Effects of supply chain design and collaboration on customers' satisfaction of instant noodles in Ekiti State, Nigeria

Ogunmola, Oluleye Seun; Arogundade, Kayode Kingsley Article Effects of supply chain design and collaboration on customers' satisfaction of instant noodles in Ekiti State, Nigeria Logistics Provided in Cooperation with: MDPI – Multidisciplinary Digital Publishing Institute, Basel Suggested Citation: Ogunmola, Oluleye Seun; Arogundade, Kayode Kingsley (2019) : Effects of supply chain design and collaboration on customers' satisfaction of instant noodles in Ekiti State, Nigeria, Logistics, ISSN 2305-6290, MDPI, Basel, Vol. 3, Iss. 1, pp. 1-13, https://doi.org/10.3390/logistics3010002 This Version is available at: https://hdl.handle.net/10419/310047 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ logistics Article Effects of Supply Chain Design and Collaboration on Customers’ Satisfaction of Instant Noodles in Ekiti State, Nigeria Oluleye Seun Ogunmola * and Kayode Kingsley Arogundade Department of Business Administration, Ekiti State University, Ado Ekiti, 360001 Ekiti State, Nigeria; [email protected] *Correspondence: [email protected]; Tel.: +234-806-641-2448 Received: 26 October 2018; Accepted: 21 December 2018; Published: 26 December 2018   Abstract: The degree of collaboration among supply chain partners and the structure of the network are important determinants of the level of satisfaction customers derive from the products or services. However, the effects of these dimensions on customer satisfaction at the downstream section of the supply chain remain under-researched in Nigeria. This study precisely examined the effects of collaboration and supply chain design on customers’ satisfaction at the downstream end of the chain using Ekiti State as study area. The study employed descriptive survey design with the use of structured Likert scale questionnaire administered to 381 retailers of noodles in Ekiti State. The research hypotheses were analysed using simple linear regression as statistical technique with the aid of SPSS version 22.0. At the end of the study, it was observed that both collaboration and supply chain design were significant predictors of customers’ satisfaction of instant noodles in Ekiti State. However, collaboration among supply chain partners emerged as stronger determinant of customers’ satisfaction than supply chain design. The study concludes that these two practices of supply chain management are highly important criteria any manufacturing firm especially in the noodles industry must pay close attention to in order to satisfy her consumers. Keywords: supply chain management; logistics; collaboration; cooperation; supply chain design; customer satisfaction; distribution; regression; noodles 1. Introduction Supply chain management is a set of measures employed to adequately unify the activities of suppliers, manufacturers and partners in distribution process to ensure optimal production and distribution of goods in right quantities to appropriate places and in timely manner so as to minimize overall cost while creating value and satisfaction for customers [ 1 ]. Distribution or movement of finished goods to the final consumers at reduced cost is considered the primary focus of any profit-oriented manufacturing firm and is therefore one of the most readily available yardstick to measure a firm’s performance [ 2 ]. In consonance with this, Arogundade [ 3 ] noted that in the supply chain management, the most logical and common logistic is the feed-forward logistic pattern where goods travel from the manufacturer to the ultimate consumer. Surprisingly, large number of instant noodles manufacturers in Nigeria have not done enough in terms of timely delivery of their products to their teeming customers across the length and breadth of the country [ 4 ]. MarkMonitor’s Noodles Customer Satisfaction survey recently conducted on the competing noodles brands in Nigeria indicated that brands such as Honeywell and Golden Penny noodles have become scarce commodities in some parts of the country, Ekiti State inclusive [ 5 ]. This explains the reason why Indomie noodles continue to dominate the market because of its continuous innovations in distribution, promotions and advertisement. Logistics 2019,3, 2; doi:10.3390/logistics3010002 www.mdpi.com/journal/logistics Logistics 2019,3, 2 2 of 13 Instant noodles have become popular staple food around the world with Nigeria named the 12th largest noodles market with estimated annual consumption of over 1.79 billion packs by nearly 14 million Nigerians as at 2011 [ 5 , 6 ]. Available in different flavours across many cultures, some of the basic ingredients in noodles production