Distribution Management as a Tool for Organizational Performance (a Case Study of NBC)
CHAPTER ONE
Objective of the Study
The aim of this study is to examine distribution management on organizational performance by using Nigerian Bottling Company as a case study. The specific objectives include:
- To ascertain the relationship between material handling and organizational performance
- To evaluate the correlation between order processing and organizational performance
- To find out the effect of product packaging and organizational performance
CHAPTER TWO
Review of Related literature
Distribution strategies
Kyritsis & Leader, (1995) postulated that channel of distribution is a chain of marketing intermediaries used by a producer to make products and services available when and where customers want them. A marketing channel is a set of interdependent organizations that is involved in the process of making a product or a service available for use or consumption. Kotler, (2001) examined that channels of distribution includes the network of distributive organization through which goods are transferred from the supplier to a place where they may be readily purchased. A company may have developed a good project, priced it correctly, presented it efficiently through appropriate distribution strategy and generate interest but fail to get the actual product to the interested parties because the distribution network was not properly set up or because the company itself could not affect the physical distribution of the product on time.
Roles of the intermediaries
Kibera and Waruingi, (1998) contended that intermediaries perform the following functions: contracting function, physical distribution and function of demand stimulation. They reduce the number of sales contractors or sales calls needed to reach all customers. They act as a bridge between the producers and the users and the end users. They serve the customers with the products of the right quality and to their respective destinations at the right time. The function of sorting has two dimensions: bulk breaking and bulk building which involves buying in large units and breaking the units down into smaller units suitable for sale. Physical distribution function involves transportation and storage of products as they move from the producer to the final consumer. It includes storage in the warehouse and distributers’ stations middle-men like producers are in the business to make profits, they therefore stimulate demand in the same way as producers do. Thus, they engage in personal selling, advertising, sales promotion, production and formulating pricing policies. Middle-men are important sources of information about the market place because they are closer to the consumers more than the manufacturers.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine distribution management as a tool for organizational performance. Nigeria Bottling Company, Ibadan form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain distribution management as a tool for organizational performance. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of distribution management as a tool for organizational performance
Summary
This study was on distribution management as a tool for organizational performance. Three objectives were raised which included: To ascertain the relationship between material handling and organizational performance, to evaluate the correlation between order processing and organizational performance and to find out the effect of product packaging and organizational performance. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Nigeria Bottling Company. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The factors influencing the choice of the distribution channel considered by the firm was extremely many, and in that relation, there was need to undertake the research to find out the extent to which these factors affect in the selection of the channel. From the findings of the study, it was concluded that the company considers the trend of the current economy when fixing the channel. Though the management considers many factors that, there are factors that were mostly considered in order to capture the position of the competitive advantage and increase the overall sales volume of the firm. Provision of motivation to the channel members by the firm also makes the distribution channel selected to be more adequate and effective. The motivation methods like salary increment and providing free training to the members also tend to increase the morale of the channel members and by doing so will in turn make the channel to be more effective. Improvement of infrastructure and advancement of technology also leads to proper selection of effective distribution channel. This makes it possible for the company to easily select the members with more skills, experience and competency.
Recommendation
The company should also improve the overall infrastructure and network systems. Improvement of infrastructure like construction of roads leading from the firm to the product distribution centers. There should be improvement of communication systems between the channel members and the management
The management should define the criteria for approval of training and development to ensure consistency and fairness between the channel members. The channel arrangement should be evaluated after every six months rather than yearly in order to make the channel to be more effective
References
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