Effects of effective distribution in the can-making industry: A case study of GZI
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ABSTRACT
This study empirically investigated the influence of effective physical distribution in can manufacturing businesses, using GZI as a case study. The objective of this study is to analyze the effect of physical distribution on organizational performance and to propose solutions to existing issues. GZ industries is the leading aluminum can maker in West Africa. The objectives of this study were to assess the impact of order processing and inventory management on the performance of GZ industries. The study covers GZI from 2015 to 2019 As a conceptual framework, the theory of contingency was applied to senior and junior staff members. The research design employed is a survey, and the population for this study comprises of all 250 GZI employees, for a total of 500 workers. The sample consisted of 96 workers, and cluster sampling was utilized. The questionnaire was utilized as a data gathering instrument. The information was gathered from primary sources. The findings of the data analysis indicate that order processing had a large impact on organizational performance, that inventory control had a significant impact on organizational performance, and that physical distribution is crucial to the success of any firm. In light of the findings, it was suggested that order processing be performed with the utmost care. Organizations should ensure the correct selection, packaging, and transportation of the packed commodities, and they should regulate inventory levels. Inventory should constantly be maintained in the desired condition while consumers are continuously supplied. The conclusion of the study is that for any organization to succeed, correct physical distribution tactics must be followed strongly and made mandatory.
Physical distribution, GZI, and organizational performance are key terms.
FIRST PART
INTRODUCTION
1.1. Background of the Study
Distribution is one of the four marketing mix components. It entails providing a product or service to a consumer who requires it. Distribution is basically concerned with ensuring that items reach their intended consumers in the most direct and economical manner possible. Although distribution as a concept is relatively straightforward, distribution management in practice encompasses a wide array of activities, including logistics, transportation, warehousing, storage, inventory management, and channel management (Armstrong; Adam; Denise and Kotler, 2014).
For a business to be successful, it must have a distribution management process that efficiently transports finished goods from the maker to the ultimate consumers. Physical distribution is an essential marketing function that describes the marketing operations associated with the flow of raw materials from suppliers to the factory and the movement of finished items from the factory’s end of production to the final consumer or user. Physical distribution occurs in a variety of companies, requiring crucial choices in customer service, inventory control, material handling, protective packaging, order processing, transportation, warehouse site selection, and storage. If managed successfully, physical distribution can boost customer satisfaction by assuring the reliable, cost-effective transportation of items across the supply chain. Physical distribution is intrinsically linked to customer service, the absence of which might incur numerous expenses.
Analyzing a company’s performance relative to its objectives and goals is organizational performance. It consists of a comparison between the actual output or results of an organization and its intended outputs. GZ industries is the leading aluminum can maker in West Africa. However, GZ industries’ capacity to realize her aims is largely contingent on the success of its physical distribution. When making decisions on the organization’s manufacturing, purchasing, selling, and shipping processes, manufacturing firms such as GZ industries should evaluate the effects of the entire supply chain, since the end goal is to serve customers more effectively.
This study assesses the influence of successful physical distribution in Nigerian can manufacturing sectors, a topic that has recently attracted scholarly interest. This is because managers of businesses will be able to effectively organize their distribution channels if they have a proper understanding of successful physical distribution.
Description of the problem
Undoubtedly, the importance of physical distribution as the driving force behind increased production has been acknowledged by numerous organizations. To retain excellent customer service, a firm must implement a systematic distribution strategy.
Physical distribution challenges such as inventory control, materials handling, order processing, transportation, warehouse site selection, and efficient customer service continue to exist despite the various methods firms have researched and implemented to reduce costs and maximize product distribution. Distribution efficiency is a crucial factor in a company’s public image. Incorrect documentation and a sluggish delivery response are frequent causes of ill will between businesses and their clients. Accuracy is a crucial goal of order processing. Inventory management is crucial due to the direct relationship between stock levels and delivery.
In light of this context, a case study of GZI examines the influence of effective distribution in can manufacturing businesses.
The aims of the study
The study’s overarching purpose is to examine the impact of effective physical distribution in can production businesses, using GZ industries as a case study. The particular goals are as follows:
Determine the impact of order processing on GZ industries’ performance.
To assess the impact of inventory management on GZ industries’ performance.
1.4. Research Concerns
The study aims to address the following issues:
What effect does order processing have on GZ industries’ performance?
What impact does inventory management have on the performance of GZ industries?
Theoretical Hypothesis
The research is based on the following hypotheses:
Order processing has no effect on the performance of GZ industries during the study period.
Inventory control had little effect on the performance of GZ industries during the study period.
1.6 Importance of the Research
This study is vital for determining the significance and influence of effective physical distribution on the performance of GZ industries. This study’s findings on physical distribution will be valuable to other researchers and practitioners who seek to do research on physical distribution in Nigeria. The study will elucidate the obstacles connected with physical distribution and propose solutions for these obstacles in GZ businesses.
It is believed that the exploration of GZI will offer investors and government with a comprehensive perspective of the operations of the can business. This research will be useful to;
Academia: Academia members will find the study relevant because it will serve as a basis for future research and a reference tool for academic publications.
This study will inform the government on developments in the manufacturing industry. The growth of the industry might be ensured by formulating and implementing policies based on these findings.
Investors, particularly those with an interest in research, as it will inform their private investing decisions.
This study will shed light on the implications of effective physical distribution for the company’s management.
The Range of the Study
The objective of the study is the influence of effective physical distribution on organizational performance in GZ industries employing staff members in 2019. This industry was chosen because to its importance in securing the manufacturing of cans.
1.8. Definition of Terms for Operations
The following terms have been operationally defined.
Distribution is the process of making a product available for sale by disseminating it throughout the market.
Physical Distribution Management (PDM): is concerned with ensuring that the product is in the appropriate location at the appropriate time.
Physical Distribution: the handling and movement of physical items inside industrial organizations and channel networks.
1.9 Design of the Research
The study is organized into five chapters: chapter one contains the introduction, study background, problem statement, study objective, research questions, research hypothesis, significance of the study, scope, and limitations. The second chapter contains a literature review, physical distribution: a conceptual clarification, distribution channels, distribution channel structure, physical distribution management, a theoretical framework, and an application of the theory to the study. The third chapter discusses the study area and methodology, including an introduction, research design, study population, sample size and sampling strategy, sources of data collecting, data collection instrument, validity and reliability of instrument, and method of data analysis. The fourth chapter focuses on the presenting of data, analyses, and discussion of findings, while the fifth chapter gives a summary, suggestions, conclusion, and suggestion for further research.
Effects of effective distribution in the can-making industry: A case study of GZI
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