CHAPTER ONE

INTRODUCTION

1.1BACKGROUND OF THE STUDY

The physical transfer of merchandise or goods is traceable to the most primitive people the field of physical distribution did not gain access general acceptance until complex operation system become necessary for business management or administration. Although the process of physical distribution is as old as organized trade, the scientific system of integrated physical distribution system emerged only in the past few decades.

          In a free society, management has large latitude in selecting system of distribution. One firm may select a system to provide all customer with a safely delivery. Another firm, in the same industry, may also decide that delivery within a shortest possible time of order receipt is sufficient to maintain market position.

          The determination of how much service to provide to customers which is a central issue in physical distribution planning is important. Service cost money and all firms wish to save money, but without adequate customer service they may be little or no sale, little or no profit and off course little or no survival.

1.2       STATEMENT OF PROBLEM

The problem to the examined is the problem associated with the channel of distribution and their impact on the company sales turn over.

          When distribution problem arise, the route or path which goods and services flow are blocked. This gives the marketer much concern and to find out among other item the probability causes of the problem and their immediate solution.

          Lack of selective distribution may arise as a result of low sales and low profit by companies. This project report is therefore aimed at showing the way in which a company can pattern it’s distribution channel in other to overcome low sales and at the same time obtain high profit.

1.3    RESEARCH QUESTIONS

a)          Does the present distribution of the company and with a view to determine it level of efficiency?

b)         What is the level of service provide by the company and the customers experience, any inconvenience in achieving the product in obtaining the product?

c)          Does the company provide enough warehousing facilities to meet it production capacity?

d)         Is there are enough value to the supply of the product to the company distribution outlet?

1.4       OBJECTIVE OF STUDY

          The ultimate objective of this research report is

a)    To study the present distribution of the company and with a view to determine it level of efficiency.

b)   To find out the level of service provide by the company and the customers experience, any inconvenience in achieving the product in obtaining the product.

c)    To find out whether the company provide enough warehousing facilities to meet it production capacity.

d)   To determine if there are enough value to the supply of the product to the company distribution outlet.

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