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AN ANALYSIS
OF IMPORTANCE OF PHYSICAL DISTRIBUTION IN AN ORGANIZATION
INTRODUCTION
Physical distribution involves all the
activities in satisfactory and profitably moving raw materials and finished
goods from points of origin to points where they satisfy customer’s needs.
This singular statement underscores the
importance of distribution as marketing controllable elements. One thing is to
come up with a very good product and another is to ensure that it is readily
available to those who need them at the required moment. Therefore,
distribution performs the job of seeing to the fact that physically produced
items are made available to the buyer with the least level of inconvenience.
1.1 BACK GROUND OF THE STUDY
Production
is deemed not complete until the production reaches. The final or ultimate
consumers at the right time, place, quality and right price. The producer of
product, having carried out his market research or feasibility study to
ascertain with the research data generated, and later add value to it by pricing
it very well, packaging well, developing good communication system, network and
tires to use other competitors. Having dramatized the above, the product has to
reached the consuming public.
In view of
the above, there is need for physical distribution management or logistics
management to assist the producer to distribute the product accordingly. The
distribution system shows a link between a producer and a consumer. In business
development, price it well and promote it properly so that the consumers are
aware of it and are persuaded to purchase it, another important marketing
function is to make sure that the product is that a particular place, where,
when, and how it is required to be, there should be need for efficient
distribution system so that goods produced gets to the appropriate time and
right source.
Considering
the nature of an organization, the researcher considers the heterogeneous
nature of the organisation which interest me in finding means to facilitate the
movement of distribution to an organization. Distribution activities, are cost
generating activities, the aim of physical distribution management in an
organization is to minimize. Total costs of distribution and at the same time
achieve high customer services there by improving the balance sheet position of
an organization.
In view of
the above, the researcher has therefore examined critically the problem of
physical distribution system in an organization but paying more attention
particularly to the view to identify problem of physical distribution in an
organization and its roles towards achieving customer service and suggest areas
of improvement.
It may
argued that their problems are not identical but which may be true,
organization still have problems which are peculiar to each other in physical
distribution, examples of such problem include, inadequacies in the areas of
transportation and communication network and warehousing, just to mention but a
few.
1.2STATEMENT
OF PROBLEM
In a general
term, a problem can connotes a situation that appears to warrant additional
investigation. Many factors have been discovered to affect the physical
distribution of an organization. These factors are:
a. The problem of distribution channel
b. The present situation of the nation’s road
maintenance system which affects physically the movement of products to the
needed organization.
c. The activities of the channel members
d. The high organizational service level which
result in cost of physical distribution.
e. Inadequate infrastructural facilities and
its effects on distribution.
The problems
outlined above are however not exhaustive, the principal aim of this study is
not only to identify problems but most importantly to find alternative avenues
for an organization in its distributive system
1.3 THE OBJECTIVES OF STUDY
The world of
business is very competitive, firms strive to out complete and to succeed, try
to articulate and inter grate its marketing activities effectively and
efficiently, crowding it all by ensuring availability of its product.
The
objectives of this study therefore are
1. To find out the problems of the firms
encumbered transporting its
products from the factory to the distribution outlets.
2. To analyze critically the physical
distribution system.
3. To suggest alternative ways of minimizing the
total physical distribution cost and the same time increase organizational
services.
4. To find out whether the products are always
available to the organization.
1.4THE
RELEVANCE OF THE STUDY
The
following bodies or organization should benefits from the research under study:
a. THE FIRM OR ORGANIZATION: The research
will assist the top and the middle management of organizations in making
decision concerning logistics problems and provide an alternative ways of
improving customer services.
b. BUSSINESS MEN: The important of physical
distribution to a business man will be in the areas of improving its customer
services at a profitable basis.
c. Other researchers will use this work as
a basis or insight in carrying out other related study. Also since physical
distribution is a sort of universal marketing activities the finding and
recommendation will be relevant to other
firms or organizations that are in production or manufacturing
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