include wheat flour, iodized salt and vegetable oil while flavour, yeast extract, sugar and spices are common in the seasoning powder. Improved shelve life, shinning lustre and ready-to-eat attributes of instant noodles are achieved due to the tradition of flash-frying the thin wheat dough in highly saturated vegetable oil [7,8]. Despite the introduction of instant noodles into the Nigerian market in 1988 under the brand name Indomie by importation from Indofood, the world largest manufacturer of instant noodles based in Indonesia, production of instant noodles in Nigeria did not start until 1995 when the largest noodles manufacturing plant in Africa was established by De United Foods Industries Limited to produce Indomie brands in different variants and sizes [ 4 , 6 ]. From four noodle manufacturing companies operational in Nigeria in 2006, the sector now records over 16 brands fighting for market share in Nigeria’s ever-growing marketplace, making it one of the fastest growing among Fast Moving Consumer Goods (FMCG) [ 4 ]. Some of the popular noodle brands in Nigeria include Indomie, Chikki, Dangote, Mimee, Honeywell and Golden Penny [4,6]. Though several authors around the world have conducted studies on the relationship between different supply chain management practices including supply chain design, collaboration and customers’ satisfaction, most of these researches focused more on supplier-manufacturer supply chain relationship at the upstream section while assessing the level of customers’ satisfaction [ 9 – 16 ]. It is noteworthy that none of these studies addressed the effects of supply chain design and collaboration as predictors of satisfaction enjoyed by the numerous buyers of the finished products at the downstream or lower end of the supply chain. This has presented manufacturers of instant noodles in Nigeria with the challenge of identifying which practices of supply chain are of utmost concern to their teeming customers [5,6]. This study was therefore conducted to fill the identified gap in literature by investigating the effects of supply chain design and collaboration on customers’ satisfaction at the downstream section of the supply chain. This was achieved by directly engaging the resellers (retailers) of instant noodles at the downstream end of the supply chain as respondents. In so doing, the level at which the aforementioned supply chain management practices affect customers’ satisfaction among retailers of Nigerian-made instant noodles spread across the three senatorial districts of Ekiti State was empirically established. At the end of the study, it was concluded that both supply chain design and collaboration among the partners play important role in determination of the level of satisfaction derived by the customers at the lower end of the supply chain. 2. Literature Review 2.1. Conceptual Clarifications 2.1.1. Supply Chain Management Supply chain management (SCM) is defined as a set of measures put in place to adequately harmonise the activities of suppliers, manufacturers and partners in distribution process to ensure optimal production and distribution of goods in right quantities to appropriate places and in timely manner in a bid to minimize overall cost while creating value and satisfaction for customers [ 1 ]. La Londe [ 17 ] described supply chain management as that integrating function which links major business components and processes into a cohesive and highly efficient model. Integration in the system is achieved through collaborative activities of firms who share resources and expertise to create value added processes that meet consumers’ dynamic needs at the right time [2,18–21]. The link among supply chain partners is a function of collaborating firm’s proximity to one another [ 2 ], the type of design architecture and form of technology incorporated to harmonise the supply chain towards achieving management objectives [ 22 , 23 ]. Suffice to say that supply chain Logistics 2019,3, 2 3 of 13 design and collaboration are germane supply chain management practices which are interlinked for optimisation of the entire system. 