An Analysis of Impact of Warehousing in the Efficient Distribution of Toilet Soap

“An Analysis of Impact of Warehousing in the Efficient Distribution of Toilet Soap (A case study of Orange Drug).

CHAPTER ONE

1.0 Introduction

1.1 Background of the Study

Marketing is not complete until the product produced get to the final consumer. Great wonder said that increasing numbers of people are questioning whether distribution has a useful role in marketing of products. Since consumer can as well go to shop or the manufacture to buy the products without distributing them to where they are living hence, using directs channel currently, modern marketing concept holds the consumer supreme and creating avenues to satisfy them profitably. People used to think that marketing commerce only after production of goods and services. When the physical movement of such products are being performed as well as promotion, advertising, personal selling etc. As soon as a firm acquire some inventories, the need to have some storage facilities in the form of warehouse will arise in addition to have distribution centres from where such inventories would be replaced a warehouse performs  the functions of receiving the goods, sorting, storing displaying, selling and even the shipment of these goods to the customers profitability. Warehousing deals with the accumulation of product from time to time for the purpose of equalizing supplied over a certain period of time. The analysing of the impact of warehousing on the efficient distribution to toilet soap calls for understanding of the consumers needs and wants. One way to produce a product available at every point on time so that consumer will not be searching for ways to satisfying their needs thereby left with the only option of patronizing the competitors. One of the assumptions that underlying production concept is that the major of organization is to keep improving manufacturing and distribution efficiency as well as lowering price to attract customer patronage. Similarly warehouses are established near the markets in order to efficiently facilitate consumers satisfaction through increase customers services.

BRIEF HISTORY OF THE ORANGE DRUGS

After working in his family owned chemist shop Eastern industrial chemist for 13 years, Sir Tony Ezenna went on to establish his own pharmaceutical company. Orange Drugs Limited (ODI) leveraging leadership and managerial skill he acquired from his experience with Eastern industrial chemist. ODI was registers and incorporated on the 20^th of July, 1988 with number RC 115913. Its first office was in Ikenegbu Owerri Imo state in 1989 which later moved to Lagos state so as to corporate office was located and internationally ODL’S first corporate office was located at 4B Okupe estate, mende, Maryland, Lagos and in 2001, the company moved to its present Head office at 66/68 Town planning way, Ilupeju, Lagos with branches in different parts of the country.

Orange Drugs is a limited liability company with authorized fully part share capital of N5 million naira. It is owned in the marketing and distributed of well tested drugs. Manufactured in Indonesia, Italy, India, Germany and the United states of America with the Nigeria consumer in mind. Subsequently, orange Drugs limited joined the beauty care industries through the importation of soaps, creams and other beauty product. By 2006, the company commence the local production of different brands of soaps in Lagos and this was aimed at boosting the Nigeria manufacturing sector and also creating jobs for the populace in order to meet up with the challenges on the global economy, Orange Drug Limited later diversified its line of business by the establishment of Orange Kalbe LTD and Orange West African Limited leading to the formation of Orange Group.

1.2 Statement of the Problem

For several years, Orange Drugs of its inception operates under dynamism of marketing environment. For so many years now Orange drugs has been the leading company in the Toilet soap industry. However, the entry of other Toilet soap firm has posed a threat to the operations of the Orange Drugs.

To that effect, it has been alleged that ineffective ware- housing has been associated with the operation of the company.

The problems are as follows:

1. There is sufficient warehousing provision
2. Wrong location of warehouses associated with the company affects the sales performance.

• Death of competent warehousing managers in the company.

1. Relegation of marketing research efforts disturbs the effective and efficient distribution of soft drinks however by the end of this investigation, we shall know if it is facing the problem so alleged.

1.3 Purpose of the Study

With response to the alleged problems facing the Orange Drugs. The researcher embarks to find out the impact of warehousing on the efficient distribution of toilet soap of Orange Drugs.

Therefore, the specific objectives are stated here as follows

1. To find out the relationship between warehousing and effective distribution of toilet soap.
2. To find out if warehousing has significant impact on the sales performance of the orange Drugs Toilet Soap.

• To discover the cost implications of warehousing on the profit level of Orange Drugs.

1. To ascertain which among the channel warehousing facilities.
2. Finally, to recommend a more effective and efficient way of distributing toilet soap of the orange Drugs.

1.4 Significance of the Study

This research work on analysis impact of warehousing on the different distribution of toilet soap of Orange Drugs is significance to the company. This because Orange Drugs Company occupies a sizeable portion of entire Toilet soap industry of the economy.

Moreover, the study with help the company in having a competitive edge over all the other toilet soap firms as the level of competitive performance of other brands are seen in the market. Besides, the research is useful in such a way that it will be of immense benefits to students who may be interested in this area of the study.

Finally, marketing practitioners equally enjoy some activities in the work since the questionnaires and interview will be made to the field staff work. Therefore, wealth of experience are obtained on the data, gathered analysis and presented.

