Problems of Logistics in Marketing Fast Food
Chapter One
OBJECTIVES OF THE STUDY
This research is being carried out to find out some solution to problems of logistic in marketing fast food in Enugu State.
- To find out whether there are enough vehicle to supply product to the company’s distribution outlets.
- To stench on how to increase the company’s market share.
- To examine critically the logistic system in the marketing of fast food.
- To find out whether the sales people in various branches encounter the problem in getting suppliers from the factory.
- To find out the company’s inventory problems.
- Highlight the difference between price of fast food in the area of production and in the urban cities where they are sold.
- Highlight the importance of good logistics management in marketing of fast food.
- To find out general logistics problem facing nourish a fast food limited.
CHAPTER TWO
LITERATURE REVIEW
Logistics
Logistics is one of the major expenditures for businesses, thereby affecting and being affected by other economic activities. This is well demonstrated by the following figures for the US quoted by Stock and Lambert (2001): In 1999, US industries spent an estimated $554 billion on freight transportation; more than $332 billion on warehousing, storage, and inventory carrying costs; and more than $40 billion to administer, communicate, and manage the logistics process; the total expenditure on logistics therefore amounting to over $900 billion. In 2001, US business logistics systems costs totalled $970 billion, the equivalent of 10% of the US gross domestic product measured in nominal dollars. (Delaney, 2002, as quoted by Langley, Allen & Tyndall, 2002). World-wide, companies spent about $3 trillion on logistics. (Bank of America; as quoted by Weaser, 2001)
Logistics outsourcing
Logistics outsourcing is also big business in the US. (Sopher, Lareau & Crum, 2002). In 2000, third-party logistics service providers (3PLs), for example, generated $56.4 billion revenue in the US, up from $46 billion in 1999, (Armstrong & Associates, 2001; as quoted by Sopher, et al. 2002), and in 2001 estimated total contract logistics market revenues were $60.8 billion. (Armstrong & Associates, 2002; as quoted by Langley, et al. 2002). Logistics is also a huge consumer of land, labour and capital, particularly in industrialised countries where investment in logistics facilities runs into many billions, as can be seen from the above example. As a significant component of gross domestic product (GDP), in the US 10.5% in 1996, logistics affects the rate of inflation, interest rates, productivity, energy costs and availability, and other aspects of the economy. However it has been reported that the average organisation in the US, for example, could improve its logistics productivity by 20% or more. (Stock & Lambert, 2001). Unchecked, logistics expenditure translates into higher prices for consumers, lower profits for businesses, or both, resulting in a lower standard of living for everyone. It is therefore crucial that South African businesses, as with those in all other countries, improve their logistics productivity. By improving the efficiency of logistics operations, logistics can make an important contribution to the economy as a whole.
Logistics also plays a key role in the economy in that it supports the movement and flow of many economic transactions. It is an important activity with regard to the facilitation of the sale of practically all goods and services. In order to identify with this role of logistics, consider the fact that if goods do not arrive on time, customers cannot buy them. If goods do not arrive in the correct place or condition, no sale can be made. All economic activity throughout the supply chain would suffer if the logistics function failed to fulfil this role. The logistics management function therefore plays an important role in a country’s export effort, and particularly in a country such as South Africa where government has established an export-led growth strategy. If the application of the logistics management concept can tend to a reduction in total logistics costs, exports will be stimulated. South African companies operate in a fiercely competitive environment as a result of the liberalisation of trade and accelerated technological advances. These challenges need to be turned to the advantage of companies by combining product, process and management technology in a holistic approach matched to each unique business situation. Companies in South Africa need to greatly enhance their ability to compete in the global environment and logistics management and innovative strategies have an important role to play in this regard. As a significant element of GDP and GNP, as discussed in previous paragraphs, logistics also affects the rate of inflation, interest rates, productivity, energy costs and availability, and other aspects of the economy. (Stock & Lambert, 2001). In this regard, South Africa too needs to pay attention to those aspects and techniques that could slow down the rate of cost increases and even lead to a reduction therein. The socio-economic progress of South Africa also depends upon this and it is essential to focus on this arrest in cost increases in order to maintain and improve the standard of living of the population. Also of particular relevance to South Africa is the fact that logistics is of a capital-intensive nature and that labour also represents a major percentage of the total costs. It is also important to note that capital is expensive and scarce, while labour is also expensive and can sometimes be an unreliable production factor. Furthermore, logistics management is usually accompanied by the investment of large capital amounts in mechanisation, often to reduce labour requirements. In South Africa every effort should be made however to utilise labour, even though intensive and expensive training schemes may be needed to make this labour more effective.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine the problems of logistic in marketing fast food. A case study of coronavirus disease. Nourisha fast food limited Enugu State forms the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain problems of logistic in marketing fast food. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of problems of logistic in marketing fast food
Summary
This study was on problems of logistic in marketing fast food. Eight objectives were raised which included; To find out whether there are enough vehicle to supply product to the company’s distribution outlets, to stench on how to increase the company’s market share, to examine critically the logistic system in the marketing of fast food, to find out whether the sales people in various branches encounter the problem in getting suppliers from the factory, to find out the company’s inventory problems, Highlight the difference between price of fast food in the area of production and in the urban cities where they are sold, highlight the importance of good logistics management in marketing of fast food and to find out general logistics problem facing nourisha fast food limited. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from nourisha fast food limited, Enugu. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Despite the challenges facing nourisha fast food limited, Enugu, some lessons can be drawn from the large scale firms. The large scale firms invested in logistics management because it paid off. The logistics management team was given regular training, ICT traceability systems for quality assurance and applied efficient packaging and storage management techniques. The large scale firms maintained good relationship with their customers. Other lessons drawn from good industrial logistics management practice among large scale firms visited include (i) Efficient planning of logistics needs by short, medium and long term requirements, (ii) Outsourcing of some logistics needs as much as possible, like raw material supplies, transportation services and other inbound needs but also had in place systems for quality assurance and safety management, (iii) Quality of a product started with quality raw material and (iv) Pre-processing activities close to the raw material source to cut down on transportation cost and also to ensure quality of finished product
Recommendation
· Capital investment to replace old machinery with new ones
· Logistics expert required and there should be cold storage facilities at vantage points so that farmers can access and prolong the shelf life of their produce
· Financial support and training on logistics management needed as part of expansion strategy for small scale firms
· Short-term training and demonstrations on the role of proper logistics systems and management in modern nourisha fast food limited needed.
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