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DISSERTATION TITLE
Critically evaluate the distribution network at Vasha Foods Ltd.
STUDENT ID#:
0770991
WORD COUNT
9996
DECLARATION
'I declare that the above work is my own and that the material contained herein has
not been substantially used in any other submission for an academic award'.
ACKNOWLEDGEMENT
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This dissertation would not be possible without a number of people. I would like to thank
the following people who have help me and contributed to the success of this
dissertation.
First of all and most important, I must thank God almighty for giving me life,
strength, wisdom, knowledge and understanding to complete this dissertation.
I can do all things through Christ who strengthens me
My beautiful wife who supported and encouraged me through difficult times.
My dissertation supervisor Mrs. Caroline Singh who critically assessed each draft
and provided me with relevant ideas and insights that allowed me to execute a
good proposal. She always made time for me; and I commend her for excellent
work ethics.
The management and staff of Vasha Foods Limited for their cooperation who
participated in questionnaires, interviews, and perusal of relevant company
information.
Finally, the management and staff of the SAM Caribbean Limited, for their time
and cooperation.
ABSTRACT
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The topic of this dissertation is to critically evaluate the distribution network at Vasha
Foods Ltd.The company currently markets and distributes a wide range of branded
and unbranded food commodities throughout the twin islands. VFL also have a
manufacturing arm producing there own line of burger patties and other precooked
items. There main markets served include; Supermarkets retail trade, Foodservice,
and Wholesale.
VFL current distribution network has been the lifeline to the success of their
organization. This has given the researcher the opportunity to scrutinize the current
distribution network and to decide whether it is effective in the development of the
organization current and future vision and goals.
This dissertation consists of a Literature review so that the researcher had a strong
theoretical base on which to stand. It also provides the research topic with an
intellectual, historical and theoretical context within which to frame the research topic
in writing.
Each objective has corresponding techniques with immediate application to the top
on dissertation; findings were compared and contrasted to several bodies of
literature in order to measure its applicability.
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This dissertation also consists of a Research Methodology which is the scientific
methods of analysing the data and presenting it via recommendations. The
methodology comprises of seven parts; the research type, theoretical approach,
different data types, methods of data collection which consisted of primary and
secondary data, analysis of data, research ethics and the limitations encountered on the
research.
The data was carefully scrutinize and analyzed; the findings indicated numerous
problems that staff, customers and middlemen give suggested solutions to the
problems.
The topics that were involved in the distribution network were; distribution or marketing
channels, direct and indirect distribution channels, supply chain management, logistics,
middle men, physical distribution and conflicts in the distribution network.
TABLE OF CONTENTS
Chapter Page
COVER PAGE....................................................................................................ii
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ACKNOWLEDGEMENT.....................................................................................iii
ABSTRACT........................................................................................................iv
LIST OF TABLES AND FIGURES......................................................................v
LIST OF QUOTATIONS USED..........................................................................vi
CHAPTERS
CHAPTER 1 Introduction..............................................................................1
1.1 Company Background ..2
1.2 Industry Background..3
1.3 Rationale .4
1.4 Dissertation Topic5
1.5 Objectives..5
1.6 Justification for Objectives..6
CHAPTER 2- LITERATURE REVIEW
2.1 Introduction of Literature review...7
2.2 Distribution network8
2.3 Logistics or Physical distribution..9
2.4 Dynamic distribution network 10
2.5 Distribution channel on middlemen & customers...11
2.6 Direct channel of distribution.13
2.7 Indirect channel of distribution...14
2.8 Value delivery network15
2.9 Conclusion of literature review......16
CHAPTER 3 METHODOLOGY ....................................................................17
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3.0 Overview18
3.1 Research Type..19
3.2 Theoretical Approach..21
3.3 Types of Data23
3.4 Methods of Data collection.23
3.5 Research Methods...24
3.6 Research Tools.27
3.7 Analysis of Data.27
3.8 Research Ethics.28
3.9 Limitations to Research28
CHAPTER 4 FINDINGS....................... 29
4.1 Main Findings32
4.2 Analysis ..40
CHAPTER 5 CONCLUSION..51
5.1 Recommendation.....53
6.0 REFERENCES.57
7.0 BIBLIOGRAPHY....60
8.0 APPENDICES
Appendix 1- Questionnaire..65
Appendix 2- Structured Interviews 67
Appendix 3- Questionnaire for customers...67
Appendix 4- Time schedule..67
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LIST of FIGURES
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Page no
Figure 130
Figure 231
Figure 333
Figure 434
Figure 535
Figure 636
Figure 737
Figure 838
Figure 9.39
Figure 10..43
Figure 11..46
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1.0 INTRODUCTION
Area of Study
This dissertation looks at a critical evaluation of the physical distribution network
employed by a private company called Vasha Foods Limited. The reason why the
researcher chose the above topic is that distribution network is a very significant
component in the supply chain management in a company, particularly due to the world
recession; companies are looking for innovative ways to be more cost efficient. Vasha
Foods was decided as the base company to conduct this investigation because of the
full support from the management team and directors, also the company was most
suited as compared to other companies in the same sector.
The dissertation consisted of a Literature review so that the researcher will have a
sound theoretical base on which to stand. It will also provide the research topic with an
intellectual, historical and theoretical context within which to frame the research topic in
writing.
In marketing, distribution is the process of moving a product from its manufacturing
source to its customers (Turner 2006). Distribution is the steps taken to move and store
a product from the supplier stage to the customer stage in a supply chain; it directly
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affects cost and the customer experience and therefore drives profitability (Perreault
2005).
