IMPACT OF CONTAINERIZATION ON TRANSPORT AND DISTRIBUTION (A CASE STUDY OF PZ PLC, ABA)
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Abstract
Table Of Content
Approval page
Dedication
Acknowledgement
Abstract
Table of contents
CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problems
1.3 Purpose/Objective of the study
1.4 Significance of the study
1.5 Research questions
1.6 Research hypothesis
1.7 Scope of the study
1.8 Limitation of the study
1.9 Definition of terms
CHAPTER TWO
2.0 Review of related Literature
2.1 Introduction
2.2 Historical Background
2.3 Definition of containerization
2.4 Types of containerization
2.5 Importance of containerization on transport and distribution
2.6 Advantages of containerization on distribution of goods and services of the freight rates
2.7 Disadvantages of containerization on distribution of goods and services of freight rates
2.8 Freight rates
2.9 Factors that affect freight rates
2.10 The role of containerization on transport and distribution
CHAPTER THREE
3.0 Research design and methodology
3.1 Introduction
3.2 Research design
3.3 Questionnaire design
3.4 Sources of data collection
3.5 Sample and selection of respondent
3.6 Survey techniques
3.7 Observation techniques
3.8 Method of data analysis
CHAPTER FOUR
4.0 Presentation and analysis of data
4.1 Presentation of data
4.2 Analysis of data
4.3 Testing of hypothesis
4.4 Interpretation of result(s)
CHAPTER FIVE
5.0 Summary, conclusion, and recommendation
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendation
Bibliography
Appendix
Questionnaire
Chapter One
1.1 BACKGROUND OF THE STUDY
The process of containerization has been moved forward to the last several decades, but Nigeria ports and their supporting container distribution networks have struggled to increase capacity to match this expansion.
This article seeks to review and organize existing container network capacity literature into a taxonomy based on the interrelated stakeholders of container flows.
The artily first establishes the industry capacity influences from stakeholders, including shippers port authorities, terminal operations, alongshore labour railroads, drayage carriers, intermediaries, ocean carriers, governments, and local communities. The centralized distribution activity receives cargo that must be sorted before transshipment to the supply support. Activities (SSA) or owning unit. The majority of cargo will arrive in 20 and 40 foot containers.
Single consignee cargo and ammunition will not pass through the centralized distribution activity but will be throughout to the users.
1.2 STATEMENT OF THE PROBLEMS
Containerization is very essential and useful in the selling of industrial goods; hence it is often referred to as the nearest company’s sales men.
There are existing problems associated with containerization on transports and distribution of industrial goods and services.
Expanding system-wide container capacity is extremely difficult.
1. For one container flows involve a series of linked capacity factors driven by different stakeholders such as ports railroads, truck carriers, and steamship lines.
2. While on the surface the problem appears to be a direct application of goldratt’s theory of constraints (Goldroll 1997) (Goldrall and Cox 2004), there are complicating factors.
3. Container flows may be identified as the drum (i.e primary, pace-setting) constraint, but their handling involves a series of linked factors controlled by the stakeholders.
4. The further compounding the problems are unpredictable changes in security requirement terrorist activities, military development (Thomchick 2993), labour strikes and in clement weather.
1.3 PURPOSE/OBJECTIVE OF THE STUDY
It is necessary to look or to identify the social and psychological past in order to appreciate what we are trying to do in the present so as to do beller in the future.
The study will provide marketing opportunity’s challenges and prospects that exist for marketers to improve on their packaging through repeats purchases.
The aim of this research survey is to:-
1) To examine maximize customer service while minimizing cost.
2) To determine safe delivery of merchandise
3) To examine the readiness of the supplier to accept replacement of defective supplies.
4) To identify the speed at which orders are treated.
5) To identify the suppliers willingness to meet the need of the customer no matter how urgent.
6) The availability of technical know how in terms of installation and after sales services from the supplier in PZ Plc.
7) To examine a verity of option on shipment load and carriers
1.4 SIGNIFICANCE OF THE STUDY
The research study is very significant in that it will be immense benefit to students in the purchasing and supply management department and interested persons in related fields of study and work who are research minded.
The research work is indeed very significant and a treasure chest for the research minded students and scholars because of the comprehensive nature of this investigative survey and realistic write up.
The study will certainly serve as a dependable reference guide for students in the purchasing and supply management department.
