IMPACT OF PHYSICAL DISTRIBUTION ON CUSTOMER SERVICE
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IMPACT OF PHYSICAL DISTRIBUTION ON CUSTOMER SERVICE
Abstract
This study focused on the impact of physical distribution on customer service. Three goals were set: to understand the role of transportation in making products available, to investigate whether warehousing ensures the time utility of consumable products,
to establish the effect of Pardee Foods Nigeria LTD distributors on customer service level, and to determine the relationship between Pardee Foods Nigeria LTD distributors and customer service.
The study concluded that providing high-quality physical distribution services is the most effective strategy for the company to position itself in the market.
The company should focus on excellent delivery as one of the important components to the success of service-oriented businesses. Customers should be aware of the availability of items and their ability to make purchases and receive help.
Chapter one
Introduction
1.1 Background of the Study
The relevance of the distribution system in affecting the final demand for a product stems from increasing competition, increased customer expectations, and the similarity of the fundamental products available. Businesses in the fast-moving consumer products market are facing increasing challenges.
To compete on a pure product level, particularly in the food business, innovative individuals look elsewhere for a competitive advantage. A good distribution network can give a corporation a significant competitive advantage (Schewe and Hiam, 1998).
Choosing an effective distribution strategy is critical for most organisations. Several organisations have gained long-term competitive advantages by carefully selecting distribution systems that are integrated into coherent and well-executed business models.
A successful firm relies on an efficient distribution system. Furthermore, organisations with the highest rates of customer retention earn the most money. (2009) Mei Su Chen
According to Weiss and Gershon (2002), distribution encompasses all of the logistics required to deliver a company’s goods or services to the appropriate area at the appropriate time for the lowest possible cost. The distribution channel that a corporation picks is essential to the never-ending process of achieving these goals.
Poorly planned or chosen channels can lead even the best product or service to fail in the market, whereas well-chosen channels offer a significant competitive edge.
Effective distribution provides clients with ease in the form of accessibility (knowledge of availability and authority to purchase), availability (what, where, and when – the suitable product, at the right place, at the right time), and support.
Physical distribution has usually focused on things at the plant and found low-cost ways to convey them to customers. According to Kotler, physical distribution includes both the transportation of commodities from a manufacturer to a consumer and the movement of items from suppliers to a factory.
It requires managing the entire supply chain’s value-added flows from suppliers to end customers. The study investigates how physical dispersion influences the quality of customer service.
Physical distribution refers to the transportation, storage, and handling of commodities to suit the needs of consumers. Kotler (2005). Physical distribution involves order processing, warehousing, material handling,
and inventory control, as well as the operations needed to distribute finished commodities from manufacturers to ultimate customers, or final consumers. MR Michael (2003).
According to Boon and Kurtz (2003) “physical distribution is an organised group of components linked according to a plan for achieving specific objectives with the components of customer service, transportation, inventory control that is how much inventory a firm should maintain at each location,
protective packaging, and material handling that is how the firm can efficiently handle goods in the factory, warehouse, and transport terminals, order processing, warehousing that
Statement of the Problem
Pardee Foods Nigeria LTD companies have developed a range of physical distribution systems in response to fierce global competition in order to better serve their consumers and surpass competitors. As a result, the study will look into how Pardee Foods distributors affect the quality of customer service.
Objectives of The study
This research tries to highlight the importance of physical distribution in customer service. A study of Pardee Foods Nigeria LTD, Ogun State
1) To understand the role of transportation in making items available.
2. To determine whether storage ensures the time usefulness of consumable products.
3. To determine the impact of Pardee Foods Nigeria LTD distributors on customer service levels.
Determine the association between Pardee Foods Nigeria LTD distributors and customer service levels.
Research Hypotheses
The following research theories are proposed:
H1: There is no effect of Pardee Foods Nigeria LTD distributors on customer service quality.
H2: There is no association between Pardee Foods Nigeria LTD distributors and customers’ service levels.
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