Full Project – Distribution and logistics in achieving customers satisfaction

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CHAPTER ONE

1.0        INTRODUCTION

The word “logistics” emanated from the military and it actually connotes the movement of materials, supplies, instrument, equipment, ammunition as well as troops from one location to another, especially in time of war. The concept of logistics and other relation supply chain components such as procurement, inventory, storage, traffic and distribution management all has their history traceable to military operation research and management. However, as strategic management began to take its root in business and economic operation, logistics management loomed so large that it becomes too important to be disposing with. Again, the place of logistics operation and management is further emphasized by the fact the international trade relationships  have warranted a mass movement of varieties of commodities, machinery, equipment, components, parts raw materials etc. across frontiers, owing to such variable as distance, nature of consignments weight  and  size of consignment, challenges posed by notes and channel of transportation was well as various other complex issues, it has long been realized that logistics management, planning and control are activities that call for the highest level of mental alertness, finesse and cognitive complexity root only the, logistics operation are areas of business activities which are vocative that they continue to attract a lot of legal attention from time to time.

Fundamentally, logistics and its various components have formed the new of virtually all categories of business organization. This has resulted from the fact that no product or commodity has any economic value until it get to the final consumer.  Interestingly, the chain of activities that ensure that materials, goods, commodities of product get to the final consumer are supply chain or logistics activities. Therefore, most business enterprises are logistics activities. Therefore, most business enterprises are logistics driven.

Since logistics advance of the 1950s there are numerous effort focuses on this area in different application. Due to the trend of nationalization and globalization recent decade, the important of logistics management has been given the various areas. For industries, logistics help to optimize the existing product and distribution process base on same resources through management technique for promoting the efficiency and competiveness of enterprise, the key element in logistics chain in distribution system which joins the separate activities.

Logistics, is the process of planning, implementing and controlling the efficient, effective flow and storage of good, service are related information from the point of origin to the point of consumption for the purpose of confirming to customer requirement.

Heoket, glaskowsky and lvie(1973) defined logistics as the management of all activities which facilitate movement and the coordination of supply and demand in the creation of time and place utility.

Wikipedia (2006) defined logistics as the art and science of managing and controlling the flow of good, energy, and other resources.

The chartered institution of logistics and transports (uk) (2005) defines logistics as the position of resources at the right time, in the right place, at the right cost, at the right quantity.

With all the sighted definition, it becomes very clean that logistics has to do with the efficient transfer of good from the source of supply through the place of manufacture to the point of consumption in a cost – efficient way why providing and acceptable service to the customers.

Distribution is the key function that adds value across the supply chain and play on strategic role. The important of the supply chain can be seen in the classical example in supply chain like Wal-Mart, Fed EX, and UPS. The cornerstone of such operation are a vast array of ware housing facility in information network access, despite the success story of such example, new trends are emerging in the market, the two most domination been a shift from the buy-hold-sell (BHS) to tell sell – source – ship (53) molded of distribution, new value – adding roles, and in the continues globalization of distribution business. A shift in distribution model. The dynamic nature of market technological development and demanding customers has caused distributors to adjust their way of doing business. Traditionally, distributor buy goods hold them in warehouse until they are required and then sell them to retail level customers. The model is been challenge by a more cost effective time – phased delivering of goods model which reduce cost associated with inventory and respond more quickly to customer demands “sell-sources ship (53) is displacing the buy – hold – sell (BHS) model of distribution.  (Girard 1999).

1.2     OBJECTIVE OF THE STUDY

The general objective of the research project will be to investigate whether there are some factors that affect customer’s satisfaction through effective distribution logistics among production firm in Nigeria.

Specific Objectives of the Study are as follow:

1. To identify some specific areas of gaps and deficiencies in logistics and distribution systems that impact on customer’s satisfaction.
2. To establish the relationship between effective logistics and distribution systems and customer’s satisfaction especially with Cadbury Nigeria Plc products.

1.3     RESEARCH QUESTION

1. Do ineffective Logistics and distribution systems of a firm impact on customers Satisfaction?
2. Is there any significant difference between effective logistics system and customers satisfaction with specific reference to Cadbury Nigeria Plc?
3. Does effective distribution impact mindful of the fact that production is not complete until goods and services get down to the final consumers?

1.4     SCOPE OF THE STUDY

The study distribution and logistics in achieving customers satisfaction could have been extended to cover a widen areas but because of some limiting factors the scope of the study is limited only to Cadbury Industry.

1.5     LIMITATION OF THE STUDY

The researcher encountered many problems in the process of carrying out this study.  The main problem was the collection of needed.  Information in Cadbury Nigeria Plc.  A lot of protocol had to be observed which served as a clog in the wheel of progress of the study.

The researcher also faced financial challenges as the project work involved traveling from place to place for the collection of data.  The time collection of the conducting of the researcher was inadequate and most thing were done in hate in order to meet up with the submission date.

1.6     SIGNIFICANCE OF THE STUDY

The research will enable the researcher to have broad knowledge of achieving customer’s satisfaction through effective distribution and logistics system.

The research work will afford future researchers to use this work as a reference material.

The study will enhance the reputation of the case study (Cadbury Nigeria plc) engaging in this research will help build the company brand.

1.7     DEFINITION OF KEY TERMS

Logistics: is concerned with getting product and services where they are needed whenever they are desired.

Distribution: means making good and services available to the customers and the most convenient place in a reasonable price.

Distribution: means to speed the products throughout the market place such that a large number of people can buy it.

Distribution Strategy: is the planned course of action undertaken to achieve the aim and objective of an organization.

Distribution management: means activities as warehousing, materials are holding, packaging, stock control, order processing and transportation.

Channel of Distribution: refers to a various avenue, place, platform, through which good and service past before they got too the final consumer.

1.8     HISTORICAL BACKGORUND OF CADBURY NIGERIA PLC.

The of Cadbury Nigeria PLC dates back to the 1950s when the business was founded as an operational to source.  Cocoa beans from Nigeria as a precursor to enable the company’s founders to tip opportunity, for serving the local customer market with world-famous Cadbury branded product.  In the early 1960s, an initial operation was established to repack imported bulk product.  This packing operation grew rapidly in to fully fledge manufacturing operation and resulted in the incorporation of Cadbury Nigeria Limited in January 1965, in 1975, the firm become a publicly listed company with shares trades locally on the Nigeria stock exchanges.

Cadbury Nigeria has grown to become a household name providing consumer with much love bands and revenue of #35.75b in 2013 and #50b in 2015 in Asset.

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Full Project – Distribution and logistics in achieving customers satisfaction