1.1 COMPANY BACKGROUND
This company was founded by Mr. Doolchan Sirjoo eleven years ago and started off as
a manufacturer of burger patties. There target market was primarily the hamburger
vendors operating throughout Trinidad. During that time of economic recession the
companys vision was to supply its customers the ability to purchase a low cost burger
patty and resell it for $5.00, which was affordable for most consumers.
After captivating the market, in 2003 the products gained acceptance in the Trinidad
and Tobago Food Nutrition programme and then found its way in all leading
supermarkets. The company has now become the market leaders in burger patties and
currently holds a commanding 67% of market share.
Due to the demand of its products, the company had to start importing its own raw
material because of shortages and higher raw material costs on the local market. Vasha
Foods has now become a major distributor of foods items such as chicken, turkey,
cheese, yogurt, beef, lamb, fish, fries and many more products. The company is now
evolved as one of the leaders in the food industry with over a hundred products
distributing to supermarkets, restaurants, caterers, up the islands (Subways) and direct
customers.
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VFL is located at John Persad Trace, Fireburn road, Freeport Trinidad, employing over
100 employees with a distribution fleet of fifteen vehicles servicing B2B customers and
B2C customers.
1.2 INDUSTRY BACKGROUND
The food industry in Trinidad & Tobago is the only thriving sector that showed an
average growth rate of 13.7% the past year; however, it is highly competitive and has
many companies continuously searching for competitive advantage by way of marketing
research, developing new products, adjusting there marketing mix and being innovative.
Vasha Foods marketing environment consists of all factors that are external to the
companys marketing system and impinge on the success of the exchange process with
it customers. These external factors which affect the company can be categorize and
referred as the PESTLE analysis. The Technological environment in Trinidad saw the
introduction of commercial GPS system; this can track company vehicles at any point in
Trinidad and Tobago. This tool can assist in making the companys distribution system
more efficient and effective.
Vasha Foods main competitors are Premium Quality meats, Superstore, GM Foods and
Romike. The threat of entry in the retail market is high, with many suppliers which
transcend too little bargaining power. Competitive rivalry is also very high with
competitors constantly reducing cost by way of price penetration of there products in
order to sustain or grow market share. The industry is more prices orientated; the larger
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the volume of goods demanded influences the price the customer will pay and also the
terms payment is another influencing factor in this industry with credit terms prices at
somewhat higher that cash prices in the industry.
1.3 RATIONALE
The topic mentioned in the introduction is quite important to the researcher for a number
of reasons. This is a very exciting topic which compels the researcher to perform at the
highest level. It allows the researcher to apply theory, research procedures and analyze
a real problem; whist contributing to a greater understanding.
Choosing this topic will also provide key information and knowledge to other students
who desire to purse this exciting topic.
Finally, the researcher will gain a general understanding on distribution systems and the
effects it has not only on Vasha Foods but other companies operating in the same
industry. The knowledge and experience that would be gained from this exhilarating
topic would be priceless.
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1.4 DISSERTATION TOPIC
Critically evaluate the distribution network at Vasha Foods Ltd.
1.5 RESEARCH OBJECTIVES
1). To identify the present distribution network and logistics at Vasha Foods Limited.
2). To assess the success of the present distribution channel on the middle men and
customers.
3). Analyze findings, compare with theory and make recommendations if necessary.
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1.6 JUSTIFICATION FOR OBJECTIVES
Objective one is to identify the present distribution network and logistics at Vasha Foods
Limited. By identifying this objective, the researcher can recognize the strengths and
weaknesses of the distribution system, in order to execute the other two objectives
objective needs to be performed.
Objective two is to assess the success of the present distribution system on the middle
men and customers. This objective flows from objective one and by assessing the
success of Vasha Foods distribution system, it can be identified based on the success
of the system, and it can or cannot be used as a benchmark for other companies
operating in the same industry.
Objective three is to analyze findings and compare with theory and make
recommendations if necessary. In order to write a successful dissertation the researcher
must have a strong theoretical base on which to stand on and also provide the research
topic with an intellectual, historical and theoretical context within which to frame the
research topic in writing.
The objectives must have corresponding techniques with immediate application to the
research topic and be impartial; findings must be compared and contrasted to several
bodies of literature in order to measure its applicability. Based on the researcher
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opinion and research these objectives fit the criteria to execute a successful
dissertation.
2.0 LITERATURE REVIEW
Introduction of Literature Review
The success of this literature review was conducted by using various books, articles,
journals and other valuable resources that was relevant to the topic. The main purpose
of this literature review is to convey to the reader what knowledge and ideas have been
established on the above topic, and what their strengths and weaknesses are. The
literature review will be defined by a guiding concept which is the research objectives,
and will enlarge the reader and the researcher knowledge and information about the
topic.
Fisher (2009) cited that integration is essential in the distribution of products and
services whether distribution conducted through a single supplier and single customer,
or a direct salesman on each customer would be inefficient as compared to such
distributors if integrated can be able to carry out a number of manufacturers products,
and at the same time increasing standard cost levels. Further more this would allow
market manager to be more competent of taking advantage of local knowledge and
active customer reliability to sell more efficiently bring success to the organization.
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The topics that are involved in the area of study (distribution network) are; distribution or
marketing channels, direct and indirect distribution channels, supply chain
management, logistics, middle men, physical distribution and conflicts in the distribution
network.
2.2 Distribution Network
According to Kotler and Armstrong (2006:p367), distribution network consists of the
different channels of distribution for example direct and indirect channels, dispatching of
goods through the network, customer service management, cost of distribution, and the
distribution system.
However Rees and Wall (2004:p376), added that distribution network refers to the
route the product takes from the producer to the final consumer. These channels must
however, fulfil a number of functions, including the physical movement of the products,
their storage prior to transit sale, the transfer of title to the products and their
presentation to the customer.
