An Evaluation of Distribution Channel in the Logistics Management of Petroleum Products
CHAPTER ONE
OBJETIVE OF THE STUDY
The objectives of this study are;
- To ascertain whether there is an effective and efficient distribution of petroleum products, all round the country.
- To determine if sufficient production of petroleum products are sold at a cheaper rate and curls the trend of scarcity on the country as the sixth oil producing ration of the world, and the first in Africa.
- To find out whether the various refineries of the country are put in shape thereby limiting the services of other countries in refining our own petroleum products in terms of trade.
- To ascertain whether what we produce is satisfying the citizen
- To identify a post mortem to the present situation, and that of the future, and many years to come.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
Distribution is an important element of providing satisfaction in the market place. Distribution involves the physical movement of products to ultimate consumers. The most innovative product at an attractive price, for instance, is worth absolutely nothing if it is not available to buyers when and where they want it. Distribution, therefore, bridges the gaps and time between production and use or consumption. (Onu 2000). Distribution is not simply a matter of moving products into the hands of consumers; it involves a product’s movement throughout all stages of development from resources procurement, through manufacturing, to final sales. For example, raw materials that are extracted from the earth offer little or no satisfaction until they reach the hands of a producer who turns them into finished products of some kind. Distribution is a key aspect of adding value to new materials, of building an appropriate bundle of utility and moving products to the market. According to Schewe (2001), distribution involves the physical movement of products to the ultimate consumers. Products are worthless until they are made available to those who need them. It is this process of making goods available to those that need them that gives rise to distribution basis in a marketing strategy. He stressed further that distribution is not simply moving goods to final consumers, but involving product movement through all the stages of development from resource procurement through manufacturing to final sales. In the view of Revzan (2004) ’’distribution is the managerial battle field in which marketing strategy and tactics either succeed or fail’’. There is therefore a need or thorough study of different strategy alternatives before choosing one. That is because a distribution system being a very external resource takes time to build and cannot be easily changed. Achison (2002) simply defined distribution as the process of getting products and services from producer to consumer or users, when and where they are needed. It provides time, place and possession utilities and the transfer of ownership. Unless products are delivered in the right quality at the right time in proper condition and at the right price, buyers may be reluctant to buy. However distribution is regarded as a major consideration in strategic planning. It is an important marketing function variable that is responsible for making goods and services available.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to an evaluation of distribution channel in the logistics management of petroleum products.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain an evaluation of distribution channel in the logistics management of petroleum products
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 an evaluation of distribution channel in the logistics management of petroleum products 5.2 Summary
This study was on an evaluation of distribution channel in the logistics management of petroleum products. Seven objectives were raised which included: To ascertain whether there is an effective and efficient distribution of petroleum products, all round the country, to determine if sufficient production of petroleum products are sold at a cheaper rate and curls the trend of scarcity on the country as the sixth oil producing ration of the world, and the first in Africa, to find out whether the various refineries of the country are put in shape thereby limiting the services of other countries in refining our own petroleum products in terms of trade, to ascertain whether what we produce is satisfying the citizen, to identify a post mortem to the present situation, and that of the future, and many years to come, to determine how the supervision of distribution of petroleum product is done to curls for outbreak, and the cost of resuscitating the damages, moreover, to identify the availability of petroleum product to minimize traffic hold ups, queuing for a long time, unavailable means of transportation, wastage of hire in transporting one self, and its high cost. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Oanda plc Enugu State. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up project engineers, account officers, project managers and marketers were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
An attempt has been made to emphasize on an evaluation of distribution channel in the logistics management of petroleum products. As Abraham Maslow’s hierarchy of needs says that shelter forms the second step in the need of man, suggestions have been advanced on how to sustain, maintain and improve the petroleum industry so that it can complement the effort of Federal Government. There is need for constant appraisal and reappraisal of the Company’s corporate objectives so that there will not be a deviation from stated goals. This study as established the effectiveness of the company distribution strategies and also way on improving on the problem of the company have been advanced.
Recommendation
It is recommended that the downstream sector of the industry be completely deregulated, and the apparent subsidy be removed such that the prices of the products will be determined by the market forces of demand and supply. It is argued that the private investor and entrepreneurs should be allowed full participation in the sector, a situation that will lead to effectiveness in the distribution of the product. In effect, as discussed by Adeleke (2002), this will create job opportunities for Nigerians and promote further, the development of small and medium scale enterprises in the oil sector of the economies
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