Effect of Supply Chain Risk Management Strategies on the Operational Performance of Manufacturing Firms in Dangote Cement Plc, Obajana Plant, Kogi State

Abstract

The operational performance of Dangote Cement Plc, Obajana Plant, a flagship manufacturing hub in Nigeria’s cement industry, is critical for sustaining productivity, reliable deliveries, and cost efficiency in an increasingly volatile operating environment. Supply Chain Risk Management (SCRM), conceptualised in this study through three core dimensions, Risk Identification, Risk Assessment, and Risk Mitigation strategies is central to cushioning the plant against high-impact disruptions in raw material sourcing, production, and outbound logistics. This study examined the effect of SCRM strategies on operational performance, measured through productivity, delivery reliability, and cost efficiency. A cross-sectional survey design was adopted, and 210 copies of questionnaires were distributed to supply chain and logistics staff, procurement and inventory officers, and production or operations supervisors using stratified proportionate allocation based on Bowley’s formula. A total of 156 copies of questionnaires were retrieved and found usable, yielding a response rate of 74.3%. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results revealed that Risk Identification (β = 0.398, p = 0.000), Risk Assessment (β = 0.258, p = 0.002), and Risk Mitigation strategies (β = 0.289, p = 0.001) each exert a positive and statistically significant effect on operational performance, with the three constructs jointly explaining 76.1% of its variance (R² = 0.761). The findings demonstrated that robust SCRM capabilities substantially enhance productivity, strengthen delivery reliability, and improve cost efficiency at the Obajana Plant. The study recommends deeper institutionalisation of systematic risk identification, analytics-driven risk assessment, and proactive mitigation measures, supported by digital technologies and strategic supplier partnerships, to consolidate operational resilience in Nigeria’s cement manufacturing sector.