Project Materials

ROLE OF PHYSICAL DISTRIBUTION FUNCTION IN CONSUMER GOODS MARKETING

ABSTRACT

This study focusses on the physical distribution function in consumer products marketing, specifically at 7up Bottling Company in Aba. The researcher discusses the issues and developments in physical distribution in the study. The introductory section provides a brief explanation of the meaning of physical distribution (generic overview), the description of problems: purpose of the study, significance of the investigation, research question, hypothesis, scope of the study, limitations of the study, and operational definition of words. CHAPTER TWO is a review of related literature, CHAPTER THREE is about methods, and CHAPTER FOUR discusses the research findings. The findings were discussed with the goal of highlighting a solid foundation for some potential solutions. CHAPTER FIVE marked the culmination by summarising and concluding the findings with some recommendations. I concluded by making some recommendations that were on my mind. Adherence to these guidelines may help improve the physical distribution function in consumer products marketing.

Chapter one

INTRODUCTION

1.1 Background of the Study

Production is considered incomplete until the products reach the consumer in the correct quantity, at the correct location, at the correct price, and in good condition.

Given the proliferation of competitors in Nigeria, it is critical to have an efficient distribution system in place to ensure that goods produced reach the consumer.

Essentially, the goal of every organisation is to minimise costs while increasing profits. To do this, a corporation must identify high cost-generating centres and work to lower them.

Distribution activities create costs; the goal of physical distribution management in businesses is to reduce total distribution costs to an absolute minimum while providing excellent customer service.

The term (“DISTRIBUTION”) refers to the retailing and selling function of a large firm made up of thousands of outlets ranging in size from small corner shops to large super markets, department stores, and “CASH AND CARRY” warehouses, all of which attempt to meet the needs of our consumer society.

So physical distribution management is concerned with the transfer of raw materials and completed products from the supplier to the maker to the consumer (i.e. retailer). It connects manufacturing and production on the one hand, and retailers and customers on the other.

The most basic explanation is that physical distribution is a multifaceted set of operations concerned with controlling the transportation of items within businesses and through marketing channels.

1.2 Statement of The Problems 

This research focusses on the role of physical distribution in consumer products marketing. It does not fail to shed light on the problem emerging from there.

These issues include inadequate supervision and a lack of storage facilities. The channel members are not effectively monitored, therefore product costs vary from place to place and from urban to rural areas.

Another issue is the hoarding of “beer” and its perceived scarcity. A lack of mechanised equipment for convenient loading and unloading cannot be overlooked. The scope of modern communication networks is insufficient to influence economic transactions.

The telephone service is only available in urban areas, and there are a few lines that go down every now and again, making customer contracts difficult.

Ware housing is scarce and far apart due to the fair distance between depots, and consumers’ goods prices tend to be higher in rural areas of Aba.

1.3 GOALS OF THE STUDY

Every study must have an objective, and this one is no exception; it has the following objective.

a) Determine the extent to which depot facilities impede the performance of channel members.

b) Make recommendations on how to improve the company’s distribution system.

c) To meet the requirement for partial fulfilment for the award of an HND certificate in purchasing and supply.

1.4 Significance of the Study

The researcher believes that the project’s findings and recommendations will be valuable to a large number of people. The study’s relevance will include the following.

a) This study will shed more light on distribution within the organisation.

b) Purchasing students will undoubtedly find this study to be valuable academic material; they will have a better understanding of the role of physical distribution in a company or firm.

c) This study will also educate the government on the importance of fundamental infrastructure, such as decent roads, for the state’s distribution system.

1.5 RESEARCH QUESTIONS.

Based on this project topic and the study aims described above, the following research questions have been developed:

1. How does the company manage its operations and documents?

2. What are the methods of delivering products to the depots?

3. What many of depots does the company have?

4. Does the organisation employ experienced drivers?

5. What is the company’s production capacity?

6. How are breakages in transit handled?

7. Are the middlemen ready to keep appropriate stock of inventory?

8. Are the storage and material handling facilities suitable?

1.6 Hypothesis.

The following hypotheses will be tested.

a) Ho channel members of NBC Ltd, Aba are not properly supervised.

b) Hello, channel member of the NBC Ltd. Aba are well-supervised.

Hypothesis two

a) Ho Too channel members have no impact on the cost of delivering products to end users.

b) Hello, too many channel members increase the cost of moving products to ultimate consumers.

1.7 SCOPE OF THE STUDY

The researcher will concentrate the investigation on the physical distribution activities at 7ups Bottling Company Plc Aba. In order to determine the role of the physical distribution function, an in-depth examination of the company’s current distribution arrangement, loading and unloading system, stock holding, and inventory management order will be conducted. Processing and administration of delivery and dispatch paperwork, as well as distributor appointment.

1.8 Limitations of the Study

FINANCE The researcher’s remuneration is really modest. As a result, he cannot afford to pay for all of the expenses that will or are being incurred.

In actual service, this study should have included the examination of various manufacturing companies, but due to the geographical dispersal of these enterprises, it was not feasible for the researcher to do research on them.

In light of this, the researcher has decided, after careful consideration of all the different sorts of enterprises, to focus on the 7up bottling company Aba.

Another issue is a lack of relevant data in some places that could have assisted the researcher with the study. There is also a difficulty caused by 7up’s attitude towards the project, as well as PHCN periodic power failures. The issue of some obstinate employees of the organisation cannot be overlooked.

1.9 Operational Definition of Term

HYPOTHESIS When we wish to make a choice regarding a certain population, we try to make an assumption, which is known as statistical hypothesis. The assumption could be true or untrue.

Physical distribution The physical flow of materials and final goods from point of origin to point of use or consumption to meet the needs of customers at a specific point, or the managerial function concerned with the movement of materials and finished goods from point of manufacture to point of consumption via a channel.

Inventory Control This is the science-based art of managing the amount of stock retained in various forms inside a company unit in order to meet the economic demands placed on it.

RE-ORDER LAVEL This is the stock level at which it is preferable to place a new order.

DEPOT A storage facility where suppliers are manufactured for clients.

LTD This is the abbreviation for Limited Liability Company. This is normally placed after the business name.

PHCN This is an acronym for Nigeria’s electricity holding corporation, plc.

ROUTING To establish the order of procedures for operations, in this case cars.

PLANT Refers to the tools, machinery, materials, buildings, and grounds of a factory or business.

LOGISTICS This is a discipline of science concerned with the movement and supply of goods.