Impact Of Containerization In International Purchasing

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Containerization in a modern phenomenon in transportation since it’s emergence, it has swept all the modes of transportation like will fire it’s deferent modes of transportation and transport vehicles combine with one another in imitating and completing journeys in cargo transportation. Containerization is the use of large metal boxes for packing goods to be transported on long distance in order to facilitate handling and transfer among different vehicles since its emergences in transportation, containerization port authorities, government and industrialists.
According to Amanze (1989:24-25) containers helps to economies the number of movements and handling required in conveying a given quantity of cargo and ensure that they can otherwise however, the boxes that serve as containers in transportation generally poses three unique features, these are:
a. They are standardized: They must be of the same size, shape and material so that they can easily be carried by the different vehicles in the different modes of transportation in different countries and contents.
b. They are strong and weather proof: Transport containers must be strong or tough and weather proof so that it can withstand the harsh conditions as the seas and ports and ensure the safety of the goods they are carrying, for this reason, combination of these and other metals which do not rust easily.
c. They are large: container must be large so that they can be used to carry bulk materials, where containers are very small, the amount of trans-shipment handling required would be much, thereby defeating the aim of containerization, however, containers must not be so large to the extent that they cannot fit into the vehicles used for carrying large cargo in the different modes of transportation.
The use of large containers for inland and overseas transportation and distribution of goods began in the early part of the Twentieth century, but in 1926 London midland and Scottish Railways were the first firms to use containers. After 1956, an American shipping line called sea-land whose original business was read haulage started a containership service between New York and Potorico, according to the American container trade journal in edition (1966:11-12), the main break through in containerization was attained by sea-land in 1965 with the intention to enter the trans-Atlantic trade with containership. This decision scerned to have jotted other shipping lines from slumber.
Nigeria become involved in the containerization revolution in (1968) when the first substantial container vessel landed with over 100 tones general cargo at the Apapa-wharf part containerization has also made a significant impact on road and railway transportation since August 1980 when inland containers (Nigeria LTD (ICNL) made its trail-blazing relationship from Lagos, Kano, will a single container within Ten days, the process of containerization has been surged over the last several decades but Nigeria ports and their supporting container distribution networks, have struggled to increase capacity to match this expansion.
This article seeks to review and organize existing container network capacity literature into a taxonomy based on the interrelated stakeholders of container flows. The artily first establishes the industry capacity influences from stakeholders, including shippers, port authorities, terminal operations, long shore labour, railroads, drayage carries intermediaries, ocean carries, governments and local communities. The centralized distribution activity receives cargo that must be sorted before trans-shipment to the (SSA) supply support activities or owing unit. The majority of cargo will arrive in 20 and -40- foot containers. Single consignee cargo and ammunition will not pass though the centralized distribution activity but will be through out to the users.

1.2 STATEMENT OF THE PROBLEM:
Containerization is very essential and useful in the selling of industrial goods; hence, it is often referred to as the nearest company’s salesman.
There are existing problem associated with containerization on transports and distribution of industrial goods and services.
Expanding system wide container capacity is extremely difficult.
1. For one container flows in values a series of linked capacity factors driven by different stakeholders such as ports, railroads, truck carriers, and steamship lines.
2. While on the surface the problem appears to be a direct application of Goldrath’s theory of constraints.
3. Container flows may be identified as the drum constraint but their handling involves a series of linked factors controlled by the stakeholders.
4. The further compounding the problems are unpredictable changes in security requirement, terrorist activities military deployment.
5. Up-dating if list of authorized person in the organization due to constant movement of staff as a result of promotions, resignation and transfers, formal list of person which are able of request stock and sample signature are very difficult to maintain properly and tend to become out of data very quickly.
6. Non-employment professional in the organization the staffs employed in the organization have professional who can be highly competent in the excution of the job. This is due to the fact that there are no employees (i.e. professional who read purchasing & supply management.

1.3 OBJECTIVE OF THE STUDY
It is necessary to look or to identify the social and psychological past in order to appreciate what we are trying to do in the present so as to do better in the future.
The study will provide marketing opportunities, challenges and prospects that exist for marketers to improve on their packaging through repeat purchases.
The aim of this research survey is to
1. To identify the supplier willingness to meet the need of the customers no matter how urgent.
2. To examine a verity of option on shipment load carriers.
3. To examine maximize customer services while minimizing cost.
4. To determine safe deliver of merchant-dice
5. To identify the speed at which orders are treated.

