Impact Of Logistics Management In Marketing Of Agricultural Products (A Study Of Diversay Solution Limited)
This study was conducted to investigate impact of logistics management in the marketing of agricultural products. The logistics management and the associated of marketing of agricultural products in the private sector with reference to Diversay Solutions Limited. It sorts to determine, the goal and strategy deployed by their logistics, to identify the distribution strategy used by introducing their products into the market.
To meet the objectives of the study, the research methodology adopted comprised of a percentage table and Chi-square analysis to test the research hypotheses.
The logistics having an average lead time which last for three month, it also discovered that the logistic process of Diversay Solutions consist of five steps which are production management, customers service, raw materials, inventory management, management control, and sales management.
This study recommended that among the logistics,• inventory, management should ensure that all the stock in and stock out are properly control and well monitoring of receipt, invoice, way bill should be properly managed effectively, in other to avoid overstated and understated figure during the stock audit. It also recommended that raw materials must available at all cost by management in other to maintain their production standard level and quantity target.
The logistics management find easily since there market centre where agricultural products can be market and motorable for the flow of both raw materials and finished products.
The study need to provide adequate ways in maintaining the standard quality of their products in other to avoid adulteration product in the market, so that the quality of their products will maintain standard.
Table of Content
- Title Page
- Table of Content
- 1.1 Background of the Study
- 1.2 Statement of Problem
- 1.3 Objective of Study
- 1.4 The research questions
- 1.5 Research Hypotheses
- 1.6 Significance of the study
- 1.7 Scope and limitation of the study
- 1.8 Background to the Study
- 1.9 Operational Definition of terms
- 2.1 Introduction
- 2.2 Definition of logistics
- 2.3 History of logistics management
- 2.4 Forms of logistic
- 2.5 Logistics systems
- 2.6 Marketing of agricultural products
- 2.7 Origin of marketing of agricultural products
- 2.8 Important of marketing of agricultural products
- 2.9 Market and marketing of agricultural products
- 2.10 Economic importance of marketing and market
- 2.11 Agricultural product in relation to marketing
- 2.12 The scope and activities of physical distribution of Logistics management
- 2.13 Customer service
- 2.14 Transportation
- 2.15 Storage and warehousing
- 2.16 Materials handling
- 2.17 Protective packaging of product
- 2.18 Communication and data process
- 2.19 Ordering processing
- 2.20 Inventory management and control
- 2.21 Types and functions of inventory
- 2.22 Inventory cost and approaches to inventory Management
- 2.23 Inventory purchasing management unit
- 2.24 Purchasing and supply chain management
- 2.25 Logistics distribution problems in development Economics (Nigerian).
- 2.26 Physical distribution nature concept and importance
- 3.1 Introduction
- 3.2 Research design
- 3.3 Sampling and procedure for data collection
- 3.4 Sampling techniques
- 3.5 Data collection instrument
- 3.6 Method of data analysis
Data Analysis and Interpretation
- 4.1 Introduction
- 4.2 Presentation and analysis of collection data
- 4.3 Test of hypothesis
Recommendation Conclusion and Summary
- 5.1 Introduction
- 5.2 Summary
- 5.3 Conclusion
- 5.4 Recommendations
1.1 Background of the Study
Logistics management involves the movement of both raw materials and finished goods from the point of production to the purchase. The raw materials and finish goods are both kept in the warehouse before being used in manufacturing or sold to the customer. If it is well managed, distribution cost will be minimized not necessarily at the expense of customer service level and consumer utility increased. Alexander and Franco (1969) define Logistics management as “fraction cost savings, increased competitiveness secured on added customer value of product and enhance profit opportunity”.
In addition, this study shall discuss how effective logistics management can improve marketing decision making and increase general performance in an organization.
Secondly, the study will also examine how organizations can meet their target and customer service delivery and expectation in order to remain competitive in the market.
