Vulnerability in Nigerian Logistics and supply Chain Industry

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The bad condition of major roads in Nigeria,insufficient road traffic devices,poor quality of pavements and driver incompetencies and recklessness are the main factors in an auto crash.

Nigeria was ranked 149th in 2009 by World Health Organizations for major road traffic accidents,out 178 member states.(Sumalia,2013).

Years Number of Cases Number of Killed Number of Injured Fatality rate per 100,000
2007 8,477 4,673 17,794 9
2008 11,341 6,661 27,980 6
2009 10,854 5,693 27,270 5
2010 5,330 4,065 18,095 4
2011 8,153 5,084 21,721 5
2012 46,269 4,260 20,752 5

Supply chain and logistics disruptions are directly influenced by overall systematic performance and reliability of enabling infrastructures: in this instance road network. Delayed delivery-time on produce like yoghurt for instance could have high huge supply chain implications for all actors in the chain. Connecting other industries to this instance paints a vivid commercial picture on relationships between infrastructure, supply chain and commerce.

Risk landscape and observed drivers
Avoiding and reducing logistics and supply chain disruptions is not an easy task.Delloite in 2012 conducted a survey of 600 Executives of retail and manufacturing companies on the causes and effects of supply chain risks, the company identified and documented more than 200 significant sources of supply chain risks. These risks fall under 4 categories.

1. Functional support risks:
These kinds of risks occur in such areas as finance, legal, human resources and IT. Shortcomings in these functions could be caused by anything from a lack of needed talent to regulatory compliance problems, as well as interruptions to the vital flow of operational data.

2. Macro-environment risks:
This can have an impact on the potion of the supply chain,or across the entire spectrum. These include events such as downturns in the global economy,political instability,new regulatory requirements,terror threats like Boko haram,shortages to critical raw materials/resources and diseases,Etc.

3. Extended value chain risks:
Stemming fro problems with upstream and downstream supply chain partners,ranging from tier one and secondary suppliers and outsourcers and end customers.

4. Internal Operational risks:
It can occur anywhere along the chain, from product development and manufacturing to distribution.Increased efficiency in the enterprise level has removed much of the “cushion” that traditionally helped companies absorb disruptions in these areas.

As cited in Nigerian logistics and supply chain industry report 2016,by African Center for Supply Chain(ACSC).

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