Impact of Logistics Management in Marketing of Agricultural Products (a Study of Diversay Solution Limited)
Chapter One
OBJECTIVE OF STUDY
The principal objective of this study is to examine logistics management in the marketing of agricultural products, with reference to problems stated above.
The main objectives of the study are as highlighted.
- To identify the goal and strategy deployed by diversay solution limited in their logistics.
- To identify the strategy distribution to use by introduce of their products into the market.
- To determine the relevance of logistic management in the marketing of agricultural product.
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
Most organizations have logistics department, simply because they are into productivity, department process and move the raw materials to the production department and was being carry out by logistics department because they allocate all available resources to perform their critical function. Logistics helps the organization to achieve their objectives effectively. The quality of these decisions can be greatly enhanced by good planning and logistics process.
According to Kotler & Kevin (2009) logistic comprises the set of tasks involved in planning and implementing the physical flows of materials and final goods from point of origin to point of consumption to meet the need of customers’ requirement at a profit. Okeke (2000) added his view that logistics could be used to direct the economy in order to achieve the government target of management distribution control, resource control, material control and price control. The high points of these are:
- Logistic management involves the movement of two classes of products, materials and components coming into the firm from outside and finished goods moving from the firm to the customers.
- Being a set of task, it constitutes a cost accumulator centre.
- Logistics should facilitate sales and consumption of good and contribute positively to product profit.
Logistics implementation involves in principle and practice the management of raw materials process of products and responsibility specific areas so that logistics goals can be achieved.
In organizations like Diversay solution limited, the physical move goods from origin to destination, five physical modes of logistics available, they are air, road, rail and pipe-line. Warehouse bridges the gap between production and the customer. (Burton 1981).
DEFINITION OF LOGISTICS
Logistics are flow of raw materials “planning ahead” process that every manufacturing must carry out for delivery of their products at a point of their needs. (Alexander 1969). Logistic activity area is a cost centre. Each contribution directly in creating place of utility to customer managed as independent units, each will attempt to optimize its efforts mainly through inbound transportation, enter the receiving area. (Kotler P. 1997). The raw materials and inventory are stored; raw materials are converted into finished goods. Finished goods inventory is the link between customer orders and manufacturing activities, customers’ orders draws down the finished goods inventory level and manufacturing activity build it up. Finished goods flow off to the plant warehousing, shipping, room processing, outbound transportation, field warehousing and customer delivery and service. Logistic management marketing analyses that many expert call logistic “the frontier for cost economic and logistic are determined to bring every unnecessary cost out of the system according to (Kolter P. 1982) logistics represent 14.5% of (GOP) Gross Domestic Product by 2006, the share had dropped to just 8% lower logistic management cost will be permit lower price, yield higher profit margin or both, even though the cost of logistic can be high a well planned programmed can be potent tools in competitive marketing.
The logistics management states their objectives as getting the right goods to the right place at the right time for the least cost, this objective provides little practical guidance, logistic can simultaneously maximize customer service and minimize distribution cost. Maximum customer service implies large inventories, premium transportation and multiple warehouse all of which to reduce the logistic cost.
HISTORICAL LOGISTICS MANAGEMENT
Logistics management provides the right type of products and moved the raw materials and or service at the right price, at place, time and at the right condition.
Andrew W. Shepherd In 1939-1945 during the second world war, the United State military ensured that the services and supplies were provided at right time and at the right place, if also tried to provide these service when and whenever required in the most optimal and economical manner. The best available option to do the task was developed. This gives birth to several military logistics techniques which are still in use. A logistics management perform his duties and responsibilities based on his educational experiences, skills, past experience and intuition, these skills are constant application of the betterment of organization, the logistics management ensures that the organization is benefited by an effective and efficient system of logistical management all need to ensure that, the right kind of products and services are provided at the right time for a right price whether inside the organization premises or delivery of shipments outside the premises of the organization.
Crowder & Abdullah (1979) asserted that the British which colonize Nigeria has logistic policy for all its colonies and protectorates. The policy was that all materials should be managed self sufficient for the amalgamation of Nigeria, the British prepare for its logistics in London year in and year out. The preparation was based on expected raw materials it would derived from the agriculture products like cash crop like cocoa, palm oil, rubber, cotton and groundnut. The need for logistics management machinery and exploitative road rally infrastructure were accommodated in the logistics. Logistics measure grant tricked in from London between 1945-1960.
CHAPTER THREE
RESEARCH METHODOLGY
INTRODUCTION
This chapter guides the process of collecting, analyzing data for the study. The chapter also discussed such issue like the research design, data collection methods, instrument and the analysis of data.
