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Chapter One
Chapter One
INTRODUCTION
Laundry services have become an essential part of modern-day living, especially in urban areas
where time is scarce. The laundry industry in Nigeria is growing rapidly due to the increasing
population and the urbanization of the country. With the growth of the industry comes the need
to streamline operations management to meet the demands of customers and enhance business
profitability. Thus, this research aims to explore the trends and challenges of operations
management in laundry services in Nigeria.
One of the trends in the laundry industry is the use of innovative technology to enhance laundry
services. The advent of technology has revolutionized the laundry industry in Nigeria, leading to
the development of innovative laundry websites, mobile applications, and IoT-based laundry
services. Liu et al. (2020) found that IoT-based laundry services have been implemented in
China, using big data analytics, intelligent logistics management, and machine learning
techniques to optimize laundry operations and improve customer experience. Uddin et al. (2022)
also developed an Android-based application, IronMan, for laundry services in Bangladesh. The
app allows customers to schedule laundry pickups, track their orders, and make payments online.
The use of technology in laundry services has improved operations management by enhancing
customer experience, reducing turnaround time, and increasing profitability.
However, the laundry industry in Nigeria faces several challenges that hinder the smooth
operation of laundry services. One of the significant challenges is the lack of a skilled workforce.
Hadinata et al. (2023) found that PT Luxury Indah Jaya, a premium laundry service provider in
Indonesia, experienced workforce challenges due to the lack of skilled and experienced staff.
Similarly, Sharma et al. (2022) found that patients in a tertiary care hospital in north India were
dissatisfied with the quality of linen and laundry services provided by the hospital, citing poor
quality control measures and the lack of skilled staff as the main reasons for their dissatisfaction.
The shortage of skilled personnel in the laundry industry in Nigeria has led to poor quality
control, reduced customer satisfaction, and low profitability.
Another challenge facing laundry services in Nigeria is the lack of financial planning and
management. P.N et al. (2022) conducted a study on the income analysis of laundry services in
Bengkulu, Indonesia, and found that many small-scale laundry service providers lacked financial
management skills, leading to poor financial performance. Similarly, Hadinata et al. (2023)
found that PT Luxury Indah Jaya faced financial management challenges due to inadequate
financial planning and forecasting, resulting in cash flow problems and reduced profitability. The
lack of financial planning and management in the laundry industry in Nigeria has led to low
profitability, reduced investment in technology and staff training, and limited business
expansion.
The laundry industry in Nigeria is growing rapidly, and the use of technology has transformed
operations management in laundry services. However, the industry faces several challenges, such
as the lack of a skilled workforce and poor financial planning and management, which hinder the
smooth operation of laundry services and reduce profitability. This research aims to explore the
trends and challenges of operations management in laundry services in Nigeria, providing
insights into how the industry can be improved to meet the demands of customers and enhance
business profitability.
Another challenge faced by laundry services in Nigeria is the issue of inadequate customer
satisfaction measurement systems. The inability to monitor and track the satisfaction of customers
hinders the growth and success of laundry businesses in the country (Rakhmawati, 2017). A lack
of a robust customer satisfaction measurement system can also negatively impact the reputation of
laundry businesses.
The digital transformation of laundry services has been identified as a significant trend that can
help overcome some of the challenges faced by the industry. However, the adoption of digital
technologies has been slow in Nigeria, and many laundry service providers are yet to embrace
digital transformation fully. There is a need for laundry businesses to embrace digital technologies
fully and integrate them into their operations management (Zhu, Chen, Chen, & Lin, 2017).
Another challenge is the cost of outsourcing laundry services. The cost of outsourcing laundry
services can be problematic for businesses, primarily when they have limited resources. The cost
of rental linen management services and garment/linen rental and laundry services can be a
significant challenge for tertiary care hospitals and other organizations that need these services
(Tadia et al., 2016).
Finally, laundry businesses in Nigeria must strive to meet the changing laundry habits of
customers. A study conducted in Bangkok shows that consumers are becoming more
environmentally conscious and are inclined towards using eco-friendly laundry services and
products (Moon, Amasawa, & Hirao, 2019). Nigerian laundry businesses must align their
operations management to meet the changing demands of customers and offer eco-friendly
products and services to remain competitive.
In conclusion, the laundry services industry in Nigeria faces several challenges that affect its
operations management. To overcome these challenges, laundry businesses in Nigeria must
embrace digital transformation, implement robust customer satisfaction measurement systems,
find innovative ways to reduce the cost of outsourcing laundry services, and offer eco-friendly
products and services to meet the changing demands of customers.
