The Role Of Physical Distribution Function In A Manufacturing Company (A Case Study Of 7Up Bottling Company Aba)

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The Role Of Physical Distribution Function In A Manufacturing Company (A Case Study Of 7Up Bottling Company Aba)


This study is concerned with the analysis of physical distribution function in a manufacturing company with particular reference to 7up Bottling Company Aba. The researcher out lines the problems and development of physical distribution in his study. The introduction part gives a brief account of the meaning of physical distribution (general overview) the statement of problems, objective of the study, research question, hypothesis, scope of the study, limitation of the study and operational definition of terms Chapter two review of related literature, chapter three is devoted to methodology, chapter four shows the discussion of finding were made with a view to highlighting a sound basis for some possible solution. Chapter five witnessed the climax of the researcher rounded up by summarizing and concluding all findings by giving some recommendation. Finalized by giving some recommendation which is in my mind if adhere it could help to improve the physical distribution function in a manufacturing company.

Table of Contents

Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgment
  • Abstract
  • Table of Contents

Chapter One

1.0 Introduction

  • 1.1 General overview
  • 1.2 Statement of the problem
  • 1.3 Objective of the study
  • 1.4 Significance of the study
  • 1.5 Research question
  • 1.6 Hypothesis
  • 1.7 Scope of the study
  • 1.8 Limitation of the study
  • 1.9 Operational definitions of terms

Chapter Two

2.0 Review of Related Literature

  • 2.1 Historical back ground
  • 2.2 Components of physical distribution/Activity Centes
  • 2.3 Definition of physical distribution
  • 2.4 Physical distribution cost
  • 2.5 Cost control
  • 2.6 Customer services
  • 2.7 Importance of physical distribution
  • 2.8 Factors affecting choice of distribution (physical distribution)

Chapter Three

3.0 Research Methodology

  • 3.1 Introduction
  • 3.2 Research design
  • 3.3 Questionnaire design
  • 3.4 Sample Selection Population
  • 3.5 Sources of data
  • 3.5.1Primary source
  • 3.5.2 Secondary source
  • 3.6 Data collection techniques
  • 3.6.1 The survey
  • 3.6.2 Observation
  • 3.7 Method of data analysis

Chapter Four

4.0 Data Presentation and Analysis of Findings

  • 4.1 Data presentation
  • 4.2 Analysis of findings
  • 4.3 Testing of hypothesis
  • 4.4 Decision rule

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendations

  • 5.1 Summary of finding
  • 5.2 Conclusion
  • 5.3 Recommendations
  • Bibliography
  • Appendix

Chapter One

1.0 Introduction

1.1 General Overview Of Study

Production is deemed not complete until the products reach the consumer in the right quantity, at 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 goods produced get to the consumer.

Basically the aim of any company 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 generate cost, the aim of physical distribution 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”) is reference to the retailing on selling function means a vast firm which is composed of many thousand of out least ranging in size from the small corner shop to large super markets departmental stores and “CASH AND CARRY” ware houses all of which attempt to supply the needs of our consumer society.

Therefore, physical distribution management is concerned with the movement of raw materials and finished products from the suppliers to the manufacturer and customer (i.e the retailer). It is the link between manufacturing and production on one hand and the retailer and customer on the other hand. The simplest definition one can offer is that physical distribution is an integrated set of activities that deals with managing the movement of products within firms and through marketing channels.

1.2 Statement Of Problems Of The Study

This research work centre on the role of physical distribution function in a manufacturing company. It is not fail to torch on the problem emanating from there. These problem range from lack of adequate supervision, lack of storage facilities. The channel member are not effectively controlled as a result of which prices of the product differ from place to place and urban to rural areas. Another area lies in the hoarding of “beer” and its apparent scarcity lack of mechanized equipment for easy loading and off loading can not be left out. The scope of modern communication network is small to make impact in business transaction. The telephone service is confirmed to the urban area only and with few lines that off now and then making customers contract very difficult.

Warehousing are few and fan apart as a result of reasonable distance between depots and the customers price of product tends to be higher in remote areas of Aba.

1.3 Objectives Of The Study

It is very important that every study must have objective and thus one is not an exemption and it has the following objective.

  1. To identify the extend to which deport facilities limit the performance of the channel members
  2. To make recommendation on improving the distribution system of the company.

1.4 Significance Of The Study

It is the mind of the researcher that the findings and recommendation of this project work will be useful to many interested persons.

The significance of the study will include the following;

  1. This study will further enlighten the company on the role of physical distribution in the organization.
  2. This study will also enlighten the government on the importance of basic restructure amenities such as good roads for the distribution system in the state.

1.5 Research Questions

Based on this project topic and the objectives of the research as stated above the following research questions have been formulated.

