logistics of distribution system in breweries (a case study of Golden Guinean breweries company)

CHAPTER ONE

 1.0            INTRODUCTION

The distribution sector, up till today in the Nigerian commercial activities is left unused more or less by design than by ignorance the reason for this ugly trend of events cannot be dismissed from the fact that Nigerians still experience the seller market.

DR N.C. Nwaogwugwu observed as follows. The reason for the absence of marketing planning stems from the fact that products for distribution is channeled through established channel of distribution. The marketing manager simply allocates products to appointed distributor or co-operative societies an approved formula since demand is above the supply in most cases. There is no marketing problem encountered in the future. This is an example of the situation experienced in the developed economies.

 1.1     BACKGROUND OF THE STUDY

Since 1970, Nigerian as a developing nation has been marketing an encouraging progress in the area of industrialization especially in the beer industry. Several brands of beer has been launched into the Nigerian market especially during the second republic under the administration of Alhaji Alieu Shehu Shagari

The means procedure and method of distributing of goods to reach the final consumer have posed some problems for the management of every firm in particular and the economy in general. By distribution, we mean an efficient movement of raw materials from supplier and financial goods from the end of the production to the customers.  The beer industry being part and parcel of our economy, more so as there are rapid growth of beer firms in the country. There is no way it can fully separate itself from nations economic depression. Therefore the following problems are identifiable: fair and dubious distribution of finished product to different parts of the country. For instance, how to supply the consumer resident in Northern part of the country with appropriate quantity of golden guinea beer which is brewed and bottled in the south in part.

The channel through which these finished products actually gets to the final users. The problem of producing the raw materials required for production purposed. The problems also concern the method or means through which such raw material is move from the suppliers to the manufacturers.

The inadequacy of raw materials and finished products has to a great extent motivated the researcher to make a serious study in that direction to find out ways by which raw materials can be distributed effectively to their raw materials can be distributed effectively increase in the price of goods and services which we have experiencing since the 1970’s distributive techniques. The ugly state of affair placed many firms in the state of commercial stagnation, as they cannot improve on their market shares. The co 1.3 in increase of price due to the ineffective logistical approach as they consumer are forced through against their will to limit their consumption to the available goods and services. By this study it is the intention of the researchers to suggest ways by which materials and finished products can be effectively distributed.

This is based on the belief that the study could help firms and industries in designing and implementing successful programmes in their logistics and distribution system.

 1.2    STATEMENT OF THE PROBLEM

There have concerned over the logistic of distribution system distribution is in the service industry. Many firm in a developing nation the basic infrastructure needed to support modern marketing activities are inadequate in golden guinea breweries limited.

There have been problem in distribution system and there is loss, in an attempt to handle the distribution activity areas of inadequacies are

1. Transport problem
2. Poor inventory management
3. Ware house
4. Federal government policy on importation of raw material

 1.3     OBJECTIVE OF THE STUDY

The researchers intend by this study to high light some of such logistical approaches in the best industry

1. The most effective and efficient method of getting to the consumers of a particular brand of beer is very essential especially now that Nigerians are in need to widen their export base and all are now on beer industry. This may not be possible without adequate logistical planning.
2. By this study data collected and recorded which in turn are highly essential in the planning and developing of marketing education and practice
3. To offer suggestion on decision regarding the way in which transportation should be used for each type of shipment of raw materials or finished products.
4. Decision on ware housing as to how many of them are required and location and quantity of goods to be stocked in each will also be discussed and useful suggestions will be offered in that direction. Finally the study on how best to select the distributors of the products, sales personnel and how to institute an adequate and effective sales organization with effective communication network. We therefore hope that firms or individuals that operate within the recommended suggestion will be operating within the range of acceptable logistical system.

1.4     RESEARCH HYPOTHESIS

The following hypothesis will be tested.

4.0   The brewer programme of the federal government cannot be an answer to the breweries problem in Nigeria

4.1   The brewer programme of the federal government can be an answer to the brewer problem in Nigeria.

4.2   There is no channel for the distribution of golden guinea products.

4.3   There is a channel for the distribution of golden guinea product

4.4   Are their any serious problems facing golden guinea brewers

4.5   There is no serious problem facing golden guinea brewers                                                         

1.5     SIGNIFICANCE OF THE STUDY

The economic crunch recently being experienced is found all over the world and cut across all aspects of human endeavor. Nigerian being part and parcel of the world economy can in way exempt herself from what ever effects that are now being experienced by the global economic down turn. The serious effect of some governmental policies designed to cope with the economic glut not with standing.

Therefore we believe that both individuals and organization should benefit even distributors, wholesalers when they operate a sound logistical system.

 1.6     SCOPE LIMITATION AND DELIMITATIONS

SCOPE OF THE STUDY

Golden guinea brewery was founded, as government owned Brewery Company. I shall use this company as a case study being a company founded by the federal government of Nigeria.

LIMITATION

There are some factors that make the researchers limit their studies to using only Golden Guinea brewers.

Some of them are finance, time constraint again the sad experience we get during the collection of data, it is indeed in the face of the above problems that the researcher think it is wise to limit our study to a near by area.

 DELIMITATION

This research work has been delimited to using only the golden guinea brewers as the case study due to the limitating factors of finance time and carrying out the project work while lecturers were still in progress. All these factors contribute to the delimitation of the work.

 DEFINITION OF TERMS

1. LOGISTICS: In this contest, logistics is the organization of the movement of goods and services to reach the final consumers
2. DISTRIBUTION: This is the efficient movement of raw materials from supplier and finished goods from the end of the production to the customers.
3. WHOLESALER: Is a trader who purchases goods in large quantities from the manufacturer and sells in small quantities to the retailers.
4. BREWERS: In this contest brewers are persons who make beer
5. SYSTEM: This is ways of working in a company. The ways by which golden guinea brewery work in their company.

 REFERENCES

 Achumba Ifeanyi .C. (1974) The underlying force and influence of street trading in urban centre of Nigeria management in Nigeria Lagos, Nigeria Institute of management