2.1.2. Supply Chain Design Waters [ 24 ] pointed out that a well-designed supply chain permits unhindered movement of production materials and components upstream, work-in-progress within and delivery of finished goods downstream. This flow from one stage to another determines the degree of efficiency of the entire supply chain [25]. The pattern of travel or movement of goods to the final consumers along the supply chain is highly determined by the supply chain design employed. This is characterised by the number of middlemen through which the goods pass before getting to its final destination. The length of delivery process determines accessibility which in turn defines the level of satisfaction derived by the consumers or customers. The basic supply chain design involves the movement of materials through the supplier to the manufacturer and distribution of finished goods from the producer through wholesaler to the retailer until accessible by the final consumers [ 26 , 27 ]. However, the structure has been abridged in order to hasten the delivery process especially in the case of perishable products [ 1 , 25 , 26 ]. Adapted from the work of Pulevska-ivanovska and Kaleshovska [ 27 ], Figure 1highlights the basic players in a typical supply chain and the direction of movement of goods, information and funds within the system. Logistics 2018, 2, x FOR PEER REVIEW 3 of 14 design and collaboration are germane supply chain management practices which are interlinked for optimisation of the entire system. 2.2.2. Supply Chain Design Waters [24] pointed out that a well-designed supply chain permits unhindered movement of production materials and components upstream, work-in-progress within and delivery of finished goods downstream. This flow from one stage to another determines the degree of efficiency of the entire supply chain [25]. The pattern of travel or movement of goods to the final consumers along the supply chain is highly determined by the supply chain design employed. This is characterised by the number of middlemen through which the goods pass before getting to its final destination. The length of delivery process determines accessibility which in turn defines the level of satisfaction derived by the consumers or customers. The basic supply chain design involves the movement of materials through the supplier to the manufacturer and distribution of finished goods from the producer through wholesaler to the retailer until accessible by the final consumers [26,27]. However, the structure has been abridged in order to hasten the delivery process especially in the case of perishable products [1,25,26]. Adapted from the work of Pulevska-ivanovska and Kaleshovska [27], Figure 1 highlights the basic players in a typical supply chain and the direction of movement of goods, information and funds within the system. Figure 1. Typical Supply Chain. Source: [27] The flexibility of a supply chain in design allows the parties to interact and harmonize their functions with the use of technology to process information on supply chain activities in real-time towards creating value in the system [22]. A well-integrated supply chain structure cuts costs and saves time of operation at the various levels. Based on the empirical research conducted by Zailani et al.[23], integration of modern IT solutions like Enterprise Resource Planning, Electronic Data Interface and so on significantly improves resource sharing and cooperation among partners especially in areas of transaction processing, planning and some other supply chain activities. This integrated design brings about improved service and product delivery thereby enhancing customers’ satisfaction in the long run. 2.2.3. Collaboration Collaboration or cooperation is the backbone of any social structure involving human relations [28] and the level of interaction between partners in the supply chain determines the results of the management process [29]. Smith et al. [30] defined collaboration as that process by which a set of people or firms within a system interact and create connections for mutual benefit. This level of interaction among the partners goes a long way in fostering customers satisfaction[10–12,15,31]. Collaboration entails a situation whereby firms and individuals involved in a supply chain jointly relate to pull resources together and share operational information in other to attain the common objective of improving the supply chain functions [31]. In order to deliver value to customers at reduced cost, it is essential for the manufacturer to ensure collaborative efforts mandating efficient resource sharing within its departments as well as among firms in the supply chain[2,30]. Lysons and Farrington [32] affirmed that collaboration among functional groups within a supply chain, with customers and material suppliers often result in optimal performance of the system and Figure 1. Typical Supply Chain. Source: [27]. The flexibility of a supply chain in design allows the parties to interact and harmonize their functions with the use of technology to process information on supply chain activities in real-time towards creating value in the system [ 22 ]. A well-integrated supply chain structure cuts costs and saves time of operation at the various levels. Based on the empirical research conducted by