1.4 RESEARCH QUESTION
The following are the research question which this research work is set out to tackle:
1. Does a container have any effect on the buying pattern of the industrial users?
2. What is the role of container with reference to price, quality and quantity?
3. How does container affect the decision to buy users of Dangote Group of company port-Harcourt product?
4. Does container serves as a competition tool in the marketing of industrial product?
5. Can container help to maximize profit on the company?

1.5 STATEMENT OF THE HYPOTHESIS.
In conducting this research, the following hypothesis will be tested.
1. Hi; the containerization of a product attracts a buyer.
2. Ho; the containerization of a product does not attract a buyer.
3. Ho; the containerization of a product effect consumers buying decision.
4. Hi; the containerization of a product does not affect consumers buying decision.

1.6 SIGNIFICANT OF THE STUDY
The research study is very significant, in that it will be immense benefit to students in the purchasing and supply management department and interested person in related fields of study and work who are research minded.
The research work is indeed very significant and a treasure chest for the research minded students and scholars because of the comprehensive nature of this investigative survey and realistic write up.
The study will certainly serve as a dependable reference guide for students in the purchasing and supply management. It also show need for effective planning and control can work hand in hand with purchasing section to achieve greater organization efficiency.
It is also for the partial fulfillment of the award of Higher National Diploma (H.N.D). It is equally significant because it will outline the various needs for the impact of containerization in international purchasing in comparison with other department can be used to improve the overall organization all concept.
It also gathers towards creating sound need for the impact of containerization in international purchasing in Dangote Group of company port-Harcourt.
This study is significant because it will increase the body of academic knowledge available as a research study; it is also relevant in the sense that it will serves as reference to future researchers on issues connected with the present research problem.

1.7 SCOPE OF THE STUDY
The activities of purchasing function in industry among the industry are the same through out the country.
The have problems and objectives exception policies and management style which are at individual discretions, since the project explores how the need for the impact of containerization in international purchasing improve the level of productivity in the organization.
However, there are a lot of industries in Nigeria and as a result it will be extremely difficult and impossible for the researcher to study all of them considering the time given I deride to use Dangote Group of company port-Harcourt to enable me carry on in depth study of the organization.

1.8 LIMITATION OF THE STUDY
The limitation study includes:
1. Inadequate financial and material resources with which to carry out such a elaborate product.
2. Inability of the respondent ie. Those interviewed to give the relevant information on the variables under study.
3. Most importantly insufficient time for through work sine the researcher still had to attained lectures for the completion of this course works.
4. Natural factors hinder’s this study. The project work disturbed from effects of regular rainfalls and the hot sun which hinders the researcher’s movement in his bid to collect data or information and distribution of questionnaires to respondents.
5. Constant power failure by PHCN- due to unsteady high caused by PHCN, frustrated at night where light will be steady but at times, PHCN disappoints by taking the light unexpectedly and thereby putting the researcher into confusion. Even some people in the organization do not give a reliable data or information to researcher’s problem associated with unreliable data or information, poor audience by respondent is a big limitation to this project.
6. Time factor- The schedule factors for academic activities for every final year student in HND’s of the polytechnic is hectic.
The researcher needs to attend classes, other course-est. these makes the research inability to collect response from many company as he would have intended to do.

