IMPACT OF PHYSICAL DISTRIBUTION ON CUSTOMER SERVICE A STUDY OF PARDEE FOODS NIGERIA LTD OGUN STATE

Abstract

This study was on impact of physical distribution on customer service. Three objectives were raised which included: To know the role of transportation in making the products available, to examine whether warehousing assure time utility of consumable product, to establish the effect of pardee foods Nigeria LTD distributors on customer service level and to determine the relationship between pardee foods Nigeria LTD distributors and customers service level. The study recommended that as it is the most efficient way to position itself in the market, the business should provide high-quality physical distribution services. The firm should concentrate on effective delivery as one of the key components to service-oriented business enterprises’ success access customers’ knowledge of the products’ availability and their capacity to make purchases, and support.

Chapter one

Introduction

1.1Background of the study

The importance of the distribution system in influencing the final demand for a product is a result of the escalating rivalry, rising customer expectations, and similarity of the basic products that are offered. As it gets more challenging for businesses in the fast-moving consumer goods industry

To compete on a pure product level, particularly in the food market, creative people are seeking elsewhere for a competitive edge. A strong distribution network can provide a business with a major competitive edge (Schewe and Hiam,1998).

Choosing an effective distribution strategy is crucial for the majority of businesses. Through their selection of distribution systems, which are incorporated into coherent and well-executed business models, several organizations have created long-lasting competitive advantages. An effective distribution system is essential to a business’s successful operations. Additionally, businesses with the highest rates of customer retention make the most money. (2009) Mei Su Chen

Distribution, according to Weiss and Gershon (2002), refers to all the logistics necessary to deliver a company’s goods or services to the appropriate location at the appropriate time for the least amount of money. The distribution channel that a company chooses plays a critical part in the never-ending process of achieving these aims. Poorly designed or chosen channels can cause even a better product or service to fail in the market, whereas well-chosen channels represent a considerable competitive advantage. Effective distribution offers customers convenience in the form of accessibility (customers’ awareness of the availability and authorization to purchase), availability (what, where, when – the appropriate product, at the right place, at the right time), and assistance.

Physical distribution has typically concentrated on the items at the factory and sought out inexpensive ways to deliver them to customers. Physical distribution, according to Kotler, deals with both the issue of transporting goods from a factory to a consumer as well as the issue of moving goods from suppliers to a factory. It entails the management of the complete supply chain value added flows from suppliers to end users. The study explores how physical dispersion affects the quality of customer assistance.

Transporting, storing, and handling commodities to meet consumer needs is known as physical distribution. Kotler (2005). Physical distribution includes order processing, warehousing, material handling, and inventory control as well as the processes needed to deliver finished items from manufacturers to ultimate customers final consumers MR Michael (2003).

According to Boon and Kurtz (2003) “physical distribution 1s an organized group of components linked according to a plan for achieving specific objectives with the components of customer service, transportation, inventory control that is how much inventory a firm should maintain at each location, protective packaging and material handling that is how the firm can efficiently handle goods in the factory, warehouse and transport terminals, order processing, warehousing that is where the distribution system will locate stock of goods, the number of warehouses the firm should maintain”.

Statement of the problem

Pardee foods Nigeria LTD producers have created a variety of physical distribution methods in response to intense worldwide rivalry in order to effectively serve their customers and outperform rivals. As a result, the study aims to examine how pardee foods distributors affect the quality of customer service.

Objective of the study

This study aims at highlighting the importance of physical distribution in customer service a study of pardee foods Nigeria LTD Ogun state

1   To know the role of transportation in making the products available.

2     To examine whether warehousing assure time utility of consumable product.

3     To establish the effect of pardee foods Nigeria LTD distributors on customer service level.

4. To determine the relationship between pardee foods Nigeria LTD distributors and customers service level.

Research Hypotheses

The following research hypotheses are formulated;

H1: there is no effect of pardee foods Nigeria LTD distributors on customer service level.

H2: there is no relationship between pardee foods Nigeria LTD distributors and customers service level

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