 

 

1.5 Research Question

For proper investigation of the study the following questions are put forward.

1. Is there significant of toilet soap of Orange Drugs?
2. Does warehousing have any significant impact on the sales performance of the orange Drugs?

• What is the cost implication of warehousing on the profit level of Orange Drugs?

1. Which among the channel members is responsible for the provision of warehousing facilities in your company?

1.7 Scope of the Study

This research work essentially deals with the analysis of impact of warehousing and efficient distribution of toilet soap of Orange Drugs; the researcher focuses only on the Orange Drugs. This means that the researcher did not recognise any other toilet soaps firms.

 

 

1.8 Definitions of the Terms

For easy understanding of terms adopted by the researchers, the following terminologies are hereby defined as follows:

Marketing: this is a social and managerial process by which individuals and group obtained what they need and wants through creating and exchanging value with others.

Market Research: this is concerned with investigation into an entire marketing programme including products, design, pricing distribution, promotion.

Market:  the Actual and potential customers who wants or need a product and who are willing and able to exchange something for it.

Distribution: This deals with the planning implementing and controlling the physical flow of raw materials, final goods, service and related information from point of origin to point of consumption to meet customer requirement at a profit.

Warehousing: This involves receiving, transfer, selection, shipping and storage of goods to the appropriate location in the warehouse.

Warehouse: this is a placed were finished goods are stored until they are sold.

Product: A good service or idea for which customers will exchange money or something else value.

Marketing Channel: A system designed to more goods and services from producers to customers which consist of people and organization supported by various facilities equipment and information resource.

Marketing Intermediaries: People or organizations that assist in the flow of product in a marketing channel.

Retail: Intermediaries that sell to final customers. They purchase goods from wholesalers and in some cases directly from the producers.

Wholesalers: Intermediaries that performs a variety of marketing functions more goods and services through the channels to retailers and organizational customers.

Transportation: the provision and adequate management of the right quality and quantity of vehicles for the evacuation of finished goods from the factory, on plant warehouses to firms various market.

 

 

 

 

 

 

 

 

 

CHAPTER TWO

2.0 Literature Review

2.1 Introduction

This research is to analyse the impact of warehousing on the efficient distribution of toilet soap of Orange Drugs. Warehousing occupies an important position in a firm’s physical distribution system, especially in the manufactured industry. However, it is equally on record that warehousing can be cost intensive if not well managed or administered (Udo 2001:2). It has been observed that decision on size, location, ownership structure, equipment, layout and method of handling goods among others have for reaching implications on the achievement of physical distribution objectives.

2.2 The Marketing Mix Element

Marketing has been defined by Nebo (2004) as the conscious human input in the process of exchange relation that identifies the needs and wants of party to the exchange for the mutual satisfaction of the parties. Customer’s satisfaction means selling these goods and services at the right price, in the right place (effective distribution) at the right times and the right combination of the marketing mix. This means that production cannot be produced reached completed until available to the final consumer. To reach customer and meet the company’s objectives successfully and effectively, a firm’s profit put together marketing mix which connote the right blending and combination of marketing variable known as the 4P’s- product, Price, Place (distribution) and promotion.

The marketing mix can be defines as a set of controllable variable that firms use to influence buyer’s response. As Ejionume (1993) has it, the process of matching products, services or ideas of marketing activities, a marketer should be quick all capitalizing on newly idea need the marketing activity does not however ends with the matching of products, services or ides, the consumers should also be posed to make a goof match. A company may market one product or several through wholesaler or direct to readers.

 

2.2.1 Product

A product is anything of value which is tangible or intangible (service or idea) which create customers attention, acquisition and consumption to satisfy a need or wants. Management product ingredients include planning and developing the right product to be marketed by the company are needed for changing existing products adding new ones and taking other activities like storages facilities, assortments, pricing etc. Decisions are also needed regarding branding packaging and various product features.

2.2.2 Price

Price can be defined as a sacrifice made to acquire a given product which may be monetary or non monetary Onuoha (2005), business organization do not fix price of their products in a vacuum they consider a lot of factors such as the cost of products, structure of the market, the nature of demand. It is pertinent to note that price should be commensurate with the quality of the product.

2.2.3 Distribution

Production is not completed if the product is not distributed effectively to the final consumer. That is to say that the organization should provide the means of distribution of the product to reach the consumer at the right time. This calls for proper usage of the middlemen who performs some marketing task as selling and promotion, buying and assortment building, bulk breaking warehousing facilities, financing, material handling etc.

The Orange Drugs Company has many channels of distributing the products to different destination. The company makes use of independent merchants, company sales force and trucks to effectively reach the customers.

2.2.4 Promotion.

The relevance of promotion of a product cannot be overstressed; this is because of the fact that a successful marketing outfit cannot be put in place without achieving the objectives. According to Nebo (2004) promotion is the various means through which an organization conveys relevant information about the company products or services to its prospects and the customers has to be informed about the product and also be enlightened on how to use thereby using advertisement, personal selling sale promotion publicity   and public relation the orange Drugs Company advertise their products for the company to know where they can set them.

