AN ECONOMIC COMPARATIVE ANALYSIS OF EQUIPMENT OUTSOURCING AND OUTRIGHT PURCHASE FOR QUARRYING OPERATIONS AT FOUNTAIN COMPANY, AKURE, ONDO STATE

Authors
  • Arowojolu, E.O

    Federal University of Technology Akure, Nigeria.

  • Oniyide, G.O

    Federal University of Technology Akure, Nigeria.

Keywords:
Outsourcing, Purchase, Equipment, Operational efficiency, Quarrying
Abstract

This study focused on evaluating the pros and cons of outsourcing and purchasing of quarry equipment for cost effective and efficient productivity for Fountain Construction Company, Akure, Nigeria. The study assessed the cost-effectiveness, considerations of outsourcing and purchasing strategies with the help of literature review and data analyses. The results show notable differences in prices, operational advantages, and strategic effects for mining companies interested in optimizing their machine procurement and management processes. This study provides practical options and consequences to the mining sector, specifically to Nigeria, for improving the decision support, operational efficiency and strategic procurement process. The study revealed a significant negative cost difference of ?731,839,500 over four years, demonstrating remarkable cost efficiency when purchasing equipment.

 

Author Biographies
  1. Arowojolu, E.O, Federal University of Technology Akure, Nigeria.

    Department of Mining Engineering

     

  2. Oniyide, G.O, Federal University of Technology Akure, Nigeria.

    Department of Mining Engineering

     

References

Afeni, T. B., Onifade, M., and Sylvester, A. K. (2016). Comparison of Cost of Purchase and Lease of Mine Equipment as a Strategy for Production of Run-Off Mine–a case study of Zibo Fm Quarry and Roadstone Quarry, Ondo state, Nigeria. African Journal of Economic Review, 4(1), 185-194.

Akinluyi, F. O., Olorunfemi, M. O., and Bayowa, O. G. (2018). Investigation of the influence of lineaments, lineament intersections and geology on groundwater yield in the basement complex terrain of Ondo State, Southwestern Nigeria. Applied water science, 8, 1-13.

Akinluyi, F. O., Olorunfemi, M. O., and Bayowa, O. G. (2021). Application of remote sensing, GIS and geophysical techniques for groundwater potential development in the crystalline basement complex of Ondo State, Southwestern Nigeria. Sustainable Water Resources

Management, 7(1). https://doi.org/10.1007/s40899-020-00486-5. Aznar-Sánchez, J. A., Velasco-Muñoz, J. F., Belmonte-Ureña, L. J., and Manzano-Agugliaro, F. (2019). Innovation and technology for sustainable mining activity: A worldwide research assessment. Journal of Cleaner Production, 221, 38–54. https://doi.org/10.1016/j.jclepro.2019.02.243.

Baatartogtokh, B., Dunbar, W. S., and Van Zyl, D. (2018). The state of outsourcing in the Canadian mining industry. Resources Policy, 59, 184-191.

Bingxu Z. (2023): Driving Forces of Mining Outsourcing: Evidence from China, PhD Thesis, Singapore Management University. p 102.

Deng, S., and Xu, J. (2023). Manufacturing and procurement outsourcing strategies of competing original equipment manufacturers. European Journal of Operational Research, 308(2), 884-896.

Dhillon, B. S. (2009). Mining equipment safety: a review, analysis methods and improvement strategies. International Journal of Mining, Reclamation and Environment, 23(3), 168–179. https://doi.org/10.1080/17480930902916239.

Harland, C., Knight, L., Lamming, R., and Walker, H. (2005). Outsourcing: assessing the risks and benefits for organisations, sectors and nations. International Journal of Operations & Production Management, 25(9), 831-850.

