Challenges and Strategic Responses in Truck Spare Parts Procurement: A Study of Dangote Industries Plc

Abstract

This study investigates the challenges and strategic responses in truck spare parts procurement at Dangote Industries Plc, one of Africa’s largest conglomerates, as it expands its logistics capabilities to support an extensive truck fleet, including the integration of 4,000 compressed natural gas (CNG)-powered trucks. The study identifies key procurement challenges such as foreign exchange volatility, supply chain disruptions, infrastructure limitations, and the emergence of specialized maintenance needs due to the CNG transition. Using a qualitative single-case study approach, semi-structured interviews with procurement managers were conducted to gather insights on how the company manages these challenges. Findings indicate that Dangote Industries Plc employs a strategic mix of supplier diversification, localization through its Dangote Sinotruk joint venture, and advanced inventory management practices to mitigate procurement risks and ensure fleet performance. The company’s proactive approach includes strengthening local manufacturing of spare parts, enhancing supplier relationships, and addressing skills and infrastructure gaps to support the fleet’s operational efficiency and long-term sustainability. The study contributes to the literature on supply chain management in developing economies, offering a detailed analysis of spare parts logistics within the context of a vertically integrated conglomerate facing complex procurement challenges. It provided practical recommendations for policy advocacy, localization efforts, and combating counterfeit parts.