Abstract

This study investigates the impact of logistics service quality on the performance of COGENI, a prominent supplier of building materials in Cameroon. It highlights the essential role that logistics plays in enhancing customer satisfaction and operational efficiency.

The main objectives are to assess the effects of logistics service quality dimensions coordination of logistics operations, consistent professionalism across branches, and real-time visibility on the company’s performance metrics. The research population includes all COGENI branches, with a sample drawn from key locations in Cameroon.

Data collection utilized structured questionnaires and interviews, ensuring a thorough exploration of logistics practices. Analysis involved both quantitative and qualitative methods, including regression analysis to evaluate relationships between logistics service quality and performance indicators such as delivery timeliness and customer satisfaction.

Findings indicate that effective logistics service quality significantly contributes to improved performance outcomes, with well-coordinated operations and high professionalism leading to enhanced customer loyalty and operational success. The study underscores the importance of investing in training and technology to optimize logistics processes and recommends the implementation of robust monitoring systems for continuous improvement in service delivery.

CHAPTER ONE

INTRODUCTION

1.1: Background of the Study

The logistics industry plays a pivotal role in the dynamic business landscape, ensuring the smooth flow of goods and services while significantly influencing the overall performance of organizations (Ballou, 2004). As a key player in this sector, COGENI, a renowned supplier of quality building materials in Cameroon, serves a diverse clientele, including businesses in the construction and engineering sectors as well as individual homeowners. Established in 1990 and headquartered in Douala, Littoral, COGENI employs between 500 and 1,000 staff members and has firmly positioned itself within the retail industry.

Traditionally, logistics functions were perceived solely as intermediaries connecting production and consumption processes, often treated as cost centers with limited potential for differentiation (Ballou, 2004). However, this perception began to evolve in the mid-1990s, marked by the incorporation of marketing principles into logistics research (Mentzer et al., 2004; Richey et al., 2007). This paradigm shift prompted a re-evaluation of the role of logistics, emphasizing its capacity to deliver quality services and enhance customer satisfaction and loyalty.

Globally, the logistics industry is valued at over $5 trillion, making it a critical component of the world economy (Statista, 2023). The sector encompasses various services, including transportation, warehousing, inventory management, and order fulfilment, which are essential for facilitating trade and ensuring customer satisfaction. The rise of e-commerce has further amplified the importance of logistics, as consumers increasingly demand faster and more reliable delivery services (McKinsey & Company, 2021).

In North America, the logistics industry has evolved significantly, driven by technological advancements and the shift towards just-in-time inventory systems. The United States, in particular, is a leader in logistics management, with a logistics market size exceeding $1.6 trillion (Council of Supply Chain Management Professionals, 2022). Companies in this region are increasingly focusing on supply chain optimization and sustainability practices to meet consumer expectations and regulatory requirements (DHL, 2020).

Europe’s logistics sector is characterized by its integration and efficiency, largely facilitated by the European Union’s single market policies. The logistics market in Europe is projected to grow at a CAGR of 4.4% from 2021 to 2028, reaching approximately €1 trillion (European Logistics Association, 2021). The focus on green logistics and reducing carbon footprints has gained momentum, with many companies adopting sustainable practices to enhance their logistics service quality (PwC, 2022).

In Africa, the logistics industry is experiencing rapid growth, driven by urbanization, population growth, and increased trade activities. According to the African Development Bank (2020), logistics costs in Africa are among the highest in the world, accounting for about 50% of product prices. Despite these challenges, initiatives such as the African Continental Free Trade Area (AfCFTA) aim to improve intra-African trade and streamline logistics operations, fostering regional economic integration (African Union, 2021).

In the context of Cameroon, the logistics industry is essential for supporting economic growth and development. The country serves as a gateway for trade in Central Africa, and the logistics sector is crucial for facilitating the movement of goods both domestically and internationally. However, the industry faces significant challenges, including inadequate infrastructure, bureaucratic inefficiencies, and high logistics costs (World Bank, 2021). COGENI, as a prominent player in this sector, must navigate these challenges while maintaining a commitment to high-quality service delivery.

Today, the logistics industry exemplifies the evolution of service-based industries (Chapman et al., 2003). Understanding the nuances of logistics service quality (LSQ) and its implications for organizational performance has become imperative. LSQ is a multidimensional construct encompassing various aspects of logistics services, including reliability, responsiveness, assurance, and empathy (Parasuraman et al., 1988). Effective management of LSQ can lead to enhanced customer satisfaction, loyalty, and ultimately, improved organizational performance (Mentzer et al., 2001; Juga et al., 2010).

Despite the recognized significance of LSQ, there exists a gap in comprehensively understanding its impact on specific organizations like COGENI. The company’s commitment to delivering high-quality products and maintaining a strong market presence underscores the need to examine how logistics service quality contributes to its overall performance metrics (COGENI Annual Report, 2022). Therefore, this study endeavours to identify the key factors influencing LSQ within COGENI’s operational framework and explore their ramifications on customer satisfaction and loyalty.

1.2 Statement of the Problem

COGENI, as a leading supplier of quality building materials with branches spanning various regions in Cameroon, faces significant challenges in delivering excellence in its logistics services. Despite its extensive presence in major cities and regions, including Littoral, Centre, Ouest, Nord-Ouest, Sud & Sud-Ouest, and Nord, the company encounters obstacles that hinder the seamless delivery of logistics services. These challenges not only affect operational efficiency but also impact customer satisfaction and overall performance metrics.

One of the primary issues COGENI faces is the inefficiency in coordinating logistics operations across its numerous branches, which are spread across diverse geographical locations. The decentralized nature of operations complicates inventory management, transportation logistics, and communication among different branches. Additionally, varying infrastructure and transportation networks in different regions contribute to delays and inconsistencies in delivering building materials to customers. This operational inefficiency directly affects the company’s performance, leading to longer delivery times and increased costs.

Maintaining consistent levels of service quality across all branches remains a significant challenge for COGENI. Differences in workforce competency, adherence to standard operating procedures, and the capabilities of local infrastructure result in disparities in the quality of logistics services. This inconsistency can tarnish COGENI’s reputation for reliability and quality within the construction industry, negatively impacting customer loyalty and satisfaction, which are critical performance variables for the company.

Moreover, the lack of real-time visibility and tracking capabilities throughout the supply chain exacerbates these issues. Inadequate utilization of information and communication technologies (ICT) hampers COGENI’s ability to monitor inventory levels, track shipments, and respond promptly to customer inquiries. This lack of visibility leads to operational bottlenecks, inefficiencies, and heightened customer dissatisfaction. Additionally, the absence of a dedicated facility for vehicle maintenance complicates logistics operations, as timely repairs and upkeep of the fleet are essential for ensuring uninterrupted service. Coupled with the political crisis and instability in the Southwest and Northwest regions of Cameroon, which disrupt transportation routes and threaten personnel safety, these challenges collectively hinder COGENI’s overall performance in the logistics sector.

1.3: Research Question:

1.3.1: Main Research Question:

The main research question of this study is what is the effect of logistics service quality on the performance of COGENI’s branches at Camp Yabassi and Akwa?

1.3.2 Specific Research Questions

1. How does the coordination of logistics operations does affect the performance of COGENI’s branches at Camp Yabassi and Akwa?
2. What role does consistent professionalism in logistics services across all the branches of COGENI play in the performance of COGENI’s branches at Camp Yabassi and Akwa I?
3. What is the influence of real-time visibility and tracking capabilities throughout the supply chain on the performance of COGENI’s branches at Camp Yabassi and Akwa?

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