Full Project – Effect and challenges of cost on warehouse in the distribution of goods and services in Lagos

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Effect and challenges of cost on warehouse in the distribution of goods and services in Lagos

(A CASE STUDY OF NIGERIAN BOTTLING COMPANY PLC, LAGOS)

ABSTRACT

This work is to look into Effect and challenges of cost on warehouse in the distribution of goods and services in Lagos, using Nigerian Bottling Company plc, Lagos, as a case study. The work covers the necessary requirements for effective warehousing management on physical distribution. It starts with the introduction on the subject matter. Chapter two reviews some of the literatures that are related to the subject under study. chapter three covers the research methodology and the design. Chapter four puts forward the analysis and presentation of the data gotten in the course of the research while chapter five summarizes the study and thereby gives the necessary recommendations about the impact of effective warehousing management on physical distribution.

 TABLE OF CONTENTS

Title          —              —              —              —              i

Approval                   —              —              —              ii

Dedication–               —              —              —              iii

Acknowledgement      —              —              —              iv

Abstract     —              —              —              —              vi

Table of Content —              —              —              viii

CHAPTER ONE

1.0      INTRODUCTION   —                 —                 —                 1

1.1      BACKGROUND OF THE STUDY  —                 —                 1

1.2      STATEMENT OF PROBLEM         —                 —                 3

1.3      OBJECTIVE OF STUDY               —                 —                 4

1.4      SIGNIFICANCE OF THE STUDY   —                 —                 6

1.5      RESEARCH QUESTIONS              —                 —                 7

1.6      STATEMENT OF HYPOTHESIS    —                 —                 8

1.7      SCOPE OF STUDY   —                 —                 —                 8

1.8      LIMITATION OF STUDY             —                 —                 8

1.9      DEFINITION OF TERMS             —                 —                 10

CHAPTER TWO

2.0     LITERATURE REVIEW                 —                 —                 14

2.1      REVIEW OF RELATED LITERATURE                 —                 14

2.1      DEFINITION OF WAREHOUSE MANAGEMENT                  15

2.2     ACTIVITIES INVOLVED IN WAREHOUSE

MANAGEMENT      —                 —                 —                 20

2.3     TYPES OF WAREHOUSE             —                 —                 25

2.4     TYPES OF WAREHOUSE WITH REGARDS TO

OWNERSHIP STRUCTURE –                  —                 27

2.5     WAREHOUSE LOCATION AND SETUP            —                 29

2.6     WAREHOUSE SETUP                  —                 —                 32

2.6     FACTORS AFFECTING WAREHOUSE MANAGEMENT         34

2.7     SCOPE OF WAREHOUSE MANAGEMENT SYSTEM              38

2.8     DEFINITION OF PHYSICAL DISTRIBUTION     —                 39

2.9     OBJECTIVE OF PHYSICAL DISTRIBUTION       —                 40

2.10    LOGISTICS AND DELIVERY PLANNING           —                 42

2.11    COST OF PRODUCTION            —                 —                 42

2.12    METHODS OF DISTRIBUTING GOODS —                 43

2.12    PLANNING A DISTRIBUTION SYSTEM            —                 44

 CHAPTER THREE

3.0     RESEARCH DESIGN AND METHODOLOGY     —                 46

3.1      INTRODUCTION   —                 —                 —                 46

3.2     RESEARCH DESIGN          —                 —                 46

3.3     SOURCES/METHODS OF DATA COLLECTION           47

3.4     POPULATION AND SAMPLE       —                 —                 48

3.5     SAMPLE TECHNIQUE                 —                 —                 50

3.6     VALIDITY AND RELIABILITY OF MEASURING

INSTRUMENT        —                 —                 –                  51

3.7     METHOD OF DATA ANALYSIS    —                 —                 51

CHAPTER FOUR

4.0     DATA PRESENTATION AND ANALYSIS           —                 54

4.1      DATA PRESENTATION               —                 —                 54

4.2     ANALYSIS OF DATA                  —                 —                 55

4.3     TESTING OF HYPOTHESIS          —                 —                 72

4.4     DISCUSSION ON MAJOR FINDINGS               —                 82

CHAPTER FIVE   

5.0     SUMMARY, CONCLUSION AND RECOMMENDATION       84

5.1      INTRODUCTION   —                 —                 —                 84

5.2     SUMMARY             —                 —                 —                 85

5.3     CONCLUSION        —                 —                 —                 86

5.3     RECOMMENDATION                 —                 —                 88

REFERENCES                    —                 —                 —                 92

APPENDIX    —                 —                 —                 –                  94

QUESTIONNAIRE             —                 —                 —                 96

CHAPTER ONE

1.0   INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The function of Warehouse management is to cost effective storage. In a suitable condition for the organization materials to enhance effective rendering of customer services.

The existence to which a warehouse is justified is also to that extent to which it contributes to the efficiency and effectiveness of physical distribution function.

The geographical locations of a warehouse operation should therefore be determined by sites and physical position of target markets.

However, in some development countries as Nigeria, political conditions have some time over reddened economic arguments and facilities such ware-house go down.

Warehouse managers have a number of important challenges, which include determination of most appropriate unit load, optimizing space, utilization, reducing the movement of labour, equipment satisfy, secure warehouse environment and keeping cost to a minimum.

An earlier resource pack describes the decision that must be taken when a company organizes a channel.

According to Plasacka (1978: 25) initially a system to control movement and storage of warehouse management system (WMS) is expanded to include light manufacturing, transportation management other management and complete accounting system.

What is clear is that the operation or expansion of the overlapping functionality between warehouse management system and other functional areas is the physical distribution of materials.

