ABSTRACT
This term paper is about physical distribution or logistics is concerned with the efficient movement of raw materials from suppliers, that is finished goods from the end of the production line to the customers, in order words channel of distribution.
Physical distribution system is design by the producers to set customer service standard. A distribution channel is typically a condition of independent business entities that co-operates for mutual benefits.
The research of these work is generally aimed to identify problems that mighty be peculiar to various areas of physical distribution and how best to tackle these problems and make a success in business operation as well as making sufficient and effective contribution to the country’s economy and industrial development.
CHAPTER ONE
INTRODUCTION
Physical distribution or logistics is concerned with the efficient movement of raw materials from suppliers that is finished goods from the end of the production line to the customers. In order words channel of distribution.
A number of associated activities must be performed, these are grouped under four main categories, warehousing and communication.
The starting point in the design of physical distribution system by the producers is to set consumer service standard. This has a number of dimensions and the most important of all is time it takes to get the merechandise to the customers it happens that what lead to cost reduction in another area e.g. inventory. An appropriate strategy in logistics design, therefore is to arrange all the required activities so as to minimize total cost of providing a desired level of customer service.
However, since the major test of physical distribution is to make goods physical available to ultimate consumers. It helps to bridge the gap of space and time between production and consumption. Distribution can be viewed as a strategic managerial tool since it is one component of the forms. Marketing mix and all the decision of channels distribution selection and so on are made to be consistent with the other aspects of the marketing programme for production. For instance a high quality, high priced product may be selectively distributed through a limited number of outlets.
It is vital to understand that for physical distribution to be efficient and effective that distribution channels are established to ensure its success.
GENERAL BACKGROUND TO THE SUBJECT MATTER
A distribution channels is typically a condition of independent business entities that cooperate for mutual benefits. They include wholesalers, agents, retailers distribution who contributes in so many ways within the channel to assist the manufactures in ensuring that the goods gets to their consumers as and when due. They also assist them in disseminating important information to their customers and got feed back to the firm, gives financial assistance, help in the packaging and breaking of bulk goods for supply to consumers.
The neglect, stick of responsibilities, non-challent attitude to customers, self centredness in addition to the inadequacies of marketing system of developing economics are most gearing in a society like Nigeria and this results in distribution bottlenecks. Due to insufficient storage facilities and inappropriate storage methods, spoilage and waste of products tend to be warehouses are for and for between material handing equipment is very unsophisticated, with the exception of, perhaps of which is available in the warehouses at the seaports. Specialized storage structures like large storage tanks for petroleum products or silos for grains are either to few or non existence.
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