Impact of Effective Distribution in Can Production Industries: A Case Study of GZI
Chapter One
Objectives of the Study
The broad objective of the study is to evaluate the impact of effective physical distribution in can production industries, a case study of GZ industries. The specific objectives are as follows:
- To evaluate the effect of order processing on the performance of GZ industries.
- To evaluate the effect of inventory control on the performance of GZ industries
CHAPTER TWO
LITERATURE REVIEW
Introduction
The chapter deals with literature review on the concept of impact of effective physical distribution in can production industries, a case study of GZI. This involves various definitions of physical distribution, distribution channels, structure of distribution channels, physical distribution management, the review of empirical studies, theoretical review, theoretical framework and summary of literature review.
Conceptual Review
In this section, the basic relevant concepts were reviewed. These include physical distribution, distribution channels, among others.
Product Distribution
Distribution entails making a product available for purchase by dispersing it through the market. It involves transportation, packaging, delivery. Distribution is fundamental to a company’s sale. Distribution channel is the flow of business that occurs between a manufacturer and a consumer. There are direct and indirect channel. A distribution channel is a set of interdependent organisations that help make a product available for use or consumption by the consumer or business user. Channel intermediaries are firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. A company‘s channel decisions directly affect every other marketing decision. Some companies pay too little attention to their distribution channels. Distribution strategies depend on the type of product being sold. There are three methods of distribution:
- Intensive distribution: the goal of intensive distribution is to penetrate as much market as possible.
- Selective distribution: it involves selecting outlets in specific locations. Selective distribution cap the number of locations in a particular area.
- Exclusive distribution: limited outlets. It can mean luxury brands that are exclusive only to particular locations or stores. This method helps maintain a brand’s image and product exclusively.
Distribution Channels
A distribution channel is a set of interdependent organizations that help make a product available for use or consumption by the consumer or business user. Armstrong and Kotler (2003) defined distribution channel as a set of inter-dependent organisations involved in the process of making a product or service available for use or consumption by the consumer or business buyer. In most contemporary markets, mass production and consumption have lured intermediaries into the junction between buyer and seller.
Bagozzi et al., (1998) categorises the distribution functions into three: functions for customers; functions for producers; and functions for both customers and producers. Two forces underlie the need for intermediaries: the discrepancy of quantity (i.e. differences between the quantity typically demanded by customers and the quantity that can be produced economically by manufacturers) and the discrepancy of assortment (differences between the varieties of products typically demanded and economically produce-able varieties (Bagozzi et al., 1998).
The existence of distribution channels has helped to make society more efficient in resource allocation. Armstrong and Kotler (2003) pointed out that intermediaries play an important role in matching supply and demand, while Waxman (2000) argued that by servicing the thousands of indirect partners who were the customers, midrange distribution added true value.
The distribution channel of consumer goods is further sub-divided into four channels. These are:
- Channel A: In this channel there are no intermediaries. This channel is called direct marketing. It involve direct sale from manufacturer to consumer.
- Channel B: In this channel goods move from producers to retailers to consumers. One intermediary exist as the middleman.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter covers the methodology of this study. Key issues discussed includes; data collection, sampling technique, instrument for data collection, method of data analysis among others.
Research Design
The research design used for this study is survey. This is because data gotten through this method can be used to describe the characteristics of manufacturing companies. It is used as an assessment tool to provide information on which to base sound decisions. It also serves as a foundation for more investigation. The data gathered in a survey are usually answers to predetermined questions that are asked of respondents. This research method was adopted because it offers opportunity for the collation of facts and information from a wide spectrum of respondents without much expense, hence it is expedient for this research.
The use of survey is a favourable option for the following reasons:
- It is most appropriate for analysing the impact of effective physical dsitribution on organizational productivity.
- It is accurate
- It is unstructured and can capture time change.
This method is objective in the sense that the personal bias of the researcher is not allowed in findings.
Population of the Study
The population of the study consists of all the employees of GZ industries, Nigeria.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
Introduction
In this chapter, the researcher tends to deal with the analysis and presentation of data collected in the course of this project. A total of 96 copies of questionnaire were administered in the area under study and 96 copies were retrieved from the respondents. This represents 100% return rate.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
This chapter deals with the summary of this study, conclusions from the findings and recommendations which can be used for policy making.