2.3 Definition of Warehousing

Many definitions of warehousing abound.  Some are of the opinion that warehousing is concerned with storage which implies the keeping of merchandize in a place (store till users demand it). Warehousing is a place where unused products are kept. Kotler Philip(2004) defined warehouses as a “a place where finished goods are stored until they are sold”. A warehouse is a building facility at fixed location where raw material parts and finished goods may be stored for varying period of time. Warehousing is a major component of physical distribution (also refers as marketing of goods). This is a terms of making product available at the right place and at the right time, thus providing the  utilities of place and time, that is to value a produces most and not only  be available where it is wanted but also when irt is needed (Foster, 1958).

The significance of warehousing in the firms marketing efforts can be seen from its role in physical distribution system in providing storage for the product. It has been realized that producers like the Orange Drugs Company have used the services of warehousing operations to sustain its business. Based on explanations above it can deduce that warehousing above it can deduce that warehousing involves many activities other than the basic storage function. I must pin point out here that the principals’ objectives of warehousing is for effective management of inventory which involves the following:

1. Movements of raw materials and transfer of goods to  appropriate locations in the warehouse.
2. Inner arrangement and transfer of goods to appropriate location in the warehouse.
3. Movement of goods and customers order out of the warehouse

2.4.0 Type of Warehouse

Warehousing service may be categorized under private and public ownership structure.

2.4.1 Private Warehousing

Private warehouse is a facility operated by the company which owns the merchandize handled and stored at the facility. Some authors argued the ordination decides to invest the construction of their own warehouses facility where they will have reasonable and the ease of product flow. The Orange Drugs companies used their private warehouse distribute its own toilet soap.

A private warehouse as the name suggest is not for general use. It is for exclusive use of the company. The most important factors influencing the construction of private warehouse is that of the control private warehouse facility give management direct control over its operation. Commenting on the advantage of private warehouse, it was stated that the facility should be designed to meet the firm’s especially physical distribution requirement that may be inflexible to accommodate or meet other warehouse requirement.

2.4.2 Public Warehouses

A public warehouse is a facility established by an entrepreneur to offers storage and handling services to any interested citizen or organization for a fee. Customers only pay the rent for the space they use. Bonded warehousing also known as public warehousing is used to imported goods which duties and taxes are not properly and fully paid. These goods are released on total settlement of debt owed to the government. Field warehouse is also a type of public warehousing which is achieved when receipts are issued to private warehouses for goods stored on by public warehouses to customers. In addition, when manufacturer store goods in a special place in the city, it is the sole responsibility of the field warehouses to take care of the mesmerized. However, a firm might use field warehousing facilities because the warehouses receipt would be used as collateral for a loan Ubanagu (2004).

 

2.3.4 Refrigerates Warehouses

This type of warehouses is used to store goods that are highly perishable such as fruits, vegetable, fish etc. This particular warehouse is very common among wholesaler and retailers who deals in frogmen product such as fish, chicken, sea foods etc. It popularity is incomparable.

2.4.4 General Merchandize is Store Warehouse

Almost every kind of commodity is stored in this type of warehouses apart from perishable manufactures, wholesaler and the retailers can avail themselves of general merchandise warehouse.

2.5 Functions of Warehousing

Warehousing performs many important functions, the physical distribution management and in a bid to achieved effective and efficient customer satisfactory warehousing functions could be summarized into movement and storage categorizes.

 

1. Receiving of Merchandize:

A Merchandize different producer arrives at the warehouse in truck load quantities. These loads are checked, loaded into the warehousing for processing and storage purpose.

2. Transfer:

When goods are bought from the plant or supplies they have to be unloaded or placed in a spot and transferred into storage point. By transfer we mean the movement of goods to their appropriate storage provision using equipment or manual labour.

3. Selection

This activity is concerned with breaking the bulk and regrouping them into assortment using customer order and established selection areas order picture carts for transfer in shipping areas.

 

 

4. Processing and Shipping

Under this scenario, the assortment is checked against customer order for size loading and travelling papers and receipt. After the process and documentation, goods are abound to customers or the firms carter or any other delivery mode.

5. Temporary and Permanent Storage:

Temporary storage is the storage for basic inventory replenishment whose aim is to satisfy current demand. On the other hand permanent storage is undertaken by a firm in excess of its inventory normal replenishment for a fairly long period of time.

2.6 Reasons for Warehousing

Koter (2002) identifies the reasons for warehousing of products

1. Many goods are products seasonally and are consumed all the years round. These are mostly agricultural products.
2. Certain goods are manufactured regularly and consumed seasonally under this condition the manufactured of such commodities might find it economically sound to produce them all year round in order to meet up with seasonal sales.
3. There is the need in some circumstance because of the desire to obtained quality discount on purpose and lower transportation cost. This reduces the unit cost of the product.
4. There is need to special storage facilities on transit for some goods such as refrigerators cars or trucks.
5. Need to benefit from expected increase in prices of goods in the future will encourage the storage of goods. However the system might result in wandering from specification.