Castell (2001) cited that an optimal distribution network is intelligently designed to
minimize costs by providing the customer the right goods, in the right quantity, at the
right place, and at right time. He goes further to emphasise that most organizations,
controlling distribution costs involves striking a balance between warehousing and
transportation. While more distribution centres drives down the cost of transportation,
the opposite holds true as well.
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2.3 Logistics or Physical Distribution
According to Arbury (2007) physical distribution is the interrelationship of all the factors
which affect the flow of both goods and orders necessary to fill orders. This flow starts
when the customer decides to place an order and ends when the order is delivered to
the customer. Physical distribution involves not only the action required to fill a particular
order, but also the action necessary to prepare oneself to meet customer needs.
However Kotler (2009) has cited that physical distribution looks at the planning and
control of distribution activities in an effort to minimize cost. Conversely logistics have
taken the advantage which concentrate customer, market needs, emphasize on cost
savings and an effective competitive tool in the marketplace. Logistics is a key factor for
suppliers as it is significant by gaining a competitive edge over its competitors. An
organization using this system tends to have products available, delivery that is
dependable, competent and accurate order processing in an effort to keep its
customers.
Whereas Kotler looks at the planning and control of distribution activities; Mc Carthy
(1993) focuses on efficiency. Mc Carthy indicates that Physical distribution is the set of
activities concerned with efficient movement of finished goods from the end of the
production operation to the consumer. Physical distribution takes place within numerous
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wholesaling and retailing distribution channels, and includes such important decision
areas as customer service, inventory control, materials handling, protective packaging,
order procession, transportation, delivery time, warehouse site selection, and
warehousing.
2.4 Dynamic Distribution Network
The agility with which a company handles its supply chain is becoming a mark of
business excellence and a measure of advantage. The emergence of what is called a
"dynamic distribution network" is a strategy that allows for a good fit in an ever-
increasing global marketplace (John Fontanella 2006).
Fontanella (2006) added that a Dynamic distribution networks reduce customer
uncertainty over availability and delivery, which makes your company more attractive to
do business with. We have seen dynamic distribution networks at work in the computer
industry, where products are configured to order as a standard service using a well-
synchronized network of suppliers and service providers. Now, the concept is being
adopted by retailers to better serve consumers in categories like consumer electronics
and the Food industry.
However Geoffrey Butcher article (2004) differ his views when he asserts the
importance in planning the most suitable, flexible and cheapest dynamic distribution
network. Certain elements can be juggled with in working towards the solution: the type
of transport, frequency of delivery, service levels even the numbers and locations of
supply points.
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2.5 Distribution Channels on middle men and customers
Kotler (2009), defined distribution channel or marketing channel as a set of
interdependent organizations involved in the process of making a product or service
available for use or consumption by the consumer or business user.
Bucklin (1966:p257) had similar views, as he defined distribution channel as a set of
institutions that performs all the activities utilized to move a product and its title from
production to consumption.
Many theorists including Bucklin emphasize the importance of distribution gaining a
competitive advantage and that implementing the right distribution system will allow
companies to increase customer loyalty as it acts as a key in creating value for money
and revenue growth.
Corey (2000) in his work of study saw the importance of distribution channels as an
external source, how would it affect marketing its goods and the success of the
organisation. This he believes having long term obligation to other companies and to
what extent training and motivation are given to dealers.
Rees and Wall (2004:p325) have stress the importance on where a product is located,
this has raise the attention of the distribution channel used and competitive advantage
will be achieved.
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Many theorists have contributed their thoughts on distribution channel, they have all link
distribution to topics they believe best explain or what distribution contributes in
marketing an organization products. According to these theorists they have seen the
importance of power management in distribution channel.
The theory developed by Adel. L, E and Louis. W, S (1999) stated that measurement
of power is a prerequisite for the analysis of the distribution channel as behavioural
system. This article presents a model for power measurement and the results of a first
attempt to empirically measure power relationships within a specific channel of
distribution.
Contrasting to what Johnson J. L (2008) believed that integration should play a
strategic role in distribution among firms. Johnson stated that, uncertainty was
expected to have contextual effects in the development and outcomes of strategic
integration in industrial distribution channels. From a survey conducted by various
distributors showed that integration relationship from its supplier was successful by
factors such as dependence, flexibility, distribution age and continuity expectations,
which increased a companys financial performance.
Christopher (1998:p5) however cited that the key basis of competitive advantage
initially in the organization is being able to be different from competitors, most
importantly having its customers in mind. This would however dictate the organization
operating at lower cost while at the same time gaining higher profits.
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TYPES OF DISTRIBUTION CHANNELS
2.6 Direct channels of Distribution
According to Wright (2004), most suppliers use direct channel of distribution in
marketing their products. This method allows customers and manufacturers to be more
capable of structuring a relationship through better communication. However it requires
sellers and buyers to be constantly communicate on their service, quality and delivery
and as a result long-term satisfaction will be achieved.
Cateora and Graham (2005) believe that selling directly to customers through mail,
telephone or door to door are mostly used by companies whose market possesses
insufficient or immature distribution systems. It is most appropriate for the prosperous
markets.
Contrasting to Perreault (1993:p318) views that many firms prefer to distribute direct to
the final customer or consumer. One reason is that they want complete control over the
marketing mix. Marketing managers think that they can serve target customers at a
lower cost or do the work more effectively than middlemen. Further, working with
independent middlemen with different objectives can be troublesome.
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2.7 Indirect channel of Distribution
Wright (2004) stated that some companies desire to have their products pass through a
number of intermediaries. These intermediaries within the organization act as a stream
for services and products between suppliers and customers.
Fisher (1996:p229-30) added his research that most companies tend to choose the
indirect channel of distribution because the intermediary may allow the company gain
numerous benefits. This type of distribution channel is successful mainly when
customer purchase goods in small quantities, since it is cheaper to transport goods to
convenient centres and from these distribute in small lots.
