IMPACT OF LOGISTICS MANAGEMENT IN MARKETING OF AGRICULTURAL PRODUCTS
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IMPACT OF LOGISTICS MANAGEMENT IN MARKETING OF AGRICULTURAL PRODUCTS
Chapter one
INTRODUCTION
1.1 Background of the Study
Logistics management is the transportation of raw materials and completed commodities from the point of manufacture to the point of purchase. Raw materials and finished commodities are both stored in the warehouse before being used in production or sold to customers.
If properly managed, distribution costs will be reduced without sacrificing customer service or increasing consumer utility. According to Alexander and Franco (1969), logistics management is defined as “fraction cost savings, increased competitiveness secured on added customer value of product and enhance profit opportunity”.
In addition, this study will look at how effective logistics management can influence marketing decisions and overall organisational success.
Second, the study will look into how organisations can reach their targets for customer service delivery and expectations in order to remain competitive in the market.
The research will look into how logistics management is utilised to control the market for agricultural products. The study will also examine the shortcomings in logistics management, which are as follows:
A critical analysis and study of logistics management in agriculture in Nigeria revealed that the government has previously made several efforts to solve the problem and improve the level of agriculture beyond people’s expectations by developing policies by both the civilian and military governments.
The research problem demonstrates that logistics management in agricultural products bears a significant amount of responsibility in selling their products. Okeke, C.I. (2000)
The study shows that if logistics have a good skilled engineer who knows what sort of problem their equipment has and does not need to consult any experts for assistance, both raw materials and completed items will arrive at their customer’s destination on time.
The necessity to develop strategies to maintain agricultural facilities so that the production department can accomplish their production targets, while the maintenance department performs their work tasks effectively.
The necessity to establish a suitable marketing hub where they may readily promote their agricultural products. Logistics management finds it easy since there is a market place where agricultural products can be sold and it is motorable; in this instance, the flows of raw materials and finished items will meet demand without delay.
The requirement to give suitable methods for preserving the standard quality of their products in order to avoid adulteration in the market and ensure that the quality of their product remains consistent.
1.3 OBJECTIVE OF STUDY
The primary goal of this research is to investigate logistics management in agricultural product marketing, with a focus on the challenges listed above.
The study’s primary objectives are highlighted.
i. Identify the purpose and strategy used by Diversay Solution, which is constrained in its logistics.
ii. Identify the distribution plan to be used when introducing their products into the market.
iii. Determine the role of logistics management in agricultural product marketing.
1.4 The Research Questions
This study will address the following essential questions in relation to the restricted diversity of solutions.
· Does Diversay Solution have a constrained logistical strategy?
· Do they have a distribution strategy for introducing their goods to the market?
· Is logistics management relevant to agricultural products?
1.5 Research Hypotheses
Ho: Strategic distribution does not introduce their product into the market.
Ho: Diversay Solution Limited’s management aim or strategy does not provide them with a competitive advantage.
1.6 Significance of the Study
Logistics plays a critical part in agricultural growth and development. A case study of this sort will demonstrate the nature of logistics management and how effective logistics management can be given an organisation like Diversay Solutions’ limited credibility, sense of accomplishment,
and need for growth development. Invariably, continual effective logistics management will lead to long-term development in the private sector.
The study will look into how logistics management warehouses and stores can provide all spare parts and use all of their equipment for maintenance.
The study would have any justifications to present for not doing their duties successfully because the part is available in the store and may be replaced or repaired to allow the logistics department to meet their normal activity schedule.
The study will also look at available resources for agricultural management, such as fertiliser and mechanised agricultural equipment. If the government can supply the aforementioned infrastructures to the agriculture department, and logistics management manages them appropriately, both raw material and finished goods will flow and be distributed suitably.
Furthermore, the study will discuss the network of roads that will be motorable in order to market agricultural products.
These are the problems they’re facing:
• Lack of qualified engineers.
· Lack of proper upkeep.
• Shortage of spare components.
· Absence of government agency.
· Poor network of roads.
· Limited access to agricultural resources such as fertiliser, poultry equipment, and tractors.
1.7 Scope and Limitations of the Study
This study has a focus because it will only investigate one private enterprise, Diversay Solutions Limited. In Nigeria’s significant private sectors.
The private features that it covers include issues of logistic management in agricultural product marketing, and the logistics issue is to cover the full problem and prospects of logistics management in organisational marketing.
1.8 HISTORY OF DIVERSAY SOLUTIONS LIMITED.
Diversay Solution Limited is a one-stop shop for livestock health and production support. Our goal is to provide meaningful, yet cheap solutions that alleviate the burden of the issues experienced by farmers and stack holds in the livestock production sector of the national economy.
The organisation is uniquely staffed and structured to give highly professional service and input aimed at solving the industry’s endemic problems, so delivering genuine value and eventually ensuring increased efficiency and profitability with less stress.
Diversay Solution Limited was founded in February 2008, with the clear and sole goal of assisting farmers and stockholders in achieving a high level of visible efficiency in livestock production operations while avoiding the associated stress.
This aim was influenced by a detailed analysis of the industry as it existed before to the company’s inception; there was periodic shortage and, in some cases, complete unavoidability of input, resulting in high input valuable costs and lower profitability.
