Full Project – An assessment of physical distribution function in the brewery industry

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CHAPTER ONE

INTRODUCTION

1.1 GENERAL OVERVIEW OF STUDY

Productions is deemed not complete unite the products reach the consumer in the right quantity, at the right place, at the tight price and in good condition. Owing to proliferation of compares in Nigeria, it becomes very essential to have an efficient distribution system so that goods produced gets to the consumer.

Basically the aim of any company is to minimize cost and maximize profit, in order to achieve this, a firm will have to identify the high cost generating centres and hence try to reduced them. Distribution activities generate cost, the aim of physical distribution management in firms is to bring to absolute minimum the total cost of distribution and at the same time achieve high customer services.

The word (”Distribution) is reference to the retiling on selling function means a vast firm which is composed of many thousand of outlets ranging in size form the small corner shop to large super markets, department stores and “ CS SH AND CARRY” ware houses all of which attempt to supply the needs of our consumer society.

So physical distribution management is concerned with the movement of raw materials and finished products from the suppliers to the manufacturer and customer (ie retailer).

It is the link between manufacturing and production on one hand the retailer and customer on the other hand. The simplest definition one can offer is that physical distribution is an integrated set of a activities that deals with managing the movement of products with in firm and through marketing channels.

1.2 STATEMENT OF PROBLEMS OF THE STUDY

Research work centres on An assessment of physical distribution function of the Nigerian Brewery company ltd, it not fail to torch on the problems emanating from there. These problems range from lack of adequate supervision, lack of storage facilities

The channel members are not effective controlled as a result of which prices of the product differ from place to place and urban to rural areas. Another area lies in the hoarding of” beer” and its apparent scarcity. Lack of mechanized equipment for easy loading and off – lo adding cannot be left out. The scope of modern communication networks is small to make impact in business transaction. The telephone service is confirmed to the that out off now then making customer contact very difficult.

Ware housing are few and far apart as a result of reasonable distance between depots and the customers price of product tends to be higher in remote areas of Enugu.

1.3 OBJECTIVE OF THE STUDY

It is very important that every study must have objectives and thus one is not an exception it has the following objectives.

(a) To identify the extent to which deport facilities limit the performance of the channel members

(b) To make recommendation on improving the distribution system of the company.

1.4 SIGNIFICANCE OF THE STUDY

It is mind of the researcher that the findings and recommendation of this project work will be useful to many interested persons. The significance of the study will include the following.

This study will further enlighten the company ob An assessment of physical distribution in the organization.
Purchasing students will no doubt find this study a vital academic material.

They will have a wilder knowledge of an assessment of physical distribution in a company or firm.

(c) This study will also enlighten the government on the importance of basic infrastructural amenities such as good roads for the distribution system in the state.

1.5 RESEARCH QUESTION

Based on this project topic and the objective of the research as stated above the following research question have been formulated.

How does the company handle their operations and documents?
What are the means of distribution the products to the depots?
How many depots does the company have?
Does the company have experienced
What is the company’s production capacity?
How are breakages in transit treated?
Is the middleman willing to carry adequate stocks of inventor?
Are storage and related materials handling facilities suitable?

1.6 HYPOTHESIS

The following are the hypothesis, which will be tested:

H₀: Channel members of the NBC Ltd, Enugu are not well supervised.
H₁: Channel members of the NBC Ltd, Enugu are well supervised

HYPOTHESIS TWO

(a)H0: Too many channel members do not final consumers.

(b) H1: Too many channel members affect the cost of moving the products to the final consumers.

1.7 SCOPE STUDY

The researcher will focus the study on the activities of physical distribution in Nigerian Brewery Company Plc Enugu.

In trying to identify An assessment of physical distribution function in depth study will be taken on the present distribution arrangement of the company; losing and off loading system, stock holding and inventory control; order processing and administration, the documents used in delivery and dispatch and including the appointment of the distributors .

1.8 LIMITATIONS OF THE STUDY FINANCE

The source of in come off the researcher is very low. As a result, he cannot afford the money for all the expenses he is going in cure or he is in currying.

In actual since, thus study should have inventory the study of some of the manufacturing companies, but because of the geographical distribution of these firms it was not practicable for the researcher to carrying research work on these firms.

In view of this, the researcher has decided after careful study of all the various types of firms to concentrate on the Nigerian Brewery company Eungu.

Another problem is lack of relevant data in some areas that could have helped the researcher in the study.

There is also the problem caused by the attitude of Nigerians to project and also PHCN intermittent power failures.

Also the problem of some uncompromising staff of the company cannot be left out.

1.9 OPERATION DEFINITION OF TERMS HYPOTHESIS

When we want to take a decision about a given population, we try to make an assumption made is called a statistical hypothesis. The assumption might be true or false.

PHYSICAL DISTRIBUTION

The physical flows materials and final goods from point of origin to point of use or consumption to meet the needs of customers as a point or it that managerial function concerned with the movement of materials and finished goods from point of manufacture to the point of consumption through a channel.

INVENTORY CONTROL: this is the science based art of controlling the amount of stock held in various forms within a business unit to meet economic ally the demands placed upon it.

RE- ORDER LEVEL: This is a stock level when it is desirable to place a new order.

DEPOT: A storage place from w here suppliers are made to customers.

LTD: This is an abbreviation for Limited Liability Company. This is usually place after the business name

PCL: This is an abbreviation for public liability company.

PHCN: This is an acronym for the power holding company of Nigeria Plc.

ROUTING: To fix the order of procedure of operations, in this case vehicles.

PLANT: To tools machinery, fixtures buildings grounds etc of a factory or business.

LOGISTICS: This is a branch of science having to do with moving and supping of goods.

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Full Project – An assessment of physical distribution function in the brewery industry

Full Project – An assessment of physical distribution function in the brewery industry

Full Project – An assessment of physical distribution function in the brewery industry

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