Logistic Of Distribution System In Breweries

(A Case Study Of Gloden Guinea Brewerier Company)

Logistics plays a crucial role in the distribution system of breweries, ensuring efficient movement of raw materials, such as grains and hops, to production facilities, and timely delivery of finished products to distributors and retailers. Effective management of transportation, warehousing, and inventory is essential to meet consumer demand while minimizing costs and maximizing profitability. Breweries often employ sophisticated supply chain management techniques, leveraging technology for real-time tracking of shipments and optimizing routes for delivery vehicles. Additionally, factors like temperature control and careful handling are paramount to maintain product quality during transit. By implementing robust logistics strategies, breweries can enhance customer satisfaction, streamline operations, and gain a competitive edge in the market.

ABSTRACT

This research studies the logistics of distribution system in breweries
( A case study of golden guinea breweries).
The research started with the background of the study in chapter one, statement of the petroleum, objective of the study, research question and hypo significance of the study, scope, limitation and delimitation of the study and definition of terms
This is followed by chapter two which deals with the review of related literature
In chapter three I discussed the research design and methodology, selection of population and sample size instrument for data collection, research procedure and analysis techniques
Chapter four contains presentation and analysis of data.

Finally, chapter five dealt with findings conclusion and recommendations.

TABLE OF CONTENT

Title page
Approval
Dedication
Acknowledgement
Abstract
Table of content

CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Objective of the study
1.4 Research Hypothesis
1.5 Significance of the study
1.6 Scope, Limitation and delimitation
1.7 Definition of terms

CHAPTER TWO
2.0 Review of literature
2.1 Genesis and scope of logistics of distribution system
2.2 Channel of distribution
2.3 Functions of Middlemen

CHAPTER THREE
3.0 Research design and methodology
3.1 Selection of population and sample size
3.2 Instrument for data collection
3.3 Data collection
3.4 Research procedure
3.5 Analysis techniques

CHAPTER FOUR
4.0 Presentation and analysis
4.1 Test of hypothesis

CHAPTER FIVE
5.0 Findings conclusion and recommendation
5.1 Findings
5.2 Conclusion
5.3 Recommendations

CHAPTER ONE

INTRODUCTION
The distribution sector, up till today in the Nigerian commercial activities is left unused more or less by design than by ignorance the reason for this ugly trend of events cannot be dismissed from the fact that Nigerians still experience the seller market.
DR N.C. Nwaogwugwu observed as follows. The reason for the absence of marketing planning stems from the fact that products for distribution is channeled through established channel of distribution. The marketing manager simply allocates products to appointed distributor or co-operative societies an approved formula since demand is above the supply in most cases. There is no marketing problem encountered in the future. This is an example of the situation experienced in the developed economies.

1.1 BACKGROUND OF THE STUDY
Since 1970, Nigerian as a developing nation has been marketing an encouraging progress in the area of industrialization especially in the beer industry. Several brands of beer has been launched into the Nigerian market especially during the second republic under the administration of Alhaji Alieu Shehu Shagari
The means procedure and method of distributing of goods to reach the final consumer have posed some problems for the management of every firm in particular and the economy in general. By distribution, we mean an efficient movement of raw materials from supplier and financial goods from the end of the production to the customers. The beer industry being part and parcel of our economy, more so as there are rapid growth of beer firms in the country. There is no way it can fully separate itself from nations economic depression. Therefore the following problems are identifiable: fair and dubious distribution of finished product to different parts of the country. For instance, how to supply the consumer resident in Northern part of the country with appropriate quantity of golden guinea beer which is brewed and bottled in the south in part.
The channel through which these finished products actually gets to the final users. The problem of producing the raw materials required for production purposed. The problems also concern the method or means through which such raw material is move from the suppliers to the manufacturers.
The inadequacy of raw materials and finished products has to a great extent motivated the researcher to make a serious study in that direction to find out ways by which raw materials can be distributed effectively to their raw materials can be distributed effectively increase in the price of goods and services which we have experiencing since the 1970’s distributive techniques. The ugly state of affair placed many firms in the state of commercial stagnation, as they cannot improve on their market shares. The co 1.3 in increase of price due to the ineffective logistical approach as they consumer are forced through against their will to limit their consumption to the available goods and services. By this study it is the intention of the researchers to suggest ways by which materials and finished products can be effectively distributed.
This is based on the belief that the study could help firms and industries in designing and implementing successful programmes in their logistics and distribution system.

1.2 STATEMENT OF THE PROBLEM
There have concerned over the logistic of distribution system distribution is in the service industry. Many firm in a developing nation the basic infrastructure needed to support modern marketing activities are inadequate in golden guinea breweries limited.
There have been problem in distribution system and there is loss, in an attempt to handle the distribution activity areas of inadequacies are
i. Transport problem
ii. Poor inventory management
iii. Ware house
iv. Federal government policy on importation of raw material

1.3 OBJECTIVE OF THE STUDY
The researchers intend by this study to high light some of such logistical approaches in the best industry
1. The most effective and efficient method of getting to the consumers of a particular brand of beer is very essential especially now that Nigerians are in need to widen their export base and all are now on beer industry. This may not be possible without adequate logistical planning.
2. By this study data collected and recorded which in turn are highly essential in the planning and developing of marketing education and practice
3. To offer suggestion on decision regarding the way in which transportation should be used for each type of shipment of raw materials or finished products.
4. Decision on ware housing as to how many of them are required and location and quantity of goods to be stocked in each will also be discussed and useful suggestions will be offered in that direction. Finally the study on how best to select the distributors of the products, sales personnel and how to institute an adequate and effective sales organization with effective communication network. We therefore hope that firms or individuals that operate within the recommended suggestion will be operating within the range of acceptable logistical system.

