IMPACT OF EFFECTIVE DISTRIBUTION IN CAN PRODUCTION INDUSTRIES
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IMPACT OF EFFECTIVE DISTRIBUTION IN CAN PRODUCTION INDUSTRIES
ABSTRACT
This empirical study investigated the influence of effective physical distribution in the can production industry, using GZI as a case study. The goal is to explore the impact of physical distribution on organisational effectiveness while also providing solutions to difficulties. GZ Industries is West Africa’s leading aluminium can maker.
The goals of this study were to assess the impact of order processing and inventory control on the performance of GZ industries. The scope of the study is GZI from 2015 to 2019. Contingency theory served as a framework for both senior and junior staff members.
The research design employed is a survey, and the population size for this study is all of GZI’s employees, which totals 250. The sample size was 96 workers, and a cluster sampling technique was used. A questionnaire was utilised to collect data. Data was gathered from original sources.
The data analysis revealed that order processing had a major impact on organisational performance, inventory control had a significant impact on organisational performance, and physical distribution is a critical component of every organisation.
Following the findings, it was suggested that order processing be handled with extreme care. Organisations must assure proper selection, packing, and delivery of packaged commodities, as well as inventory control.
Inventory should constantly be preserved in a desirable state while continuing to provide customers. The study indicates that for any organisation to prosper, correct physical distribution tactics should be vigorously pursued and made mandatory.
Keywords include physical distribution, GZI, and organisational performance.
Chapter one
INTRODUCTION
1.1. Background for the Study
Distribution is one of four components of the marketing mix. It entails making a product or service available to the consumer who requires it. Distribution is basically concerned with ensuring that items reach their intended clients in the most direct and cost-effective manner.
Although distribution is a seemingly basic idea, in practice it encompasses a wide range of tasks such as detailed logistics, transportation, warehousing, storage, inventory management, and channel management (Armstrong, Adam, Denise, and Kotler, 2014).
To be effective, any organisation must have an effective distribution management process that transports finished products from the maker to the end user. Physical distribution is an important marketing function that describes the marketing operations associated with the flow of raw materials from suppliers to the factory, as well as the movement of finished items from the end of the production line to the final user.
Physical distribution occurs inside many organisations, and it includes critical decisions in areas such as customer service, inventory control, material handling, protective packaging, order processing, transportation, warehouse site selection, and warehousing.
Physical distribution, when managed efficiently, can boost customer satisfaction by assuring consistent, cost-effective flow of items throughout the supply chain. Physical distribution is intimately tied to customer service, and a lack of it can result in a number of expenditures.
Organisational performance analysis entails comparing a company’s performance to its objectives and goals. It is the actual output or results of an organisation as compared to its intended outputs. GZ Industries is West Africa’s leading aluminium can maker. However, the ability of GZ industries to fulfil her specified objectives is heavily reliant on the success of its physical distribution.
Manufacturing organisations, such as GZ industries, should consider the consequences of the complete supply chain when making decisions about the organization’s manufacturing, purchasing, selling, and logistics processes, as these are aimed at better serving the consumers, who are the ultimate goal.
This study, which assesses the effects of successful physical distribution in Nigerian can producing businesses, has lately gained attention in the literature. This is because a proper grasp of successful physical distribution will enable managers to effectively arrange their organization’s distribution systems.
Statement of the Problem
Many businesses recognise the importance of physical distribution as a significant aspect in increasing productivity. A systematic strategy to distribution is required to ensure that the organisation provides good customer service.
Despite the different strategies that businesses have developed and used to reduce costs and maximise distribution of goods, physical distribution difficulties such as inventory control, materials handling, order processing, transportation, warehouse site selection, and effective customer service remain.
The level of distribution efficiency has a significant impact on a company’s image. Incorrect paperwork and a sluggish reaction to delivery are frequently sources of ill will between organisations and customers. Accuracy is an important goal of order processing. Inventory management is crucial since stock levels have a direct impact on deliveries.
Against this backdrop, the researcher investigates the influence of effective distribution in the can production industry, using GZI as a case study.
Objectives of the Study
The study’s overarching goal is to assess the impact of effective physical distribution in can production businesses using a case study of GZ industries. The specific objectives are listed below:
To determine the impact of order processing on the performance of GZ industries.
To determine the impact of inventory control on the performance of GZ industries.
1.4. Research Questions.
The study aims to answer the following questions:
How does order processing affect the performance of GZ industries?
How does inventory control affect the success of GZ industries?
Research Hypothesis
The investigation is guided by the following hypotheses.
H0: Order processing had no effect on GZ industries’ performance during the study period.
H0: Inventory control had no effect on GZ industries’ performance during the study period.
1.6 Significance of the Study
This research is critical in understanding the significance and influence of effective physical distribution on organisational success in GZ industries. This study’s findings on physical distribution would be valuable to other scholars and practitioners who seek to do similar research in Nigeria. The study will reveal the issues connected with physical distribution and propose solutions to these challenges in GZ sectors.
It is believed that the exploration of GZI will offer investors and the government with a comprehensive understanding of how the can industry operates. This study will be beneficial to:
Members of the academic community will find the study useful because it will serve as a foundation for future research and a reference tool for academic work.
Government: This study will inform the government about developments in the manufacturing business. Formulating and implementing rules based on these findings would secure the industry’s growth.
Investors, particularly those interested in research, will use it to drive their private investment decisions.
Finally, the findings of this study will inform the company’s management about the importance of good physical distribution.
Scope of the Study
The study focuses on the effects of effective physical distribution on organisational performance in GZ industries in 2019 with staff personnel. This industry was chosen because of its importance in assuring the production of canned goods.
1.8. Operational Definitions of Terms
The terms listed below have been defined operationally.
Distribution involves making a product available for purchase by disseminating it throughout the market.
Physical Distribution Management (PDM) is responsible for ensuring that the product is in the correct place at the right time.
Physical Distribution refers to the handling and movement of physical items inside industrial organisations and channel systems.
1.9 Organisation of the Study
The study is divided into five chapters: the first chapter contains the introduction, context to the study, statement of the problem, purpose of the investigation, research questions, research hypothesis, relevance of the study, scope, and limitations of the study.
The second chapter contains a literature review, a conceptual definition of physical distribution, distribution channels, channel structure, physical distribution management, a theoretical framework, and the application of the theory to the study.
The third chapter discusses the subject area and method of investigation, which contains the following: introduction, research design, study population, sample size and sampling procedure, data collection sources, data collection instrument, instrument validity and reliability, and data analysis methods.
Chapter four covers the presentation of data, analyses, and discussion of findings, while Chapter five contains the summary, recommendations, conclusion, and recommendations for future research on the topic.
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