The Effect of Road Traffic on Supply Chain Performance of Kwasi Oppong Company Limited in Ghana

Oteng, Maxwell; Opoku, Oscar Agyemang; Gyamfi, Ernest · 2022 · Crossref

DOI: 10.55529/jpome.21.27.36

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Summary

This study investigates the impact of road traffic congestion on the supply chain performance of Kwasi Oppong Company Limited, a manufacturing firm in Kumasi, Ghana. Motivated by the growing challenge of urban congestion in African cities and the lack of empirical research on its specific effects on local manufacturing supply chains, the research aims to identify traffic causes and assess their influence on supply chain performance, customer service, and productivity. The authors posit that while traffic hinders the efficient movement of goods, its precise operational and financial consequences for firms remain underexplored in the Ghanaian context. The research employed a quantitative explanatory design to establish cause-and-effect relationships. The target population consisted of 65 employees at Kwasi Oppong Company Limited, from which a sample of 50 respondents was selected using simple random sampling. Data were collected via structured questionnaires and analyzed using descriptive statistics and linear regression models in SPSS. The study focused on four specific objectives: identifying traffic causes, assessing impacts on supply chain performance, examining effects on customer service, and evaluating productivity outcomes. The findings reveal that road traffic is primarily caused by poor road networks, driver behavior, concentrated economic activities, road encroachment by vendors, unauthorized parking, and vehicle breakdowns. Contradictory results emerged between descriptive responses and regression analyses. Descriptively, respondents reported that despite traffic, the company maintained strong market competitiveness, increased output, and secured raw materials on time. However, traffic significantly increased transportation costs, raised prices of goods and services, and negatively affected customer satisfaction. Regression analysis confirmed statistically significant negative effects of road traffic on customer service (β = -0.411, p < 0.05) and productivity (β = -0.491, p < 0.05). The negative impact on productivity was attributed to growing vehicle operating costs, delays in securing raw materials, and increased operational expenses, which offset gains in sales and market share. The study concludes that while Kwasi Oppong Company Limited has managed to maintain market share and sales volume despite congestion, road traffic imposes significant financial burdens and reduces service quality. The authors recommend that the company improve strategic management to sustain competitiveness, adopt better transportation planning to reduce costs, and schedule deliveries outside peak hours to enhance customer satisfaction. Additionally, relocating branches to areas with less economic concentration is suggested to mitigate traffic-related disruptions. These findings highlight the critical need for logistics adaptation in congested urban environments to balance cost efficiency with service reliability.

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• traffic density