2.7 Warehousing Location and Customers Service

Warehousing locations affects the level of customer service rendered to the customers. More warehousing location will provide more customers with goods more quickly than one purpose that firms set up distribution warehousing around the country. Manufacturing firms that ignored the importance of opening more distribution centre for its product cannot effectively in its customers.

1. Service delivery with competitors that have more distribution warehouses customer service may be regarded as the level and standards with which a producer extend its marketing services to various product buyers.
2. Customers as a physical distribution programmes provide the standard and consistency over time with which customer are served. Customer’s service may come in different forms. When applied to warehousing activities, the processed goods are easily shipped when distribution depots are closer to the market. This enhances place and time unities of the goods. A decentralization of the warehousing situation will facilitate the sale and the use of the company products.

Elements of customer service.  Customer service consists of the following elements:

1. Product availability
2. Organizational service capability

• Service quality

1. Effective Communication

In the above listed element, product availability organizational capability is very indispensable to warehousing. When a firm established more distribution warehoused or use public warehouses to bring its product to ultimate users, product availability is the major factor. Without product availability, a firm cannot meet the expectation of its customer. A stock out situation will after the level of the firm as customers change that loyalty to a more and efficient competition. Product availability involves the system capacity to consistently meet with or satisfy material or product requirement of customers. This aspect deals with the level of inventory the organization can allow or support in the system.

Organizational services capability is another element of customer service that is very vital and critical to warehousing capability consists of the speed of delivery of customer order and consistency over time.

Decentralized warehousing structure facilities customers order transmitted, order processing and order shipment for example manufactured firms located in Abia State will require some days or weeks before customers orders are delivered to a customers in Kogi State, if the firm maintains a distribution warehouses in kogi state, customer’s product requirement can be handles with a very short period since the product are within the customers reach.

• FACTORS INFLUENCING WAREHOUSE PLANNING AND ORGANIZATION

In designing to construct warehousing facility certain factors has to put into consideration. Appleby (1981) considered the following factors to be very vital.

1. Design and Layout

This of great significance under this factor, a single floor allows for better of goods. A stock relation system is needed to avoid possible deterioration of goods. Goods that are, moved most frequently should be conveniently accessible.

 

 

2. Warehouse Space

This can be given a financial value and can be situated in accordance with the earning capacity of goods. This principle is used in retail for counter space allocation.

3. Mechanical Handling

This connote vital saving in cost, however consideration should be given to future needs before buying equipment. There should be a high degree of maximum usage.

4. Choice of Sites:

In response of this, Appleby advice the following  should be taken into:

1. Study past records of shipment and future marketing plans.
2. Consider the possibility of a shift in population and industry

• Examine size and type of existing and future ordering availability and cost of transport, cost and time on obtaining stock replacement.

1. Speed and efficiency in processing customer orders.
   • DISTRIBUTION INTENSITY

There exist three standard types of channel coverage intensities to choose from in marketing. They are: intensive, selective distribution strategies. The existing relationship among these three strategic options can be accessed on a continuous basis.

1. Intensive Distribution Strategy: When a firms goods and services are disposed off through nearly all available wholesale and retail  outlets, the firm is adopting the intensive distribution strategy Orange  drugs is Individually employing  the services of many wholesalers and retailers in the distribution of their products (toilet soaps). Intensive distribution strategy is mostly used for convenience goods.
2. Selective Distribution Strategy: This implies the use of one or more outfits but less than the entire available outfit willing to carry the product selective distribution of shipping and some specially goods. The firm employs or tries to combine some channel control and s solid image with volumes and profit.
3. Exclusive Distribution Strategy: Here a firm employs the services of only one or two, just a few numbers of intermediaries in market territory. However the distributors who are given that rare opportunities must be bounded by the manufactures and this agreement would cover the area of appointment the operating territory, responsibilities, sale condition and extent customer service performance etc.
   • Marketing Intermediaries

According to Drucker (1984) intermediaries don’t necessarily belong to a separate company organization. Many productions owned all part of their marketing channel and this serve as their own intermediaries. Three groups of intermediaries are:

1. Merchants Intermediary: They assume ownership of goods and have resell them to customer they comprise of the wholesale and retailers who buy goods from producers.
2. The Agent Intermediary: they are the middlemen who search customers and negotiate on behalf of the producers but do not take title.
3. Facilitators: These comprise of institution and Individual that facilitates the distribution function but then don neither take title to goods nor negotiate on behalf of the producers. These include transportation, companied independent warehouses intermediaries.
   • Function of Intermediaries

According to Aham Anyanwu (1999) the functions of the intermediaries channel members

1. Seeking for information and making some available to relevant members of the research activities.
2. Creating the necessary awareness among the relevant member of the channels
3. Negotiating and riddling an agreement in terms of rice credits terms delivery and other terms
4. The provision of additional storage facility to the producer and the bearing of risk associated with the holding of inventory such as obsolescence and deterioration to the product before sale.
5. Management expert service to their customer e.g. on advertising, merchandising customers services which will increase their sale turn over.
6. Financing: The intermediaries finance production by paying in advance for products to be received later.

