Logistics and distribution strategies as drivers of competitive advantage in Nigeria’s cement industry: A Pre-COVID-19 Analysis

Prior to COVID-19, the Nigerian cement industry was dominated by three major firms offering relatively homogeneous products at similar prices, resulting in intense competition for market share. Since competition extended mainly to regions without cement manufacturing plants, efficient and cost-effective logistics became a critical factor for competitive advantage. This study examines the logistics and distribution strategies adopted by the leading cement companies in Nigeria between 2014 and 2018. Specifically, it evaluates the effect of logistics costs on cement landing costs, identifies key operational challenges, and analyses the distribution channels and strategies employed by the firms. The findings reveal that logistics costs had no significant effect on cement landing costs among the companies studied. The study also shows that the firms faced similar challenges, most of which were externally driven. Furthermore, road transportation emerged as the most efficient and cost-effective distribution channel for cement distribution in Nigeria during the pre-COVID-19 era.