In Contrast Hannagan (2002) indicated that indirect distribution has played an important
role in delivering a product that would satisfy customer needs. Retailers and
wholesalers compete for extra services to make their products attractive to customers.
Middlemen also reduce the promotion and selling effort of producers and retailers.
Additionally, for a company to be successful marketing should be don at every stage so
the customers can be more satisfied and a demand for the product and services will
increase.
Similarly Mc Carthy (2003) stated that one of the most important reasons for using
indirect channel of distribution is that middlemen can often help producers serve
customer needs better and at a lower cost.
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2.8 Value of Delivery network
Globalization and technological innovation are creating dynamic network or chain of
interconnected players to bring and deliver value to the end user. The notion that value
can be created by cooperation has led marketers to search for winwin positions as a
way to enhance profitability through collaborative value creation (Anderson, &
Johanson, 1994; Kanter, 1994). The idea of value creation and exchange is the
foundation stone of relationship marketing and is based on three different assumptions
of value exchange potentialities; (Christopher et al., 2009) argued that value is
created; as an offering and delivered through recurrent transactions within a supplier-
managed relationship; through mutually interactive processes and shared through
negotiated agreement within the life of a relationship and shared in interactions that
emerge from within networks of relationships.
Jessop and Morrison (1994) had contrasting views, stating that deliveries of products
are valued by customers as well as members of the value chain. If delivery is done at
the inaccurate location this may give rise to considerable delays. This results in
consumers being unable to get the products at the right time and right place and this
hinders the profitability of the whole company as consumers may search for a
substitute.
CONCLUSION OF LITERATURE REVIEW
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Distribution network has evolved as a strategic marketing approach which is oriented
towards attaining long-term profitability and value creation by interactions and mutual
exchange among customers, suppliers and other stakeholders. It is an approach which
can be adopted to enhance the competitiveness and profitability of a value delivery
network. Better integration and shared mutual values can be developed through
relationship marketing across value delivery network. Subsequently the present study
based on literature review further provides a scope to explore and establish a
theoretical framework for distribution.
Based on the literature review, it can be noted that it is significantly important that all
companies employ some form of distribution network, whether directly or indirectly, as
choosing the wrong network or channel can severely affect the company sales and
profitability performance. To support this, numerous theorists were used based on their
research that distribution channels are important for gaining competitive advantage as
noted by Bucklin and lower operating costs.
Kotler and Armstrong and Rees and Walls had similar views on the distribution network,
whilst Castell and Fontanella defended the need for an optimal and dynamic distribution
network.
Integration between distribution channels is significant, for it integrates both suppliers
and distributors as indicated by Kotler (2000). This allows information to be shared as
well as the successful sale of the product. Similarly, the majority of authors stated that
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most companies uses direct distribution because it allows them to achieve success at a
faster rate and also reduces the promotion and selling efforts of producers and retailers.
Going direct can cut significant costs from the system because you dont have to
provide a profit for intermediaries such as wholesalers and retailers. However based on
the size of the company indirect distribution can also be more advantageous than direct
methods.
In concluding, though were different views from various theorists on distribution network
and channels direct or indirect, each writer focus was based essential for the success of
a company; this requires not only the marketing department but the entire supply chain
management team to successfully achieve the companys goals and objectives.
3.0 METHODOLOGY
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Introduction
Collis and Hussey (2003) defined Methodology as the analysis of the principles of
methods rules and postulates employed by a discipline, the development of methods to
be applied within a discipline and a particular procedure or set of procedures.
The methodology shows how the research was undertaken, how data was collected and
analysed with respect to established theoretical concepts aligned to the three stated
objectives in chapter one.
This part of the dissertation was an important component that essentially mapped out
the methods that was utilized in transcending to the next chapter. This chapter was also
used to justify the chosen methods employed during this dissertation.
3.0 Overview
The methodology comprised of seven parts; the research type, theoretical approach,
different data types, methods of data collection which will consist of primary and
secondary data, analysis of data, research ethics and the limitations encountered on the
research. These components were analyzed, and then justified with respect to the three
stated objectives in chapter one in order to give clear and precise findings, leaving little
or no room for errors.
3.1 Research Type
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There are four different types of research these being exploratory, descriptive,
explanatory and predictive.
Exploratory research is conducted when there are few or no earlier studies to which
references can be made for information. The aim of this type of research is to look for
patterns, ideas or hypotheses rather than testing or confirming a hypothesis (Collis &
Hussey 2003). In exploratory research the focus is on gaining insights and familiarity
with the subject area for more rigorous investigation later. The main reason the
researcher did not choose this type of research is because , it could be quite difficult to
pursue a research question that is exploratory, since there is less scope to build on the
work of others.
However descriptive research describes phenomena as they exist. It is used to
identify and obtain information on characteristics of a particular problem or issue and
the cause of something that is happening (Saunders 2009).
The main reason for not choosing this type is that the data collected are often
quantitative, and statistical techniques are usually used to summarise the information.
Descriptive research goes further than exploratory research in examining a problem
since it is undertaken to ascertain and describe the characteristics of the issue. (Collis
& Hussey 2003)
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Analytical or explanatory research is a continuation of descriptive research. The
researcher goes beyond merely describing the characteristics, to analyse and explain
why or how something is happening. Thus, analytical research aims to understand
phenomena by discovering and measuring causal relations among them (Collis &
Hussey 2003).
This type of research was best suited for the topic because; it not only identifies and
obtains information on the characteristics of a particular problem or issue , it analyses
the research in order to attempt to answer such questions such as how can we
upgrade, how can we improve or how can we expand the distribution network.
