Obukohwo EO, Olele EH, Buzugbe PN (2018) Assessing efficiency in the pharmaceutical sector of Nigeria. CBN Journal of Applied Statistics, 9(2):131-148. doi:10.33429/Cjas.09218.6/6 DOI: https://doi.org/10.33429/Cjas.09218.6/6
Faber N, De Koster RB, Smidts A (2018) Survival of the fittest: the impact of fit between warehouse management structure and warehouse context on warehouse performance. International Journal of Production Research, 56 (1-2):120-139. https://doi.org/10.1080/00207543.2017.1395489 DOI: https://doi.org/10.1080/00207543.2017.1395489
Wilson V (2014) Research methods: triangulation. Evidence Based Library and Information Practice, 9 (1): 94 - 95. DOI: https://doi.org/10.18438/B8WW3X
http://creativecommons.org/licenses/by-nc-sa/2.5/ca/
Saunders M (2009) Research methods for business students. Vol 8. London, England: Person Education Limited Wilson J. Essentials of
business research: A guide to doing your research project. 2014
Fisher CM (2007) Researching and writing a dissertation: A guidebook for business students: Pearson Education.
Leedy PD, Ormrod JE (1980) Practical research: Macmillan New York.
Sreejesh S, Mohapatra S, Anusree M (2014) Business research methods: An applied orientation: Springer DOI: https://doi.org/10.1007/978-3-319-00539-3
Denscombe M (2017) EBOOK: The good research guide: For small-scale social research projects: McGraw-Hill Education (UK).
Wisker G (2017) The postgraduate research handbook: Succeed with your MA, MPhil, EdD and PhD: Bloomsbury Publishing.
Woodburn PA (2013) Analysis of challenges of medical supply chains in sub-Saharan Africa regarding inventory management and transport and distribution. LondonWestminster Business School.
Omoush M M (2020) Investigation the relationship between supply chain management activities and operational performance: Testing the mediating role of strategic agility-a practical study on the pharmaceutical companies. International Business Research, 13(2):1-74. DOI: https://doi.org/10.5539/ibr.v13n2p74
Musau EG (2020) Supply chain management and organizational performance among kenyan textile firms: a moderated mediation model of government support and environmental uncertainty. International Journal of Managing Value and Supply Chains, 11(3):17-28. DOI: https://doi.org/10.5121/ijmvsc.2020.11302
Mafini C, Omoruyi O (2013) Logistics benefits and challenges: the case of SMEs in a South African local municipality. The Southern African Journal of Entrepreneurship and Small Business, 6(1):145-167 DOI: https://doi.org/10.4102/sajesbm.v6i1.38
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 The Nigerian Journal of Pharmacy
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
