IMPACT OF EFFECTIVE DISTRIBUTION IN CAN PRODUCTION INDUSTRIES
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IMPACT OF EFFECTIVE DISTRIBUTION IN CAN PRODUCTION INDUSTRIES
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.
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