Effect of Supplier Relationship Management on the Supply Chain Resilience of Nestlé Nigeria Plc.

Abstract

The resilience of supply chains in multinational FMCG firms like Nestlé Nigeria Plc is critical for operational continuity amid Nigeria’s volatile economic and infrastructural challenges. Supplier Relationship Management (SRM) practices, encompassing trust, communication, collaboration, information sharing, and risk management, are strategic levers for enhancing resilience. This study examined the effect of SRM practices on the supply chain resilience of Nestlé Nigeria Plc, measured through order fulfillment speed, inventory turnover ratio, and supply chain disruption recovery time. A cross-sectional survey design was adopted, with data collected from 269 respondents across 394 purposively sampled managerial staff using a structured questionnaire. Partial Least Squares Structural Equation Modeling (PLS-SEM) analyzed the data. Results showed that Supplier Trust (β = 0.278, p = 0.000), Supplier Communication (β = 0.318, p = 0.000), and Supplier Risk Management (β = 0.165, p = 0.029) significantly and positively influence supply chain resilience, while Supplier Collaboration (β = 0.103, p = 0.070) and Supplier Information Sharing (β = 0.104, p = 0.091) had no significant effect, collectively explaining 78.3% of the variance in resilience (R² = 0.783). Supplier Communication exerted the strongest effect, followed by Supplier Trust. The study concluded that the operational stability of Nestlé Nigeria Plc relies heavily on strong relational factors and mandatory risk mitigation over formal data transparency. Consequently, it recommends the prioritization of trust-building long-term contracts, real-time digital communication platforms, and dual-sourcing risk policies, alongside internal audits to address structural barriers hindering effective information exchange