1.5 RESEARCH QUESTIONS
The following are the research question, which this research work is set out to tackle:-
1. Does container have any effect on the buying pattern of the industrial users?
2. What is the role of container with reference to price, quality and quantity?
3. How does container affect the decision to buy by the users of PZ Plc Product?
4 Does container cost affect the total profit?
5 Does container serves as a competitive tool in the marketing of industrial product?
6. Can container help to maximize profit in the company?
1.6 RESEARCH HYPOTHESIS
In conducting this research, the following hypothesis will be tested:
1. Ho: The containerization of a product attracts a buyer.
2. Hi: The containerization of a product affects consumers buying decision.
1.7 SCOPE AND DELIMITATION OF THE STUDY
The manager responsible for containerization on transport and distribution in Pz Plc must develop an efficient and effective means of moving various sized shipments of products by any of the various transportation agencies from the several sources of supply to an almost unlimited number of points of destination.
1.8 LIMITATION OF THE STUDY
The limitation of this study include:-
1. Inadequate financial and material resources with which to carryout such an elaborate product.
2. Most importantly insufficient time for through work since the researcher still had to attained lectures for the completion of his course works.
3. Inability of the respondent i.e those interviewed to give the relevant information on the variables under study.
1.9 DEFINITION OF TERMS
The definition of terms for this project are:-
1) Containerization: Is an advancement of the concept of unit load. A container is a box with steel framework, a strong floor base, paneled sides and a roof.
2) The Distribution Process: Begins when a supplier receives an order from a customer. The customer is not too concerned with the design of the supplier’s distributive system, nor in any supply problems.
3) Inventory: Is a critical area of (PDM) because stock levels have a direct effect on levels of service and customer satisfaction.
4) Order Processing: Is the first of the four stages in the logistical process. The efficiency of order processing has a direct effect on lead times. Orders are received from the sales team through the sales departments.
5) Warehousing: Nigerian marketing texts tend to pay more attention to warehousing than to British texts. This is mainly because of the relatively longer distances involved in distributing in the Nigeria, where it can sometimes lake days to reach customers by the most efficient road or rail routes.
6) Transportation: Usually represents the greatest distribution cost. It is usually easy to calculate because it can be related directly to weight or numbers of units. Costs must be carefully controlled through the mode of transport selected amongst alternatives, and these must be constantly reviewed.
7. Packaging: This involves the clothing, wrapping and boxing goods which provide the necessary, protection for commodities and yet are consistent with common carrier regulations and which minimize handling cost.
8. Freights: This is a payment made by a shipper to a carrier for the transportation of goods from one point to another.
9. Materials Handling: This involves the internal movement of the raw materials and finished products through plants and warehouse. Here the use of mechanical handling equipment has become imperative for modern business firms.
10. Communication: This is the liaison component between the various activities centres of the physical distribution system.
11. Inventory Obsolescence: Materials / products may be discovered due to changes in style and fashion or due to their perishability.
12. Production Cost: The need to increase the volume of production in order to improve customer service results in increase in production cost.
13. Data Processing costs: They vary in accordance with the complexity of the distribution system as well as the level of service provided.
14. Customer Service Cost: This is a two-way sword. High customer service standard is expensive and result in high cost for a firm rendering it.
15. Free On Board Buyers Plant, (FOB): The seller retains the title to the materials until the material s are delivery to the buyer in his plant.
16. Cost Insurance Freight (CIF): This means that the quoted price includes the cost of materials, insurance cover, and the delivery charges. It is commonly used in foreign trade.
17. Ex-ship: Under this arrangement, the seller has to cause delivery to be made to the buyer from a ship, which has arrived at the port of entry or port of delivery.
18. Free Along side Ship (FAS): Under these shipping terms, the seller or exporter is responsible of packing the goods in the right condition for sea transport, getting the goods to the sea port, and arranging for pre-shipment inspection by customers officials.
19. Ex-factory: This trade terms the buyer bear all the costs and risk from the time he is obliged to take delivery from the seller’s plant or warehouse.
20. Shipping Terms Under Carriage of Goods by Seat: When choosing a carrier the following shipping terms are usually considered explicitly in order to know the responsibilities and obligations of both the buyer and the seller especially in international purchasing.
21. Road Haulage: In Nigeria, there is a high control of road transport system. From local to federal authority there is high control of movement of goods on the road.
22. Customs Documentations: The export and import regulations of a country will require some documentation as customs declarations, export and import licenses and certificate of origin.