Zailani et al. [ 23 ], integration of modern IT solutions like Enterprise Resource Planning, Electronic Data Interface and so on significantly improves resource sharing and cooperation among partners especially in areas of transaction processing, planning and some other supply chain activities. This integrated design brings about improved service and product delivery thereby enhancing customers’ satisfaction in the long run. 2.1.3. Collaboration Collaboration or cooperation is the backbone of any social structure involving human relations [ 28 ] and the level of interaction between partners in the supply chain determines the results of the management process [ 29 ]. Smith et al. [ 30 ] defined collaboration as that process by which a set of people or firms within a system interact and create connections for mutual benefit. This level of interaction among the partners goes a long way in fostering customers satisfaction [10–12,15,31]. Collaboration entails a situation whereby firms and individuals involved in a supply chain jointly relate to pull resources together and share operational information in other to attain the common objective of improving the supply chain functions [ 31 ]. In order to deliver value to customers at reduced cost, it is essential for the manufacturer to ensure collaborative efforts mandating efficient resource sharing within its departments as well as among firms in the supply chain [2,30]. Lysons and Farrington [ 32 ] affirmed that collaboration among functional groups within a supply chain, with customers and material suppliers often result in optimal performance of the system Logistics 2019,3, 2 4 of 13 and alignment of these functions definitively optimises process design, customers’ satisfaction and suppliers’ return on investment. To corroborate this assertion, researchers [ 33 ] pointed out that firms in the supply chain collaborate to help each party focus on its area of core competence thereby improving service delivery and value creation within the network. Since no firm can function optimally in isolation, the need to actively collaborate with other organisations has become a priority in supply chain management discourse [20,21,34]. Efficiency of supply chain collaboration largely depends on the efforts, expertise and skills of individual firm working together in the value-creation relationship [ 20 , 35 ] as each has peculiar role to play for goods and services to reach the final consumers in the right quantity and quality, at the right place, in the right condition, at the right time and the right cost [ 10 , 16 , 23 , 25 , 36 ]. The final consumers are thus considered passive participants in the supply chain management process and prime beneficiaries of the values created by the stakeholders from raw material suppliers to the retailers. The advent of information and communication technology (ICT) has further enhanced the level of collaboration among supply chain partners through seamless integration of inter-firm activities. “Members of logistics collaborative networks that take advantage of affordable information communication technologies have a significant advantage in making use of the opportunities the collaborations may bring” [ 21 ] especially in maximising network benefits and simplifying business processes for better value creation [18,19]. 2.1.4. Customer Satisfaction Different scholars have defined customer satisfaction in different ways. Kotler and Keller [ 37 ] defined customers’ satisfaction as the level of contentment or fulfilment a customer derive from the product or service being paid for or the feelings of fulfilment or disappointment which results from comparing the perceived performance of a product with conceived expectations. Customers’ satisfaction can also be considered as the perception of a customer that the purchased product/service has effectively met or surpassed his/her expectations [ 38 ]. Ilieska [ 39 ] gave a layman definition of customers’ satisfaction as the consumer’s evaluation of a product or service in terms of the extent to which that product or service has met his/her needs or expectations. Retailers expect transaction processing to be seamlessly done at any given time and goods delivered as at when due; anything short of this results in dissatisfaction. The purpose of supply chain management is to ensure that appropriate measures are put in place to facilitate the attainment of customers’ expectations. Customer’s satisfaction is measured by customer involvement [ 40 ] and service satisfaction [ 41 , 42 ] scales to determine how inter-firm interactions within the supply chain drive expectations of the partners. Since supply chain practices have been defined in this context as inter-firm activities that take place between supply chain intermediaries in the course of value delivery [ 2 ], the focus of the study is restricted to the customers (retailers) at the downstream end of the chain rather than the final consumers who are less involved in supply chain activities. A customer is that individual who buys a product (mostly for resale or sometimes for usage) while the consumer is the one who eventually consumes it [43,44]. 