LITERATURE REVIEW
2.1 INTRODUCTION
The laundry service industry in Nigeria has experienced significant growth in recent years due to
the increasing demand for convenient and quality laundry services. However, the operations
management of laundry services in Nigeria continues to face several challenges, such as
inefficient processes, lack of standardization, and poor quality control. This literature review
aims to critically analyze trends and challenges in the operations management of laundry
services in Nigeria.
The competitive dynamics of the laundry service industry will be looked at with particular
attention paid to the following important factors:
● Industry Trends
● Competitive Strategies
● Opportunities and Challenges
While technology integration has played a pivotal role in elevating customer engagement within
the Nigerian laundry service landscape, challenges persist. Issues such as inconsistent power
supply, water scarcity, and the financial implications associated with acquiring and maintaining
industrial laundry equipment underscore operational hurdles faced by service providers (Okafor
& Nwabueze, 2019). The competitive nature of the market further necessitates strategic
differentiation, emphasizing quality service provision, timely delivery, and heightened customer
satisfaction (Bakare, 2021). As this thesis aims to delve into the complexities of the Nigerian
laundry service sector, it will analyze the dynamic interplay of technological advancements,
operational challenges, and competitive strategies to provide a comprehensive understanding of
the industry’s trajectory and future prospects. Through a thorough examination of scholarly
literature, industry reports, and empirical studies, this research seeks to contribute valuable
insights to the evolving landscape of laundry services in Nigeria.
2.3 INTERRELATIONSHIP AMONG SERVICE QUALITY, CUSTOMER
SATISFACTION, AND BEHAVIOURAL INTENTIONS
The intricate interrelationship among service quality, customer satisfaction, and behavioral
intentions holds paramount significance within the context of laundry services in Nigeria.
Extensive research suggests that service quality, as perceived by customers, directly influences
their satisfaction levels (Parasuraman et al., 1985; Zeithaml et al., 1990). In the specific domain of
laundry services, customer satisfaction is intricately linked to the perceived efficiency, reliability,
and responsiveness of the service provider (Akinyemi & Adeleye, 2020). The correlation between
customer satisfaction and behavioral intentions, such as repeat business and positive word-of-
mouth, has been well-established in the literature (Oliver, 1980; Anderson & Sullivan, 1993).
Therefore, understanding and optimizing these interconnections are critical for the sustained
success and growth of laundry services in the Nigerian market, requiring a nuanced examination
of service quality dimensions and their implications for customer satisfaction and subsequent
behavioral intentions. This research aims to contribute to this understanding by delving into the
specific dynamics of the Nigerian laundry service industry and its implications for service
management and customer relationship development.
Terry Hill’s framework, which emphasizes the strategic role of operations in achieving
competitiveness, is highly relevant to the context of laundry services in Nigeria (Hill, 1995). In
the laundry sector, where efficiency and quality are paramount, the framework’s five operational
objectives — corporate objectives, infrastructure, marketing strategies, competitive priority
ranking, and operation design — offer valuable insights. In a diverse market with varying
customer needs, the strategic selection of laundry processes can significantly impact service
efficiency and customer satisfaction.
Distinctive capabilities, as outlined by Hill’s framework, are particularly relevant in the
competitive landscape of laundry services in Nigeria. Developing unique competencies, such as
advanced garment care techniques or efficient logistics, can set a laundry service apart in the
market (Hill, 1995). By aligning with Hill’s operational objectives, laundry services in Nigeria
can strategically position themselves to meet the dynamic demands of customers while
navigating challenges related to infrastructure and resource availability in the local context. This
application of Hill’s framework offers a systematic approach for laundry services in Nigeria to
enhance their operational efficiency, responsiveness, and overall competitiveness in the industry.
Infrastructure and operation design are pivotal components for the efficiency and effectiveness of
laundry services. Infrastructure encompasses the physical and organizational assets necessary for
service delivery, including facilities, machinery, and technology. Operation design, on the other
hand, involves strategically planning and structuring the workflow and processes to optimize
resource utilization, reduce processing times, and enhance overall productivity.
RESEARCH METHODOLOGY
3.1 INTRODUCTION
The laundry service industry in Nigeria has a steady pulse that depends on a careful balance of
tactics and services. In this complex dance, engineering operations have become a key player,
with the ability to maximise productivity, optimise processes, and reach new heights in terms of
customer satisfaction. However, despite their increasing prevalence, little is known about the
patterns and difficulties these operations face in the Nigerian setting. Exploring this mysterious
area requires a research approach that reveals the subtleties, exposes the complexity, and
eventually helps the laundry service industry flourish sustainably.
