CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Production is defined not complete until the products reach the consumer the rights quantity, act the right place at the right price and in good condition, owing to proliferation of companies in Nigeria, it becomes very essential to have an efficient distribution system so that good produced get to the consumer. Basically, the aim of any firm is to minimize cost and maximize profit. In order to achieve this, a firm will have to identify the high cost generating centers and hence try to reduce them.
DISTRIBUTION ACTIVITIES
Management in firms is to bring to absolute minimum, the total cost of distribution and at the same time achieve high customer service. The word distribution in reference to the retailing or selling function means a vast firm which is composed of many thousands of outlets ranging in size from the same corner shop to large supermarket departmental stores and “cash and carry” warehouses, all of which attempts to supply the needs of our customers society.
SO PHYSICAL DISTRIBUTION
Management is concerned with the movement of raw materials the and finished products from supplier to the manufacturer and costumer (i.e. retailer), it is the link between manufacturing and production one hand and the retailer and customer on the other hand the simplest definition can offer is that physical distribution is an integrated set of activities that deals with managing movement of products within firm and through marketing channels.
1.2 STATEMENT OF PROBLEM
(1) LACK OF STORAGE FACILITIES: This arises as a result of cost of moving goods to the final consumers due to many channels summers and offloading of goods. i.e. the space or location for the facilities are limited.
(2) LACK OF MECHANIZED EQUIPMENT: Both loading and offloading cannot be left out. The scope of modern communication work is small to make impact in business transaction. The telephone service is confined to the urban area only and both few line that cut off and making customers contact very difficult.
(3) INADEQUATE MAINTENANCE OF EQUIPMENTS OR MACHINES: Some equipment remain unmovable due to lack of maintenance and lack of insufficient servicing.
(4) DIFFICULT TO ORGANIZE RETURN LOADS: High proportion of light running will occur on the process.
(5) Some costs such as capital cost over head cost etc, are not debit and a false impression of transport costs results.
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