CHAPTER ONE

INTRODUCTION

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.

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