1.4 RESEARCH HYPOTHESIS
The following hypothesis will be tested.
4.0 The brewer programme of the federal government cannot be an answer to the breweries problem in Nigeria
4.1 The brewer programme of the federal government can be an answer to the brewer problem in Nigeria.
4.2 There is no channel for the distribution of golden guinea products.
4.3 There is a channel for the distribution of golden guinea product
4.4 Are their any serious problems facing golden guinea brewers
4.5 There is no serious problem facing golden guinea brewers

1.5 SIGNIFICANCE OF THE STUDY
The economic crunch recently being experienced is found all over the world and cut across all aspects of human endeavor. Nigerian being part and parcel of the world economy can in way exempt herself from what ever effects that are now being experienced by the global economic down turn. The serious effect of some governmental policies designed to cope with the economic glut not with standing.
Therefore we believe that both individuals and organization should benefit even distributors, wholesalers when they operate a sound logistical system.

1.6 SCOPE LIMITATION AND DELIMITATIONS
SCOPE OF THE STUDY
Golden guinea brewery was founded, as government owned Brewery Company. I shall use this company as a case study being a company founded by the federal government of Nigeria.

LIMITATION
There are some factors that make the researchers limit their studies to using only Golden Guinea brewers.
Some of them are finance, time constraint again the sad experience we get during the collection of data, it is indeed in the face of the above problems that the researcher think it is wise to limit our study to a near by area.

DELIMITATION
This research work has been delimited to using only the golden guinea brewers as the case study due to the limitating factors of finance time and carrying out the project work while lecturers were still in progress. All these factors contribute to the delimitation of the work.

DEFINITION OF TERMS
1. LOGISTICS: In this contest, logistics is the organization of the movement of goods and services to reach the final consumers
2. DISTRIBUTION: This is the efficient movement of raw materials from supplier and finished goods from the end of the production to the customers.
3. WHOLESALER: Is a trader who purchases goods in large quantities from the manufacturer and sells in small quantities to the retailers.
4. BREWERS: In this contest brewers are persons who make beer
5. SYSTEM: This is ways of working in a company. The ways by which golden guinea brewery work in their company.

 

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The logistics of a distribution system in breweries involves the management and coordination of various processes to ensure that beer products are efficiently and effectively transported from the brewery to distributors, retailers, and ultimately, consumers. This process encompasses a range of activities including production planning, inventory management, transportation, and order fulfillment. Here’s an overview of the logistics involved in a brewery distribution system:

  1. Production Planning and Forecasting: Breweries need to anticipate demand for their various beer products to ensure that they produce an appropriate quantity. Accurate demand forecasting helps in preventing overproduction or underproduction, which can lead to inventory issues.
  2. Inventory Management: Breweries maintain an inventory of finished beer products to meet demand and respond to orders promptly. Efficient inventory management involves tracking stock levels, implementing a first-in-first-out (FIFO) approach to manage perishable products, and minimizing excess inventory to avoid wastage and storage costs.
  3. Warehousing: Breweries typically have warehouses to store finished products before they are distributed. Warehouses need to be strategically located for efficient transportation to various destinations.
  4. Order Processing: This involves receiving and processing orders from distributors or retailers. It includes order verification, picking the products from the warehouse, and preparing them for shipment.
  5. Packaging and Labeling: Before distribution, beer products need to be properly packaged and labeled. Packaging should ensure the quality and integrity of the product during transit.
  6. Transportation: Choosing the right mode of transportation (trucks, freight carriers, etc.) is crucial for timely and safe delivery. Efficient route planning and load optimization can help minimize transportation costs and reduce the environmental impact.
  7. Distribution Network: Breweries often work with a network of distributors and retailers. Managing these relationships and ensuring that the right products are delivered to the right places on time is a key aspect of brewery logistics.
  8. Tracking and Visibility: Breweries use tracking technologies to monitor the movement of products throughout the distribution process. This provides real-time visibility into the location and condition of the products, enabling proactive management of any issues that may arise.
  9. Compliance and Regulations: Breweries need to adhere to various regulations related to alcohol distribution, which can vary by region. Ensuring compliance with these regulations is essential to avoid legal issues.
  10. Reverse Logistics: In cases of product returns, breweries need to have processes in place to handle returned goods efficiently and manage inventory adjustments.
  11. Technology and Software: Advanced software solutions and technologies such as inventory management systems, order processing software, and transportation management systems can greatly enhance the efficiency of brewery logistics.
  12. Sustainability: With increasing emphasis on sustainability, breweries are also considering eco-friendly packaging, transportation options, and waste reduction strategies in their distribution systems.

Efficient brewery distribution logistics require a well-coordinated effort across different departments within the brewery and collaboration with distributors, retailers, and logistics partners. The goal is to ensure that the right beer products reach the right consumers in a timely and cost-effective manner while maintaining product quality and compliance with regulations.