 

 

 

 

 

 

 

 

 

 

 

CHAPTER THREE

• Introduction

This chapter deals with method adopted by the researcher in carrying out the study. This research seeks to ascertain the impact of warehousing on the efficient distribution of toilet soap of Orange Drugs. This chapter involves the research work which should include each steps of the experiment in order which it will be carried out. This section called the producer phase is the crux of the research report. It is therefore, expected to present sequentially how the investigation is to be carried out and these includes

1. Design of the study
2. Area of the study

• Population of the study

1. Sample of the study
2. Instrument for data collection
3. Validation of the study

• Distribution and retrieval of the study
• Method of the data Analysis

 

• Design of the Study

As stated by Awa (2003), a research design covers the specific framework that guides the collection and analysis of data for the study. This study is designed in such a way that descriptive and analytical methods are used. In a bid to gather   the accurate information, the researcher used probability sampling  method  where all possible elements in the  population have  a know change of being elected. A sample survey of research design was used in order to achieve cooperation from the large population. These were used due to the following reasons

1. The method is cost effective
2. Large population could be reached through the method
3. The findings from the investigation of the sample selected can be generalized to the behaviour of the large population.

 

 

• Area of the Study

The area of this study is orange drugs

• Population of the Study

Population is the aggregate number of all the possible elements that have common characteristic. The population of this study consist the staff and customer of the company. This population was chosen since every staff of the company as well as the customers has a role on the warehousing activities. Being the case therefore, the population of this study stand at 270, out of which 50 is taken from the staff population.

• Sample of the Study

Sample size is the number of units to be including in the study. The sample size of this study would be determined  using Taro Yamane formula as their

N=    N

1 + N (e)²

Where n =        Sample size

N = population size

1 = Constant

E = error margin

Applying Formula

2000

1 + 2000 ( 0.05² )

2000

2001 x 0.0025

n  = 2000  = 400

5

A sample size of 400 was used for this study

200 for males and 200 for females.

• Instrument for Data Collection

A combination of oral interview and structured questionnaires were employed for this study. It must be admitted that the questionnaires is arguably the most crucial and recent source of information and sometimes the most costly and error prone in any research.

The secondary data were obtained from reference of the other related works. These include journals, textbooks, libraries and individual projects report of post graduate students of marketing. The entire sources were extensively quote in the work.

• Validation of the Study

The instrument of this research work was the questions. The questionnaires were thoroughly checked by my supervisor and the head of Department of marketing, who found it worth and approved it accordingly.

• Distribution and Retrieval of the Instrument

The data generated for the study were analysed using the sample tabulation format. The respondents were the sample tabulation format. The respondents were categorized according to the nature of their responses and the percentage for each response was calculated.

CHAPTER FOUR

• Presentation and Analysis of Data
• Introduction

In this chapter, the researcher, wishes to present and analyse as well as testing the assumptions stated on chapter one. It is from the data collection from the respondents that the researchers will analyse to find out the impact of warehousing on the efficient distribution of toilet soap using Orange Drug as the case study.

Specifically, the researcher used simple tables and percentages to analyse the data. Chi-square statistical tools were specifically used to test the hypothesis formulated in the first chapter.

To this effect total numbers of 141 questionnaires were distributed out of which 158 were returned.

A sample test was used to test the hypothesis thus,

X      x      100

n                1

Where      x = Number of Response

n= Sample size

Sample Units	Total % Population	No of Questionnaire	No of Respondents
Douglas Road	30	20	19
Wetheral Road	25	20	18
Okigwe Road	24	15	15
Orlu Urban Road	141	86	83
Total	220	141	135

Source field study 2010

Total number of questionnaires distributed = 141

Total number of Response                               =   135

Percentage of Response   135  x   100     = 96%

141         1

Table 4. 2. 1

 

 

 

 

The Relationship Between Warehousing and Effective Distribution of Toilet Soap

Is there any relationship between warehousing and effective distribution of toilet soap in your company?

Response	Number of Respondents	Percentage %
Yes	20	40
No	15	30
Indifferent	15	30
Total	20	100

Source: Field study 2012

From the table  above, it was revealed  that 40% of the respondent said yes, 30% said no while 30% remained indifferent as per whether warehousing  has relationship with effective distribution of toilet soap in their company. This therefore means that majority of the respondents agreed that there is a relationship between them.

 

Table 4.2.2.

The Impact of Warehousing on Sales Performance

Does warehousing have any significant impact on the sale performance of your company?

