CHAPTER ONE
INTRODUCTION
1.2 BACKGROUND OF THE STUDY
Distribution in the manufacturing sector can be described as the controlling, moving of physical goods within industrial firms and through channel systems. Distribution envelops the planning and implementation of physical movement of materials and final goods from the production point to the point where it will be used to meet consumer needs at a profit on the side of the marketer. The connection between entrepreneurship and distribution is that any production without progressive, impressive distribution system is 100 percent useless. This is because the produced goods do not gain any utility until the final consumer or the consumer obtains some level of satisfaction after using them.
Distribution channel is the route through which our goods and services cross as they travel from one hand to another (from producer to the consumer). Marketing Mediums stand in place of organized network of agencies and institutions which combine to carry out all the activities required to merge producers with consumers or vice-visa in order to meet the marketing goals by delivering products and their ownership titles to consumers at the right time, marketing channels thus, perform a special kind of service to the society by creating time, place and ownership utilities.
Marketers are on a daily basis are turning into channels for a competitive advantage. This increases to maximum control over service level/output, improves the image of a product and generate higher markups, advances dealers loyalty, better future planning, better inventory and merchandising control and stops or prevents resellers from carrying competing brands. Distribution pattern has huge effect on consumer’s patronage because without showcasing and advertising a company’s product, consumers and buyers will not patronize the company. The goal of distribution in an organization, firm or company is to make goods and services available to buyers, customers. In doing so, exchange of ownership takes place in which case, title to a product has to change hands numerous times and physical movement of goods is fired off but not necessarily to accompany the route of ownership flow.
Physical distribution policies are therefore a significant guideline for companies or organizations effective, efficient and productive performance in order to meet and achieve the desired short and long term goals and objectives. Many business firms have failed to achieve their desired goals and objectives even after producing high quality products. These failures have been attributed to unproductive and inefficient strategies and decision making as it relates to physical distribution of goods. The goal of distribution is to make goods to be physically available to the ultimate consumer and buyers at considerable prices. Thus, it is very imperative that the products are distributed in the most efficient manner to reach the ultimate consumer whose patronage ensures the survival of the organization. By so doing, the organization will take pleasure in the consistent high sales turnover and subsequently high profit delivery. Organizations through their managerial functions of planning, prepare well organized ‘policies that enable them to control their internal and external actions.
Physical distribution policies in Juhel Nig. Limited Enugu state include’ identification of appropriate location of plant, equipment, depots, and mode of transportation services. It also includes the feeding of good communication system, inventory level and proper packaging of products such that they can be transported and stored without incurring much cost. They work hard to reduce loss and increase satisfactory customers’ service so that the organization will continue to win their loyalty and also remain at its peak.
The activities of the physical distribution include foresight, transportation, material handling, material handling, protective packaging, inventory control, order processing market forecasting and customer services. Another researcher puts it that; “physical distribution is an integrated set of activities that deal with managing the movement of products within firms and through marketing channels”. But in the seller’ market which is in most cases a common experience in Nigeria, distribution has taken a back seat among marketing activities. And it has therefore received little attention of marketing executives.
1.2. STATEMENT OF PROBLEM
The poor patronage of goods and services in Nigeria has been a cause for serious concern. It has led to the constant poor and under performance of companies; this is because effective patronage is a panacea for growth and development in any organization as no organization grows or develops without patronage of her goods or services. This poor patronage has also led to the reduction of employment in Nigeria thus increasing the unemployment level among Nigerians which has had a negative influence on economic growth and development.