2.2. Conceptual Framework Francis and Waiganjo [ 11 ] in their study identified various supply chain dimensions capable of determining customers’ satisfaction. They considered benchmarking, organisational leadership, collaboration and responsiveness as possible practices of supply chain that affect customers’ satisfaction. The proposed model for this study was therefore founded on social capital theory and anchored on existing framework adapted from Francis and Waiganjo [ 11 ] with the introduction of an added variable (supply chain design) to the relationship. Figure 2schematically presents a research model adapted from the work of Francis and Waiganjo [ 11 ] for testing relationship among the constructs of this study. Logistics 2019,3, 2 5 of 13 Logistics 2018, 2, x FOR PEER REVIEW 5 of 14 Figure 2. Proposed Research Model. Source: Adapted from [11] 3. Methodology 3.1. Study Area This study was carried out in Ekiti State which is one of the States in Southwest, Nigeria. Ekiti State was created on October 1, 1996 after it was carved out of the old Ondo State by the then military administration of General Sanni Abacha. Upon creation, Ado Ekiti became the capital and currently the economic hub of Ekiti State. According to the 2006 national census [45], the population of the State stood at 2,398,957. The State covers an expanse of land area measuring 6,353 square kilometres hosting 16 local government areas in three senatorial districts. Common mineral resources in Ekiti State include Kaolin, Clay, Granite, Feldspar and Syenite. Figure 3 shows the map of Ekiti State with the local government areas of the three senatorial districts depicted in varying colours as adapted from the official website of Ekiti State Government [46]. Supply Chain Design Collaboration Customers’ Satisfaction •Customer Involvement Supply Chain Management Figure 2. Proposed Research Model. Source: Adapted from [11]. 3. Methodology 3.1. Study Area This study was carried out in Ekiti State which is one of the States in Southwest, Nigeria. Ekiti State was created on October 1, 1996 after it was carved out of the old Ondo State by the then military administration of General Sanni Abacha. Upon creation, Ado Ekiti became the capital and currently the economic hub of Ekiti State. According to the 2006 national census [ 45 ], the population of the State stood at 2,398,957. The State covers an expanse of land area measuring 6,353 square kilometres hosting 16 local government areas in three senatorial districts. Common mineral resources in Ekiti State include Kaolin, Clay, Granite, Feldspar and Syenite. Figure 3shows the map of Ekiti State with the local government areas of the three senatorial districts depicted in varying colours as adapted from the official website of Ekiti State Government [46]. Logistics 2018, 2, x FOR PEER REVIEW 6 of 14 Figure 3. Senatorial Districts in Ekiti State. Source: [46] 3.2. Research Design This research employed descriptive survey design in a bid to investigate the effects of supply chain design and collaboration on customers’ satisfaction of instant noodles in Ekiti State, Nigeria. Data for the study was directly sourced from various respondents (retailers of instant noodles) across the State with the aid of five-point Likert scale questionnaire. The questionnaire and its scales were adapted from previous studies including [2,40–42,47–49] and carefully reviewed then accordingly modified by experts in order to enhance content validity of the scale. Only questions relevant to supply chain design, collaboration and degree of customers’ satisfaction were retained in the modified scales. The structured questionnaire consisted of questions in four different sections. Section A covered respondents’ demographic profile, section B was used to elicit data on supply chain design, section C collated data on collaboration while section D fetched data on level of customers’ satisfaction derived by the respondents (retailers). 