  1. How does the company handle their operations and documents?
  2. What are the means of distribution the products to the depot?
  3. How many deports does the company have?
  4. Does the company have experienced driver?
  5. What is the company production capacity?
  6. How are breakages in transit treated?
  7. Is the middlemen willing to carry adequate stocks of inventory?
  8. Are storage and related materials handling facilities suitable
  9. Does improved customer services bring more customer to patronizing organizations products?
  10. Does efficiency in the distribution system contribution to profitability in an organization?

1.6 Hypothesis

The following are the hypothesis which will be tested;

Hypothesis 1
  • Ho: Effective physical distribution system does not contribute to increased profitability for an organization.
  • Hi: Effective physical distribution system contributes to increased profitability for an organization.
Hypothesis 2
  • Ho: Improved customer service does not attract many customers to organizations products
  • Hi: Improved customer service attracts many customers to organizations products.

1.7 Scope Of Study

The researcher will focus the study on the activities of physical distribution in 7up bottling company plc Aba.

In trying to identify the role of physical distribution function in-depth study will be taken on the present distribution arrangement of the company, loading and off loading system, stock holding and inventory control order.

Processing and administration, the documents used in delivery and dispatch and including the appointment of the distributions.

1.8 Limitation Of The Study

FINANCE: The source of income of the researcher is very low. As a result of this, he cannot afford the money for all the expenses he is going to incure or he is incurring.

  1. In actual service, this study should have involved the study of some of the manufacturing companies, but because of the geographical distribution of these firms, it was not practicable for the researcher to carryout research work on these firms.
  2. In view of this, the researcher has decided after careful study of all the various types of firms to concentrate on the 7up bottling company Aba.
  3. Another problem is lack of relevant data in some areas that could have helped the researcher in the study.
  4. There is also the problem caused by the attitude of 7up to project and also PHCN intermittent power failures.
  5. Also the problem of some uncompromising staff of the company cannot be left out.

1.9 Operational Definition Of Terms


When we want to take a decision about a given population we try to make an assumption made is called a statistical hypothesis. The assumption might be true of false.

Physical Distribution:

The physical flows of materials and final goods from point of origin to point of use or consumption to meet the needs of customers at a point or it is that managerial function concerned with the movement of material and finished goods from point of manufacture to the point of consumption through a channel.

Inventory Control:

This is the science based art of controlling the amount of stock held in various forms within a business unit to meet economically the demands placed upon it.

Re-Order Level:

This is a stock level when it is desirable to place a new order.


A storage place from where suppliers are made to customers.

• LTD:

This is an abbreviation for limited liability company. This is usually place after the business name.

• PLC:

This is an abbreviation for public limited liability company.


This is an acronym for the power holding company of Nigeria plc.

• Routing:

To fix the order to procedure of operations, in this case vehicles.

• Plant:

To tools machinery fixtures, buildings ground etc of a factory or business.

Chapter Five

5.0 Summary Findings, Conclusion And Recommendations

5.1 Summary Of Findings

The research work use the pattern as numbered above to examine and evaluate the dynamics developments in the 7up bottling company plc Aba with a focus on the efficiency and effectiveness of distribution of products. The main objective of this can be summarized as efficiency and profitability. The study explains how viable the 7up bottling company Aba may become if distribution, department is effectively managed.

The other objective of carrying out his study are-

  1. To determine exactly how too many channel members raise the cost of product.
  2. To identify the extent to which depots facilities limit the performance of the channel members.

The literature review of this section work was done in chapter two which was selected to give background view of what specialist in the field of physical distribution have researched on the subject matter in the past.

Then in chapter three, the researcher tried to obtain adequate and up to data information and worked carefully in order to make his work authentic and accurate. Method of data collection as it relates to an assessment of physical distribution function in consumer goods marketing. The analysis was facilitated by the use of questionnaire and personal interview as fact finding tools.

Discussion were earned out on finding which were aimed at highlighting the classical and sound intellectual base that would lead to possible solutions.

In chapter four the hypothesis were tested with the collected data from respondent and at the end it was discovered that effective physical distribution system contributes to increase probability for 7up bottling company Aba. Then, was confirmed by acceptance of the alternative hypothesis with result of the calculated value (18.16) against the critical value (15.51)

5.2 Conclusion

For goods or finished good produced by company to reach the final consumer, companies must maintain an efficient distribution system. Sales and revenue expectation of a manufacturing company are to a large extent dependent on distribution that a firm make sale or does not make sales depends on if the consumers get the product. Very often cost of distribution has tended to be greater than cost of production.

5.3 Recommendations

I recommended the following that there is a great need for provision of more depots than the company is having at the present. There depots will be located in the rural areas so as to make distribution faster.

Moreover, the depot should be refrigerated in order that the product would be in good conditions. There is also a great need for the professional in the field of physical distribution to be deploy by the 7up bottling company plc Aba.

The professional should have at last masters in physical distribution and transportation management so that there will be great efficiency and profitability in the sale of products.

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