Logistic Of Distribution System In Breweries (A Case Study Of Golden Guinea Breweries)

Project and Seminar Material for Business Administration and Management BAM

Logistic Of Distribution System In Breweries (A Case Study Of Golden Guinea Breweries)


Abstract


This research studies the logistics of distribution system in breweries (A case study of golden guinea breweries).

The research started with the background of the study in chapter one, statement of the petroleum, objective of the study, research question and hypo significance of the study, scope, limitation and delimitation of the study and definition of terms

This is followed by chapter two which deals with the review of related literature

In chapter three I discussed the research design and methodology, selection of population and sample size instrument for data collection, research procedure and analysis techniques

Chapter four contains presentation and analysis of data.

Finally, chapter five dealt with findings conclusion and recommendations.


Chapter One


1.0 Introduction

1.1 Background of Study

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.

The intensification of the global competition in a constantly changing business environment raises the Need of appropriate reaction of industrial breweries and emphasizes on the companies’ flexibility in an uncertain external environment. So today’s organizations in line with their customers’ expectations as well as the competitive advantage need to an appropriate model like distribution system to obtain and maintain the suitable status In today’s organizations customers are along with the organizations’ members in the production of goods and service delivery procedures of doing things and processes knowledge development and competitive advantage. Today based on this evidence and other facts it is not surprising that demand management programs and even distribution be considered as a priority.

DS assists the business organization to compete in the dynamic international market. The objective of DS is to incorporate activities across and within organizations for providing the customer value. This should also be applicable to the academia, which represents a type of non-profit organizations. The goal is to provide the society value by producing high quality graduates and research outcomes. An integrated educational supply chain involves coordination and information sharing up and down the process among all stakeholders. With technology facilitating information flow, a coordinated supply chain can be designed to meet the strategic, planning, and operating objectives of the educational institutions. It also means establishing effective and feasible relationships both inside and outside the organization (Sandelands, 1994).


1.2 Statement of the Problem

Distribution system is the management of upstream and downstream activities, resources, and relationships with suppliers and customers, which is required to deliver products or services. In theory, if distribution system is done well, it contributes to growth of the particular company by giving it a competitive advantage through differentiation and lower costs.

For the supply of raw materials used by manufacturing firms and supply of goods manufactured by manufacturing firms to be smooth, there must be an effective distribution system. Any weaknesses in the distribution system can severely affect production and delivery of products to consumers. This may have negative impacts on the profitability of the breweries. Lack of awareness of upcoming technologies telecommunications and IT impediments and energy supplies unreliable. Full package production and fast replenishment demands adequate IT systems to connect the buyer and supplier. This requires a modern and reliable telecommunications infrastructure, and backup from IT professionals.

Burt, et al (2003), De Boer, et al (2001), Sarkar, A (2006), and academic studies on distribution system, but none of them addressed logistics of distribution system in breweries. As a result, there is a knowledge gap that needs to be addressed. It is the objective of this study to fill that knowledge gap by focusing on Golden guinea brewery as a case study.


1.3 Objective of the Study

General Objective

The general objective of this study was to examine logistics of distribution system in breweries

  1. The study was guided by the following specific objectives;
  2. To examine distribution system practices used by Golden guinea brewery
  3. To assess the effectiveness of distribution system at Golden guinea brewery
  4. To identify logistics of implementation of supply chain strategies at Golden guinea brewery
  5. To identify measures to be taken to improve distribution system at Golden guinea brewery

1.4 Research Questions

General Research Question

What are the logistics of distribution system in breweries in Nigeria, specifically Nigeria Distilleries Limited?

Specific Research Questions
  1. What are distribution system practices used by Golden guinea brewery?
  2. How effective is distribution system at Golden guinea brewery?
  3. What are the challenges faced by Golden guinea brewery in implementing supply chain strategies?
  4. What measures should be taken to improve distribution system at Golden guinea brewery?

1.5 Significance of the Study

This study will serve as a guideline to all stakeholders in the procurement profession and manufacturing industry in Nigeria to establish distribution system practices used by Golden guinea brewery, the effectiveness of distribution system at the company factors that hinder implementation of distribution system at the company.

The findings of the study will also serve as a stepping stone for future researchers on the same or similar topics by suggesting areas that need further studies to be conducted. Last but not least, successful completion of the study will enable the researcher to partially fulfill the requirements for the award of a B.Sc in Business Administration.


1.6 Limitation of the Study

In conducting this research study, the researcher faced the following limitations:

Time constraint

The researcher is faced the limitation of time constraint due to the fact that this is an academic undertaking and it needs to be completed according to the academic almanac of the Open University of Nigeria (OUT). The time available for completing the study was only eight weeks, which was not enough. As a result, the researcher used only a smaller sample size so as to finish the study in time.

Financial constraints

The researcher was willing to cover more ground and involve a larger sample size for the study, however, due to financial constraints, this was not possible. As a result, the researcher had to limit the sample size and the timeframe used for conducting the study so as to complete the study within the constraints of the research timeframe and within the planned budget.