Even though, warehouse management contributes to gain added functionality the initial core functionality of a warehouse management system has not changed.

The primary purpose of warehouse management is to control the movement and storage of materials within an operation.

The detailed set up and processing within a warehouse management system in the area of case study; Nigerian Bottling Company Lagos, varies significantly from one material to another.

1.2   STATEMENT OF PROBLEM

This research is intended to find out answers to the problems to the problems inherent in the organization. Some of the specific problem these organizations are under listed below:

1. Companies and consumer face the problem of getting their materials to the market.
2. Some rural areas where distributing warehouse could be located have no access roads.
3. There are ineffective handling and storage of materials in the various ware house and poor control of movement of materials.
4. The difficulty of managing the materials in the ware house on order to identify the expired goods.
5. There are sometimes delay of goods to the various warehouse to meet customer demand due to poor scheduling of vehicles.

1.3   OBJECTIVE OF STUDY

The primary objective is to highlight the impact of warehouse management in the achievement of physical distribution objectives which focus on the control of movement storage and distribution of materials. The objective is not only to see to the increase of customer services but also the flow and distribution of goods in the organization.

When there is a breakdown in the improvement of warehouse management is also a decrease on profitability.

In view of these, the prime objectives of the study are under listed below:

1. To ascertain the reasons goods are not available in some ware house located outside the organization.
2. To determine the degree of effectiveness and efficiency to which ware-house management approach has been adopted in the organization.
3. To examine the type of staff involved in the various ware house management activities.
4. To identify the need for effective physical distribution in a production organization such as Nigerian Bottling Company Lagos.
5. To also identify the contribution of warehouse management to profitability of the organization as a whole

1.4   SIGNIFICANCE OF THE STUDY

1. The study will help the researcher and selected organization within Lagos to know the need for effective ware house management on physical distribution.
2. The study will help the organization to know it’s materials inputs and output in order to improve physical distribution.
3. The research will help to increase the globalization of the business as well as that of distributors.
4. The study will provide good knowledge and intelligent about the physical distribution which enables the organization to acquire it’s materials effectively.

1.5   RESEARCH QUESTIONS

The research question is formulated to give a precise direction to the readers and other researchers and planners who may wish to research on this topic.

The research questions are:

1. What training schemes are available for warehouse management personnel?
2. What kind of control measures are employed in the management of the organization?

• What are the reasons for non-availability of goods in the outreach ware house?

1. How does each ware house function contribute to cost reduction and increase customer service in the organization?
2. What are the possible methods to apply in developing reliable storage and distribution of goods to customers?
3. How transportation does affect the functions of ware house management?

1.6   STATEMENT OF HYPOTHESIS

There are two forms hypothesis namely the null hypothesis (Ho) and the alternative hypothesis (Hi) Null is the assumption of the result of research project while the alternative denotes the positive assumption of the result.

1.7   SCOPE OF STUDY

The organizational area chosen by the research is Lagos zone in Lagos-staff and the organization in which the research is being conducted is Nigerian Bottling Company Plc Lagos. The study had time financial and information constraints that limited the scope of the study.

1.8   LIMITATION OF STUDY

While carrying out this research, the researcher was confronted with a number of limitations which includes:

1. Financial Constraints: This played a great part in limiting the researchers strength with the present state of the economic militated to a large extent to the limitation of this project work, because a lot of money is required for project exercise.
2. Inadequate Information: This project was also affected by inadequate materials for research in libraries. The researcher could not beyond this scope because of lack of adequate secondary date relevant to the area of study.

• Time Constraint: This also created much limitation to the progress of this work. The time allocated for the work was not enough and the researcher combined course work with this research.

Time sharing therefore becomes difficult.

1.9   DEFINITION OF TERMS

The following terms are defined as:

1. Ware House: A large building strongly designed and built with proper security
2. Management: The act of running and controlling a business organization.
3. Distribution: The proper deliveries of goods to various ware house locations to enable the materials get to the target market.
4. Handling Equipment: Equipments used in carrying goods
5. Receipts and Issue: The process of reacting to the demand of user for goods and services held within the store
6. Vehicle Scheduling and Routing: The process of scheduling vehicles to match delivery through routs to ensure quick and sate delivery of goods and materials to the consumers.
7. Inventory Control: The process of controlling and maintain the level of stocks spare parts at a state level.
8. Transportation: The mode or modes of shipping the goods to customers or middlemen.
9. Captive Distribution: This is a contractual agreement between the producer and the industrial distributor.
10. Protective Packaging: The protective packaging function of physical distribution which is meant to protect the industrial products during shipments and ware housing activities
11. Field Inventory Control: A process whereby inventory is maintained properly in the field ware house in order to meet the needs of the customers.
12. Field Ware Housing: The physical location of ware house in the field to best meet the demand of the customers.
13. Materials Handling: A process of handling materials through the transfer point i.e. leading and unloading of materials.
14. Physical Distribution and Transport Management: The management function which involves efficient movement of raw materials work in progress, finished goods inventory from source to product use.
15. Ware housing: The storage of goods within the private and or public ware house to ensure optimal level of delivering services at a minimum cost.
16. Services: The overriding objectives of every physical distribution system.
17. Scheduling: Programming to ensure that all the materials are they are supposed to be and when to be, in the quantity and quality they are supposed to be.
18. Control: Necessary steps to ensure that the individual plans are achieved.
19. Loading: A stage in production that is basically centered on the implementation of the schedules.

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Full Project – Effect and challenges of cost on warehouse in the distribution of goods and services in Lagos