Description
CHAPTER ONE
1.0 INTRODUCTION
The word ?logistics? emanated from the military and it actually connotes the movement of materials, supplies, instrument, equipment, ammunition as well as troops from one location to another, especially in time of war. The concept of logistics and other relation supply chain components such as procurement, inventory, storage, traffic and distribution management all has their history traceable to military operation research and management. However, as strategic management began to take its root in business and economic operation, logistics management loomed so large that it becomes too important to be disposing with. Again, the place of logistics operation and management is further emphasized by the fact the international trade relationships have warranted a mass movement of varieties of commodities, machinery, equipment, components, parts raw materials etc. across frontiers, owing to such variable as distance, nature of consignments weight and size of consignment, challenges posed by notes and channel of transportation was well as various other complex issues, it has long been realized that logistics management, planning and control are activities that call for the highest level of mental alertness, finesse and cognitive complexity root only the, logistics operation are areas of business activities which are vocative that they continue to attract a lot of legal attention from time to time.
Fundamentally, logistics and its various components have formed the new of virtually all categories of business organization. This has resulted from the fact that no product or commodity has any economic value until it get to the final consumer. Interestingly, the chain of activities that ensure that materials, goods, commodities of product get to the final consumer are supply chain or logistics activities. Therefore, most business enterprises are logistics activities. Therefore, most business enterprises are logistics driven.
Since logistics advance of the 1950s there are numerous effort focuses on this area in different application. Due to the trend of nationalization and globalization recent decade, the important of logistics management has been given the various areas. For industries, logistics help to optimize the existing product and distribution process base on same resources through management technique for promoting the efficiency and competiveness of enterprise, the key element in logistics chain in distribution system which joins the separate activities.
Logistics, is the process of planning, implementing and controlling the efficient, effective flow and storage of good, service are related information from the point of origin to the point of consumption for the purpose of confirming to customer requirement.
Heoket, glaskowsky and lvie (1973) defined logistics as the management of all activities which facilitate movement and the coordination of supply and demand in the creation of time and place utility.
Wikipedia (2006) defined logistics as the art and science of managing and controlling the flow of good, energy, and other resources.
The chartered institution of logistics and transports (uk) (2005) defines logistics as the position of resources at the right time, in the right place, at the right cost, at the right quantity.
With all the sighted definition, it becomes very clean that logistics has to do with the efficient transfer of good from the source of supply through the place of manufacture to the point of consumption in a cost ? efficient way why providing and acceptable service to the customers.
Distribution is the key function that adds value across the supply chain and play on strategic role. The important of the supply chain can be seen in the classical example in supply chain like Wal-Mart, Fed EX, and UPS. The cornerstone of such operation are a vast array of ware housing facility in information network access, despite the success story of such example, new trends are emerging in the market, the two most domination been a shift from the buy-hold-sell (BHS) to tell sell ? source ? ship (53) molded of distribution, new value ? adding roles, and in the continues globalization of distribution business. A shift in distribution model. The dynamic nature of market technological development and demanding customers has caused distributors to adjust their way of doing business. Traditionally, distributor buy goods hold them in warehouse until they are required and then sell them to retail level customers. The model is been challenge by a more cost effective time ? phased delivering of goods model which reduce cost associated with inventory and respond more quickly to customer demands ?sell-sources ship (53) is displacing the buy ? hold ? sell (BHS) model of distribution. (Girard 1999).
1.2 OBJECTIVE OF THE STUDY
The general objective of the research project will be to investigate whether there are some factors that affect customer?s satisfaction through effective distribution logistics among production firm in Nigeria.
Specific Objectives of the Study are as follow:
1. To identify some specific areas of gaps and deficiencies in logistics and distribution systems that impact on customer?s satisfaction.
2. To establish the relationship between effective logistics and distribution systems and customer?s satisfaction especially with Cadbury Nigeria Plc products.
1.3 RESEARCH QUESTION
1. Do ineffective Logistics and distribution systems of a firm impact on customers Satisfaction?
2. Is there any significant difference between effective logistics system and customers satisfaction with specific reference to Cadbury Nigeria Plc?
3. Does effective distribution impact mindful of the fact that production is not complete until goods and services get down to the final consumers?
1.4 SCOPE OF THE STUDY
The study distribution and logistics in achieving customers satisfaction could have been extended to cover a widen areas but because of some limiting factors the scope of the study is limited only to Cadbury Industry.
1.5 LIMITATION OF THE STUDY
The researcher encountered many problems in the process of carrying out this study. The main problem was the collection of needed. Information in Cadbury Nigeria Plc. A lot of protocol had to be observed which served as a clog in the wheel of progress of the study.
The researcher also faced financial challenges as the project work involved traveling from place to place for the collection of data. The time collection of the conducting of the researcher was inadequate and most thing were done in hate in order to meet up with the submission date.
1.6 SIGNIFICANCE OF THE STUDY
The research will enable the researcher to have broad knowledge of achieving customer?s satisfaction through effective distribution and logistics system.
The research work will afford future researchers to use this work as a reference material.
The study will enhance the reputation of the case study (Cadbury Nigeria plc) engaging in this research will help build the company brand.
1.7 DEFINITION OF KEY TERMS
Logistics: is concerned with getting product and services where they are needed whenever they are desired.
Distribution: means making good and services available to the customers and the most convenient place in a reasonable price.
Distribution: means to speed the products throughout the market place such that a large number of people can buy it.
Distribution Strategy: is the planned course of action undertaken to achieve the aim and objective of an organization.
Distribution management: means activities as warehousing, materials are holding, packaging, stock control, order processing and transportation.