In the realm of research methodology focusing on the trends and challenges of operations
management in Nigerian laundry services, a meticulous data analysis approach will be adopted to
derive meaningful insights. Quantitative data, such as operational efficiency metrics and
customer satisfaction scores, will undergo statistical analysis to discern patterns and correlations.
The scope of this research encompasses a thorough examination of various operational aspects,
including technology adoption, supply chain management, and customer-centric approaches
within the laundry services sector in Nigeria. By exploring these dimensions, the study aspires to
contribute a comprehensive understanding of the challenges and opportunities faced by laundry
services in their day-to-day operations.
As ethical considerations are paramount, this research will adhere strictly to ethical guidelines
and standards. Informed consent will be obtained from all participants involved in interviews and
surveys, ensuring that their rights and privacy are safeguarded. Confidentiality measures will be
implemented to protect sensitive information, and data will be anonymized during analysis to
uphold the integrity and ethical standards of the research.
The chosen methods for this research include surveys distributed to laundry service customers,
and an extensive review of relevant literature. These methods will facilitate a triangulation of
data, enhancing the validity and reliability of the findings. The combination of these research
elements will offer a nuanced exploration of the operational trends and challenges faced by
laundry services in Nigeria, contributing valuable insights for academic discourse and practical
applications in the industry.
Also, the entire sample of respondents was above 16 years of age. This is an indication that all the
respondents are mostly adults that patronise laundry services. As presented in Figure 4.2, 71.9%
of the respondents were within the age range of 17-30 years, 15.6%, 9.4%, and 3.1% of the
respondents were in the age range of 31-45, 46-60, and more than 60 years old, respectively.
Also, 4.2% of the entire respondents are A-level and below, 75% are B.Sc/HND holders, and
20.8% are M.Sc and above (see Figure 4.3).
Figure 4.3 Level of education
Figure 4.4 Respondents perceived frequency of new strategy and technology by logistics companies
Figure 4.6 Survey results on customers' perception about the different prices of logistics company services
Despite the variety of marketing channels, a significant 40% express uncertainty about the
accuracy of marketing materials in representing the laundry services. This suggests a potential
discrepancy between the expectations set by marketing efforts and the actual experiences of
consumers. The industry might benefit from refining its communication strategies to ensure
transparency and align with the reality of service offerings.
When evaluating satisfaction with marketing efforts on a scale of 1-5, the responses span a
range, indicating a mixed reception. A notable 40% express dissatisfaction to varying degrees,
highlighting room for improvement in conveying the value proposition effectively. Conversely,
28% are satisfied or very satisfied, indicating that certain marketing strategies resonate positively
with a segment of the consumer base.
Loyalty-building features hold substantial importance for consumers, with 30% emphasizing
special deals and discounts for existing customers. This suggests that businesses can cultivate
loyalty by offering incentives and recognizing the value of ongoing customer relationships.
Furthermore, rewarding loyal customers (28%) and providing quick service delivery (25%)
emerge as influential factors, indicating that efficiency and customer appreciation play pivotal
roles in fostering brand loyalty.
Figure 4.15 Mean scores of customers ratings of marketing modes
Figure 4.16 Fastest and easiest way to introduce new logistics companies
Figure 4.20 How customers feel about feedbacks from logistics companies
The dichotomy between prioritizing quick turnaround times (50%) and cost-effectiveness (46%)
highlights the diverse needs within the consumer base. This indicates that while a substantial
portion values efficiency, there is also a significant segment willing to trade speed for cost-
effectiveness, reflecting the importance of flexibility in service offerings.
Eco-friendliness and sustainability garner notable attention, with 28% deeming them extremely
important. This underscores a growing awareness among consumers regarding the environmental
impact of their choices and a willingness to align with eco-friendly laundry services.
When asked to rank factors influencing their choice of a laundry service, pricing (45%) emerges
as the most crucial, followed closely by quick turnaround times (38%). This suggests that a
balance between affordability and efficiency is paramount in capturing consumer loyalty. Quality
of equipment and substances, reliability, and convenience also hold substantial weight in the
decision-making process.
In prioritizing these factors, quick turnaround times (5) and price (2) emerge as the top
considerations for the majority of respondents. This nuanced ranking sheds light on the delicate
balance consumers seek between efficiency and cost-effectiveness.
