Logistics Planning Performance Model for Improving Offshore Operations at the Gulf of Guinea

Authors: Ejem E. Ejem, Timothy S. Aikor

Abstract:

This paper attempts to develop a logistics performance model incorporating logistics performance as the focal construct with logistics planning strategy as antecedent and organizational performance, both marketing and financial, as consequences. Data from a sample of 360 top/middle managers representing different offshore logistics firms were randomly selected from the Nigerian logistics employees and analyzed using a structural equation modeling methodology and principal component analysis. The findings suggest that logistics planning influences financial performance by improving business continuity processes and enhancing disaster immunity. Further, the findings indicate that when a firm employs mindful planning processes, an important element within logistics planning, it can avoid the trade-off between risk management and efficiency. Amidst other variables with significant loadings in the rotated component matrix of dimensions of offshore logistics planning, logistics service providers in offshore operations should pay close attention to the following: Awareness of whom to contact in an emergency relating to your logistics operations, the level of risk the organization acceptable for logistics operations, when to review business continuity plans for logistics operations, the testing requirements for the business continuity plan for logistics operation, adequate training for staff involved in preparing business continuity plans for its logistics operations, net income before tax compare with competitors and quick recovery of the business unit from disasters compare with competitors. As logistics service providers work to improve the logistics processes, they support their organization's logistics planning strategy, resulting in improved performance for the overall supply chain.

Keywords: logistics planning, supply chain, disaster immunity, competitive capabilities, logistics service providers.