Impact of effective distribution in can production industries, a case study if GZI
ABSTRACT
This research work empirically explored into the impact of effective physical distribution in can production industries, a case study of GZI. The purpose of which is to investigate the influence of physical distribution organaizational performance as well proffer solution to problems. GZ industries is West Africa’s leading aluminium Can manufacturer. The objectives of this study were 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. The scope of the study is GZI from 2015-2019 making use of the senior and junior staff workers, contingency theory was used as a framework. The research design used is survey, the population size for this study consists of all the staff of GZI, which is a total of 250 workers. 96 workers were used as sample size and cluster sampling technique was applied. Questionnaire was used as instrument of data collection. Data were collected from primary sources. From the analysis of the data, the findings shows order processing had significant impact on organizational performance, inventory control had significant impact on organizational performance, and physical distribution is a vital part of any organization. Following the findings, it was recommended that 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. The study concludes that for any organization to succeed, proper physical distribution techniques should be vigorously pursued and made compulsory.
Keyword: physical distribution, GZI, organizational performance.
CHAPTER ONE
INTRODUCTION
1.1. Background to the Study
Distribution is one of the four elements of the marketing mix. It involves making a product or service available for the consumer who needs it. Distribution is fundamentally concerned with ensuring that products reach target customers in the most direct and cost efficient manner. Although distribution as a concept is relatively simple, in practice distribution management involve direct range of activities such as detailed logistics, transportation, warehousing, storage, inventory management, channel management (Armstrong; Adam; Denise and Kotler, 2014).
For any organization to be effective, there must be effective distribution management process to convey finished products from the manufacturer to the final consumers. Physical distribution is an important marketing function describing the marketing activities relating to the flow of raw materials from the suppliers to the factory and the movement of finished goods from the end of production line to the final consumer or user. Physical distribution takes place within numerous organizations, it include important decision in areas of customer service, inventory control, material handling, protective packaging, order procession, transportation, warehouse site selection and warehousing. Physical distribution if managed effectively can increase customer satisfaction by ensuring reliable, cost-efficient movement of goods through the supply chain. Physical distribution is directly related to customer services, the lack of which can result in several costs.
Organizational performance involves analysing a company’s performance against its objectives and goals. It comprises the actual output or results of an organization as measured against its intended outputs. GZ industries is West Africa’s leading aluminium Can manufacturer. However, the ability of GZ industries to achieve her targeted objectives depends largely on the effectiveness of its physical distribution. Manufacturing firms like GZ industries should consider the implications of the overall supply chain when making decisions related to the organization’s manufacturing, purchasing, selling and logistics process since it is targeted towards serving the customers better which are the ultimate.
This study evaluates the impact of effective physical distribution in can production industries in Nigerian has recently received attention in the literature. This is because a proper understanding of effective physical distribution will make managers of organizations plan properly on its distribution channels.
1.2. Statement of the problem
The importance of physical distribution has no doubt been recognized in many organisations as the key factor for improved productivity. A systematic approach to distribution is needed to ensure that the organization maintain a good customer service.
Despite the various methods firms have researched and applied to minimize cost and maximize distribution of goods, physical distribution challenges such as inventory control, materials handling, order procession, transportation, warehouse site selection, and effective customer service still persist. The level of distribution efficiency is a major contributor to a company’s image. Incorrect documentation and slow response to delivery is often a source of ill-will between organizations and customers. Accuracy is an important objective of order processing. Inventory management is critical because stock level have direct effect on delivery.
It is against this backdrop that the researcher considers the impact of effective distribution in can production industries, a case study if GZI.
1.3. 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
1.4. Research Questions
The study seeks to answer the following questions:
- What is the effect of order processing on the performance of GZ industries?
- What is the effect of inventory control on the performance of GZ industries?
1.5. Research Hypothesis
The study is guided by the following hypotheses:
H0: Order processing have no effect on GZ industries performance over the study period.
H0: Inventory control have no effect on GZ industries performance over the study period.
1.6 Significance of the Study
This study is essential in discovering the relevance and impact of effective physical distribution on organization performance in GZ industries. The knowledge on physical distribution revealed in this study will be useful to other scholars and practitioners who may wish to carry out studies on physical distribution in Nigeria. The study will unveil the challenges associated with physical distribution and proffer solutions to the challenges of physical distribution in GZ industries.
It is hoped that the exploration of GZI will provide a broad view of the operations of can industry to investors and government. This study will be of benefit to;
The Academia: members of the academia will find the study relevant as it will also form basis for further research and a reference tool for academic works.
Government: this study will reveal to the government happenings in the manufacturing industry. Formulation and implementation of policies based on this findings would ensure development in the industry.
Investors: investors especially those who may have research interest as it shall guide their private investment decisions.
This study at the end will enlighten the management of the company on the implication of effective physical distribution.
1.7. Scope of the Study
The study is focused on impact of effective physical distribution on organization performance in GZ industries in 2019 using staff workers. The choice of this industries was due to the role it plays in ensuring production of can.
1.8. Operational Definition of Terms
The following terms have been defined operationally.
- Distribution: it entails making a product available for purchase by dispersing it through the market
- Physical Distribution Management (PDM): is concerned with ensuring that the product is in the right place at the right time.
- Physical Distribution: is the handling and moving of physical goods within industrial firms and through channel systems.
1.9 Organisation of the Study
The study is divided into five chapters: chapter one embodies the introduction, background to the study, statement of the problem, objective of the study, research questions, research hypothesis, significance of the study, scope and limitation of the study. The chapter two includes: the literature review, physical distribution: a conceptual clarification, distribution channels, structure of distribution channels, physical distribution management, theoretical framework and application of the theory to the study. Chapter three deals with the study area and method of study which includes: introduction, research design, population of the study, sample size and sampling technique, sources of data collection, instrument of data collection, validity and reliability of instrument and method of data analysis. Chapter four deals with the presentation of data, analyses and discussion of findings while the chapter five provides the summary, recommendations, conclusion, and recommendation for additional research on the topic.
