IMPACT OF LOGISTICS OF DISTRIBUTION SYSTEM ON THE GROWTH OF CHAMPION BREWERIES
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IMPACT OF LOGISTICS OF DISTRIBUTION SYSTEM ON THE GROWTH OF CHAMPION BREWERIES
Chapter one
INTRODUCTION
Background to the Study
Production refers to the development of things and services, which might be generated in factories, industries, firms, or businesses. Production is not complete until the products/services reach the consumer.
This can be achieved through the distribution procedure, which completes the production cycle. The distribution activity is also known as physical distribution management (PDM).
A physical distribution system combines transportation, material handling, order processing, inventory control, warehousing, and packaging into a comprehensive distribution plan.
Mccarthy defines the distribution component of the marketing mix as “the situation and use of marketing specialist middlemen, transportation and storage agencies to provide target customers with place and possession utilities.” The distribution channel is seen as a bridge that connects manufacturers and customers.
According to Kotler, physical distribution is defined as the planning, implementation, and control of the physical flows of resources and finished commodities from one place of origin to point of use in order to meet the needs of customers while being profitable.
It is concerned with the efficient transfer of raw materials from suppliers to the industrial site, where they are processed into completed products and sent to the end user.
The process of obtaining the right quantity of the right product in the right place at the right time and at the lowest cost is not an easy task because companies such as the brewery industry “Champion Breweries, Uyo” with a wide range of customers spread across vast geographical areas must integrate the systems component to avoid dissonance.
As previously said, there exists a gap in the firm of location and time between the manufacturer and the ultimate customer for whom the manufacturer is creating, and this gap can only be spanned by the logical flow of producers, resulting in the company’s expansion and growth.
In this study, the researcher will consider the physical distribution management or possibly the influence caused by the logical distribution of champion breed products, which will cause an expansion or growth to the company in the view of champion breweries, Uyo, Akwa Ibom state.
Statement of the Problem
There is a typical difficulty in the brewery business (Champion Brewery) that impedes the effective flow of their products from the point of production to the ultimate consumer, as well as reaching marketing goals and objectives, which are fundamental to the company’s success.
Problems to be addressed include:
Is the company’s distribution system effective?
Do they have a enough quantity of operable vans or trucks?
Do champion brewers have a reliable source of raw materials?
Objectives of the Study
The objectives were:
The objectives are to assess the company’s distribution capacity, reliable raw material sources, and potential for growth through alternative distribution methods.
To prefer recommendations that are consistent with the researcher’s information.
Research Questions
To meet the study’s objectives, the following questions were formulated:
Does the company have a sufficient number of working vans to distribute goods?
Is the physical distribution of the company’s goods effective?
Has the company’s distribution method led to its expansion?
Research Hypothesis
The researcher proposes the following hypothesis.
Ho: The company does not have a sufficient quantity of distribution vans.
Ho: The organisation has an adequate number of functional vans.
Ho: The physical distribution of the company is ineffective.
Ho, the physical distribution of the company is effective.
Ho: the distribution process has not resulted in firm growth.
Ho: The company’s distribution approach has resulted in its expansion.
Significance of the Study
The coordination of distributive activities is essential for any organisation involved in the production of distributive and services since distribution is a cost that must be controlled properly in order to govern the efficiency of the system.
It is critical to note that this study is particularly concerned with the impact of distribution logistics on the expansion of champion breweries.
Through this research, the company can attract more customers and reduce high interest rates and costs such as obsolescence, shrinkage, insurance, storage, and taxes by improving distribution, allowing customers to get the product at the right time, right place, right quantity, and at the right price, resulting in customer satisfaction and an expansion of the company’s profile.
Scope of the Study
This study will look at the impact of distribution systems in champion brewers. It usually covers how this distribution affects the company’s growth.
The scope of this study includes champion breweries as well as an examination of whether distribution system operations have an impact on the company’s growth.
Limitations of the Study
Time constraint: the research demands a thorough survey of the company. The key is that the researcher conducted this investigation while also attending her usual classroom lectures.
Financial constraints: Due to a lack of cash, the number of trips to the company was curtailed.
Another drawback of this study was the difficulty in locating relevant materials, such as journals, textbooks, and other materials required for this research.
Definition of Terms:
Physical distribution, often known as a distribution system, is the process of managing all actions required to strategically transport raw materials between corporate facilities and clients.
Logistics is the organisation of the flow of goods and services to the end consumer.
System: This is how Champion Breweries operates within the organisation.
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