The research will examine how logistics management is used in controlling the market of Agricultural products. The study will also evaluate the shortcoming of logistics management, and such problems are as follows:
Critical analysis and study into logistics management in agriculture in Nigeria highlighted that several effort have been made by the government in the past to solve the problem and improve the level of agriculture beyond the expectation of people by formulating policies by both the civilian government and military government. The research problem shows that logistics management in the agricultural products takes a large numbers of responsibilities in marketing their products. Okeke, C. I. (2000) The study make it clear that if the logistics have good qualified engineer, which they knows the kind of problem their equipment has without being consult any expert for the assistance this situation will make their both raw materials and finished goods reach their customer destination in time.
The need to provide ways in maintaining agricultural facilities in order for the production department to be able to meet up with their production target since the maintenance department carry out their job activities affectively.
The need to provide adequate marketing centre, where they can easily market their agricultural product. The logistics management find it easy, since there is market centre where the agriculture products can be market and it is motorable, in that case, the flows of raw materials and the finish goods will be meet their demand without delay.
The need to provide adequate ways in maintaining the standard quality of their products in other to avoid adulteration product in the market so that the quality of their product will remain and maintain standard.
1.3 Objective of Study
The principal objective of this study is to examine logistics management in the marketing of agricultural products, with reference to problems stated above.
The main objectives of the study are as highlighted.
- To identify the goal and strategy deployed by diversay solution limited in their logistics.
- To identify the strategy distribution to use by introduce of their products into the market.
- To determine the relevance of logistic management in the marketing of agricultural product.
1.4 The Research Questions
The following pertinent question vis-a-vis diversay solutions limited will be considered by this study.
- Is there any goal or strategy deployed by diversay solution limited in their logistics?
- Does any strategy distribution to be used by introduced of their product into the market?
- Is there any relevance of logistics management to agricultural products?
1.5 Research Hypotheses
- Ho: Strategic distribution used does not introduced their product into the market
- Ho: Management goal or strategy deployed by diversay solution limited is not giving them competitive advantage
1.6 Significance of the Study
The role of logistics in the growth and to development of agriculture cannot be overemphasized. A case study of this nature will reveal the nature of logistics management and how effective logistics management will be given an organization like the Diversay solutions limited credibility, sense of accomplishment and required growth development. Invariably continuous effective logistics management will leap to sustainable development in the private sectors.
The study will improvise ways in which logistics management warehouse and store provide all the spare parts and use full equipment for the maintenance department. The study would have any reasons to give by not performance their duty effectively since the part are available in the store is either to replace it or repair it to let the logistics department meet up with their normal activities schedule.
The study shall also discuss the available resource used in agricultural management like fertilizer mechanized equipment for agriculture. If the government can provide this infrastructures mention above to the agriculture department and the logistics management also manage it the way it purpose, both the movement of raw material and finishing goods will be flow and distributing accordingly.
Moreover, the study shall also discus about network road such that it will motorable in other to marketing agricultural products.
These are problem confronting them are:
- Lack of good qualified engineer.
- Inadequate of proper maintenance.
- Inadequate of spare parts.
- Lack of government agency.
- Lack of good network road.
- Lack of available resource used in agricultural management like fertilizer, poultry equipment, and mechanized tools for agriculture.
1.7 Scope and Limitation of the Study
This study has a focus since it will be consider only one private enterprise, namely diversay solutions limited. In the large private sectors in Nigeria.
The aspects of the private that it covers include issues of logistic management in the marketing of agricultural products, and the logistics issue is to cover the entire problem and prospects of logistics management in organization marketing.
1.8 History of Diversay Solutions Limited
Diversay Solution Limited is a one stop livestock health and production support company we aim at providing relevant, yet affordable solutions, that reduces the stress of the challenges faced by farmers and stack holds in the livestock production sector of the country’s economy.
The company is uniquely staffed and structured to provide highly professional service and input targeted at solving the problem endemic in the industry this adding real value that ultimately ensure enhance efficiency and profitability with the least stress.