RESEARCH DESIGN
Kerlinger, J. (1983) defines research design as the plan structure and strategy for conceived, as to obtain answers to research question and to control variance, in other words the main purpose of the research design is to provide answers to research question and to control variance.
This study concerned itself with the survey research design, this design involves an investigation of the variables to understand and describe their characteristics.
SAMPLING AND PROCEDURE FOR DATA COLLECTION
The population of this study refers all the employees in the Diversay solutions limited its population as at the end of 2011 was (114) i-e one hundred fourteen employees. For this study a sample of (50) fifty, was taken because of the constraints of time and funds.
However, steps were taken that ensured that members of this sample were reasonably represented the total population. To ensure this, the sample taken represented all categories employed as earlier discussed.
CHAPTER FOUR
DATA PRESENTATION AND ANA YSIS
INTRODUCTION
The questionnaire distributed to the respondent was fifty (50) to fifty (50) employees of diversay solution limited, out of which 47 were returned representing 94% collection rate.
In this chapter all the data collected from the returned questionnaire are presented and analysed in percentage table to present the date.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
INTRODUCTION
This final chapter, shall be the summary of all the findings which were disused in previous chapter written. Furthermore, the conclusion of the study report and recommendation are made to ensure that logistics are properly monitor, control and managed in all private sectors particularly Diversay Solutions Limited.
SUMMARY
These following constitute the summary of this study report.
Diversay Solutions Limited which adopted logistics control Process, logistics engineering cost, and logistics management expenses.
The logistics process of Diversay Solution Limited consist of these following steps; managing director’s office, finance and administration office, transport and logistics department, and human resource department.
The management teams and production department monitor both the raw materials and finished goods, are ensure that it delivered to the appropriate customers.
Diversay Solutions Limited management are charged of releasing of their products to their customer and ensure that appropriate inventory records are kept for stock audit.
The management of Diversay Solutions Limited absolutely to develop the goal or strategy in a way to achieved competitive advantage.
All the materials or component required order or application as clearly specified in a bill of materials usually prepared by the engineering department and transmitted to the purchasing unit, and serve as the same purpose as a purchase requisition.
Re-order notification is notified that the needs to replenish stock of any item has fallen to re-order level, by sending a re-order notification or a traveling requisition to the purchasing unit, store unit notifies purchasing to the need to take the necessary actions.
Goods import or export and stored must be packaged in a manner that will protect the use of containers and component plus decoration or labeling of a product to performs this function, utility product promotion, motivation and recognized, most of this agricultural are perishable which need to be preservation depending the native of the product.
Field survey was also used during the research conduct i.e. collection of data such as primary data, secondary data, and literature items used.
Presentation and analysis of data also used to represent the frequency, percentage of respondent and used of text hypothesis.
CONCLUSION
Logistics is a control mechanism in an organization, which required effective management support to bring about sustainable development in an organization. Whethere it is control process, engineering cost, or logistic management expenses that it’s adopted by an organization. Every organization need to design its own logistics operations system and to the available uses.
Logistics management is an important area in an organization, this is because it carry out the reality movement of raw materials and finished goods from point of production to the purchase for profit making and which enable monthly or quarterly allocation of their goods with well properly record keeping and effective monitoring logistics inventory.
RECOMMENDATIONS
Based on the findings of this study, the following recommendations are made to ensure that logistics are managed effectively and efficiently at Diversay Solutions Limited.
- Monitoring of receipts, invoice and way bill should be properly managed and audit on weekly basis in order to avoid fraud by the sales department and productions department.
- The inventory department, procurement department, and distribution channel department should do the transparent work because they are the major body who handle a critical role in the productions department.
- Information technology facilities should be acquired and installed in order to give room for electronic marketing such, E-marketing, E-purchase, and E-distributions, it will make organization work very effective.
- All the problem confront the logistics management should be solved, particular those related to the inadequate distributions of their raw materials and finished products between the operation office and others department.
- Monitor of all their importation document and ensure that all government agencies preview and sign the importation paper, and all their due is paid, also ensure that government rules and regulation are follow to avoid seizure of their license.
- They must be focus in term of importation of raw materials, because many importers and agent are not sincere with government, bill of lading will not correspondent with the goods they are clear.
- Warehouse and other facilities must be provide abundantly, also there should be no lack of warehouse storage to store their raw materials, lease or rentage of warehouse will contribute negatively to development of organization and also source of avenue of embezzlement.
- Security department and safety department must be valued and giving them power to perform their duty for saves of life and property in other to avoid stealing of raw materials or fire outbreak.
- Commission and bonus must be awarded to those who are in sales department and marketing department.
- Stock control and stock taking should be done on weekly basis in other to fore stall fraud by the production department.
- Electronic monitoring device should be installed in all the premises to monitor the employee’s movement.
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