CHAPTER ONE
1.0 INTRODUCTION
Manufacturing firms are increasingly becoming aware, that the production of goods is meaningless without its availability to the consumers at the right time.
During the past few years, fast technological development, growing globalization of market and higher customer requirement have driven and transformed organisations from their traditional view of physical distribution to the embrace of a more broadened concept of the subject.
Organizations now see logistic (physical distribution) management as the only route to the achievement of organisation goals, profitability, growth as well as effective marketing.
Thus, UAC Nigeria Plc. a manufacturer of consumer goods has been at the fore front of the orchestration crusade of logistic as the only solution to sustained consumer satisfaction through product availability. Right from its inception, the organisation has always seen physical distribution as the key to meeting customer requirement hence its achievement of an edge over its competitors and consumer acceptance and patronage of its products.
Products are of no use and possession utility is not possible until time and place utilities have been provided, and most often, selling a product is much easier than making it available to the consumers.
The movement and availability of the right products at the right quantity and at the right time is core-marketing decision/planning that requires laudable and workable strategies. This is because, physical distribution creates time and place utility and consumers satisfaction are basically defined by the two marketing variables, which are place and frequency of availability.
Thus, logistic (physical distribution) concept has been broadened from the earlier myopic concept limiting its scope to transportation (trucks) and warehousing. Today, the modern manager has a more complete view of physical distribution which encompass planning, implementing and controlling the physical flow of materials, final goods and related information from points of origin to points of consumption to meet customer requirement at a profit.
Physical distribution has been defined and discussed more elaborately by many marketing experts.
Physical distribution is one of the most important marketing activities because, physical distribution always involve cost and the most costly function of marketing which include movement of goods, receiving and shipping, warehousing, inventory, carrying cost and including insurance”.
Physical distribution (logistics) “is the task that involved planning, implementing and controlling the physical flow of materials, final goods and related information from points of origin to the points of consumption to meet consumers requirements at a profit”
Here, he laid credence on the indispensability of physical distribution activities in any organisation life because without physical distribution, goods will remain at the point of its production without yielding and profit/benefits.
Physical distribution may be taken to include operational and managerial activities associated with the following:-
The physical storage and transportation of goods or physical process of making service available.
The holding base or “buffer” stocks via distribution warehousing and goods in transit to smoothen the relationship between production and demand from intermediaries.
Stock held by intermediaries within the channel of distribution Customer ordering procedure Warehouse picking and order collection system Distribution control system”
Mordern above highlighted the broadened scope of physical distribution, which integrates the total marketing strategy, and validates it importance in the achievement of organisation’s objectives.
1.1 HISTORICAL BACKGROUND OF UAC FOODS
UAC food is one of the divisions of UAC Nigeria Plc. UAC of Nigeria Started operations in Nigeria as the Royal Niger Company during the colonial era. However it metamorphosed through series of names from United Africa Company of Nigeria in 1950 to United Africa Company Limited in 1973 and United Africa Company Nigeria Plc. in 1991.
The company since 1973 has been 60% owned by Nigerian shareholders and 40% owned by Unilever (An Anglo-Dutch Conglomerate). Its activities range from manufacturing, technical services, trading to Agro industrial activities.
UAC Foods is one of the manufacturing divisions of the company, which began operation in 1940 under the name West Africa Cold Storage Company Limited. However, it’s operation then up to the 50s was importation of perishable foods such as ice-cream frozen meat, fish fruits and vegetables
Ice cream manufacturing started in 1961 at Ijora and was registered under the name WALLS. This was followed by slaughtering, meat processing and baking of snacks in 1962.
After the indigenization decree of 1973, the company dropped its name West Africa cold storage and adopted foods division of UAC Foods of Nigeria limited. In 1986, the divisions name was again changed to UAC Foods and fast foods activities of former Kingsway division with the Popular MR. BIGGS and KINGSWAY RENDEZVOUS fast Food Outlets.
UAC Foods has four factories located in different parts of the country (at Strategic areas) these are: Ojoto Factory (Lagos), which basically is a bakery factory for the production of snacks, fast foods such as sausage rolls, meat-pie, etc. Maya factory (oyo), which engages in meat products e.g. Satis, Ham, Bacom and also has facilities for slaughtering. Onitsha factory (anambra) for ice-cream production viz impulse and bulk” Take Homes” lines under the Brand name WALLS.