CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

Nigeria as a developing nation is facing a lot of problems one of which is the problem affecting the distribution pattern or chains and its impact to the growing economic of the nation.

Distribution is an important process of satisfying the consumer with the sole aim of meeting the product requirement at all times so as to prevent the consumer from taking alternative when the demand are not supplied at the right time.

Distribution in the first instance, refer to as the set of organizations activities directing linkages by one or more of the upstream and downstream flow or product information from source to the final consumer.

New trends in the chain management are, as pointed out by some industry leaders. “Better customer service greater customer sophistication” Schewe, (2000) customer service is becoming more important, clients demand more than a product, and they demand a product arriving on time, an easy ordering system or a just-in-time distribution.

Nigerian Bottling Company as my case study is the real owners of Fanta, Coke, and Sprite etc. and among the globally recognized companies in the world which produces product that is widely accepted by different kind of consumers. In the world today, hardly will find a place that these non-alcoholic drinks are not familiar, and with this success, it also has its problem ranging from unfair competition from smugglers, accessibility of raw materials, problems of adulteration etc. the researcher will examine the problems and prospects of the Nigerian Bottling company in the subsequent chapters.

1.2     Statement of the Research problem

Companies, especially the manufacturing company put great emphasis on the pattern of distributing their product from one location to another for consumers to be able to have comfort regarding assessment to it.

The study has an in-depth conception of the problem of distribution management usually encountered in the distribution which despite the fact that the companies plight to handle them seems more abortive

Nigerian Bottling Company is faced with problems in managing distribution of its product.

The company handle the highest cost of distribution as a result of distance from manufacturing best and high cost of fuel.

The company also failed to supply their customers with required quantity of their products by either under or over supplied the market.

1.3    Objectives of the Study

The objectives of this research are to identify problems of distribution depending on transportation management and the likely solutions.

                         i.            To evaluate critically the role of qualified personnel in distribution management.

                       ii.            To examine the relevance of distribution in manufacturing company.

                    iii.            To evaluate the accurate channel of distribution to various distributions.

                    iv.            To identify ways used in moving their product from one location to another.

1.4     Research Questions

The research seek to prove the problems and prospects as do effective tool for increase or high productivity to companies in Nigeria as do other developed countries and also to find answers to the following questions.

                      i.               What is the important of distribution to Nigeria Bottling Company Adamawa State?

                    ii.               What is the accurate channel of distribution to various locations?

                 iii.               Do qualified personnel contribute efficiently to distribution management?

                 iv.               What are the ways used in moving product from one location to another?

1.5     Research Hypothesis

The study intends to use the following statement as hypotheses:

HO:    Lack of qualified personnel is not a problem to distribution in Nigeria Bottling Company.

HA     Lack of qualified personnel is a problem to distribution in Nigeria Bottling Company.

HO:     that strategic location is not a barrier to distribution management in Nigeria.

HA:     that strategic location is a barrier to distribution management in Nigeria.

1.6     Significance of the Study

The prime purpose of the study is to outline concrete terms of the study, its importance in relation to the various beneficiaries of the research work. It is of interest to know that researchers generally are for information, knowledge and advancement especially when result of the findings is put into practices. Intermediaries whose job is to take up distribution as sole business on behalf of manufacturing and producing companies, will have an advantage in this study to know the best channel to push each line of product to final consumer. It will also serve as a source of information and knowledge to researchers and a source of secondary data for future researchers who may access to the study.

1.7     Scope of the Study

The scope of the study is limited to the company the researcher is studying in order to find a solution to its distribution management problem which is Nigerian Bottling company plc.

The warehouse and marketing department were selected as a sample to be studied among other departments, while management information system (MIS) will be used to get relevant information that will assist in the success of this research.

1.8     Limitation of the Study

In carryout this project word extensive but exclusive study was of the assessment of problems affecting distribution management and its prospect in Nigeria. In the process of carrying out this study, some constraints were encountered.

Time factor: The research work was done in a very short time; and as such an exhaustive study was not possible.

Cost of Transportation: This limited the number of visit to the research company (Nigeria Bottling company plc) by the researcher because of the cost of transportation as a result of limited number of visit to the company exhaustive data was not collected.

Personal challenges, internet access, few materials and access to current data relating to the research topic.

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