Problem Of Physical Distribution In A Beverage Industry
(Case Study Of Nigeria Bottling Company Owerri)
In the beverage industry, managing physical distribution presents a complex challenge due to the intricate network involved in delivering products from manufacturers to consumers efficiently. This multifaceted issue encompasses various factors such as transportation logistics, inventory management, and supply chain optimization. Ensuring timely delivery while minimizing costs and reducing environmental impact is paramount in this competitive landscape. Additionally, maintaining product quality and freshness throughout the distribution process is crucial to meet consumer expectations and uphold brand reputation. Implementing advanced technologies like route optimization software and RFID tracking systems can streamline operations and enhance visibility across the supply chain. Furthermore, partnerships with reliable logistics providers and strategic location planning for distribution centers play a significant role in overcoming the hurdles associated with physical distribution in the beverage industry, ultimately fostering growth and market competitiveness.
This research work is carried out to determine the problems of physical distribution management in a beverage industry. A case study of Nigeria bottling company Owerri.
To achieve this, it is necessary to find out the physical distribution problem in a beverage industry. The study is aimed at.
1. To determine the factors that affect physical distribution in a beverage industries.
2. To determine the activities inherent in physical distribution, its barriers and to identify the factors.
3. To recommend ways and means of improving the physical distribution system.
The data for the study was collected through the use of questionnaire and interviews which was conducted at the premises of the industry. The were analyzed, giving solution to such as suing the right distribution channels and ensuring that product are distributed to where they are highly needed for effective physical distribution.
This work is written in chapters. Chapter one is the introductory part of the work, chapter two takes about the literature review chapter three is the research methodology, then chapter four review the data presentation of the work done and the chapter five is the summary, conclusion and the recommendation of the work.
Title page
Approval page
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 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 Definition of terms
Chapter two
Literature review
2.1 physical distribution management
2.2 The total physical distribution concept
2.3 Activities involved in physical distribution
2.4 Channels of distribution
2.5 Factors affecting choice of distribution channel
2.6 Conflict and resolution in channel o distribution
2.7 Importance of physical distribution management
2.8 Physical distribution cost
CHAPTER THREE
Introduction
3.1 Research design
3.2 Questionnaire design
3.3 population sample selection
3.4 Sources of data
3.5 primary sources and secondary source
3.6 Data collection techniques
3.7 the survey
3.8 observation
3.9 Method of data analysis
CHAPTER FOUR
Data presentation and analysis of finding
4.1 Data presentation
4.2 Analysis of findings
4.3 Testing of hypothesis
4.4 Decision rule
CHAPTER FIVE
Summary, conclusion and recommendation
5.1 summary
5.2 Recommendation
5.3 Bibliography
5.4 Appendix
5.5 Questionnaire
Introduction
1.1 background of the study
According the Kotler (1986:80 distribution channel involves planning, implementing and controlling the physical flow of materials and final goods from point of orign to point of use to meet the needs of customers as a profit.
He went further to say that the major physical distribution cost is transportation, followed by inventory carrying cost, warehousing and or reprocessing, physical distribution management should be broadened to include the distribution cost could be more effectively managed.
There should be an service to get to the final consumer at the right time.
This is because the consumer is the distribution of all production process. The distributors have to date into account the changing panthern of the market and the activity of the competitors. And also the goal which the industry sets to achieve and also determining the product need of consumers before embraking on physical distribution management.
The use of distribution in conveying products to the consumer are an behalf of manufacturers in dealing with their customers. These distributors are also known as the middlemen or wholesales who act as a link between the manufacturers and consumers. One of the problems facing most firms is the physical distribution of product. Because of this reason, a lot of research has been done and most of these researchers tried to find out solution to these problems.
1.2 statement of the problem
Because of the competitive nature of every industry, many companies who are unable to cope with the competition have collapsed and foiled.
Distribution is an important aspect of marketing, many industries loose their share as a result of poor distribution management most consumers blame them for high priel because the distribution add cost to the product, buy, clain that there would be no effectiveness and efficiency in distribution of product without the introduction of distributions.
No much has been written or done to know the extent of the influence of distribution in marketing and thereby coming out with possible and workable solution there is therefore, the heed for the researcher to evaluate the distribution channel in marketing of coco cola product in Imo State using Nigeria Bottling company Owerri as a case study. The researcher channels are unnecessary and if some channels or addition should be made.
1.3 OBJECTIVE OF THE STUDY
The specific objective of this study are as follows.
1. To critically examine the distribution channels of Nigeria Bottling Company Owerri.
2. To determine and examine the various channels used in distributing soft drinks in Imo State.
3. To determine the problems encountered in the distribution channel and also to identify the factors that could be responsible for such situation.
4. TO examine the impact of distribution cost to print.
5. To fund and recommend possible solution to the problems associated with the distribution.
1.4 SIGNIFICANCE OF THE STUDY
Distribution is not static but change with the changing market but change study is very significant because it exposes the effect of improper choice of distribution channel in the manufacturing industry ike Nigeria Bottling company Owerri.
The total physical distribution concept will assist industries to identify areas where changes have to take place for progress to be made.
This study also aimed at informing the management of the implication of inefficient communication system and exposes the benefits of consumers on the new techniques for the physical distribution channel in a manufacturing industry.
