Assessment Of Physical Distribution Function The Brewery Industry
(A Case Study Of Nigerian Brewery, Enugu)
In the brewery industry, the physical distribution function plays a crucial role in streamlining operations and maximizing efficiency. By strategically managing the movement of products from production facilities to consumers, breweries can optimize their supply chain, minimize costs, and enhance customer satisfaction. Key aspects of physical distribution management in the brewery sector include inventory control, transportation logistics, warehousing strategies, and order fulfillment processes. Implementing advanced technologies such as RFID tracking systems, route optimization software, and automated warehouse systems can significantly improve the speed and accuracy of distribution operations. Additionally, collaboration with third-party logistics providers and adopting sustainable transportation practices contribute to reducing carbon footprints and meeting environmental regulations. By prioritizing effective physical distribution management, breweries can gain a competitive edge in the market, ensuring timely delivery of high-quality products while minimizing operational costs and environmental impact.
This study is concerned with the analysis of physical Distribution function in the Brewery industry with particular reference to Nigerian brewery company Enugu.
The researcher out lines the problems and development of physical distribution in the study.
The introduction part gives a brief account of the meaning of physical distribution (general Overview), The statement of problems ; Objective of the study, significance of the study Research question, hypothesis, scope of the study, limitation of the study and operational definition of terms.
CHAPTER TWO Review of related literature, CHAPTER THREE is devoted to methodology, chapter four shows the discussion of findings associated with the research work. The discussions on finding were made with a view to high lighting a sound basis for some possible solutions.
CHAPTER FIVE witnessed the climax of the researcher rounded up by summarizing and concluding all finding by giving some recommendation.
I finalized by giving some recommendation which is a my mind, if audience to could help improve the physical distribution function in our brewery industries.
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE
1.0 Introduction
1.1 general overview
1.2 Statement of the problems
1.3 Objective of the study
1.4 Significance of the study
1.5 Research questions
1.6 Hypothesis
1.7 Scope of the study
1.8 Limitation of the study
1.9 Operational definitions of terms
CHAPTER TWO
2.0 review of related literature
2.1 Historical back ground
2.2 Components of physical distribution
2.3 Definition of physical Distribution
2.4 Physical distribution cost
2.5 Cost control
2.6 Customer services
2.7 Importance of physical distribution
2.8 Factors affecting choice of distribution (physical distribution )
CHAPTER THREE
Research methodology
3.0 Introductions
3.1 research design
3.2 Questionnaires design
3.3 Population/Sample Selection
3.4 Primary Source
3.5 Secondary Source
3.6 Data collection techniques
3.7 The survey
3.8 Method of data analysis
CHAPTER FOUR
4.0 Data presentation and analysis of findings
4.1 Data presentation
4.2 Analysis of findings testing of hypothesis
4.3 Decision rule
CHAPTER FIVE
5.0 summary, conclusion and recommendation
5.1 Summary of finding
5.2 Conclusion
5.3 Recommendation
Bibliography
Appendix
1.0 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.
(c) To satisfy the requirement in partial fulfillment for the award HND certificate in purchasing and supply
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.
(a) This study will further enlighten the company ob An assessment of physical distribution in the organization.
(b) 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.
(1) How does the company handle their operations and documents?
(2) What are the means of distribution the products to the depots?
(3) How many depots does the company have?
(4) Does the company have experienced
(5) What is the company’s production capacity?
(6) How are breakages in transit treated?
(7) Is the middleman willing to carry adequate stocks of inventor?
(8) Are storage and related materials handling facilities suitable?
1.6 HYPOTHESIS
The following are the hypothesis, which will be tested:
(a) H0: Channel members of the NBC Ltd, Enugu are not well supervised.
(b) 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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Assessment Of Physical Distribution Function The Brewery Industry:
The physical distribution function is a critical aspect of the brewery industry, ensuring that beer products are efficiently transported from the brewery to consumers while minimizing costs and maintaining product quality. Here’s an assessment of the physical distribution function in the brewery industry:
Supply Chain Management: Effective physical distribution in the brewery industry begins with robust supply chain management. Breweries need to manage their suppliers, including sourcing raw materials like hops, barley, and water. Maintaining relationships with reliable suppliers is essential to ensure a steady supply of ingredients.
Inventory Management: Breweries must manage their inventory efficiently to ensure that they have enough beer on hand to meet customer demand while minimizing carrying costs. This involves forecasting demand, production scheduling, and managing buffer stock to accommodate unexpected changes in demand.
Production and Packaging: The production process in breweries should be aligned with the packaging process to minimize handling and transportation. Breweries must carefully package their products in bottles, cans, kegs, or barrels to ensure product quality and freshness.
Quality Control: Maintaining the quality of beer during distribution is paramount. Breweries must implement quality control measures to ensure that the beer reaches consumers in the same condition as when it left the brewery. This includes monitoring temperature, humidity, and handling conditions during transportation.
Distribution Channels: Breweries typically use a variety of distribution channels, including wholesalers, distributors, and direct sales to retailers or consumers. Choosing the right distribution channels depends on factors like the brewery’s size, location, and target market.
Transportation: Selecting the appropriate mode of transportation is crucial in the brewery industry. Beer is a perishable product, and factors like temperature control, transit times, and handling during transit can significantly impact product quality. Breweries may use trucks, trains, or even ships depending on their distribution network.
Route Optimization: Efficient route planning and optimization can minimize transportation costs and reduce the carbon footprint. Breweries can use technology and software to optimize delivery routes and minimize fuel consumption.
Regulatory Compliance: Breweries need to adhere to various regulations related to alcohol distribution, including licensing, labeling, and transportation rules. Non-compliance can lead to legal issues and disruptions in the distribution process.
Customer Service: Customer service is critical in the brewery industry. Breweries must ensure that their products are delivered on time and in good condition. Effective communication with distributors and customers is essential to address any issues promptly.
Environmental Considerations: Sustainability and environmental concerns are increasingly important in the brewery industry. Breweries may explore eco-friendly packaging options and transportation methods to reduce their environmental impact.
Data and Technology: Leveraging data and technology is becoming more common in optimizing physical distribution. Breweries can use data analytics and software to track inventory, monitor demand patterns, and make informed decisions about production and distribution.
In conclusion, the physical distribution function in the brewery industry is a multifaceted process that involves careful planning, quality control, regulatory compliance, and customer service. Efficiency and effectiveness in this function are crucial for breweries to remain competitive and deliver high-quality beer products to consumers. Additionally, breweries need to adapt to changing consumer preferences and sustainability trends in the industry.