Diversay solution limited was incorporated in February 2008 and their mission both simple and singular helping farmer and stock holder to achieve a high level of visible efficiency in livestock production operations without the attendant stress that use to accompany such achievement. This mission was informed by a carefully analysis of the industry as constituted prior to the advent of the company, here was periodic shortage and in stances complete unavoidably of input leading to exorbitant input valuable cost and reduced profitability. The perennial input crisis coupled with the challenges of disease not Greaks such as the dreaded avian influenza diseases under standby sounded the death knell for a lot of farmer that were poorly managed for the professionally such that they could combat alone or internally so the real solution to apply to ensure profitability in the face of the crisis is to increase efficiency in operation so as to boost production to for the increase cost to operation occasioned by the perennial crisis. They also want to do this with the least fuss and stress hence Diversay solution limited. The suppliers of most our products are world class companies the does not compromise the standard of their products or service they offer our quality product are designed to stand the test of time end to adapt the climatic condition in Africa. Our team is made of seasoned professionals who have distinguished themselves in their careers providing highly professional service and inputs targeted at solving the problem endemic in the industry.
Under this division the company imports highly relevant and effective veterinary drugs vaccines and additives and sell same at very affordable prices to farmers and stake holders all over the country via a network of distribution complemented by or trained technical sales representatives.
Bio specialty this division markets, the company disinfectant range, water sanitizer and other hygiene solutions the disinfectant market and by the company are the latest available with cutting edge microbe control either alone or combined and possess wide spectrum of activities that encompasses viruses bacterial and fungi.
Constituency this division provides consultancy service to clients with regard to design construction staffing and management of poultry, fish or livestock farmers we also design and build elevated poultry house and advice on improved management and turnaround of ailing farm operation.
Equipment under this division the company imports highly relevant and effective veterinary drugs vaccines and additive and sells some of very affordable prices to farmers and stake holders all; over the country via a network of distributors complemented by our trained technical sales representation.
Laboratory under this division the company imports all the laboratory equipment as to perform all the necessary test of their product to avoid contamination and to be specific the actual date of production and to observes expiring date not to cause harmful to their customers.
- Coccinex diver idine and sulphaquinoxaline
- Quinrocin 20%
- Quinrocin 20%
- Avertin oral 1%
Diversay solutions limited core value includes regard for our employees the demonstration of constant care, uprightness and humbleness and protection of our good name. Our reputation and success depend on the way we fulfill these values while conducting our business
In term of protecting the environment to avoid environment pollution for the safety of our people is a question of constant care in the way we use resources optimize operation and handle waste our environmental protection policy statement reads we are committed to the protection of the environment and place high priority on environment considerations in managing our business
We create opportunity nationwide and global commerce.
We shall fulfill our vision by truly understanding our clients and their business offering second to none transportation solutions being profitable and behaving sustainable profitable growth continuously reducing cost and increasing efficiency offering our colleagues personal growth and a motivating place to work.
Being good corporate citizen
1.9 Definition of Terms to be Used
For this study, Kotler Philip and Kevin lane Keller (2009) definitions some terms shall serve as operational words and they are as follows.
Logistics may be defined as planning and implementing the physical flows of materials and final goods from points of origin to points of use for consumption to meet the needs of customers at a profit.
Management may be defined as making use of people to achieve their stated goals and objective.
The activity that concern itself with proposals for the future with the evaluation of alternative proposals and with the methods by which these proposals may be achieved.
The management activity that involves establishing standard measuring performance and correcting the distributions.
Attempts to discover what products or service are required or are being bought by a market area or type of customers the specification and performance expected by customer and the price which they indicate that they would pay for a stated specification of certain products or service.
A study of the pattern and nature of sales for specified products in selected market areas to identify the true sales pattern i.e. sales effort and sales force.
Distribution is to identify the physical distribution required to counter competition effectively or to give customers a better service, and to check if the method being used are achieving these aims within permitted costs. It helps to identify how distribution may modified to keep costs under control, where to locate depots size of inventories method of transportation to be used the various means of transportation and whether to lease or buy vehicles.
The approach to the problem solving which weight alternative and choose an alternative especially where advantages and costs cannot be accurately measured in members by considering costs of other alternative in comparison with benefit derived.
A detailed study of buying behavior and consumer behavior habits patterns for specified groups of consumers to establish consumer profiles, what they buy, why they buy, what we they make of the products, the prices they payor are prepared to pay and what they buy from competitors.
