Distribution Management (Research Paper Sample)

CHAPTER ONE
1.0 INTRODUCTION
This chapter introduces the main idea of the study that includes background of the study, background of the firm, statement of the problem, objective of the study, research questions, and significance of the study and finally it seeks to explain limitations of this research.
1 Background of the study
Distribution management is the process of managing goods from their suppliers and or manufacturer at the time of sale. Distribution management is a term of management that refers to frequent activities and process like packaging, inventory, ware house & logistics. In other words distribution management is basically the process in which we manage the resources from starting point of product to the finishing point of sale which includes storage at warehouse location or a delivery to retail point of distribution. Distribution management is the management of all activities which make possible the movements and coordination of demands and supply in the available time and set convenience in good the ability which is to identify the requirements, acquiring them, distributing it and maintaining them operationally (Anan Mungwattana, 2012).
The choice and proper function of distribution network in Kenbol Capital Bakeries can be used to achieve a variety of supply chain objectives ranging from low cost to high responsiveness. As a result, the company will achieve competitive strategic fit and profit maximization.
The paper also examines the various factors and elements which affect the distribution management process commencing from defining customer service levels, distribution objectives and steps, set of activities, the distribution organization, key performance indicators and critical success factors (Martin, 1986).
1.1.1 Kenbol Capital bakeries
Bombolulu Capital Bakeries was established in 2006 as a private company with more than fifty pensionable workers.
It is specialized in manufacturing and selling of convectional foods like which it supplies to supermarkets and small medium enterprises. Capital bakeries use road transport only to distribute its products to different located consumers.
Kenbol Capital Bakeries has been conducting booming business supplying its products to three counties namely Mombasa, Kilifi and Kwale till recent years when their business started diminishing.
For this lesson, it has been experiencing challenges in the distribution of their products to the market causing late deliveries, low response to customer orders. Due to this problem, there have been constant customer complaints due to late delivery of products hence customer dissatisfaction. Increased cost due to increased fuel, operational costs and losses arising from expiring of products hence reducing the firm’s profits.
Despite of ever changing business environments Capital Bakeries has not yet adopted information technology, other challenges include poor infrastructure and engagement of unprofessional personnel especially in distribution department.
Efficiency, effectiveness and economical handling of distribution activities will lead to reduction of costs. There is need in streamlining the distribution management which will at the end play a great role in reducing time taken both in physical distribution and distribution information (Abel, 2014).
Ronald H. Ballou, states that positioning those persons in the firm who are responsible for distribution activities a way that encourage coordination among them is a major problem of distribution. Such organizational arrangement promote efficiency in the supply and distribution of goods by encouraging the cost trade-offs that are frequently encountered in planning and operating distribution systems.
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1 Statement of the problem
Capital bakeries despite of its existence it has faced growth challenges owing to inefficiencies caused by poor distribution function which is entailed to deliver right quality, right quantity, right place, right time of finished products to ultimate customers. This lead to many complaints, from customer to poor deliveries to final consumer breeding to dissatisfaction.
Due to this the company experienced high competition from emergence of other firms in the region who deal with the same field, and who had a well established distribution channels, and therefore encroached large chunk of market formerly controlled by Kenbol Capital Bakeries.
2 Objectives of the study
The objective of the study include the following
1.3.1 General Objective
The purpose of the study is to analyze the factors that affect distribution management in service industry.
1.3.2 Specific objectives
i) To establish the factors affecting distribution management
ii) To identify the key factors to be considered when designing the distribution network
iii) To examine the challenges faced in distribution management
iv) To understand the importance of effective distribution management
1.5Research questions
i) What are the factors that affecting distribution management in capital bakeries?
ii) What are the critical factors to be considered when designing distribution network?
iii) What are the challenges faced in distribution management?
iv) What is the importance of ensuring effective distribution management?
1 Significance of the study
In carrying out this research study, several benefits will be realized not only to the researcher but also to capital limited and Kenya institute of management.
* To the management of capital bakeries
The management will be able to use this report in understanding better the factors affecting distribution and come up with appropriate ways in managing distribution.
* To the Kenya institute of Management
The study would be used as a reference material to other students who could be researching in the same field in future
* To the researcher
As a student this research study is a requirement for the award of diploma.
1.7 Limitations of the study
The following were the limitations the researcher encountered in his study
* Difficult to access information
Some of the respondents were not willing to give out information about their firm as they were busy with their work.
ii) Lack of accurate information
The respondents gave inaccurate information regarding the subject under the study
1.8 Scope of the study
The research study was carried in Kenbol Capital Bakeries which is situated along old Mombasa Malindi road.
The study analyzed the factors affecting distribution management and research work took five months to complete.
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
In this chapter researches looked into previous work publications of various experts in this field of distribution management.
It begins with review of theoretical literature, review of analytical literature, gaps to be filled and theoretical or conceptual framework.
2.2 Review of theoretical literature
Lin & Chen (2008) states that physical distribution is a combined term for the sequence of organized functions (principally transport, stock, storage, goods handling and order processing) involved in physically relocation of products from manufacturer to consumers. Currently, full value now has been given to physical distributions in businesses and industrials. From last three decades, managerial approaches towards distribution system have been transformed. Currently, now distribution is considered to be the most important cost center, an effective marketing tools, crucial determinants of profitability and competitive advantage.
Edward (1982), argued that there will be much greater acceptance of fact that the process of manufacturing and distributions are complementary, and that an unsold products, efficiency which represents and waste of resources. Selecting suitable distributors as a channel partner has considered being an important condition of effective channel presentation. In this current era, where the idea of supply chain management are emerging then strong distribution network is considered to be an important strategic advantage. Mostly, manufacturers are seek and select their distributors by estimated its potential candidates with majorly focuses on performances.
Evaluating task can be consists of identifying the features, criteria or factor which are relevant to making decision which highlighted an assessment of values, cast and benefits, and risk which are associated in this selection (Lin & Chen, 2008).
Previously, many of other different companies are had not applied supply chain management methods. Moreover, now several factors are pushing companies in changing their traditional manners of conducting any business (Ahmad, Awan, Raouf, & Sparks, 2009).
Pearson & Ellram, (1995) argued that in their article that, industries have also been in tough competition and quality standards improvements. Supply chain has been considered as important as quality of products being concerned. Availability of products and confining strong and reputed distributors and inflamed supply network has been at the core of industry’s supply chain. Currently, there are many sectors like electronics, pharmaceuticals and many others are growing in market and having an impact of country’s economy.
(Philip Kotler (2001) Competitive advantage can be achieved in the organization by restructuring the value chain which involve infrastructure in the organization in order to increase customer value and satisfaction, through provision of raw materials to ensure goods and services are availed at the appropriate deadlines and there is effective communication network between the organization stakeholders, customers and society. Beneficial restructuring can result from establishing linkages between activities (both primary and supporting) that allow a firm t...