Summary
This study assesses the impact of effective physical distribution in can production industries, a case study of GZI. The study is in five chapters. The study is in five chapters. In the first chapter, a general background of the study was undertaken. In view of the background, the problems of study were identified and stated, the research questions, the objective, scope and significant of the study were outline and discussed. Finally in the first chapter is the definition of key concepts used in the study.
Chapter two was divided into three parts- the conceptual, theoretical and empirical literatures. The conceptual framework, reviewed the concept of physical distribution, distribution channels, structure of distribution channels, physical distribution management. The second part of chapter two, the theoretical framework, reviewed the major theories of physical distribution. The last part of chapter two, the empirical literature, concentrated on previous studies, their methodologies and their findings in a related topic.
In the third chapter of this work, the research design, population of study, sample size, sampling techniques, instrument for data collection, method of data collection, validity/reliability of instrument and method of data analysis were all discussed.
In the fourth chapter, data collected (primary) were presented and analysed to answer the research questions. Based on the various findings, the two questions were answered. After the analysis, the findings are as follows:
- Order processing had significant impact on organizational performance
- Inventory control had significant impact on organizational performance
- Physical distribution is a vital part of any organization
Conclusion
This study has underscored the impact of effective physical distribution in can production industries. Findings from this research uncovered that physical distribution is an effective tool for organizational success in a manufacturing sector. Hence, organizations can only work effectively if it perform its distribution properly. This result reinforces the study carried out by Obun (2012) which revealed that ineffective and high cost of transportation, lack of storage facilities and basic infrastructure hindered the marketing of agricultural production in the area. This was further reiterated in the findings of Uzel (2018). The study recommends that customer service should be experienced in such a way that a customer will not forget, thus enabling repeat customers. Order processing should be automated to enhance a competitive edge and retain customers thus positively enhancing organizational performance. Also, this position was also reiterated in the findings of Michael (2012) which corroborate that Multinational Company’s because of their size, sophisticated distribution strategies and channels, were able to be more innovative than indigenous firms and thus achieve better performance. Thus, in the light of the foregoing, this study reliably concludes physical distribution has a positive impact on organizational performance in a manufacturing sector.
The findings of this study have clearly shown that physical distribution is a work activity that can make a very significant contribution to the overall effectiveness and profitability of an organization. The effectiveness and success of an organization therefore lies on the supply chain management and inventory control system. Thus, for any organization to succeed, proper physical distribution techniques should be vigorously pursued and made compulsory.
Recommendations
On the strength of the observations and findings made in this study the following recommendations have been made.
- Order processing should be done with outmost care. Proper picking, packing and delivery of the packed items should be ensured by organizations.
- The level of inventory should be controlled. Inventory should always be kept at a desired state while continually supplying customers.
Limitations to the Study
The study faced some constraints. They include insufficient literature material, financial constraint, time constraint, location of the case study, however findings is valid for policy recommendations.
Suggestions for Further Studies
This study has researched on the impact of effective physical distribution in can production industries, a case study of GZI. Further research can be done on the following:
- The influence of physical distribution on the productivity of medium scale enterprises in Nigeria.
- The influence of physical distribution on the long-term survival of an organization.
REFERENCES
- Amana, D. (2018). MAC 202; Introduction to research methodology. Unpublished lecture note.
- Bagozzi, L. W., El-Ansary, A. L. & Coughlin, A. (1998). Marketing Channels, New Jersey: Prentice Hall.
- Bowersox, D.J. (1990). Physical Distribution: Development, Current Status and Potentials.
- Chentnik, C. (1974), “Physical Distribution Management and its Environment”, International Journal of Physical Distribution, Vol. 5 No. 1, pp. 62-73. https://doi.org/10.1108/eb014332
- Daniel Atnafu & Assefa Balda | Shaofeng Liu (Reviewing editor) (2018) the impact of inventory management practice on firms’ competitiveness and organizational performance: Empirical evidence from micro and small enterprises in Ethiopia, Cogent Business & Management, 5:1, DOI: 10.1080/23311975.2018.1503219
- De Waal P. R. (2007), Organisation and Environment, Illinois: Richard D. Irwin
- Dr. Asaima, Y., Dr. Alfred, O., Solomon, B. & Samuel, O. M. (2013). Effective distribution management, a pre-requisite for retail operation, a case of poku trading. European journal of business and innovation research. Vol. 1 No 3 PP 28-44.
