Leagile Supply Services boss highlights challenges, solutions for festive season stock-outs

Founder of Leagile Supply Services, a supply chain solutions provider in Lagos, Arogundade Oluwasegun, has provided insights into the recurring issue of stock-outs during festive seasons. He emphasized the negative impact on consumer confidence, the systemic challenges plaguing Nigeria’s supply chain, and innovative measures his company is adopting to address these problems.

Stock-outs represent a significant disruption in the supply chain, often caused by a combination of factors such as inaccurate demand forecasts, poor inventory management, and logistical failures. Oluwasegun noted that these issues are exacerbated during festive periods when exceptional consumer demand is encountered. “Ineffective communication within the value chain is a critical issue,” he said, stressing the need for better collaboration between suppliers, distributors, and retailers.

To minimise the impact on consumers, Leagile Supply Services has adopted supply chain agile strategies, including real-time inventory monitoring using advanced Enterprise Resource Planning (ERP) systems, and effective collaborative planning forecast replenishment (CPFR). This technology allows the company to identify and address bottlenecks swiftly, ensuring goods are available on shelves rather than stuck in warehouses.

During peak periods like December, the company engages early with trade partners to align on demand forecasts and secure commitments for increased production and storage capacity. Real-time visibility and upskilling supply chain teams are also critical components of their approach. However, Oluwasegun highlighted challenges such as unauthorised sale prices and missing product codes, which can render stock inaccessible to consumers despite being available in warehouses.

Infrastructure and policy-related challenges in Nigeria remain significant contributors to stock-outs. Poor road networks, excessive port inspections, and congestion caused by outdated equipment extend lead times and complicate logistics. “Government policies need to shift focus from revenue generation to supporting sustainable supply chain practices,” he urged, advocating for the creation of industrial clusters and the review of tariffs to ease the burden on businesses.

Oluwasegun also highlighted the role of technology in improving production and distribution strategies. By integrating electronic data interchange applications with ERP systems, supply chains can achieve better visibility and responsiveness. “Collaborative supply chains actively engage all partners, allowing us to predict demand accurately and optimise operations,” he explained.

Consumers also play a role in reducing stock-outs. Oluwasegun suggested that accessible financial support during festive periods could help households make early purchases, reducing demand spikes. This would enable manufacturers and retailers to plan inventory more effectively and ease the pressure on logistics networks.

He underscored the importance of addressing stock-outs to safeguard consumer confidence and loyalty. When faced with unavailable products, consumers may switch to substitutes, delay purchases, or abandon them altogether. This can have lasting consequences for both retailers and manufacturers.

Oluwasegun called for open collaboration among retailers, suppliers, and logistics providers to tackle these challenges head-on. “Breaking down barriers in communication and working together for the benefit of consumers is essential,” he concluded.

As festive seasons approach, Leagile Supply Services is setting an example by adopting innovative measures to ensure consistent availability of essential goods, offering hope for a smoother shopping experience for Nigerians.