Ware House Method
A logistics provider’s warehouse of goods being stacked on pallets with a forklift. Logistics ware house as a business concept evolved in the products due to the increasing complexity of supply business with material and shipping supply chain, leading to a call for experts called supply chain logistics. Business logistics can be defined as “having the right items in the right quality at the right price in the condition to the right customer.
As master summary of logistics management in marketing of agriculture product, there functions are more seriously and they should also contribute the function to the organization to achieve their goal and objective.
Summary, Conclusion and Recommendation
This final chapter, shall be the summary of all the findings which were disused in previous chapter written. Furthermore, the conclusion of the study report and recommendation are made to ensure that logistics are properly monitor, control and managed in all private sectors particularly Diversay Solutions Limited.
These following constitute the summary of this study report.
- Diversay Solutions Limited which adopted logistics control Process, logistics engineering cost, and logistics management expenses.
- The logistics process of Diversay Solution Limited consist of these following steps; managing director’s office, finance and administration office, transport and logistics department, and human resource department.
- The management teams and production department monitor both the raw materials and finished goods, are ensure that it delivered to the appropriate customers.
- Diversay Solutions Limited management are charged of releasing of their products to their customer and ensure that appropriate inventory records are kept for stock audit.
- The management of Diversay Solutions Limited absolutely to develop the goal or strategy in a way to achieved competitive advantage.
- All the materials or component required order or application as clearly specified in a bill of materials usually prepared by the engineering department and transmitted to the purchasing unit, and serve as the same purpose as a purchase requisition.
- Re-order notification is notified that the needs to replenish stock of any item has fallen to re-order level, by sending a re-order notification or a traveling requisition to the purchasing unit, store unit notifies purchasing to the need to take the necessary actions.
- Goods import or export and stored must be packaged in a manner that will protect the use of containers and component plus decoration or labeling of a product to performs this function, utility product promotion, motivation and recognized, most of this agricultural are perishable which need to be preservation depending the native of the product.
- Field survey was also used during the research conduct i.e. collection of data such as primary data, secondary data, and literature items used.
- Presentation and analysis of data also used to represent the frequency, percentage of respondent and used of text hypothesis.
Logistics is a control mechanism in an organization, which required effective management support to bring about sustainable development in an organization. Whethere it is control process, engineering cost, or logistic management expenses that it’s adopted by an organization. Every organization need to design its own logistics operations system and to the available uses.
Logistics management is an important area in an organization, this is because it carry out the reality movement of raw materials and finished goods from point of production to the purchase for profit making and which enable monthly or quarterly allocation of their goods with well properly record keeping and effective monitoring logistics inventory.
Based on the findings of this study, the following recommendations are made to ensure that logistics are managed effectively and efficiently at Diversay Solutions Limited.
- Monitoring of receipts, invoice and way bill should be properly managed and audit on weekly basis in order to avoid fraud by the sales department and productions department.
- The inventory department, procurement department, and distribution channel department should do the transparent work because they are the major body who handle a critical role in the productions department.
- Information technology facilities should be acquired and installed in order to give room for electronic marketing such, E-marketing, E-purchase, and E-distributions, it will make organization work very effective.
- All the problem confront the logistics management should be solved, particular those related to the inadequate distributions of their raw materials and finished products between the operation office and others department.
- Monitor of all their importation document and ensure that all government agencies preview and sign the importation paper, and all their due is paid, also ensure that government rules and regulation are follow to avoid seizure of their license.
- They must be focus in term of importation of raw materials, because many importers and agent are not sincere with government, bill of lading will not correspondent with the goods they are clear.
- Warehouse and other facilities must be provide abundantly, also there should be no lack of warehouse storage to store their raw materials, lease or rentage of warehouse will contribute negatively to development of organization and also source of avenue of embezzlement.
- Security department and safety department must be valued and giving them power to perform their duty for saves of life and property in other to avoid stealing of raw materials or fire outbreak.
- Commission and bonus must be awarded to those who are in sales department and marketing department.
- Stock control and stock taking should be done on weekly basis in other to fore stall fraud by the production department.
- Electronic monitoring device should be installed in all the premises to monitor the employee’s movement.
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