Impact of Digital Platforms on Supply Chain Efficiency of Jumia Nigeria

Abstract

This study assessed the effect of digital platforms on Supply Chain Efficiency (SCE) at Jumia Nigeria, focusing on three key independent variables: Logistics and Service Delivery (LSD), E-payment System (EPS), and Integrated Warehousing (ITW). A cross-sectional research design was adopted, with data collected from 186 staff members across key digital and supply chain operations (Supply Chain Managers & Logistics Partners, E-commerce Operations & IT Specialists, and Warehouse Staff) at Jumia Nigeria’s Lagos facilities, using a structured questionnaire administered via Google Forms. Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 3 was employed for data analysis. Results showed that Integrated Warehousing exerted the strongest positive effect on SCE (β = 0.698, t = 62.079, p = 0.000), followed by E-payment System (β = 0.286, t = 38.311, p = 0.000). Logistics and Service Delivery had a positive but non-significant influence (β = 0.022, t = 2.260, p = 0.052). The model explained 99.5% of variance in SCE (R² = 0.995), measured via order-fulfillment speed, inventory turnover ratio, and delivery satisfaction. These results indicated that the strategic deployment of digital platforms across logistics, finance, and storage functions is a critical driver of enhanced supply chain performance at Jumia Nigeria. This study recommends prioritizing investment in advanced digital logistics technologies to boost order fulfillment speed, optimizing e-payment integration for faster financial flows and stock replenishment, and expanding the use of Warehouse Management Systems (WMS) to improve inventory turnover and accuracy.