1.5 RESEARCH QUESTION
The research questions are stated as follows
1. Are there effective distribution of soft drink products to customer and consumers.
2. Does your company have an effective transportation system.
3. Does the use of advertising increase the distribution system in your company.
4. Does the conflict between retailer and distributors have effect on your distribution channel.
5. How has physical distribution channel increase your production system.
1.6 HYPOTHESIS
The following research hypothesis will be tested.
Ho: There is effective distribution of soft drink product to customers and consumers.
Hi: There is no effective distribution of soft drink product to customer and consumers.
Ho: transportation cost is a limiting factor in the distribution of soft drink.
Hi: Transportation cost is not limiting factor in the distribution of soft drink.
Ho: Conflict between retailer and distributor have effect on distribution channel.
Hi: Conflict between retailer and distributors have no effect on distribution channel.
1.7 SCOPE OF THE STUDY
This research work is limited to the physical distribution management in a manufacturing industry in Owerri with reference to Nigeria Bottling company Owerri plant. The analysis made in this research. Is based on data made available to the researcher by the company’s staffs through questionnaires and responses. The sample size is the selected area. The sample size is the selected area of study and it involves observation, questionnaire and interview.
1.8 LIMITATION OF THE STUDY
In actual sense, this study should have involved the study of the some of the manufacturing industries, but because of the geographical distribution of these industries, it is not practicable for the researcher to carryout research work on these industries. In view of this, the researcher has decided, after careful study of all the various types of industries to concentrate on the Nigeria Bottling company Owerri .
In addition, there was the problem of time and financial, the time allocated for the completion of this research is very limited as such, the industries in the state.
There was also the problem of compromising attitude of the stated of Nigeria Bottling company especially those at the soft they always very suspicious of the researchers mission.
However, being these constraint, the researcher has made efforts to ensure that she lift no stone unturned in the research for materials and evidence necessary for the purpose of carrying out this research successfully.
1.9 Definition of terms
The term physical distribution has varied meanings and terms associated with it as understated.
1. Physical: It loauid be partaning to body t is the nature of things.
2. Distribution: It is the act of dividing and sharing out things to different places or at different points.
3. Physical distribution: This is a task of ensuring that the goods and services produced by the organization are transported from te place of production to the point of consumption, as efficiently and as economically as possible.
4. Management:- It is the control of operating a business tactfully.
5. Product: It is the physical entity and services which satieties aerating customers need.
6. Channel: It is the passage for the medium of communication.
7. communication: It is the act of including others to interpret an idea in a manner intended by the speaker.
8. Industry: manufacturing or combination of firms that products similar goods.
9. Wholesalers intermediaries that perform a variety of marketing functions to more foods and services through the channel to retainlers and organizational customers.
10. transportation: The provision and adequate manufacturing of the right quality and quantity of vehecles for the evaluation of finished goods.
11. Consumption: It is the sole end purpose of all production.
Problem Of Physical Distribution In A Beverage Industry:
The beverage industry faces several challenges related to physical distribution, which involve the transportation, storage, and delivery of products to customers and retailers. Here are some common problems associated with physical distribution in the beverage industry:
Temperature Sensitivity: Many beverages, such as soft drinks, juices, and dairy products, are temperature-sensitive and require controlled environments to maintain product quality. Maintaining the appropriate temperature throughout the distribution process can be challenging, especially in regions with extreme weather conditions.
Fragility: Glass bottles and fragile packaging are commonly used in the beverage industry, making products susceptible to breakage during transportation. This not only leads to product loss but also poses safety risks to workers handling the goods.
Shelf Life: Beverages often have limited shelf lives, particularly those without preservatives. Ensuring that products are delivered to retailers and consumers before expiration can be a logistical challenge.
Seasonal Demand: Seasonal variations in demand for certain beverages, such as hot beverages in winter and cold drinks in summer, can create distribution challenges. Companies must adjust their distribution networks and inventory management to meet fluctuating demand.
Regulatory Compliance: The beverage industry is subject to various regulations related to labeling, packaging, and transportation. Ensuring compliance with these regulations can be a complex and time-consuming process.
Inventory Management: Managing inventory levels efficiently is crucial to avoid overstocking or understocking. Overstocking can lead to increased warehousing costs and the risk of product spoilage, while understocking can result in lost sales and customer dissatisfaction.
Route Optimization: Optimizing delivery routes is essential to reduce transportation costs, minimize fuel consumption, and ensure timely deliveries. Complex route planning becomes even more challenging in urban areas with traffic congestion.
Distribution Network Complexity: The beverage industry often relies on a complex distribution network that includes distributors, wholesalers, retailers, and direct-to-consumer channels. Coordinating these various stakeholders and ensuring seamless distribution can be a significant challenge.
Packaging and Sustainability: Increasing consumer demand for eco-friendly packaging materials and sustainability practices has prompted beverage companies to rethink their packaging choices. Transitioning to sustainable packaging options can require adjustments to the distribution process.
Transportation Costs: Rising fuel costs, labor costs, and other expenses associated with transportation can impact the profitability of beverage companies. Finding cost-effective transportation solutions while maintaining quality service is a constant concern.
E-commerce and Direct-to-Consumer: With the growth of e-commerce and direct-to-consumer sales, beverage companies must adapt their distribution strategies to accommodate online orders and home deliveries, which may require additional infrastructure and technology investments.
To address these challenges, beverage companies often invest in advanced supply chain management systems, temperature-controlled logistics, efficient packaging solutions, and route optimization technologies. Additionally, staying abreast of industry regulations and consumer preferences is crucial for success in the ever-evolving beverage market.