An important element of explanatory research is identifying and, possibly controlling the
variables in the research activities, this variable can change and take different values
which can be observed or and measured. (Saunders 2009)
Although predictive research goes further than explanatory research the latter
establishes an explanation for what is happening in a particular situation, whereas the
former forecasts the likelihood of a similar situation occurring elsewhere.
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3.2 Theoretical Approach
Paradigms offer a framework consisting of an accepted set of theories, methods and
ways of defining data (Collis & Hussey 2003). The following are three research
paradigms:
Phenomenological Paradigm
Positivist Paradigm
Triangulation
Phenomenological / Quantitative Paradigm
This paradigm looked rigorously at the subjective aspects of human activity by focusing
upon the meaning, rather than the measurement of social phenomena. Quantitative
research took an inductive approach, which involved the development of a theory as a
result of the observation of empirical data. Such research seeks to provide people with
a means of attempting to understand a world that cannot be understood in terms of
numbers and objectivity (Collis & Hussey 2003).
Positivist / Qualitative paradigm
(Saunders 2009) stated that this approach seeks the facts or causes of social
phenomena, with little regard to the subjective state of the individual. This paradigm was
applied to logical reasoning and precision; objectivity and rigor were used in
investigating research problems. This systematic approach originated by M Auguente
Comte fit the research design.
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Based on the topic in chapter one together with the objectives; a mixed paradigm
known as methodological triangulation. The intent was to obtain both qualitative and
quantitative data to understand these extremities perspective and to effectively analyse
their actions. The researcher noted awareness of interviews being an inductive
approach, however it was necessary and the theory testing approach was adhered to.
Denzin (1970, p.297) defines triangulation as the combination of methodologies in the
same phenomenon. Bryman (2008) contends that triangulation has vital strengths,
encourages productive research, enhances qualitative methods and allows the
complementary use of quantitative methods.
A triangulation approach was adopted in which primary data was collected via in-depth
interviews with the Operations Manager, Sales Manager, Warehouse Manager and the
Dispatch supervisor, while questionnaires were distributed to operational staff.
A mixture of both quantitative and qualitative methods of data collection was used to
execute objective one and two.
3. 3 Types of Data
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There are two types of data qualitative or quantitative. Qualitative data is concerned
with qualities and non-numerical characteristics; whilst quantitative data is all data that
is collected in numerical form.
Both types of data was used in objective one and two, however information from
objective one and two was used to complete objective three.
3. 4 Methods of Data Collection
The Exploratory method using data collected via primary research through the use of
structured interviews, questionnaires, surveys and observations. This inductive type of
research based or grounded in the observations or data from which it was developed;
it used a variety of secondary data sources, including quantitative data, review of
records and reports.
The questionnaire produced standardised data that allowed easy comparison.
However, it was very time consuming in designing the questionnaire and analysing the
results although the researcher was independent.
3.5 Research Methods
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Secondary Research methods
These methods involved perusal of sales reports (weekly, monthly), customer bills,
returned goods report, customer complaint documentation, vehicle maintenance report
and time sheets of drivers, loaders, dispatchers and warehouse staff.
Primary Research Methods
This method involved collecting data through the techniques mentioned above in order
to access more reliable information with the intention of providing specific information
with reference to objective one.
Questionnaires
One questionnaire was designed for this research: -
Self-Completed Questionnaire This was given to a sample of the
distribution customers and middlemen (Refer Appendix 3.)
The Interviewer Administered Questionnaire was structured in such a way to
complement the interview in order to collect detailed information on the Companys
distribution network. While the Self Completed Questionnaire was designed with Tick
Boxes and Multiple Choice Answers to allow for the sample chosen to answer quickly
allowing for more customers and middlemen to be asked within the time period. This
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method consisted of possible drawbacks mainly for the Self Completed Questionnaires,
as the information collected by the sample may be untrue as it is difficult to measure the
validity of such answers from an unknown sample.
Sample Selection
The number of employees in VHL distribution network totals forty. By sampling only a
section saved time and collection was more manageable. The researcher chose
probability sampling to do the survey, because with probability samples the chance
or probability of each case being selected from the population is known and is
usually equal for all cases. This means that it is possible to answer research
questions and to achieve objectives that require you to estimate statistically the
characteristics of the population from the sample.
The researcher targeted those that were in the managerial and operational level
as they were suitable to the research. Of this population the researcher selected the
most appropriate sampling technique to obtain a representative sample ~ stratified
random. This was chosen because of the geographical spread of the population, as it
was suitable for all sizes of population.
Interviews
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Interviewer Administered Questionnaire Structured Interview type was given to 4
individuals of the organisation; Warehouse Manager, Dispatcher Supervisor, staff who
was interviewed based on the questions recorded (Appendix 1)
The interviews were conducted consisting of five members of the organisations staff
Operation and Sales Manager, Purchasing Manager, Quality Assurance officer and
Production Manager (Appendix 2). This data collection allowed for clarification and an
opportunity to ask supplementary questions to ensure that questions were fully
understood.
Observation
This data collection method was used for objective one. Quick notes were recorded
about the organisation and its employees while at work. However, it must be noted that
the findings from such a collection process may be distorted due to reasons such as the
employees being aware of being watched.
3.6 Research Tools
The tools that were used for both interviews and observations were notebook, pen, to
write all the observed data, a laptop were used to input data. Organizational records,
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sales reports, delivery notes and invoices were also collected and some reports were
photocopied for further knowledge on the current distribution system used.
3.7 Analysis of Data
For objective one and two the quantitative data, exploratory analysis was used, through
this method univariate data and bivariate data was analyzed. Univariate data analysis
was `employed using frequencies such as tables, charts, and graphs, which was most
appropriate for this research paper in considering the topic chosen, also it is best
suited to effectively concentrate on the research objectives to a good measure of
accuracy.
