Strategic Procurement and Supply Disruption Management among Retail Outlets in Makurdi Metropolis, Nigeria

Abstract

Frequent supply disruptions have continued to challenge the sustainability of retail outlets, particularly in developing countries like Nigeria. In Makurdi metropolis (Benue State), many retail businesses experience delays, stockouts, and inconsistent supplier performance, leading to customer dissatisfaction and financial losses. These persistent challenges highlight the need for effective procurement strategies that can enhance supply chain resilience and minimize disruption risks. This study examined the effect of strategic procurement strategies such as multiple sourcing, local sourcing, e-procurement, and entrenchment strategies on supply disruption management among retail outlets in Makurdi metropolis. A cross-sectional survey design was utilized, and primary data were gathered through structured questionnaires administered on 354 respondents. Data were analysed using SPSS and AMOS software through Structural Equation Modelling (SEM). The findings revealed that multiple sourcing and entrenchment strategies have strong positive effects on supply disruption management $(\beta=0.31$ and $\beta=0.52$, $p<0.001)$ while local sourcing and e-procurement showed weaker but significant positive effect $(\beta=0.09$ and $\beta=0.11.$, $p<0.05)$. The results underscore the importance of supplier diversification and long-term supplier relationships in enhancing supply chain resilience. The study concludes that retail outlets should strategically combine procurement approaches, emphasizing supplier diversity and risk management, to mitigate the impact of supply disruptions. Recommendations include engaging broader supplier networks, investing in e-procurement systems, and adopting contingency planning to strengthen supply chain resilience.