Analysis of Performance of Collaborative Information Sharing Cost in Outbound Logistics

The study sought to analyse the performance of collaborative information sharing cost in outbound logistics with emphasis on Order and Information costs, with a view to minimizing cost and enhance efficient ordering and information services in manufacturing companies. The ordering cost is about order entry, order notification and order verification costs, while the information cost is basically information technology investment. The paper adopted case study approach. Twenty (20) manufacturing companies formed the sam ple of the study, based on multi stage sampling techniques that incorporated cluster, stratified and purposive sampling methods. Apart from parametric test statistical techniques adopted, data analyses were done using a software application that incorporated Cobb-Douglas production function, which was packaged and tailor-made for the study. It was revealed that there were relationships between components of Order processing and information investment; indeed, most of the order processing cost components (Entry, Notification, Verification and Information costs) was significant. In other words, order-processing cost has a significant relationship with most of all variables (Dependent and Independents). The paper recommends that companies should adopt management information system that enhances information technology investment as well as training and maintenance of these information devices.