Objective three the research technique used in analyzing data was Cognitive mapping.
According to Collis and Hussey(2003:p266) The emphasis of using this technique is in
the importance of examining and reexamining the data (evidence) and seeking
explanation which best fit the data.
3.8 Research Ethics
The results of the research were highly analytical, making use of several established
analytical models and tools. The researcher was highly ethical, very professional in his
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approach and show high levels of respect for privacy. The presentation of data was very
clear and precise leaving little or no room for errors.
Honesty and integrity was done in reporting data, results, methods and procedures, and
publication status.The researcher strived to perform the investigation with the highest
degree of accuracy as possible in order to present valuable findings, analyses and
recommendations.
3.9 Limitations to Research
The researcher faced some difficulty during the issuance of the questionnaires, which
resulted in a delay in collecting the questionnaires on the scheduled date. This was due
to a surge of busy days and miscommunication amongst, the HR and Operations
Manager and the researcher. This delay resulted in the loss of critical time for analysing
data from this method. The response from the questionnaires sent was only seventy-
five percent, which was disappointing and thus restricted a true representation of the
entire network.
4.0 FINDINGS
The following data was collected and carefully scrutinized from all the various research
methods used in the methodology mentioned above. The findings will emphasize the
use of diagrams to explore and understand the data.The sampling method used was
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determined because it is often used when working with very small samples such as in
this project (Neuman, 2006).
Objective one was to identify the present distribution network and logistics at Vasha
Foods. The instruments that were used as indicated above were interviews,
observation, perusal of company reports, and structured interviews.
Objective two was to assess the success of the present distribution channel on the
middle men and customers. The instruments that were used were structured interviews
Manager; Questionnaires and surveys for customers and middle men. (30 people)
Vasha Foods Limited distribution network consists of a billing department of one person,
four regular dispatchers, seven warehousing staff, fifteen drivers and twelve lorry men.
The fifteen trucks carry about 85% of frozen products with the other 15 % being dry
products. However only five out of the fifteen trucks are refrigerated the others are
insulated.
The company operate both types of distribution channels; direct and indirect channels,
in four main segments that consist of supermarkets, caterers, restaurants and Tobago.
The following information shows the results obtained from observation conducted at
Vasha Foods Ltd. Numerous errors were identified on outgoing invoices by dispatchers
due to wrong prices, amounts, out of stock and wrong addresses. Two drivers had to
wait about fifteen minutes for patties to be prepared. Four drivers and lorry men
reported to work late, whilst two stayed home
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The question was asked to the Operations Manager on what percentage of customer
complaints stem from the distribution network.
Figure 1
The response was seventy percent of customer complaints stem from the distribution
network, whilst thirty percent did not. Most of the complaints were about the condition of
products and the delivery time.
The next main question that was asked to the Sales Manager was; who are VFL main
competitors and what market share do your company hold in the industry.
38
Customer complaints
70%from
distribution
network
Thirty percent
other
Market Share
GM Foods 15%
Superstore 30%
Premium Quality24%
Vasha Foods 22%
Other 9%
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fig
Figure 2
Figure 2 above depicts the an industry market share with VFL controlling 22% of the
market, then followed by Premium Quality meats with 24%, after Superstore with 30%
market share. Vasha Foods main competitor in Burger patties is GM Foods, however in
the other frozen products (meats) Vasha is in sixth place with Superstore number one.
4.1 MAIN FINDINGS
CUSTOMERS & MIDDLEMEN
Thirty questionaries were carried out in four zones; South, Central, East and North
zone. The customers and middlemen comprised of supermarkets, restaurants, burger
cart vendors, caterers, and wholesalers. Telephone interviews were used for the
Tobago segment. Most of the surveys were conducted during the week on evenings
between the hours of four and six pm and the rest on Saturdays mornings between the
hours of eight and ten am.
The questionwas posed to the customers and middlemen on the frequencyof which
goods are being delivered by the company. Though it may seem to be a general
question, it is closely linked to question (2) on delivery time. The response was that8%
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responded fortnightly, 60% responded weekly and 32% responded monthly. The data
indicate the company delivers mainly on a weekly basis to customers.
The following question was about the delivery time the products are being delivered to
the customers and middlemen in Figure 3 (below)
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0%
10%
20%
30%
40%
50%
60%
70%
YES
NO
YES; 37%
NO; 63%
Are you satisfied with delivery time?
Figure 3
The response shows that 37% of the middle men and customers were satisfied with the
companys delivery time. However 63% were not satisfied with the delivery time. The
findings also indicate that customers and middlemen are not only not satisfied with the
delivery of VFL products but also in terms of out stock products that are being ordered
and delivered when it is in stock.
Q 3:
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0%
10%
20%
30%
40%
50%
60%
70%
Response
How are the drivers and loader attired ?
Proffessional
Unproffessional
Figure 4
The response was that 63% of respondents agreed that drivers attire is unprofessional,
whilst 37% agreed on drivers being professionally attired. Further investigation reveals
that there is a high turnover rate of drivers at Vasha Foods; this is the main reason for
the above statistics.
A comparative analysis was conducted with VFL closest rivals Premium Quality meats
in terms of their distribution network as shown in the diagram below.
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0
10
20
30
40
5060
70
80
90
100
Billing Trucks Warehouse Drivers
Vasha Foods
Premium Quality
Figure 5
The question was asked on the amount of staff employed in the billing department.
Figure 4 indicate that Premium Quality meats employs two billing clerk whilst VFL
employs one.
This question was addressed to the dispatching departments on the amount of trucks
working for the companies. Results indicated that there are fifteen trucks operating for
VFL, however PQM has twenty trucks working.
