Transportation and Physical Distribution Managements on Profitability of Livestock Dealers in Selected Livestock Markets in Ogun State, Nigeria

Transportation and physical distribution are elements of logistics management which organizations realized that improvement in logistics would enable them to gain competitive advantage and achieved higher profitability around the world. Transportation of livestock (sheep, rams, cattle, goats) from the north to the south in Nigeria is very expensive and risky business among illiterate livestock dealers. Also, the livestock are kept standing, and some cases lying in the vehicles throughout the long journey of between 2-3 days with bad shape of most Nigerian roads which trucks and vehicles are prone to accidents. This study examined the effect of transportation and physical distribution management on profitability of livestock dealers in selected livestock markets in Ogun State, Nigeria. This study adopted survey research design. The population of the study comprised 1678 livestock dealers across four main divisions (Remo, Ijebu, Yewa, Egba) of Ogun State. The sample size estimated through raosoft sample size calculator was 407 selected through a multi-stage sampling technique.This sampling technique was used because livestock dealers are scattered across the four main divisions of Ogun State. A structured and adapted survey questionnaire was validated and used for collecting of data for the study. The Cronbach's alpha coefficients for the constructs, ranged from 0.782 to 0.838. The response rate was 79.7%. Data were analyzed using descriptive statistics (Partial Least Square Structural equation modeling). Findings revealed significant influence of transportation management activities on the profitability of livestock dealers in selected markets in Ogun State β=.495, t=11.814, p<0.05). Physical distribution management had effect on profitability of livestock dealers in selected livestock markets in Ogun State (β=.839, t=41.453, p<0.05). The study concluded that logistics management has the opportunity to increase the profitability of livestock dealers and to be recognized for that contribution by implementing initiatives in the areas of transportation management activities and physical distribution management. It recommended a channel that enables faster distribution of livestock and at lower cost should be put in place. Also, it is necessary because physical distribution of livestock is essential for livestock dealers to realize their potential revenue and achieve customer satisfaction.