Channel of Distribution: refers to a various avenue, place, platform, through which good and service past before they got too the final consumer.
1.8 HISTORICAL BACKGORUND OF CADBURY NIGERIA PLC.
The of Cadbury Nigeria PLC dates back to the 1950s when the business was founded as an operational to source. Cocoa beans from Nigeria as a precursor to enable the company?s founders to tip opportunity, for serving the local customer market with world-famous Cadbury branded product. In the early 1960s, an initial operation was established to repack imported bulk product. This packing operation grew rapidly in to fully fledge manufacturing operation and resulted in the incorporation of Cadbury Nigeria Limited in January 1965, in 1975, the firm become a publicly listed company with shares trades locally on the Nigeria stock exchanges.
Cadbury Nigeria has grown to become a household name providing consumer with much love bands and revenue of #35.75b in 2013 and #50b in 2015 in Asset.
RICH PORTFOLIO OF HIGH QUALITY BRANDS CADBURY PLC
Introduce in the year 1960, Cadbury Bournvita, the company flagship brand, was initially imported and repack locally on the general side at Agindinhbi Ikeja Lagos. Having consolidate the food Drink market in Nigeria, Cadbury Bournvita was re-launched in a world class, environmentally friendly, poly propylene jar in 2011 and remain today a market leader in the food Drinks categories, In 2013, the Nutrition society of Nigeria (NSN) endorsed Cadbury Bournvita as a food drink rich in energy and essential micronutrients, the only food drink brand to be so endorsed.
OTHER BRANDS IN THE PORTFOLIO
Cadbury also develop other product categories most notable candy, introduce in 1970, Tom Tom the big, black and white sweet for soothing relief which was sustained market leadership for over 40years remains the most Iconic brand in Nigeria candy market. It now carried in there variant classic, honey lemon and Strawberry. The other brand in the company?s candy portfolio is Trebor, Butter mint, the delicious sweet with the double pleasure of butter in 2012, the company expanded in product categories in Nigeria when it launched Tang, the global leader in powered beverages.
ANCULLARY BUSINESS
Cadbury Nigeria owned 99.61% equity in Stan mark Cocoa processing company limited, located in Ondo town in Ondo state, Nigeria. The company provide, all the Cocoa powdered required for manufacturing Cadbury, Bournvita, Stand mark Cocoa process company limited processing cocoa, bean in to several high quality cocoa by product (such as Cocoa butter, cocoa liquor) for local and export market, in April 2013 Cadbury Nigeria acquired the majority equity interest in Stan mark cocoa processing company limited, becoming part of the enhances Cadbury Nigeria fairly and now known as Cadbury Nigeria PLC cocoa processing plant.
The company has since grown originally to become of the leading manufacturers in Nigeria, with a rising profile in the Europe Middle East Africa (EMEA). Listed on the Nigeria Exchange since 1976, Cadbury is in the top 10 of the 258 quoted equities by market capitalism at the end of 2002. Cadbury Schweppes currently owns 46.3% of the equity, with the balance stock held by about 40,000 individual and institutional shareholders.
Cadbury Nigeria is one of the few Signatories till date to the convention on Business Integrity.
SHARE HOLDING STRUCTURE
Mondelez international was majority equity interest of 74.77% in Cadbury Nigeria through its holding in Cadbury Schweppes overseas limited. The remain 25.03% equity ownership is held by a diverse group of Nigeria individual and institutional shareholder.
1.10 CORPORATE SOCIAL RESPONSIBILITY OF CADBURY NIGERIA PLC
Nigerians have showered encomium on the nation?s leading Food drink, Cadbury Bournvita, on its contribution towards uplifting and identifying with its core target audience through its numerous corporate social Responsibility (CBR) initiatives some of the renowned Cadbury Bournvita CSR endeavors include breast cancer awareness campaign for mother, Children to support breast cancer awareness Campaign undertaken by Children, Ramadan seasonal reward for Muslim consumers and sponsorship of the LTV Christmas Funfair, BCOS fun park in Ibadan and calabar Children Carnival.
Speaking with the Tide at Cadbury Bournvita sponsored LTV Christmas funfair in Lagos, across section of mother at the amusement park said that apart from the brand key role in Children mental and health development, Bournvita has contributed immensely to the socio-economic life of its core target market, which are Children and Mothers.
Mrs. Abimbola Ajakaye, civil servant said, ?Bournvita is a good corporate citizen. Apart from providing world number Ore food drink, which standard and quality can be measured to anyone in the world? It is a brand that does not lose touch of its operating environmental and people patronizing it?.
According to the marketing manager, food and chocolates Cadbury Nigeria, Mrs. Bukky Bandele ?Bournvita a very proud to be official sponsor of the carnival calabar Children?s party 2007 Bournvita has an unrivalled pedigree an nourishing the bodies and mind of tomorrow?s leaders and we are looking forward to a great future all over the counting from all over the country who will be arriving in calabar for the Carnival?.
While visiting the park, the managing director Christmas is great kind of time in the year and it is a fantastic opportunity to partnering with our core target market Children and mother and LTV in the Christmas Fun-fair Cadbury and LTV are about 300 yard apart, there are in the same community and we like to be here and obviously Children are having a great time, which remains Cadbury Bournvita Cardinal Principle?.
The managing Director also affirmed Nigeria has the biggest market for the brand in Africa.
Throughout its history, Cadbury Bournvita has continuously re-invented itself in terms of product, packaging, promotion and distribution, the Cadbury lineage and rich brand heritage has helped the brand maintains its leadership position and image over the last 50 years.