Project Materials

APPRAISAL OF DISTRIBUTION SYSTEM IN BREWERY INDUSTRY

ABSTRACT

This study project aims to investigate the evaluation of the distribution system in Nigeria’s manufacturing industry. I thought it necessary because the research topic is unique to Nigerian businesses, to conduct an environmental practical research on the Nigerian beer industry, which was used to generalise the project objectives. This research work cannot be said to be thorough due to the changing nature of our industries, and it is not intended to substitute other perspectives or subsequent research on this study’s objective, but it has gone a long way towards emphasising the much-needed efficiency in distribution systems. The research project is organised methodically into five chapters, the first of which discusses the overall perspective, the study’s purpose, and the study’s limitations, among other things. The second chapter is a review of the literature, and the third is on the research technique. The fourth chapter focusses on data presentation and interpretation of findings. Chapter five contains the summary suggestion and conclusion sections.

Chapter one

Introduction

1.1 Background of the Study 

Production is considered complete when the product reaches the consumers in high quality, at the appropriate time, at the right place, at the right price, and in good shape. Because of the wide range of industries in Nigeria, it is critical to have an efficient distribution system.

Essentially, the goal of any industry is to minimise costs while increasing profits. To accomplish this, a company must identify high cost-generating centres and work to reduce them.

Distribution activities generate costs; the goal of physical distribution management in industries is to reduce total distribution costs to an absolute minimum while also ensuring effective distribution to achieve high customer service and satisfaction.

The distribution reference to the retailing or selling function refers to a vast industry made up of thousands of outlets ranging in size from shops to large departments, departmental stores, and cash and carry warehouses, all of which try to meet the needs of our customers or consumers.

Physical distribution management is responsible for the movement of raw materials and finished products from the supplier to the manufacturer and customer. It represents the connections between manufacturing and production on the one hand, and retailers and customers on the other.

According to Drucker, a well-known management expert, physical distribution management represents the final great frontier of cost reduction. Part of physical distribution management. Physical distribution management is divided into the following elements:

A. Transportation

B. Warehousing

c. Order processing.

d. Administration and Inventory Control

f. Receiving and dispatching

f. Inventory stockholding.

g. Packaging.

The idea of physical distribution is concerned with the relationship between all of the above aspects, as any change in one function will effect those elements to varying degrees.

The center for physical distribution management in 1984 analyzed the cost of distribution as an average percentage of sales turnover for all commodities.

It is observed that transport cost which include both the truckey movement between a manufacturer and distribution depots and warehouse, and the cost of distribution to retailer are the highest single costs, they nevertheless represent les than half the total distribution cost.

Warehousing the product at various stages in the distribution process in the next most vital cost, but administration and inventory control are also heavy distribution overhead packaging is another very significant element of the total cost.

Companies can loss customers when they fail to make their good available time. The industries, going by all these can be effective in physical distribution of their product, such effectiveness can range from ensuring that profit is earned in the process and achieve their private goal of the business, will standing the competition minimize the cost and profit maximize in physical distribution activities.

The researcher will analyse in his study the physical distribution system in industries will particular reference to the Nigeria bottling company Ontisha Anambra state.

All with a view to eliminate the ineffectiveness of physical distribution of coke products in Onitsha areas and suggest areas of improvement.

1.2 Statement of the Problem

In most corporate operation today, especially those that have one thing or the other to do with distribution, the challenge of carrying out their duty so as to the effective is not a simple one. The issues surrounding NBC Plc Ontisha’s poor distribution of coke products are highlighted.

Inflation is fundamentally caused by an insufficient supply of basic commodities in response to demand, which is exacerbated by inefficient distribution of any commodity created.

Product distribution activities require fundamental facilities such as mechanised equipment for easy loading and unloading, storage facilities, and so on, but these are unfortunately lacking in our industries.

As a result it has caused some problems in distributing system affecting the effectiveness of physical distribution. Some of the issues encountered by the company in physical distribution locations are as follows:

TRANSPORTATION: Some roads are deteriorating, while others are not. The rural areas are the worst delivery to such areas are very difficult.
The company also encounter the problem of increased competition from companies like 7up bottling Plc.

WAREHOUSES: These are few and few between, as the fair distance between depots and customers causes product prices to be higher in rural areas of Onitsha and the surrounding environment.

1.3 PURPOSE OF THE STUDY

For any profit making organization like Nigeria Bottling company, the main aim is high productivity and maximum satisfaction of customer need unfortunately despite all the air craft machines available, customer are most at time disappointed. This is because management fails to implement an adequate and effective physical distribution system.
The study’s purpose is

1. To determine how Nigerian bottling companies may tackle the problem of ineffective distribution of coke products by NBC Plc Onitsha.

2. How can NBC maximise customer pleasure by using an appropriate distribution system?

3. How to handle the problem related with the transportation and warehouse in either to improve the profitability of the company

4. How to handle the problem associated with growing competitiveness through the user of effective distribution systems

1.4 Significance of the Study

The study intends to analyse the influence of physical distribution system on the productivity and profitability of Nigerian Bottling business management with particular reference to Nigerian Bottling business coca cola onitsha.

It is consequently, expected that it will help NBC and other companies in the same industrial in providing possible answer to it physical distribution challenges.

It will assist future researchers who wish to do research on the evaluation of physical distribution for further consultation. The investigation allows this researcher to learn more about the Nigerian bottling company Coca Cola Onitsha.

1.5 RESEARCH QUESTION.

The research question has been created in accordance with the project topic and purpose.

1. How are distribution decisions/policies made?

2. How is this policy

3. Depot location for operations and documents in use.

4. How are the items distributed to the depots?

5. Customer issues encountered

6. What is the distribution arrangement in Onitsha and its environs

7. How does distribution efficiency affect the company’s profits?

8. What distribution issues did you encounter while attempting to get the goods to the customers?

1.6 HYPOTHESIS

It is critical for the researcher to make some provisional or tentative assertions on the basis of their assumed correction.

HA2: An effective application of physical distribution is a means of achieving an organization’s objective.

HA2: An effective application of physical distribution is not the means by which an organization’s goal can be achieved.

HA2: There is a significant relationship between an efficient distribution system and increased sales of the firm’s products.

HA2: There is no significant relationship between an efficient distribution system and increased sales of the firm’s products.

1.7 SCOPE OF THE STUDY

The study focusses on distribution at the Nigerian bottling company (NBC) Plc, Ontisha. A producer of

A. Coca-Cola

B. Sprite

C. Fanter (quinine, orange, lemon, and chapman)

d. Freshen bitter lemon.

E. Club soda

The researcher will focus the study on the effectiveness of physical distribution activities in NBC Plc, Onitsha, Anambra State.

1.8 Limitations of the Study

In actual sense, study should involved the study of some of the manufacturing industries of these because of the geographical distribution of these industries.

It will not be possible for the researcher to carry out research work on these industries owing to this the researcher is concentrating on the Nigeria bottling company Onitsha Anambra state.

In carrying out this project work, the research faced some problems which ranged from financial constraints, time constraint to the problems of data collection

Time factor, which arise when this researcher was exposed to opportunity cost, that is whether to have 100% attendance lecture for use some days for lecture and attitude of Nigerian to project problem caused by the attitude of Nigerians of project and power holding plc intermittent power failures.

However bearing these constraints in mind the researcher has made effect to ensure that he left no stone unturned in the research for materials and evidence necessary for the purpose of carrying out this research successfully.