Published Article

ABSTRACT

This research examines the effects of buyer market power on ordering delays in auto-spare parts wholesaling business operations in the Ladipo markets region in Lagos, Nigeria. This research will be carried out on the assumption that big customers can use their negotiating power to engage in certain practices in addition to using pricing as a means of securing better deals, including but not limited to ordering delays, fragmented orders, delays in restocking and conditional negotiations. Buyer power, transaction costs and postponement in the chain of logistics are theories used in this research. An empirical study conducted through a primary survey employing a structured questionnaire will serve as the research methodology to gather data from the target population of 120 auto-spare parts wholesalers in the selected geographical area. Data analysis techniques included descriptive statistics, validity and reliability test, correlation test and OLS regression. Findings show positive relationship between demand side market power and ordering delays while high levels of ordering delays negatively predict good supplier relations as well as poor performance measures in the wholesale industry. The findings indicate that demand side market power influences the strength of the bargaining power of buyers but excessive ordering delay could become counterproductive due to shortage in inventory among other problems.