Fifty percent of the trucks for PQM are refrigerated and the other half insulated; as
compared to 33% at VFL. It must be noted that 75% of PQM trucks are branded with
the company logo compared to VSL 14 %.
In terms of warehousing department for VFL; 90 % of staff report to work early or on
time, however further investigation reveal that PQM only 60% of warehousing staff
report to work early or on time.
Q 5:
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Response
How would you rate the relationship betweenyourself and Vasha Foods?
Excellent
Not good
Good
Figure 6
Question five looked at how efficient the relationship between VFL is with their
middlemen and customers. Upon examining the data fifty two percent of respondents
said that they have a good relationship with Vasha Foods, however thirty eight percent
respondents said that they dont have a good customer relationship with the company
with only ten percent said that they have a excellent relationship with VFL.
Q 6:
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Quality of Goods
Are you satisfied with the condition ofgoods being received from Vasha Foods?
Somewhat
Occasionally
Satisfied
Unsatisfied
Figure 7
Question six was about the condition of the goods that are being received from VFL and
the data indicate that 20% is somewhat satisfied with the condition of goods being
received, however 48% is occasionally satisfied, 28% are satisfied and 4% is not
satisfied with the condition of goods being received by the company.
Q. 7 Figure 8
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Response from VSL customers
How reliable is Vasha foods distributionnetwork in terms of stock?
No response Very reliable Somewhat reliable Unreliable
This particular question examined the reliability of the distribution networks and the
results indicate that 28% of respondents indicated that V.F.L is unreliable in terms of
receiving stock. 48% however indicated that V.F.L is somewhat reliable in receiving
stock; whilst 16% of respondents agreed that the company is very reliable and 8 % had
no response.
Q 8.
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0% 20% 40% 60%
Safety
Improvements
What improvements Vasha foods shouldconsider in terms of distribution?
Service from drivers
Apperance of vehicle
Condition of goods
Delivery time
Figure 9
The final question was what improvements Vasha Foods should consider in terms of
distribution. The response was 50 % of customers and middlemen indicated delivery
time; 36 % indicated condition of goods; 10% pointed out service from drivers need to
improve and 4% indicated the appearance of vehicles need improvement in terms of the
distribution channel.
4.2 ANALYSIS
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Distribution Network
Interpretation of the above data has indicated that the current distribution network of
Vasha Foods Limited consisted of both indirect and direct channels of distribution, a
billing department with one billing clerk, dispatching of goods through the network,
Warehousing and the distribution system.
Kotler and Armstrong (2006:p367), had similar views on the distribution network
expect that VFL does not have any accurate customer service management system in
place. Rees and Wall (2004:p376), added that distribution network refers to the route
the product takes, their storage prior to transit sale, the transfer of title to the products
and their presentation to the customer. Castell (2001) cited that in order to optimize
distribution network; organizations must control distribution costs which involves striking
a balance between warehousing and transportation. However it is evident that VFL is
yet to strike this balance in order to efficiently optimized there network.
Direct Channel
The direct channels of VFL comprises of supermarkets, restaurants and caterers and as
Wright (2004) stated that direct channels allow customers and manufacturers to be
more capable of structuring a relationship through better communication. There is
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evident of a good relationship with the company and the customers and middlemen (pg
40 refer figure 6). HoweverWright also stated that it requires sellers and buyers to be
constantly communicating on their service, quality and delivery and as a result long-
term satisfaction will be achieved.
Indirect Channel
Vasha Foods indirect channel of distribution is serviced to the middlemen who are
wholesalers, the customers benefit at lower prices and improved service as stated by
Fisher (1996). The findings reveal the same statement indicated by Hannagan (2002)
that retailers and wholesalers compete for extra services to make their products
attractive to customers. Middlemen also reduce the promotion and selling effort of
producers and retailers. However investigation reveals in VFL that middlemen do not
get there products on time because of the volume requested at one time and the
problem as indicated in the findings is space is limited on the trucks. Most times
middlemen would have to accept there goods on the afternoon; between the hours of
three to six in the afternoon. This is only the time when trucks become available due to
the other segment being serviced on the mornings.
Logistics or Physical distribution
Arbury (2007) stated thatphysical distribution is the interrelationship of all the factors
which affect the flow of both goods and orders necessary to fill orders. The factors that
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affect the flow of goods to the customer in VFL are shortage of dispatchers. In VFL
network there consist of four dispatchers of which 85% of them report to work on time
and are assigned to dispatch fifteen trucks in two hours; the data has indicated that the
dispatchers are not sufficient to handle all the vehicles in the specified time frame.
Rees and Wall (2004) identified one of the more important aspects of the physical
network which is the transfer of title to the products and their presentation. In examining
these aspects for VFL is was found that there are fifteen trucks of which only two are
branded. Only thirty four percent of the trucks are refrigerated by the company whilst the
other sixty six percent are insulated.
The Distribution Logistics at V.F.L and order of importance shown in figure 10.
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12%
38%
19%
31%
Order process
Transport
Storage
Inventory
Figure 10
The logistics comprises of the order process, transport, storage and inventory, with
transport being the most important and order process being the least.
Innis, Daniel E, La Londe, Bernard J (1994) interestingly states that most logistics
executives recognize that physical distribution is one of the primary means through
which customer service is delivered to the final customer. And yet, the importance of
customer service, and of the distribution function, has only recently been recognized in
either the literature or in practice.
.
Distribution Channel
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Question two focussed on punctuality on the distribution department which revealed
some interesting outcomes. The workers that report to work late or are absent it was
revealed that 90% of them said that they was not motivated to work because the
company did not pay them any bonuses for year end December 2009. Investigations
further reveal that loaders are the least paid people in the organization. The theorist
Vroom (1964) described it in his expectancy theory where an outcome that has a high
expectancy of being reached and of which the rewards are highly valued will direct
people to exert much greater effort in their task.
