The Impact of Fleet Operations and Management in the Supply Chain of Goods With Short Shelf Life
Chapter One
Objectives of the Study
The broad objective of the study is to evaluate the impact of fleet operations and management in the supply chain of goods with short shelf life. The specific objectives are as follows:
- To examine how vehicle repair and maintenance influences the delivery of goods with short shelf life.
- To establish the influence of vehicle fuel management on the delivery of goods with short shelf life.
- To assess how vehicle tracking influences the delivery of goods with short shelf life.
- To determine the influence of driver management and training on the delivery of goods with short shelf life.
CHAPTER TWO
LITERATURE REVIEW
Introduction
The chapter deals with literature review on the concept of impact of fleet operations and management in the supply chain of goods with short shelf life. This involves various definitions of product distribution, fleet management, supply chain management, the review of empirical studies, theoretical review, and theoretical framework.
Conceptual Review
In this section, the basic relevant concepts were reviewed. These include fleet management, supply chain management, 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 organizations 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.
Fleet Management
Fleet management can be seen as monitoring and increasing how efficient one can perceive transportation fleet (Gitahi & Ogollah, 2014). It includes the management of vehicles like cars, ships, vans and trucks. A lot of functions are considered when it comes to fleet management including financing vehicles, maintenance of vehicles, vehicle telematics, driver shifting and roistering, tracking of assets, management of speed, fuel management as well as health and safety management. The primary aim of fleet management is to significantly decrease the risks associated with vehicle operation, efficiency, productivity and minimizing the transportation and staff cost entirely. Accordingly, Besiou et al., (2012) claim that a strategy that ensures sustainable fleet management is one that seeks to minimize environmental effect through the integration of cleaner vehicles and fuels, fuel-efficient operation and driving; and by minimizing quantum of traffic it creates on the road.
Fleet management can include a range of functions, such as vehicle leasing and financing, vehicle maintenance, licensing and compliance, supply chain management, accident management and subrogation, vehicle telematics (tracking and diagnostic), driver management, speed management, fuel management, health and safety management and vehicle re-marketing. Fleet Management is a function which allows companies relying on transportation for business to remove or minimize the risk associated with vehicle investment, improving efficiency, productivity and reducing their overall transportation and staff costs, providing 100% compliance with government legislation. This function can be dealt with by either in-house fleet-management department or an out-sourced fleet-management provider.
Supply Chain Management
Lysons and Farrington (2006) define supply chain as a network of organizations that are involved through upstream and downstream linkages in different processes and activities that produce value inform of products and services in the hands of ultimate customer or consumer. According to Larsen et al (2007) Supply chain performance refers to the effectiveness, efficiency and flexibility of a network of organizations, people, activities, information, and resources involved in moving a product or service from the supplier to the manufacturer, through to its eventual delivery to the end user. Chopra and Meindi (2013) argue that supply chain consists of many parties directly or indirectly who aim at fulfilling customer requests. Among the parties whose contribution is underscored are the carriers or 3PLs. Coyle et al (2010) identifies transportation as a key player in the supply chain performance.
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 transport 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 fleet operations 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 suppliers of goods with short shelf life in 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 fleet operations and management in the supply chain of goods with short shelf life. 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 product distribution, fleet management, supply chain management. The second part of chapter two, the theoretical review, reviewed the major theories of fleet management. 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 four questions were answered. After the analysis, the findings are as follows:
- Vehicles repair and maintenance influences delivery of goods with short shelf life.
- Vehicles fuel management influence delivery of goods with short shelf life.
- Vehicles tracking influence delivery of goods with short shelf life.
- Driver management and training influence delivery of goods with short shelf life.
Conclusion
This study has underscored the impact of fleet operations and management in the supply chain of goods with short shelf life. Findings from this research uncovered that fleet operations and management of supply chain is an effective tool for organizational success in the transport sector. Hence, organizations can only work effectively if it perform its distribution properly. This result reinforces the study carried out by Jerry, Jerry and Leonard (2020) which revealed that repair and maintenance, fuel and driver management, and training have positive effect on competitive advantage whiles vehicle tracking have an inverse relationship with competitive advantage. This was further reiterated in the findings of Gitahi and Ogollah (2014). The study revealed that vehicles repair and maintenance influence service delivery to refugees in UNHCR Kenya programme to a very great extent. The study also established that fuel management influence service delivery to refugees in UNHCR Kenya programme to a great extent. Thus, in the light of the foregoing, this study reliably concludes that fleet operations has a significant impact on delivery of goods with short shelf life.
The findings of this study have clearly shown that fleet operations and supply chain management 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 fleet operations. Thus, for any organization to succeed, proper 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.
- Vehicle repairs and maintenance should be done regularly and properly to prevent loss of goods.
- Fuel should be adequately managed to prevent unnecessary delay of transportation.
- Vehicle tracking should be pursued by the organizations involved and route checked.
- Drivers should be properly trained for the job.
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 fleet operations and management in the supply chain of goods with short shelf life. Further research can be done on the following:
- The influence of fleet management on supply of goods in Nigeria.
- Fleet management optimization and delivery of goods.
REFERENCES
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- Besiou, M., Martinez, A. J.P. & Van Wassenhove, L. N. (2012). The effect of earmarked funding on fleet management for relief & development. INSEAD, Working Paper.
- Coyle,J., Novack,A.,Gibson,B. & Edawrd,J. (2010). Transportation: A Supply Chain Perspective. Manson: Cengage Learning.
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