23. Contracts of Affreightment: Affreightment is an act of hiring a sea vessel or ship for the purpose of carriage. The contract of affreightment is a contract between a shipping company and the shipper otherwise known as the consignor.
24. Bill of Lading: The shipper arranges with the owner or master of the ship the amount of freight i.e the carriage charge and the terms of carriage.
25. Carriage of Goods by Air: International carriage between countries with international conventions dealing with air carriage is governed by carriage by Air Act 1961.
Chapter Five
5.1 SUMMARY OF FINDINGS
During the course of this study, the researcher came up with many relevant findings as they affect the impact of containerization on transport and distribution.
The research revealed that consumer need to understand what containerization is in all the chapters. The chapters reveal that they know what containerization is and this shows that they know the important input it plays in a products.
The findings made by the researcher is inform of her opinion to make the following recommendations or summaries.
In chapter one, the process of containerization has been surged over the last several decades, Nigerian ports and their supporting container distribution networks have struggled to increase capacity to match this expansion. The study will provide marketing opportunities challenges and prospects that exist for marketers to improve on their packaging through repeat purchase.
Another important finding in chapter two is the transport and distribution. I acknowledge the fact that many materials relating to the topic had gone into print but this research stands out in that apart from generalization of the topic, it states the areas on which the impact could be measured. PZ Plc Aba a review of writer to existing works and other materials will help to have a critical survey of the topic.
On the other hand, chapter three is all about design, it was used in the research study as the primary and secondary method since the area under the study was its natural setting. In primary sources, this involves the use of sampling arranged personal interview and observation.
Secondary sources are the method written documents in the getting data from already existing information, for instance, textbooks, and magazines.
The research revealed that consumer now understand what container is, in chapter four revealed that the containerization of a product usually attract the buyers attention if the colours are well combined, good materials are used and with adequate shape and design.
The shape and design can do much to convey idea that the products are of high quality. A well designed container deceived the image of a product. This was revealed by the high percentage it recorded.
Thus, a good container may help to suggest a favourable product image.
Furthermore, a container can attract attention by the uses of suitable distinguished abstract design with simple readable message about the product. The researcher revealed that PZ considers product protection, differentiation promotion as very important to the containerization of its products.5.2 CONCLUSION
In conclusion, one would see that containerization performs three basic function protections, convince utility and motivation of people to buy and use properly.
1. This research is one which shows how all the containerization functions are needed to successful market industrial and consumer goods and why container cannot be divorced from the other parts of the marketing system.
2. In a nutshell, it emphases total use of a containerization and to illustrate the need or a sound container development programme to suit the ultimate consumer.
3. Traditionally, containerization was not always thought of in this way, its impact have been product protection.
4. Actually, it is recently that containerization started to be used to some extent as a marketing tool, unfortunately even today the potentials of container is not fully appreciated by some management people.
5. It is also still though of as being a cost cutting tools, and a protection problem however, container without a quality product, proper pricing, appropriate advertising and a sound marketing plan is little value.
6. On the other hand, regardless of the efficiency and adequacy of these factors without good containerization they cannot be the best possible job.
7. Finally, that evidence abound that Pz Plc contributed in measures in the economic development, they age done in payment at taxes and rates, creating employment opportunities for t he youth, providing raw materials for other industries, training of the citizens so either to be gainfully employed elsewhere or be self valiant employed and thereby contribute to the development of making goods and services available to the people at affordable cost, providing amenities that attracts other enterprise and enhance easy movement of far product.5.3 RECOMMENDATION
In the light of the findings of this project, the following recommendations will help in improving the impact of containerization on transport and distribution.
1) The researcher would recommend that, to make an effective contribution to company goals, the management of PZ Plc should give containerization intelligent leadership.
2) The management will also support from top manager, because containerization is a dynamic complex and controversial business area.
3) Another important, Pz Plc should improve on their container policies and should ensure that these are properly implemented.
4. Containerization should be lacked as a profit builder over sales innovator rather than as a cost cutting tool or a production problem or even as a necessary cost of doing business.
5. In this sense, PZ should have a containerization department with intelligent leader or manager to head it.
6. The management should improve on their designs the package materials used for some of the product should be improved upon.
7. Finally, the management should also liaise with user of their products so as to enable them know where there need for improvement. And the researcher believes that through the research survey has been restricted to PZ Plc much work need to be done on terms of the coverage f the investigation in other areas.