1.9 DEFINITION OF TERMS.
The definition of terms includes:
1. CONTAINERIZATION: Is an aduancement of the concept of unit load. A container in a box with steel frame work, a strong floor base, paneled sides and a roof containers can equally be classified according to their sizes, we have the (150) that is the international standard container of 8 & 8ft. containers vary respect to lengths are 10ft 20ft and 40ft are used to suit a peculiar need.
2. The distribution process: Beings when a supplier receives an order from a customer. The customer is not too concerned with the design neither of the supplier’s distributive system nor in any supply problems.
3. ORDER PROCESSING: Is the first of the four stages in the logistical process. The efficiency of order processing has a direct effect on lead time. Orders are received from the sales team through the sales department. Many companies establish regular supply performances satisfactorily, very often contracts are drawn up and repeat orders forming part of the initial contract are made at regular intervals during the contract period.
4. INVENTORY: Is a critical area of (international purchasing) because stock level in a function of the type of market in which the company operates. Few companies can say that they never run out of stock, but if stock-outs happens regularly their market share will be lost to more efficient competitors. Techniques for determining optimum stock levels are illustrated later in this chapter. They key lies in ascertaining the re-order point.
5. WAREHOUSING: International marketing texts pay more contribution to warehousing than the local once. This is mainly because of the relatively longer distances involved in distributing internationally, where it can some times days, weeks or even months to set to customers. The logistic of warehouse can therefore, be correspondently more complicated. However, the principles remain the same, and indeed the European union should be viewed as a large home market, currently, many companies function adequately with their own on site warehouse from where goods are dispatched direct to customers.
6. TRANSPORTATION: Usually represents the greatest distribution cost, it is usually easy to calculate because it can related directly to weigh or numbers of units. Cost must be carefully controlled through the mode of transport selected amongst alternatives, and these must be constantly reviewed. During the past 50 years, sea transport has became the dominant transportation mode in internationally purchasing the palterns of retailing that have developed, and the pressure caused by coin stock-holding and short lead times, have made sea transport indispensable. Where the volume of goods being transported reaches a certain level, some companies purchase their ownership, rather than use the service of cargo contractors.
7. REDUCTION IN STEVEDORING COSTS: The use of containers by water vessels for packing cargo has been shown by tenth according to Taff (1984:132).
8. REDUCTION IN CARGO HANDLING COST: The handling of cargo at ports have been reduced to about one third as a result of the adoption of containerization. This is one of the reasons why Nigeria ports quickly embarked on the construction of special berths for handling container ships when the concept was proposed to them and after they had studied the result of its adoption in other ports.
9. INTERMODAL CO-OPERATION (COMBINATION): Intermodal co-operation between ship railway vehicles, and vehicles (fishy back) is made possible (and actually resulted) outing after the adoption of containerization by ports and shipping lines.
10. FASTER INLAND DISTRIBUTION OF SHIPPED CARGO: Containerized shipped cargoes are more easily off-loaded from ships handled and cleared at ports and takes to inland destinations faster than those that are non containerized.
11. INCREASED SHIPPING TURN-AROUND TIMES: By facilitating handling cargoes at ports, containerization has greatly helped to increase the turn-around time of ships. When cargo are containerized, ports handling time is reduced in the loading one fifth of the required in the loading and off-loading of conventional ship.
12. FASTER LOADING AND OFF-LOADING AT TERMINALS: Containerized cargo are normally loaded and off-loaded faster at ports. The use of rollon, roll off operation makes these even faster.
13. HIGH VOLUME FLOWS AT PORTS AND BETWEEN PORTS: With a drastic reduction in the time needed for handling containerized cargoes at ports and in increase in the turn around time of ships, containerization makes possible higher volume of cargoes flow at port and between ports.
14. CARGO SAFTY: When cargoes are containerized, they are not usually opened at transit terminals or when being unloaded. The reduces the tendency of pilferage. Handling of cargoes is minimized and action of weather on it is also reduced when containerized. All these help to enhance the safety of cargoes on transit and at terminals.
15. INCREASED TURN-AROUND TIMES VEHICLES: The faster handling permitted by containerization helps to quickly free vehicles at terminals and increase other turn around times.
16. ENHANCEMENT OF VEHICLAR SPACE EFFICIENCY: When containers are loaded on a vehicle its cargo space is utilized more efficiently.
17. FASTER AND CHEAPER INLAND DISTRIBUTION: By reducing the costs and time for handling cargo at terminals and combining the efficiency of different modes of transportation, containerization helps to promote faster and cheaper inland distribution of goods.
18. THIN SKINNED CONTAINERS: Are constructed with the sole aim of offering protection against weather and theft they have no insulating effect with regards to temperature control.
19. INSULATED CONTAINERS: They have no real system of temperature control they are made of thick materials having some sort of fibre glass or other materials which reduce heat losses and gains thus giving perfect protection to cargoes against unfavorable temperature.
20. FRIGERATED CONTAINERS: Are controlled with an inbuilt refrigerating system it is used in the carriage of goods or material that requires cold temperature while in transit.
21. DIFFICULT IN CARGO INSPECTION: Containerized cargoes are not normally inspected at ports or terminals. They are usually pre-shipment inspected. If pre-shipment inspection had not been properly done, there is the possibility that containers might be used to smuggle illegal goods into a country.
22. POSSIBILITY OF ROUGH HANDLING OF CONTAINERS: Dock workers and others engaged in loading and off-loading containers may rough handle them without knowledge of the fragide nature of heir contents. Because of this, some containerized cargoes damaged before getting into the hands of their owners.