 

Response	Number of Respondents	Percentage %
Yes	40	80
No	5	10
Indifferent	5	10
Total	50	100

Source Field study 2012

The  table above revealed that 80% of the respondent said yes, while 10% said that they do not have idea  whether warehousing has any significant impact on the sales performance of the company. This presuppose that majority of the staff were of the view that warehousing has significant impact on the sales performance of the company.

 

 

Table 4.2.3

The role of warehousing In the Achievement of Company Market Share.

Does warehousing play a significant role in the achievement of your company’s market share?

Response	Number of Respondents	Percentage %
Yes	40	80
No	5	10
Indifferent	5	10
Total	50	100

Source Field study 2012

The table revealed that 80% of the respondent accepted that warehousing plays a significant role on the achievement of the company market share. 10% of them said No while 10% of the respondent has no idea. This means that majority of the respondent were of the view that warehousing plays a significant role on the company market share.

Table 4.2.4

Effect of Warehousing on Company Profitability

Does Warehousing Increase sales profitability of your company?

Response	Number of Respondents	Percentage %
Yes	25	50
No	15	30
Indifferent	10	20
Total	50	100

Source Field study 2012

The table above revealed  that 50% of the respondents agreed that warehousing increases sale profitability of their company product 38% of the respondent said  no  while 20% of them has no idea. This presupposed that majority of the respondent said that warehousing increase sales profitability of their company product.

 

 

Table 4.2.5

Warehousing Location and Its Nearness to Consumers.

Do you think the location of your warehousing are near enough to your consumer?

Response	Number of Respondents	Percentage %
Yes	40	80
No	5	10
Indifferent	5	10
Total	50	100

Source Field study 2012

From the table above 80% of the respondent agreed that location of warehouses are enough to reach to their consumers, 18%of the respondents said no while 10% of them has no idea to that effect this show case that majority of the respondent accepted What location of warehouses are near enough to their consumer for effective distribution of this products.

 

Table 4.2.6

Distribution Vehicle With Respect to Consumers at Rural Area.

Does your company have enough delivery truck to ensure that its products get to the rural area where needed?

Response	Number of respondents	Percentage %
Yes	25	50
No	10	20
Indifferent	15	30
Total	50	100

Source Field study 2012

The table above revealed that 50% of the respondent agreed that they have enough delivery truck to ensure that their products get to the rural area. 20% of them said no while  30% has no idea on the effect. This show that majority of the   respondents is accepted.

 

 

Table 4.2.7

Distribution Problem Encountered by the Orange Drugs

What distribution problem does your organization encounter?

Response	Number of Respondents	Percentage %
Lack of Channel Availability	6	12
Lack of Accessible road to remote areas	9	18
Inadequate transportation facilities	9	18
Other	15	30
Total	50	100

Source Field study 2012

From the information above, i found out that 12%, were of   the view that their company encountered lack of channel availability, 40% of the respondent said that lack of accessible road to remote areas affect the effective distribution of their product. 18% of them said that inadequate transportation facilities is a problem to their effective distribution while  30% of the respondent said that there are other problems apart from the ones, mentioned.

Table 4.2.8

Consumer and Their Patronage to Orange Drugs Products.

Do you buy any of the Toilet Soap of orange Drugs?

Response	Number of respondents	Percentage %
Yes	121	86
No	20	14
Total	141	100

Source Field study 2012

From the table above, it was revealed that 86% of the respondent do buy toilet soap Orange Drugs while 14% said they do not prefer it, this therefore, means that majority of the consumer buy preference to the orange Toilet Soap.

 

 

Table 4.2.9.

Consumer Satisfaction with the Company’s Warehouse Location.

Are you satisfied with the Location of Orange Drugs

Response	Number of respondents	Percentage %
Yes	100	50
No	36	26
Indifferent	35	24
Total	141	100

Source Field study 2012

The table above revealed that 50% of the respondents are satisfied  with the location of Orange Drugs  warehouses 26% of them said no while 24% of the respondent also said that they had no idea, this means that majority are  satisfied with the location of warehouses of Orange Drugs because  they have easy access to the product.

 

 

Table 4.2.10

Availability of the Company Retail Outlet

Are the available outlets on your area enough to get toilet soap at your Convenient Time?

Response	Number of respondents	Percentage %
Yes	100	71
No	41	29
Total	141	100

Source Field study 2012

From the table above, 71% of the respondent were of the view that available outlet in their area makes them to get the Toilet  soap at their convenient time while  29% of the respondent said no to that effect. This presupposes that majority of respondents said that there are many retail outlets where toilet are sold in their area.

• Test of Hypothesis

In order to prove the reliability of the study the researcher used chi-square statistical tool to test the hypothesis stated in the first chapter of this research work. The reasons are to ascertain whether the differences in views are adequate to draw conclusion. The data are arranged in form of contingency table.

Hypothesis

The chi-square is denoted by x² and it is given as x²

= ∑ (Oi – Ei)2

Where Oi = Observed value

Ei = Expected value and it is given by

(Row total x Column Total)

Grand total

Level of significance

Level of significance is the probability of committing type 1 error, sequel to this, a choice of 95% level of significance was made for this particular hypothesis. This means that the critical value will be at 5% (0.05) level of significance.

