PHYSICAL DISTRIBUTION MANAGEMENT IN BREWERY INDUSTRIES
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PHYSICAL DISTRIBUTION MANAGEMENT IN BREWERY INDUSTRIES
Chapter one
INTRODUCTION
1.1 Background of the Study
Production refers to the development of goods and services, which might be generated in factories, industries, firms, or companies. Production is not complete until the products/services reach the end user or 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), marketing logistics, and material management.
A physical distribution system combines transportation, material handling, order processing, inventory control, warehousing, and packing into a comprehensive distribution plan.
Mccarthy defined the place component of the marketing mix (distribution) as “the situation and use of marketing specialist middlemen, transportation, and storage agencies to provide target customers with location and possession utilities.” The distribution channel is seen as a bridge that connects manufacturers and customers.
According to Kolter, physical distribution is the planning, implementation, and control of the physical flows of resources and finished commodities from point of origin to point of use in order to meet the needs of customers while making a profit.
It is concerned with the efficient transfer of raw materials from suppliers to factories, where they are processed into completed products and distributed to end users.
The process of getting the right quantity of the right product to the right place at the right time and at the lowest possible cost is not easy because companies like the brewery industry,
with their wide range of customers spread across vast geographical areas, must integrate the system components to avoid dissonance. (dissatisfaction).
As previously stated, there is a distance in terms of place and time between the maker and the eventual consumer or user for whom the manufacturer is creating, which can only be spanned through distribution.
Many problems confront the brewery industry’s distribution system, ranging from a lack of channel members to physical distribution issues such as insufficient transportation, poor inventory management, inadequate warehousing facilities, and a lack of sophisticated communication methods.
The difficulty in the distribution network begins with the mode of distribution and the hiring of inexperienced persons with little or no business acumen as distributors. The ongoing increase in the cost of transportation due to road decoration,
the high cost of vehicles and spare parts, and the current increase in the cost of petroleum products pose a serious problem in the effective coverage of territories in the distribution of bear both in rural and urban areas of the country.
Modern inventory management is rarely performed; this is due in part to limited storage facilities and inappropriate storage procedures, which result in a high rate of product spoilage, breakage, and waste.
Furthermore, warehouses are scarce, and some of these businesses lack sophisticated material handling equipment such as forklifts, cranes, and conveyor machines.
So, in light of these minor issues, and the fact that there are so many bear brands on the market from which the consumer must choose, with little or no difference in quality and other qualities.
To remain competitive in Nigeria’s current beer market, individual brewing enterprises must control the physical distribution system and engage in correct manipulation of other marketing mix components.
In this study, the researcher will look at physical distribution management from the perspective of Nigerian Breweries PLC, Ninth Mile, Enugu, Enugu State.
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