An evaluation of transport and logistics system options for cement distribution in Nigeria

Abstract

This study examines the logistics of moving cement brands to market centres in Nigeria. The major objective is to evaluate transport and logistics system options used by cement companies in Nigeria, as a basis for recommending an effective option that would optimize cement haulage and distribution system in the country. Information obtained from the Logistics Units of three selected companies provided the basis for the evaluation. The study observes that while West African Portland Cement (WAPCO) depends solely on undiluted and total outsourcing of its transport system, Ashaka Cement Company relies on partly out-sourcing and free-for-all system. Obajana Cement Company on the other hand practices a mixture of company- own vehicles and outsourcing. On the basis of the strengths and weaknesses of these options, the study concludes that total outsourcing by contracting out to professional haulage firms is the best option and therefore recommends its adoption by cement companies and other haulage industries in Nigeria.