 

Test of Hypothesis 1

Ho: There is no significant relationship between warehousing and effective distribution of toilet soap in testing this hypothesis tale 4.2.1. And 4.2.2 was used.

The Contingency Table 4.3.1

Table	Response	No idea	Total
	Yes       No
4.2.1	20        15	15	50
4.2.2	40         5	5	50
Total	60         20	20	100

From the table, expected frequencies are calculated from each response

Table 4.3.1

S/N	Oi	Ei	Oi – ei	(Oi – ei)2	(Oi – ei)1/2
1	20	30	-10	100	3.33
2	15	10	-5	25	2.50
3	15	10	5	25	2.50
4	40	30	10	100	3.33
5	5	10	-5	25	2.50
6	5	10	-5	25	2.50
					16.66

From the chi-square table x^{2 –} cal is 16.66

Decision Rule

The researcher shall reject Ho if x² > x² a, V and accept the alternate, Hi is x² t < x² Ca, V= (r –i) (c -1) where x² cal = calculated value of chi-square, x² < = Critical value

D.f = (r -1) (c – 1).

Observation

x² cal =16.66

x²a (0.05), d.f (2-1) (3-1) =2

x²a 0.05, v =2 = 5.991

Since x² cal >table i.e (16.66 > 5.991) i reject Ho and conclude that there is a significant relationship between warehousing and effective distribution of toilet soap.

 

Hypothesis II

Ho: Warehousing does not play a significant role in the achievement of the company’s market share.

Hi: Warehousing plays a significant role in the testing this hypothesis table 4.2.3 will be used.

Contingency table 4.3.2

Table	Response	No idea	Total
	Yes       No
4.2.3	40         50	5	50
4.2.4	25         15	10	50
Total	65         20	5	100

 

From the table excepted frequencies are calculated for   responses

 

 

 

Table 4.3.2

S/N	Oi	Ei	oi – ei	(oi – ei)2	(oi – ei)1/2
1	40	32.5	7.5	56..25	1.73
2	5	10.0	-5	25	2.5
3	3	7.5	2.5	6.25	0.83
4	25	32.5	-7.5	56.25	1.73
5	10	10.0	5	25	2.5
6	10	7.5	2.5	6.25	0.83
					10.12

 

From the chi-square table x²cal = 10.12

Level of Significant

a = 0.05, V= (r-1) (c-1)

a = 0.05, V= (2-1) (3-1)

a = 0.05, V= 2

Critical Value = x² tab = 5.991

Observation

x² cal =10.12

x²a (0.05), v =2=5.991

Decision Rule:

The researcher shall reject Ho if x²cal > x² tab and accept the Hi if x² tab < x² cal.

Decision:

Since x² cal > x² tab i.e. (10.12>5.991) I reject the Ho and conclude that warehousing plays a significant role in the achievement of the company market share.

 

 

 

 

 

 

 

CHAPTER FIVE

• Summary, Conclusion and Recommendation
• Introduction

In this chapter, the researcher summarized the findings which anchor on the subject matter of this projects work. The researcher was moved to review and analyse the impact of warehousing on the efficient distribution of Toilet Soap using orange Drugs as a case study. The researcher also made some conclusion from the findings, and finally recommended to the company on how to effectively carry out the warehousing activities to achieve the company objectives.

• Summary of Findings

From the data collected and analysed, the researcher was motivated to make the following summaries of the findings, the researcher found out that proper warehousing availability has a significant impact on the effective distribution of toilet Soap. Citing warehousing nearer to the market will help on the effective distribution of products. In today economy, manufacturers do not sell their product directly to the final consumer, between the intermediaries performing various functions. One of these functions performed by the intermediaries are provision of warehousing for efficient distribution. Moreover, the researcher   found out that availability of warehousing may lead to ineffective and inefficient distribution thereby reducing the sale performance of the company.

Finally the comprehensive perception of the staff and consumers is that adequate warehousing and its contingency increase the company’s sale productivity, profitability, market share etc of the company.

• Conclusion

The aim of the above summary of finding was to assist in drawing a valid conclusion as regard this research project.

With respect to that, the following conclusion were made, provision of warehousing function performed by the intermediaries provision of warehousing occupies a large portion on the overall marketing effort. If all products produced by a company using large scale productions are not stocked the company might be exposed to relative scarcity when demand for such product is high. The role of warehousing cannot be over emphasised business executives who so not see the usefulness of warehousing ought to start making provisions for warehousing in order to complete favourably in the market place.

Finally, many companies have failed du tot negligence to provision of warehousing and its management.

• Recommendations

From the fore-going, it has been observed that warehousing determines the success and failure of company’s product. To this effect, the following recommendations are itemised as follows:

1. There should be adequate provision of warehousing both the private warehousing and public warehousing to enhance effective distribution of the products.
2. The location of the warehousing should be nearer to the market to facilitate the coverage of the products.