Willingness to pay a premium for a laundry service excelling in their top-rated factor is affirmed by 38% of
respondents. This implies that a substantial portion of consumers is open to investing more for services that
align with their primary preferences, emphasizing the potential for businesses to differentiate themselves by
excelling in specific areas valued by consumers.
Figure 4.22 Important factors when getting logistics services
Figure 4.24 Factors that affect getting services from logistics services
Figure 4.25 Priority of factors that affect getting services from logistics services
Customers were asked to prioritise the factors that influence their willingness to patronize
logistics companies, and it can be seen in figure 4.25 that it is best for logistics companies to
focus on safety, reliability of goods, delivery speed, price, and delivery speed as they will help
logistics companies rank in a competitive priority ranking. We can see in figure 4.26 that safety
reliability, fast delivery, and good communication help build a good logistics brand image.
Discounts/flexible payment packages, and global reach/network also help in building a good
brand image. It can also be seen in figure 4.27 that about 54.6% of customers are loyal to one
logistics company or another, which means these companies will rank well in competitive
priority. It is clearly seen in the survey that 46.1% of customers averagely agree they can order
new logistics companies at a low price. Therefore, logistics companies should make pricing a
priority in their business.
Figure 4.27 loyalty of customers to the Logistics Company
The option for same-day laundry service holds varying degrees of importance, with 28% ranking
it as a 4 on a scale of 1-5. This suggests that a substantial portion values the convenience of
quick turnaround times, potentially influencing their choice of laundry service. On the other
hand, 8% find it not at all important, indicating a diverse range of preferences within the
surveyed group.
Extended operating hours (45%) emerge as the most convenient for the majority, underscoring
the importance of flexibility in service availability to accommodate varied schedules. This
finding aligns with the earlier emphasis on quick turnaround times, reflecting a demand for
services that align with busy lifestyles.
The overwhelming preference for e-payment and digital receipts (50%) signifies the growing
importance of technology in enhancing the customer experience. This trend aligns with the
modernization of service industries, as consumers seek seamless and secure digital transactions.
Furthermore, a notable 48% express a preference for laundry services that allow tracking
progress digitally. This desire for transparency and real-time updates reflects the broader
consumer trend of expecting information at their fingertips, contributing to a sense of control and
assurance.
In conclusion, laundry services that offer flexibility in service models, extended operating hours,
and integrate digital features such as e-payment and progress tracking are likely to resonate with
the evolving needs of consumers. As the industry continues to modernize, businesses that
leverage technology and provide diverse service options stand poised to attract and retain a
discerning customer base.
Figure 4.32 shows the customer elements they desire from logistics companies
4.2.5. INFRASTRUCTURE
Consumer preferences in the laundry service domain are not only influenced by the services
provided but also by the physical attributes of the facilities, reflecting a holistic approach to the
overall customer experience.
A significant majority (60%) consider the location of a laundry service facility when making a
choice, underscoring the importance of convenience and accessibility in decision-making. This
highlights the significance of having strategically located facilities to cater to the preferences of a
majority of consumers.
When selecting a laundry service, respondents prioritize modern equipment (40%), emphasizing
the importance of advanced technology in ensuring efficient and effective service. Well-maintained
machines (32%) closely follow, suggesting that the reliability of equipment is a key consideration
for consumers. These preferences align with the broader trend of consumers valuing
technologically advanced and well-maintained facilities.
Security is a paramount concern for consumers, with 50% expressing the importance of a laundry
service providing a secure area for leaving and picking up laundry items. This underlines the need
for businesses to implement robust security measures to instill confidence in their customer base.
The inclination towards self-service kiosks or automated machines is evident, with 42% expressing
a preference for this convenience. The high acceptance of automated options signals a readiness
among consumers to embrace modern and efficient technologies, contributing to a streamlined and
convenient laundry experience.
5.2 RECOMMENDATION
Based on the study’s insights, several recommendations emerge for stakeholders in the Nigerian
laundry services sector. Firstly, embracing and integrating advanced technologies such as
automated machinery can significantly enhance operational processes. Secondly, a focus on
optimizing supply chain management, from sourcing to delivery, will contribute to cost
efficiency and improved service quality. Lastly, cultivating a customer-centric approach by
soliciting feedback, addressing concerns promptly, and tailoring services to meet customer
preferences can foster loyalty and drive positive word-of-mouth referrals.
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