The perennial input crisis, coupled with the challenges of disease not Greaks such as the dreaded avian influenza diseases under standby, sounded the death knell for a lot of farmers that were poorly managed for the professionally such that they could combat alone or internally,
so the real solution to apply to ensure profitability in the face of the crisis is to increase efficiency in operation so as to boost production to offset the increase in operation costs occasioned by the
They also want to accomplish it with the least amount of hassle and worry, therefore the Diversay solution is limited. Most of our product suppliers are world-class firms that do not compromise on the quality of their products or services.
Our high-quality items are built to withstand the test of time and adapt to the climatic conditions of Africa. Our team consists of seasoned individuals who have distinguished themselves in their careers by offering highly professional service and inputs aimed at overcoming the industry’s endemic problems.
OPERATIONS
Under this segment, the corporation imports highly relevant and effective veterinary pharmaceuticals, vaccines, and additives and sells them at extremely low costs to farmers and stakeholders throughout the country via a distribution network supplemented by or trained technical sales agents.
Bio specialty markets the company’s disinfectant range, water sanitizer, and other hygiene solutions. The disinfectant market and by the company are the latest available with cutting-edge microbe control either alone or combined, and possess a wide spectrum of activities that encompass viruses, bacteria, and fungi.
Constituency this sector provides consulting services to clients in terms of design, construction, staffing, and management of poultry, fish, and animal farmers. We also design and build raised poultry houses and advise on enhanced management and turnaround of failing farm operations.
Under this segment, the company imports highly relevant and effective veterinary pharmaceuticals, vaccines, and additives and offers them at extremely low costs to farmers and stakeholders across the country through a network of distributors supplemented by our experienced technical sales representatives.
Under this division, the corporation imports all laboratory equipment in order to execute all essential tests on their product to avoid contamination and to be specific about the true date of manufacture and the expiration date so that their customers are not harmed.
Product Packaging
1. Coccinex Diveridine and Sulfaquinoxaline
(50G (20x4x50G)
2. Quinrocin 20%.
Enrofloxacin
100ml
60x100ml
3. Quinrocin 20%.
Enrofloxacin
1 Ltr
12×1 Ltr
4. Avertin Oral 1%
1vermectin
100m
12x4x100ml
5) NematexL
Laremisole
100G
20x6x100G
Our values
Diversay Solutions Limited’s basic values include respect for our employees, the demonstration of continuous care, uprightness and humility, and the safeguarding of our reputation. Our reputation and prosperity rely on how we uphold these ideals while conducting business.
Environment
In terms of protecting the environment to avoid environment pollution for the safety of our people is a question of constant care in the way we use resources optimise operations and handle waste.
Our environmental protection policy statement reads that we are committed to the protection of the environment and place high priority on environmental considerations in managing our business.
Our vision.
We generate opportunities for national and worldwide commerce.
Our mission.
We will achieve our vision by truly understanding our clients and their businesses, providing second-to-none transport solutions, being profitable and exhibiting sustainable profitable growth, continuously lowering costs and increasing efficiency, and providing our colleagues with personal growth and a motivating work environment.
Being Innovative
Practicing good corporate citizenship
1.9 Definition of Terms To Be Used
For this study, Kotler Philip and Kevin Lane Keller (2009) defined some terms that will act as operational words, which are as follows.
LOGISTICS
Logistics can be described as the planning and implementation of the physical flows of materials and finished commodities from places of origin to locations of use for consumption in order to meet the needs of customers while being profitable.
MANAGEMENT
Management can be described as the utilisation of people to achieve specified goals and objectives.
PLANNING
The activity concerned with future proposals, the examination of alternative proposals, and the means used to realise these proposals.
CONTROL PROCESS
The managerial activity of creating standards for measuring performance and rectifying distributions.
Product Process
Attempts to determine what products or services are required or purchased by a market area or kind of client, the specifications and performance expected by the customer, and the price that they indicate they would pay for a certain product or service.
SALES PROCESS.
A study of the pattern and character of sales for certain items in particular market locations to determine the genuine sales pattern, i.e. sales effort and sales force.
The distribution process
Distribution is the process of identifying the physical distribution required to effectively counter competition or provide better service to clients, as well as determining if the approach being employed achieves these goals within the budget.
It assists in determining how distribution can be modified to keep costs under control, where depots should be located, the size of inventories to be used, the various modes of transportation to be employed, and whether to lease or buy vehicles.
COST EFFECTIVENESS
The strategy to issue solving in which alternatives are weighted and chosen, particularly when advantages and costs cannot be adequately evaluated in members by comparing the costs of other alternatives to the benefits received.
Consumer Method
A thorough examination of purchasing behaviours and patterns for specific groups of consumers in order to develop consumer profiles, including what they buy, why they buy, what they think of the products, the prices they pay or are willing to pay, and what they buy from competitors.
WARE HOUSE METHOD
A forklift is used to load products on pallets in a warehouse operated by a logistics firm. Logistics warehouses emerged as a business concept in products as the complexity of supply business with material and shipping supply chain increased, necessitating the hiring of supply chain logistics professionals. Business logistics is defined as “having the right items in the right quality at the right price and in the right condition for the right customer.”
LOGISTICAL SUMMARY
As a master summary of logistics management in farm product marketing, their functions are taken more seriously, and they must also contribute to the organization’s aim and objectives.
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