3.3. Reliability and Validity of Questionnaire The reliability and internal consistency of the research instrument as performed on the relevant variables was determined or measured by Cronbach alpha which is most commonly used in reliability tests. Under this measure, Cronbach alpha with value greater than or equal to 0.7 was found adequate in the measurement of internal consistency of an instrument [50]. Figure 3. Senatorial Districts in Ekiti State. Source: [46]. Logistics 2019,3, 2 6 of 13 3.2. Research Design This research employed descriptive survey design in a bid to investigate the effects of supply chain design and collaboration on customers’ satisfaction of instant noodles in Ekiti State, Nigeria. Data for the study was directly sourced from various respondents (retailers of instant noodles) across the State with the aid of five-point Likert scale questionnaire. The questionnaire and its scales were adapted from previous studies including [ 2 , 40 – 42 , 47 – 49 ] and carefully reviewed then accordingly modified by experts in order to enhance content validity of the scale. Only questions relevant to supply chain design, collaboration and degree of customers’ satisfaction were retained in the modified scales. The structured questionnaire consisted of questions in four different sections. Section A covered respondents’ demographic profile, section B was used to elicit data on supply chain design, section C collated data on collaboration while section D fetched data on level of customers’ satisfaction derived by the respondents (retailers). 3.3. Reliability and Validity of Questionnaire The reliability and internal consistency of the research instrument as performed on the relevant variables was determined or measured by Cronbach alpha which is most commonly used in reliability tests. Under this measure, Cronbach alpha with value greater than or equal to 0.7 was found adequate in the measurement of internal consistency of an instrument [50]. Table 1described the output of reliability test on the scale used in this study. The 19-item scale, comprising of 4 constructs (variables) has an overall alpha value ( α ) of 0.808 which surpassed the standard threshold of 0.7 establishing adequacy of the instrument in achieving desired objectives [ 50 ]. In the course of testing the scales, some items were dropped due to relatively low item-total correlation. From the results, supply chain design returned highest reliability coefficient of 0.800 while 5-item-scale collaboration recorded the lowest reliability coefficient of 0.753. Table 1. Reliability of Variables. Source: SPSS Reliability Analysis Output, 2018. Construct N No. of Items Cronbach’s Alpha Supply Chain Design 369 5 0.800 Collaboration 369 5 0.753 Service Satisfaction 369 2 0.768 Customer Involvement 369 7 0.773 Total Cronbach’s Alpha for Scale = 0.808 The questionnaire used in gathering primary data for this study was subjected to face and content validity to ensure it accurately measured the target parameters. In a bid to ensure content validity of the questionnaire, construct measurement items were carefully adapted from previous studies and modified where necessary. Modifications to the instrument which were done by professionals on the subject matter included simplifying used grammar, inclusion of items that most accurately address the constructs and dropping of others. 3.4. Data Collection and Sampling Technique Population of this study was taken as the retailers at the lower end of the supply chain network who buy directly from the noodles manufacturer(s) or through designated middlemen. The retailers were targeted as respondents to this study because they are the major (in terms of number) supply chain stakeholders who take title to the goods and are most affected by practices and inter-firm activities in the entire supply chain network. Population of the study therefore covered 8265 retailers of made-in-Nigeria instant noodles in the three senatorial districts of Ekiti State (Ekiti North, Ekiti Central and Ekiti South Senatorial Districts). This figure covered 1850 variety stores in Ekiti North, 3550 in Ekiti Central and 2865 in Ekiti South Senatorial Districts as presented in Table 2. Logistics 2019,3, 2 7 of 13 Table 2. Study Population by Senatorial Districts. Source: SPSS Reliability Analysis Output, 2018 Senatorial District Study LGA Headquarters Store Population Ekiti Central Ado Ado-Ekiti 3550 Ekiti North Ido/Osi Ido-Ekiti 1850 Ekiti South Ikere Ikere-Ekiti 2865 Total 8265 A total sample of 381 respondents generated from the total population with the aid of Yamane [ 51 ] formula was chosen for this study using purposive sampling method. This formula was adopted because of its reputation for presenting an unbiased sample from a large population. A multistage sampling method was employed in the study as follows: At the first stage, simple random sampling technique was used to select one local government area each from the three senatorial districts of Ekiti state. At the second stage, purposive sampling method was employed to select the headquarters of each local government because of their commercial significance characterised by large concentration of stores and high trading activities and at the third stage, samples to be taken from each city was generated from the total sample using simple proportion formula. Sample to be taken from Ado-Ekiti was calculated as 164 respondents, Ido-Ekiti computed as 85 while sample from Ikere-Ekiti was calculated as 132. At the fourth stage, random sampling method was used to draw respondents from the various clusters of each city for equal representation and even coverage of all geographical locations in the senatorial districts. 