ABSTRACT
This
study was conducted to investigate impact of logistics management in the
marketing of agricultural products. The logistics management and the associated
of marketing of agricultural products in the private sector with reference to
Diversay Solutions Limited. It sorts to determine, the goal and strategy
deployed by their logistics, to identify the distribution strategy used by
introducing their products into the market.
To
meet the objectives of the study, the research methodology adopted comprised of
a percentage table and Chi-square analysis to test the research hypotheses.
The
logistics having an average lead time which last for three month, it also
discovered that the logistic process of Diversay Solutions consist of five
steps which are production management,
customers service, raw materials, inventory management, management
control, and sales management.
This
study recommended that among the logistics,· inventory, management should
ensure that all the stock in and stock out are properly control and well
monitoring of receipt, invoice, way bill should be properly managed
effectively, in other to avoid overstated and understated figure during the
stock audit. It also recommended that raw materials must available at all cost
by management in other to maintain their production standard level and quantity
target.
The
logistics management find easily since there market centre where agricultural
products can be market and motorable for the flow of both raw materials and
finished products.
The
study 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 products will maintain standard.
TABLE OF CONTENT
PAGES
Title Page i
Certification ii
Dedication iii
Acknowledge iv
Abstract v
Table of Content vi
CHAPTER
ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of Problem 1
1.3 Objective of Study 2
1.4 The research questions 3
1.5 Research Hypotheses 3
1.6 Significance of the study 3
1.7 Scope and
limitation of the study 4
1.8 Background
to the Study 4
1.9 Operational
Definition of terms 8
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
12
2.2 Definition
of logistics 13
2.3 History of
logistics management 14
2.4 Forms of
logistic 14
2.5 Logistics
systems 18
2.6 Marketing of
agricultural products 23
2.7 Origin of
marketing of agricultural products
24
2.8 Important of
marketing of agricultural products 25
2.9 Market and
marketing of agricultural products 26
2.10 Economic
importance of marketing and market 28
2.11 Agricultural
product in relation to marketing 29
2.12 The scope and
activities of physical distribution of
Logistics
management 30
2.13 Customer
service 32
2.14 Transportation 35
2.15 Storage and
warehousing 37
2.16 Materials
handling 43
2.17 Protective
packaging of product 44
2.18 Communication
and data process 44
2.19 Ordering
processing 46
2.20 Inventory
management and control 47
2.21 Types and
functions of inventory 49
2.22 Inventory
cost and approaches to inventory Management 51
2.23 Inventory
purchasing management unit 54
2.24 Purchasing
and supply chain management 56
2.25 Logistics
distribution problems in development
Economics
(Nigerian). 59
2.26 Physical
distribution nature concept and importance
Reference 66
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1
Introduction 68
3.2
Research design 68
3.3
Sampling and procedure for data
collection 68
3.4
Sampling techniques 69
3.5
Data collection instrument 69
3.6 Method of data analysis 69
Reference 71
CHAPTER
FOUR: DATA ANALYSIS AND INTERPRETATION
4.1 Introduction
72
4.2 Presentation
and analysis of collection data 72
4.3 Test of
hypothesis 81
CHAPTER
FIVE: RECOMMENDATION CONCLUSION
AND
SUMMARY
5.1 Introduction
86
5.2 Summary 86
5.3 Conclusion 86
5.4 Recommendations
87
Bibliography 87
Questionnaire
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.
1.3 OBJECTIVE OF STUDY
The
principal objective of this study is to examine logistics management in the
marketing of agricultural products, with reference to problems stated above.
The
main objectives of the study are as highlighted.
i. To
identify the goal and strategy deployed by diversay solution limited in their
logistics.
ii. To
identify the strategy distribution to use by introduce of their products into
the market.
iii. To
determine the relevance of logistic management in the marketing of agricultural
product.
1.4 THE RESEARCH QUESTIONS
The
following pertinent question vis-a-vis diversay solutions limited will be
considered by this study.
· Is
there any goal or strategy deployed by diversay solution limited in their
logistics?
· Does
any strategy distribution to be used by introduced of their product into the
market?
· Is
there any relevance of logistics management to agricultural products?