• Suffice it to say that the company should employ a competent warehousing manager who oversees warehousing operation.

1. The company should also as matter of fact embark on proper market research to know the quantity to be produced and be stocked.
2. Finally, companies accord warehousing activities its desired priority attention at top management level.

 

 

 

 

 

 

 

 

 

 

 

REFERENCE

Awa, H. O (2003): Modern Marketing Theory: An Integrate Approach to Management Decision Enugu: Cakey Business Centre.

 

Azeri, et al (2004): Marketing Research, Owerri Avan Global Publication.

 

 

Egolum, C.C. and Chniyere P. O (1999): Fundamental of Production Management< Enugu; Snap Press Nig. L.t.d

 

Ezirim, A.C. (2004): Dynamics of International marketing, Owerri Jeso International Publishers.

 

 

Kotler P. (2004): Management. The Millennium Edition, London. Prine Hall Line.

 

Nebo, O.G. (2004): Marketing Contemporary and Comprehensive Approach, Owerri Rolk Business Concerns.

 

 

Obiesie M.C (2003): Marketing Management; A Theoretical and Practical Approach, John Jacobs Classic Publishers    L.t.d Enugu.

 

Ubanagu, O. (2005): Distribution Management and Logistics, Nnewi Ubadax Academic Publishers.

 

 

 

APPENDIX

Department of Marketing,

School of Business,

PMB 21,

Federal Polytechnic, Oko.

Sir/ Madam

REQUEST FOR THE COMPLETION OF QUESTIONNAIRES

I am a final year student of the department of Marketing School of Business of the above institution. I am currently conducting a research on the topic “An Analysis of Impact of Warehousing in the Efficient Distribution of Toilet Soap (A case study of Orange Drug).

All information supplied would be treated in utmost confidence.

Thanks for your anticipated co-operation.

Yours faithfully

Ofoka Chidimma J

 

 

QUESTIONNAIRES

SECTION A

Instruction: Please Tick (v) or complete as appropriate

Personal Data

1. ………………………………………………………….
2. Sex: male (           )                    Female (   )
3. Education: Formal ( )               Informal (   )

SECTION B

Questionnaires to the staff of Orange Drugs

4. How long have you worked with the company?
5. 0 – ½ years ( )
6. 2 – 3^1\2 years ( )
7. 4years and above ( )
8. What compensation method do you receive?
9. Straight salary ( )
10. Straight Commission ( )
11. Straight Fixed salary (   )
12. Under which department do you work?
13. Marketing ( )
14. Production ( )
15. Accounting ( )
16. Others (   )
17. Under what capacity do you work?
18. Supervisor ( )
19. Receptionist ( )
20. Sales Executive ( )
21. What is the relationship between warehousing and effective distribution of Toilet Soap of your company?
22. Positive (   )
23. Negative ( )
24. Does warehousing have any significant impact on the sales performance of your company?
25. Yes ( )
26. No ( )
27. What is the cost implication of warehousing on the profit level of your company?
28. It increase Prices ( )
29. It reduces price (    )
30. To be reasonable price ( )
31. Does warehousing increases profitability of your company?
32. Yes ( )
33. No ( )
34. Does warehousing plays a significant role in the achievement of your company market share?
35. Yes ( )
36. No ( )
37. Are Your Company products in High Demand?
38. Yes ( )
39. No ( )
40. Is your company product always available to the consumers all the time?
41. Yes ( )
42. No ( )
43. Do you think locations of your warehouses are near enough to your consumers?
44. Yes ( )
45. No ( )
46. Do transportation cost limits effective distribution of Toilet Soap?
47. Yes ( )
48. No ( ).
49. Does your company have enough delivery trucks to ensure that its product get to the rural areas when needed?
50. Yes ( )
51. No ( )
52. What distribution problems does your company encounter? …………………..
53. How do you rate you inventory system?
54. Fair ( )
55. Excellent ( )
56. Bad (       )
57. Good ( )

SECTION C

Questionnaires to the consumers of Orange Drug

1. Do you buy any of the product of Orange Drug
2. Yes ( )
3. No ( )
4. If yes, do question 1, why do you choose orange Drugs brand Instead of the rivals?
5. Because of its reputation ( )
6. It is closer to my resident ( )
7. Indifferent ( )
8. None of the above ( )
9. Are you satisfied with the location of orange Drugs
10. Yes ( )
11. No ( )
12. Which brand of toilet Soap of Orange Drugs do you like most?
13. Delta Soap ( )
14. Devon soap ( )
15. Pears transparent soap ( )
16. Do you think that the availability outlets of the orange Drugs in your area are enough to reach out its customers?
17. Yes ( )
18. No ( )
19. Does the price of Orange Drugs Toilet Soap Consummated with quality of the product?
20. Yes ( )
21. No ( ).

The post An Analysis of Impact of Warehousing in the Efficient Distribution of Toilet Soap appeared first on TY Computer Institute.