Effect of Digital Transformation on the Performance of Supply Chain in Apapa Port, Lagos State

Digital transformation is fundamentally re-engineering global trade, with its application in port logistics being critical for enhancing supply chain performance. This study examined the effect of digital transformation specifically Port Community Systems Implementation (PCSI), Automation of Cargo Handling (AOCH), Digital Customs Clearance System (DCCS), and Use of IoT for Tracking and Monitoring (IOTM) on Supply Chain Performance (PFSC) at Apapa Port, Lagos State. In this study, supply chain performance is evaluated using three metrics: average cargo dwell time, port throughput and berth productivity, and supply chain reliability. Using a cross-sectional survey design, data were collected from 153 key stakeholders across four critical departments via structured questionnaires administered through Google Forms. Partial Least Squares Structural Equation Modelling (PLS-SEM) was employed to analyze the data, revealing that Use of IoT for Tracking and Monitoring (β = 0.394, p < 0.001) and Digital Customs Clearance System (β = 0.191, p = 0.038) significantly affect supply chain performance, while Port Community Systems Implementation (β = 0.118, p = 0.190) and Automation of Cargo Handling (β = 0.055, p = 0.573) had no significant effect. Collectively, these digital transformation variables explain 68.5% of the variance in supply chain performance (R² = 0.685). While PCSI and AOCH were perceived positively, they did not translate into measurable performance gains. This study concluded that real-time visibility and process automation are pivotal to reducing dwell time, enhancing throughput, and ensuring delivery reliability during port operations. Recommendations for Apapa Port include prioritizing IoT deployment and digital customs integration, strengthening stakeholder collaboration for PCS, and upgrading automation infrastructure with reliable power and maintenance systems to bolster overall supply chain resilience.