1.5 RESEARCH HYPOTHESES
Ho: Strategic
distribution used does not introduced their product into the market
Ho: Management
goal or strategy deployed by diversay solution limited is not giving them
competitive advantage
1.6 SIGNIFICANCE OF THE STUDY
The
role of logistics in the growth and to development of agriculture cannot be
overemphasized. A case study of this nature will reveal the nature of logistics
management and how effective logistics management will be given an organization
like the Diversay solutions limited credibility, sense of accomplishment and
required growth development. Invariably continuous effective logistics
management will leap to sustainable development in the private sectors.
The
study will improvise ways in which logistics management warehouse and store provide
all the spare parts and use full equipment for the maintenance department. The
study would have any reasons to give by not performance their duty effectively
since the part are available in the store is either to replace it or repair it
to let the logistics department meet up with their normal activities schedule.
The
study shall also discuss the available resource used in agricultural management
like fertilizer mechanized equipment for agriculture. If the government can
provide this infrastructures mention above to the agriculture department and
the logistics management also manage it the way it purpose, both the movement
of raw material and finishing goods will be flow and distributing accordingly.
Moreover,
the study shall also discus about network road such that it will motorable in
other to marketing agricultural products.
These
are problem confronting them are:
· Lack
of good qualified engineer.
· Inadequate
of proper maintenance.
· Inadequate
of spare parts.
· Lack
of government agency.
· Lack
of good network road.
· Lack
of available resource used in agricultural management like fertilizer, poultry
equipment, and mechanized tools for agriculture.
1.7 SCOPE AND LIMITATION OF THE STUDY
This
study has a focus since it will be consider only one private enterprise, namely
diversay solutions limited. In the large private sectors in Nigeria.
The
aspects of the private that it covers include issues of logistic management in
the marketing of agricultural products, and the logistics issue is to cover the
entire problem and prospects of logistics management in organization marketing.
1.8
HISTORY OF DIVERSAY SOLUTIONS LIMITED
Diversay
Solution Limited is a one stop livestock health and production support company
we aim at providing relevant, yet affordable solutions, that reduces the stress
of the challenges faced by farmers and stack holds in the livestock production
sector of the country's economy.
The
company is uniquely staffed and structured to provide highly professional
service and input targeted at solving the problem endemic in the industry this
adding real value that ultimately ensure enhance efficiency and profitability
with the least stress.
Diversay
solution limited was incorporated in February 2008 and their mission both
simple and singular helping farmer and stock holder to achieve a high level of
visible efficiency in livestock production operations without the attendant
stress that use to accompany such achievement. This mission was informed by a
carefully analysis of the industry as constituted prior to the advent of the
company, here was periodic shortage and in stances complete unavoidably of
input leading to exorbitant input valuable cost and reduced profitability. The
perennial input crisis coupled with the challenges of disease not Greaks such
as the dreaded avian influenza diseases under standby sounded the death knell
for a lot of farmer that were poorly managed for the professionally such that
they could combat alone or internally so the real solution to apply to ensure
profitability in the face of the crisis is to increase efficiency in operation
so as to boost production to for the increase cost to operation occasioned by the
perennial crisis. They also want to do this with the least fuss and stress
hence Diversay solution limited. The suppliers of most our products are world
class companies the does not compromise the standard of their products or
service they offer our quality product are designed to stand the test of time
end to adapt the climatic condition in Africa. Our team is made of seasoned
professionals who have distinguished themselves in their careers providing
highly professional service and inputs targeted at solving the problem endemic
in the industry.
OPERATIONS
Under
this division the company imports highly relevant and effective veterinary
drugs vaccines and additives and sell same at very affordable prices to farmers
and stake holders all over the country via a network of distribution
complemented by or trained technical sales representatives.
Bio
specialty this division markets, the company disinfectant range, water
sanitizer and other hygiene solutions the disinfectant market and by the
company are the latest available with cutting edge microbe control either alone
or combined and possess wide spectrum of activities that encompasses viruses
bacterial and fungi.
Constituency
this division provides consultancy service to clients with regard to design
construction staffing and management of poultry, fish or livestock farmers we
also design and build elevated poultry house and advice on improved management
and turnaround of ailing farm operation.
