An Exploratory Study of the Strategic Use of 3PLs for Cost Reduction and Customer Satisfaction in the Oil and Gas Industry: Nigerian Firms’ Experience

Authors

  • Paul Thompson
  • Chukwuneke Okorie
  • Khaled EL Sakty

Keywords:

Outsourcing, logistics service providers, oil and gas firms, performance

Abstract

This paper investigates perspectives and trends in the outsourcing of logistics functions by Nigerian oil and gas firms in order to further comprehend the impact of deploying 3PLs on performance, particularly with regard to cost-savings and user-firm’s satisfaction. The research participants are mainly top management staff consisting of managers and supervisors in charge of areas of logistics, supply chain and procurement. A total of seven (7) oil and gas firms listed in the directory of oil companies in Nigeria took part in the study. The study adopted a quantitative approach, gathering data through the administration of an online questionnaire survey, and resultant data consequently analysed. Findings show that oil companies in Nigeria mainly outsource in order to gain cost-savings (through price-reduction) in procuring logistics operations, financial stability and opportunity to use the expertise and skills of 3PLs. Results indicatethat outsourcing of logistics has a significant impact on overall firm’s performance, with particular relation to the level of improved productivity, organisational effectiveness and acquisition of new customers. However, given hesitation by some stakeholders, 3PLs in the Nigerian market are expected to improve upon their current services in order to attract more patronage. On the whole, firms outsourcing services showed optimism that using 3PLs will continue to generate a positive impact on the performance of their organisations.

Author Biographies

  • Paul Thompson

    Paul Thompson is a logistics and supply chain entrepreneur who is currently based in Lagos Nigeria, and the CEO of Euniqque Global Ventures. Alongside sound experience in the logistics, supply chain and the oil industry, Paul holds a diploma in Maritime Transport and Business Studies. He obtained a bachelor’s degree in Maritime (Transport) Management Technology (B.Tech.) from the Federal University of Technology Owerri (FUTO). He is also a graduate of Aston University, United Kingdom, where he achieved an MSc degree in Supply Chain Management. Paul is a member of the Charted Institute of Transport (CILT). He has keen interest in learning and innovative research projects that bridge the academic and industry divide

  • Chukwuneke Okorie

    Chukwuneke Okorie joined Plymouth University in January 2012 as a lecturer in International Logistics in the Plymouth Business School (PBS). He is the Senior personal tutor for postgraduates in PBS. With a background Bachelor’s degree, B.Tech, in Maritime Transport Management Technology, he holds an MSc in Logistics and Supply Chain Management from the University of Huddersfield and a PhD in Maritime Logistics. He also holds a professional teaching qualification, Postgraduate Certificate in Academic Practice (PGCAP). Chukwuneke is a member of the Chartered Institute of Logistics and Transport (CILT), and a Fellow of the Higher Education Academy (FHEA). He has interest in diverse areas of logistics and supply chain, particularly in relation to seaports and offshore-operations. His experiences before joining Plymouth University include work with IMO and the 3PL industry. 

  • Khaled EL Sakty

    Khaled EL Sakty is Dean of College of International Transport and Logistics and Professor of Logistics and Supply Chain at Arab Academy for Science and Technology and Maritime Transport, Cairo, Egypt. Corresponding author Email:

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Published

2019-05-31

Issue

Vol. 13 No. 1 (2019): January-June 2019

Section

Articles