1.7 Organization of Work

The dissertation consists of five chapters. The first chapter contains background, statement of the problem, objectives, research questions, significance and limitations ofthe study. The second chapter consists of literature review, the third chapter consists of methodology of the study, the fourth chapter consists of research findings and the fifth chapter consists of conclusion and recommendations.


Chapter Five


Conclusion and Recommendation

5.1 Summary of the Findings

The study was carried out to examine logistics ofdistribution system in breweries by focusing on Golden guinea brewery as a cases study. Four specific research questions were imposed and these were: what are distribution system practices used by Golden guinea brewery? How effective is distribution system at Golden guinea brewery? What measures should be taken to improve distribution system at Golden guinea brewery?

Concern with distribution system practices used by Golden guinea brewery, there were nine constructs to be studies and the results obtained from analysis shown that the seven constructs which are planning for supply chain, supplier(s) relationship management, manufacturing flow management, product development management, customer service management, order fulfilment, and audit performance of supply chain were rated high at means of 3.74, 3.52, 3.65, 3.61, 3.57, 3.48, and 3.72 respectively. While the two constructs demand management and return management were rated low at means of3.23 and 2.16 respectively, and the average mean was 3.4.

On the other hand there were seven items for determining effectiveness of distribution system at Golden guinea brewery. The result were showing that selection of supplier(s), purchasing, transporting, stocking, and distribution were rated very high at means of 3.46, 3.66, 3.80, 3.67 and 3.60 respectively. While the remaining two items manufacturing and warehousing were rated 3.22 and 3.23 respectively. The average mean was 3.52 signifies respondents had agreed distribution system in Golden guinea brewery was strongly effectively used.

The results of the challenges faced by Golden guinea brewery in implementing supply chain strategies were as follow: high management cost of supply chain and improper production scheduling were ranked high with mean of 3.00 and 2.69 respectively. While employees’ incapability (2.06), low product quality performance (1.90), process and technology incapability (2.33), policies and regulatory appliance (2.47), improper distribution time (2.15), and supplier(s) misbehave (1.98) were rated low. Generally, average mean was (2.25) which imply challenges were not so much.

Lastly it was measures to be taken to improve distribution system at Golden guinea brewery. And the themes emerging from the discussion regarding measures to improve distribution system: improve team working and management, to expand market, employee more professional people, new machines, increase of employees’ awareness, deliver at right time and increase production


5.2 Conclusion

Using mean score methods of interpreting data the study concluded that distribution system in Golden guinea brewery was effectively practised. The average means score obtained was 3.4 which was interpreted as frequently use of studied constructs of supply chain. The constructs ranked high or identified to be frequently used in supply chain practised were: planning for supply chain, supplier(s) relationship management, manufacturing flow management, product development management, customer service management, order fulfilment, and audit performance of supply chain.

However, the study concluded that distribution system in Golden guinea brewery was very effective and well performing. All seven studied instruments for measuring effectiveness of the said management. The instruments were selection of supplier(s), purchasing, transporting, manufacturing, stocking, warehousing and distribution. These were positive and significant at the 5% level of significance. The third question wasasking for the challenges faced by Golden guinea brewery in implementation of supply chain strategies. In general the study concluded that the challenges were not so big, mean score method was applied to intemperate the results of this objective and the average mean score was 2.2.5 which was interpreted as the challenges was not so much. Areas which shown to be somehow challenge implementation of the supply chain strategies were management cost (mean 3.00) and improper production scheduling (mean 2.69). While challenges from other remained 6 items were rated not so much.

Lastly it was concluded that in order for the Golden guinea brewery to improve distribution system to better levels the following had to be carried out: improve team working and management, to expand market, employee more professional people, to adopt new production machines, increase of employees’ awareness, deliver products at right time and to increase production.


5.3 Recommendation

To improve distribution system practices at Golden guinea brewery, the researcher recommends the following measures to be taken by Golden guinea brewery; to avoid supply management challenges arising from the supplier side; in future supplier contracts, Golden guinea brewery should only consider suppliers who have demonstrated reliability by fulfilling its obligation of the contract despite any contingencies or emergencies that may arise. To overcome the challenge of lack of awareness on supply management practices among some of it’s staff members, Golden guinea brewery should provide frequent training to staff members on the best practices of distribution system in form of seminars and workshops. Golden guinea brewery and any organization intends to achieve operational efficiency and productivity must place great importance to the management of supply chain so as to reduce inventory, increase the speed of transactions, reduce cost and eliminate waste. Golden guinea brewery should invest more on the development and training of its employees through seminars, workshops and short study courses for effectiveness and efficiency in the performance of operations and the elimination of wastes.

The education and business communities must work more closely together to align educational programs with the academic and occupational skills necessary for 21st century manufacturing careers. Lastly researcher advised that effective logistics distribution system is of great necessity for organizational efficiency. To ensure high quality of materials the organization must maintain a constant quality and process checks and a partnership relationship with suppliers.


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