Equipment
under this division the company imports highly relevant and effective
veterinary drugs vaccines and additive and sells some of very affordable prices
to farmers and stake holders all; over the country via a network of
distributors complemented by our trained technical sales representation.
Laboratory
under this division the company imports all the laboratory equipment as to
perform all the necessary test of their product to avoid contamination and to
be specific the actual date of production and to observes expiring date not to
cause harmful to their customers.
PRODUCTS
PACKAGING
1. Coccinex diver idine and
sulphaquinoxaline
(50G
(20x4x50G)
2. Quinrocin 20%
Enrofloxacin
100ml
60x100ml
3. Quinrocin 20%
Enrofloxacin
1
Ltr
12x1
Ltr
4. Avertin oral 1%
1vermectin
100m
12x4x100ml
5. NematexL
Laremisole
100G
20x6x100G
OUR VALUES
Diversay
solutions limited core value includes regard for our employees the
demonstration of constant care, uprightness and humbleness and protection of
our good name. Our reputation and success depend on the way we fulfill these
values while conducting our business
Environment
In
term of protecting the environment to avoid environment pollution for the
safety of our people is a question of constant care in the way we use resources
optimize operation and handle waste our environmental protection policy
statement reads we are committed to the protection of the environment and place
high priority on environment considerations in managing our business
Our
vision
We
create opportunity nationwide and global commerce.
Our
mission
We
shall fulfill our vision by truly understanding our clients and their business
offering second to none transportation solutions being profitable and behaving
sustainable profitable growth continuously reducing cost and increasing
efficiency offering our colleagues personal growth and a motivating place to
work.
Being
innovative
Being
good corporate citizen
1.9 DEFINITION
OF TERMS TO BE USED
For
this study, Kotler Philip and Kevin lane Keller (2009) definitions some terms
shall serve as operational words and they are as follows.
LOGISTICS
Logistics
may be defined as planning and implementing the physical flows of materials and
final goods from points of origin to points of use for consumption to meet the
needs of customers at a profit.
MANAGEMENT
Management
may be defined as making use of people to achieve their stated goals and
objective.
PLANNING
The
activity that concern itself with proposals for the future with the evaluation
of alternative proposals and with the methods by which these proposals may be
achieved.
CONTROL
PROCESS
The
management activity that involves establishing standard measuring performance
and correcting the distributions.
PRODUCT
PROCESS
Attempts
to discover what products or service are required or are being bought by a
market area or type of customers the specification and performance expected by
customer and the price which they indicate that they would pay for a stated
specification of certain products or service.
SALES
PROCESS
A
study of the pattern and nature of sales for specified products in selected
market areas to identify the true sales pattern i.e. sales effort and sales
force.
DISTRIBUTION
PROCESS
Distribution
is to identify the physical distribution required to counter competition
effectively or to give customers a better service, and to check if the method
being used are achieving these aims within permitted costs. It helps to
identify how distribution may modified to keep costs under control, where to
locate depots size of inventories method of transportation to be used the
various means of transportation and whether to lease or buy vehicles.
COST
EFFECTIVENESS
The
approach to the problem solving which weight alternative and choose an
alternative especially where advantages and costs cannot be accurately measured
in members by considering costs of other alternative in comparison with benefit
derived.
CONSUMER
METHOD
A
detailed study of buying behavior and consumer behavior habits patterns for
specified groups of consumers to establish consumer profiles, what they buy,
why they buy, what we they make of the products, the prices they pay or are
prepared to pay and what they buy from competitors.
WARE
HOUSE METHOD
A
logistics provider's warehouse of goods being stacked on pallets with a
forklift. Logistics ware house as a business concept evolved in the products
due to the increasing complexity of supply business with material and shipping
supply chain, leading to a call for experts called supply chain logistics.
Business logistics can be defined as "having the right items in the right
quality at the right price in the condition to the right customer.
LOGISTICS
SUMMARY
As
master summary of logistics management in marketing of agriculture product,
there functions are more seriously and they should also contribute the function
to the organization to achieve their goal and objective.
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