3.5. Distribution of Questionnaire The distribution pattern of the questionnaire administered to respondents’ of this study was presented in Table 3. From a total of 381 questionnaires administered to respondents, 369 (representing 96.85% return rate) were returned as 12 (representing 3%) were unaccounted for. The 369 returned questionnaires were therefore used for analysis purpose in the study. Table 3. Number and Percentage of Questionnaire Distributed and Returned. Source: Field Survey, 2018. Location Distributed Returned % Unreturned % Ado-Ekiti 164 159 96.95 5 3.05 Ido-Ekiti 85 82 96.47 3 3.53 Ikere-Ekiti 132 128 96.97 4 3.03 Total 381 369 96.85 12 3.15 4. Results and Discussion In this study, both descriptive and inferential statistics were used to analyse the data sourced. Descriptive statistics such as frequency tables and statistical charts were used to present respondents’ demographic characteristics inter alia; gender, age, educational qualification, business location, business age and sales volume in other to conveniently compare the demographic information and relate with the eventual output of inferential statistics for the presentation of research findings. Data analysis was by simple linear regression analysis using Statistical Package for Social Sciences (SPSS) version 22.0. The objective of this study was to quantitatively test the effects of supply chain management sub-constructs viz: supply chain design and collaboration (independent or predictor variables) on customers’ satisfaction (dependent or criterion variable). Simple linear regression was considered for data analysis because of its reputable degree of accuracy, simplicity and suitability for predicting relationship between continuous variables. Logistics 2019,3, 2 8 of 13 4.1. Testing of Hypotheses The implicit function of the relationship is given as: CS = f(SCD, COL) where; CS = customers’ satisfaction SCD = supply chain design COL = collaboration The general regression equation for the inferential analysis as adapted from [52] is given as: Y=β0+β1X1+β2X2+. . . +βnXn+e where; Y= the dependent variable; X= independent variable β0, β1, β2, β3,βn= Intercepts eis the error term. 4.1.1. Regression Analysis of Supply Chain Design and Customers’ Satisfaction Ho1: Supply chain design does not significantly affect customers’ satisfaction of instant noodles in Ekiti State. Ha1: Supply chain design significantly affects customers’ satisfaction of instant noodles in Ekiti State. From the model summary of regression output presented in Table 4, the computed value of R = 0.518 indicated a moderate positive relationship between the outcome and predictor variables. Also it could be observed that supply chain design was responsible for 26.8% (R 2 = 0.268) of variance in customers’ satisfaction. Variance inflation factor of 1.000 under collinearity statistics indicated that there was no multicollinearity in the regression model [ 53 ]. The alternative hypothesis was therefore accepted as supply chain design was found to be statistically significant (B = 0.463; t = 11.586; p< 0.05) . The model function could be written as: CS = 2.113 + 0.463*SCD + e; meaning that for every 1% increase in supply chain design, there exist 46.3% increase in customers’ satisfaction. Table 4. Regression Analysis of SCD and CS. Coefficients Model Unstandardized Coefficients Standardised Coefficients t Sig. Collinearity Statistics B Std. Error Beta Tol VIF (Constant) 2.113 0.176 11.982 0.000 Supply Chain Design 0.463 0.040 0.518 11.586 0.000 1.000 1.000 Model Summary: R 0.518 R Square (R2)0.268 Adjusted R20.266 F 134.234 Durbin-Watson 1.352 Independent Variable: Supply Chain Design Dependent Variable: Customer Satisfaction Source: Author’s Regression Output, 2018 4.1.2. Regression Analysis of Collaboration and Customers’ Satisfaction Ho2: Collaboration does not significantly affect customers’ satisfaction of instant noodles in Ekiti State. Ha2: Collaboration significantly affects customers’ satisfaction of instant noodles in Ekiti State.