Full Project – ROLE OF EFFECTIVE PHYSICAL DISTRIBUTION MANAGEMENT IN THE BREWERY INDUSTRY

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Production is defined not complete until the products reach the consumer the rights quantity, act the right place at the right price and in good condition, owing to proliferation of companies in Nigeria, it becomes very essential to have an efficient distribution system so that good produced get to the consumer. Basically, the aim of any firm is to minimize cost and maximize profit. In order to achieve this, a firm will have to identify the high cost generating centers and hence try to reduce them.

Management in firms is to bring to absolute minimum, the total cost of distribution and at the same time achieve high customer service. The word distribution in reference to the retailing or selling function means a vast firm which is composed of many thousands of outlets ranging in size from the same corner shop to large supermarket departmental stores and “cash and carry” warehouses, all of which attempts to supply the needs of our customers society.

Management is concerned with the movement of raw materials the and finished products from supplier to the manufacturer and costumer (i.e. retailer), it is the link between manufacturing and production one hand and the retailer and customer on the other hand the simplest definition can offer is that physical distribution is an integrated set of activities that deals with managing movement of products within firm and through marketing channels.

1.2 STATEMENT OF PROBLEM

(1) LACK OF STORAGE FACILITIES: This arises as a result of cost of moving goods to the final consumers due to many channels summers and offloading of goods. i.e. the space or location for the facilities are limited.

(2) LACK OF MECHANIZED EQUIPMENT: Both loading and offloading cannot be left out. The scope of modern communication work is small to make impact in business transaction. The telephone service is confined to the urban area only and both few line that cut off and making customers contact very difficult.

(3) INADEQUATE MAINTENANCE OF EQUIPMENTS OR MACHINES: Some equipment remain unmovable due to lack of maintenance and lack of insufficient servicing.

(4) DIFFICULT TO ORGANIZE RETURN LOADS: High proportion of light running will occur on the process.

(5) Some costs such as capital cost over head cost etc, are not debit and a false impression of transport costs results.

1.3 OBJECTIVE OF THE STUDY

It is very important that every study must have objectives and this one is not an exemption, it has the following objectives.

(a) To determine exactly how too many channel members raise the cost.

(b) To identify the extent to which depot facilitates limit the performance of the channel members.

(c) To make recommendations on improving the distribution system of the company

(d) To be aware on how to distribute the product (Finished) of the company to the final consumer i.e. ensuring that London dry gin and other brands of company product in Owerri gets to consumer as and when they are needed and not when some one request for dry gin and wrong oil will be given to the person due to unavailability of dry gin.

(e) To manage and co-ordinate the transportations of good and services produced by the organization from point of production to the point of consumption.. (shop, factory, warehouse, firm cash and carry store, mine)

1.4 DEFINITION OF TERMS

(Q) SCOPE: This means the areas of coverage of any study.

(R) PACKAGING: This involves the clothing or wrapping and boxing goods which provides the necessary protection.

(S) WAREHOUSE: This is the storage of goods within private and or public warehouses to ensure optional level of delivery services.

(T) ORDER PROCESSING: This is the processing of all documents relating to external and internal transactions.

(U) MATERIAL HANDLING: This is the internal movement of the raw materials and finished products through plants and warehouses.

(V) COMMUNICATION: This is the process of interacting component between the various activities centers of the physical distribution.

(W) SERVICE: This is the over riding objective of evry physical distribution system.

(X) MARKETING is a business activity that is responsible for identifying anticipating and satisfying customers needs.

(Y) ORGANIZATION: This can be seen as a firm which coordinates the operations, activity centers and processing.

1.5 RESEARCH QUESTION

Based on this project topic and the objectives of te research as stated above, the following research questions have been formulated.

(a) How does the company handle their operations and documents?

(b) What are the means of distributing the products to the depots?

(c) How many deposit does the company have?

(d) Does the company have experienced drivers?

(e) What is the company production capacity?

(f) How are breakages in transit treated?

(g) Are the middlemen willing to carry an adequate stocks of inventory?

1.6 STATEMENT OF HYPOTHESIS

The following are the hypothesis which will be tested.

1. Ho: Channel members of the Kleanson enterprises limited Owerri are not well supervised.

2. Hi: Channel members of the Kleanson enterprises limited Owerri, Imo state are well supervised.

HYPOTHESIS TWO

Ho: Too many members do not affect cost of moving the products to the final consumer.

Hi: Too many channel members affect cost of moving the products to the final consumer.

1.7 SIGNIFICANCE OF THE STUDY

It is the mind of the researcher that the findings and recommendations of this projects work will be useful to many interested person. The significance of the study will include the following

1.8 SCOPE OF THE STUDY

This study has carried to various firms of Kleanson, but because I am a student and time factor I have concentrated on Kleanson industry Owerri in purchasing unit or department. Various activities were taken place in the Kleanson industry Owerri, mostly distribution of goods, recording of goods distributed, balancing of ledger etc. All these activities were taken placed in purchasing unit in Kleanson industry Owerri.

1.9 LIMITATION OF THE STUDY

(A) FINANCE: This source of income of the researcher is very low. As a result, he cannot afford the money for all the expenses he is going to incur.

(B) GEOGRAPHICAL DISTRIBUTION OF FIRMS: In the actual sense, this study should have involved 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 carry the 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 Kleanson Enterprises Owerri Imo State.

(C) LACK OF RELEVANT DATA: Another problem is lack of relevant data in some areas that could have helped the researcher in te study.

(D) ATTITUDE: There is also the problem caused by the attitude of Nigerian’s to project. There was also a problem of some uncompromising staff of the company.

(E) POWER HOLDING COMPANY OF NIGERIA INTERMITTENT POWER FAILURE

1.10 DEFINITION O TERMS

(a) HYPOTHESIS: When we want to take a decision about a given population we try to make an assumption about the population. The assumption made is called the statistics hypothesis. The assumption might be true of false.

(b) PHYSICAL DISTRIBUTION: The physical flow of materials and final goods from point of origin to point of use or consumption to meet the needs of customers at a point. Or it is that managerial function concerned with the finished goods from point of manufacture to the point of consumption through a channel.

(c) INVENTORY CONTROL: This is the science based act of controlling the amount of stock held in various firm within a business unit to meet economically the demands placed upon it.

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

(e) DEPOT: This is a storage place from where suppliers are made to customers.

(f) LTD: This is an abbreviation for Limited Liability Company. This is usually placed after the business name.

(g) PLC: This an abbreviation for public liability company.

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

(i) ROUTING: To fix the order of procedure of operation in this case vehicles.

(j) PLANT: The tools machinery fixtures, buildings grounds etc of a factory or business.

(k) LOGISTICS: This is a branch of science having to do with moving and supplying of goods.

(l) PRODUCTION: this is the creation of goods and services to satisfy human wants.

(m) MINIMIZE: This involves the process of deduction or reduction of asset or item or material.

(n) MAXIMIZE: This involves the process of increasing or multiplying the asset or materials.

(o) DISTRIBUTION: This involves the process of moving or shifting the goods or materials from one position to another.

(p) PURCHASING: This is one of managerial function that specializes in obtaining materials needed by organization or individuals through the right source, right quality, right and right price.

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