CHAPTER ONE

INTRODUCTION

1.1 Background of The Study 

Distribution channel is the path through which goods and services traverse as they go from producer to ultimate consumer. Also, marketing channels or marketing intermediaries represent organized network of agencies and institutions which in combination perform all the activities required to link producers with users and users with producers in order to accomplish the marketing task. By delivering products and their ownership titles to consumers at the right time, marketing channels therefore, perform a special kind of service to society by generating time, place and ownership utilities. 

A sound physical distribution policy are therefore, important as a guideline for companies effective and efficient performance in order to realize and achieve the desired short and long run goals and objectives. 

Many business organizations have come short of achieving their desired goals and objectives even after producing high quality products. These shortcomings have been attributed to improper, ineffective and inefficient strategies as it relates to physical distribution of goods. The purpose of distribution is to make goods to

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