MANAGING LOGISTICS AND DISTRIBUTION SYSTEM IN THE NIGERIAN CEMENT INDUSTRY
By
Author
Presented To
Department of Marketing
ABSTRACT
The success of logistics and distribution can be measured from the
extent of market coverage with products availability at reasonable
prices, the development of distribution facilities, the management of
logistics and distribution resources and the channels as well.
However, managing logistics and distribution system entails
planning, organizing, coordination and control of logistics and
distribution activities which ensures that products are made
available at the right time and places where needed. A well managed
logistics and distribution system does not only stabilize product
prices, but also enhances cost effectiveness, facilitates customer
satisfaction. However, customer satisfaction can be revealed in terms
of customer loyalty and retention. These benefits can equally serve a
firm as competitive strategy. Hence, making effective and efficient
use of Logistics and distribution components (transportation,
warehousing, inventory and order processing), organizations
products will be made available at the right times and places,
creating the time, place and possession utility which enhances the
form utility create during production. In view of the above, this
research work aimed at determining the effect of managing logistics
and distribution system in the Nigerian Cement Industry. Survey
research design was used for the study. Data were generated mainly
from primary source. Data were presented using tables. The four
hypotheses which were formulated were tested using chi-square. The
study revealed that managing logistics and distribution system will
lead to cost effectiveness, guarantee customer retention and loyalty,
enhance cement flow to the end users and that environmental factors
do have effect in the management of logistics and distribution
system. It is recommended that; Efforts should be consolidated in
maximizing logistics and distribution resources (transportation,
warehouses, and inventories)so as to achieving trade offs in order to
improve efficiency of operations and save cost. Also Dangote cement
should at all times determine the best practice in managing logistics
and distribution system. This is because optimum application of
logistics and distribution resources will guarantee customer
satisfaction which in turn will yield loyalty and retention.
TABLE OF CONTENTS
Cover Page . . . . . . . . . i
Title Page . . . . . . . . . . ii
Certification . . . . . . . . . iii
Approval Page . . . . . . . . . iv
Dedication . . . . . . . . . v
Acknowledgements . . . . . . . . vi
Abstract . . . . . . . . . . Vii
List of Tables . . . . . . . . . .xiii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study . . . . . . 1
1.2 Statement of the Problem . . . . . . .7
1.3 Objectives of the Study . . . . . . .9
1.4 Research Questions . . . . . . . .10
1.5 Research Hypotheses . . . . . . .11
1.6 Scope of the Study . . . . . . . .11
1.7 Limitations of the Study . . . . . . .12
1.8 Significance of the Study . . . . . . .12
1.9 Definitions of Terms . . . . . . . .13
References . . . . . . . . .16
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction . . . . . . . . .17
2.2 Conceptual Framework . . . . . . .17
2.3 Overview of Logistics and Distribution System . . .21
2.4 Strategic Importance of Logistics and
Distribution System Management . . . . .23
2.5 Components of Logistics and Distribution System . .25
2.5.1Transportation . . . . . . . . .27
2.5.2Warehousing Management . . . . . .30
2.5.3Inventory Management . . . . . . .37
2.5.4Order Processing . . . . . . . .45
2.6 Channels of Distribution . . . . . . .46
2.7 Managerial Issues in Logistics and Distribution System .53
2.8 Environmental Factors Affecting Logistics and
Distribution System . . . . . . . .56
2.9 Overview of the Nigerian Cement Industry . . .58
2.10 Company Profile: Dangote Cement Plc Gboko Plant . .63
2.11 Summary . . . . . . . . . .65
References . . . . . . . . .67
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction . . . . . . . . .69
3.2 Area of the Study . . . . . . . .69
3.3 Research Design . . . . . . . .69
3.4 Sources of Data . . . . . . . .70
3.5 Population of the Study. . . . . . . .71
3.6 Sample Size Determination . . . . . .72
3.7 Pilot Survey . . . . . . . . 72
3.8 Sampling Techniques . . . . . . .72
3.9 Instruments for Data Collection . . . . .73
3.10 Instrument Validity and Reliability . . . . .73
3.10 Date Presentations and Analysis Techniques . . .74
References . . . . . . . . .76
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction . . . . . . . . .77
4.2 Analysis of Data from Dangote Management Staff in
Benue State. . . . . . . . . . 78
4.3 Analysis of Data from Dangote Distributors in Benue State .93
4.4 Test of Hypotheses . . . . . . . .100
4.4.1Testing of Hypothesis I. . . . . . . .101
4.4.2Testing of Hypothesis II. . . . . . . .103
4.4.3Testing of Hypothesis III. . . . . . . .104
4.4.4Testing of Hypothesis IV . . . . . . .106
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS
5.1 Introduction . . . . . . . . .108
5.2 Summary of Findings . . . . . . .108
5.3 Conclusions . . . . . . . . .109
5.4 Recommendations . . . . . . . .110
Bibliography . . . . . . . . .113
Appendix A Questionnaire . . . . . .116
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