Hartlieb-Wallthor, P. V., Hecken, R., Kowitz, S.-F., Suciu, M., and Ziegler, M. (2022). Sustainable Smart Mining: Safe, Economical, Environmental Friendly, Digital. Yearbook of Sustainable Smart Mining and Energy, 37–79. https://doi.org/10.1007/978-3-030-84315-1_4

Ilderov, D., (2017). Expediency of outsourcing in mining industry. Gornyi Zhurnal. 16-21. 10.17580/gzh.2017.08.03.

Liu, S. Q., Lin, Z., Li, D., Li, X., Kozan, E., & Masoud, M. (2022). Recent Research Agendas in Mining Equipment Management: A Review. Mining, 2(4), 769–790. https://doi.org/10.3390/mining2040043.

Maley, J. F., Kowalkowski, C., Brege, S., and Biggemann, S. (2015). Outsourcing maintenance in complex process industries: Managing firm capabilities in lock-in effect. Asia Pacific Journal of Marketing and Logistics, 27(5), 801-825.

National Geographic Society. (2022). Mining | National Geographic Society. Education.nationalgeographic.org; National Geographic. https://education.nationalgeographic.org/resource/mining/.

Obeng, F., Mensah, J., and Anim, S. (2015). Outsourcing strategies of mining industries: Empirical evidence from a developing nation'. International Journal of Supply Chain Management, 4(4), 90-101.

Olusola, P., Alao, S.O., and Akinbowale, K.O. (2018). Application of the Smart Cities Approach to Water Management in Ijapo Housing Estate, Akure, Nigeria. In book: Inclusive Cities Growth and the Poor: Policies, Challenges and Prospects (pp.38-57) Publisher: Community Participation Research Group (COPAREG).

Pitroda, D. J. (2015). A Critical Literature Review on Comparative Analysis Of Construction Equipment –Rent and Buy. Journal of International Academic Research for Multidisciplinary Vol 2, Issue 12, 130-141.

Relly, R. (2013). Rent, buy or lease? The crucial answer to your next equipment purchase. Equipment World. https://www.equipmentworld.com/business/article/14951914/rent-buy-or-lease-the-crucial-answer-to-your-next-equipment-purchase.

Sánchez, F., and Hartlieb, P. (2020). Innovation in the Mining Industry: Technological Trends and a Case Study of the Challenges of Disruptive Innovation. Mining, Metallurgy & Exploration, 37. https://doi.org/10.1007/s42461-020-00262-1.

Sivakumar, R., Kannan, D., & Murugesan, P. (2015). Green vendor evaluation and selection using AHP and Taguchi loss functions in production outsourcing in mining industry. Resources Policy, 46, 64–75.

Steenkamp, C. J. H., and Van der Lingen, E. (2014). Outsourcing in the mining industry: decision-making framework and critical success factors. Journal of the Southern African Institute of Mining and Metallurgy, 114(10), 846-854.

Visagie, C. J. (2012). Successful outsourcing of maintenance in the mining industry: Methods and principles. Short Dissertation, Magister in Philosophiae, University of Johannesburg (South Africa). p128.

Cover Image
Downloads
Published
2025-05-30
Section
Articles
License

Copyright (c) 2025 FUTA JOURNAL OF ENGINEERING AND ENGINEERING TECHNOLOGY

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Copyright

With the submission of a manuscript, the corresponding author confirms that the manuscript is not under consideration by another journal. With the acceptance of a manuscript, the Journal reserves the exclusive right of publication and dissemination of the information contained in the article. The veracity of the paper and all the claims therein is solely the opinion of the authors not the journal.

How to Cite

AN ECONOMIC COMPARATIVE ANALYSIS OF EQUIPMENT OUTSOURCING AND OUTRIGHT PURCHASE FOR QUARRYING OPERATIONS AT FOUNTAIN COMPANY, AKURE, ONDO STATE. (2025). FUTA JOURNAL OF ENGINEERING AND ENGINEERING TECHNOLOGY, 19(1), 172-180. https://doi.org/10.51459/futajeet.2025.19.1.476

Similar Articles

31-40 of 53

You may also start an advanced similarity search for this article.