.
Dynamic Distribution network
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A comparative analysis was done (refer figure 5) against VFL closest rivals (PQM) in
order to determine the level of success of the distribution network in that company. The
results did indicate that Premium Quality Meats distribution network is superior to VFL.
Fontanella (2006) added earlier that a Dynamic distribution networks reduce customer
uncertainty over availability and delivery, which makes your company more attractive to
do business with. The two main attributes identified by Fontanella for a dynamic
distribution network are availability and delivery.
Question one and two was aimed at identifying how dynamic the distribution network is
at VFL in terms of delivery time and availability.
Gilbert (2003 pg 217) goes on to indicate that no amount of service enhancement or
added incentives will effectively make up for an empty shelf. Goods delivered not in
time translate to loss in sales to both distributor and middlemen.
The question was asked to drivers, why do customers receive there goods so late and
their response from most of them was that mistakes on bills, inefficient inventory system
were goods are billed and upon dispatching, the goods were unavailable and the bills
had to be printed over, another main challenge for the drivers is a lot of traffic on the
road compounded by long waiting time in the major supermarkets.
Value delivery network
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Figure 11
Relationship is another key component in the distribution network as indicated by
(Christopher et al., 2009) that value is created; as an offering and delivered through
recurrent transactions within a supplier-managed relationship; through mutually
interactive processes and shared through negotiated agreement within the life of a
relationship and shared in interactions that emerge from within networks of
relationships.
Thus value delivery looks at how efficient the relationship between VFL is with their
middlemen and customers. Upon examining the data fifty two percent of respondents
said that they have a good relationship with Vasha Foods, however thirty eight percent
respondents said that they dont have a good customer relationship with the company
with only ten percent said that they have a excellent relationship with VFL.
(Kotler & Armstrong 2006) indicates the importance of CRM to customer service by
arguing Customer Relationship Management (CRM) The process of building and
maintaining profitable customer relationships by delivering superior customer value and
satisfaction.
It was noted that customers that had good and excellent relationship with the company
has had healthy sales with the company. Also some customers did indicate that if they
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had closer relationship with the company in terms of an efficient distribution system,
better credit facilities, and more visual interaction with a sales representative , that they
are willing to increase their purchasing from Vasha Foods.
Optimal Distribution network
There is evidence to indicate that VFL distribution network has reached to an optimal
point; because of five unrefrigerated was bought in the last two years, the volume of
goods has increased by over forty percent over the last nineteen months and most
trucks are almost filled to capacity.
Castell (2001) indicated that an optimal distribution network is intelligently designed to
minimize costs by providing the customer the right goods, in the right quantity, at the
right place, and at right time in the right condition. Question five was about the condition
of the goods that are being received from VFL and the data indicated that only twenty
percent of customer is somewhat satisfied with the condition of goods being received,
however forty eight percent is occasionally satisfied with the condition of goods being
received by the company.
Investigations reveal that the 28% who was satisfied with the condition of goods
received are the customers that receive the goods in a refrigerated truck or receive the
goods in less than three hours in an insulated truck. Gattorna and Walters (1996)
believe that infrastructure elements supporting availability for a customer such as
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transport is important to recognize the interrelationship that exist between this element;
and states that a ruthless pursuit of cost savings within one element is flawed if the
result is simply to push a cost burden on to another.
It must be mentioned that two customers refused to corporate with the researcher with
the questionnaire because they indicated that they were very upset that they placed
order, and no one inform them that they were out off stock.
Customer Service impact on Distribution network
Innis, Daniel E (1994) emphasize the importance of customer service and the
distribution network and states that Distribution is one of the primary means through
which customer service is delivered to the final customer. And yet, the importance of
customer service, and of the distribution function, has only recently been recognized in
either the literature or in practice.
Investigations reveal that Sales representatives and merchandisers were being affected
by the distribution network as revealed by supermarket customers on the question on
delivery time. Structured Interviews were then conducted with the company Sales
representatives, and merchandisers.
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The merchandisers response was similar and stated their frustration on commuting to
supermarkets to merchandise the goods only to find out at times that the products was
not sent due to products being out of stock or the non availability of drivers to deliver
them. This was a clear indication of a breakdown in the line of communication with the
dispatch department, the sales representative and merchandisers.
Perreault (2004) states by focusing on an efficient distribution network will impact on
customer service in a positive way. The manager can establish a competitive advantage
by providing high levels of service on these important attributes.
The question was what improvements Vasha Foods should consider in terms of
distribution. The response was 50 % of customers and middlemen indicated delivery
time; 36 % indicated condition of goods; 10% pointed out service from drivers need to
improve and 4% indicated the appearance of vehicles need improvement in terms of the
distribution channel.
The answer revealed that the most significant concern from customers and the
middlemen are delivery time in terms of delivering the products at the requested time
frame for the customer and not the company s policy of a two days delivery time for
supermarkets. Caterers get there delivery the next day, however restaurants get their
deliveries the same day.
5.0 CONCLUSION
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It was evident in the above analysis that Vasha Foods Ltd conducts an inefficient
distribution network. As Lambert and Zemke (2006) suggests that the output of the
physical distribution function may in fact be the best method for many firms to gain
competitive advantage. Lynaugh and Poist(2007) point out, it is essential to recognize
the fact that physical distribution can contribute to marketing's success, and vice-versa.
Both marketing and physical distribution are important contributors to the overall
success of the firm.
Some of the major inefficiencies that were discovered include one billing clerk with a
high ratio of errors that led to poor customer service; over fifty percent of drivers and
lorry men report to work late which results in late deliveries of customer products. Only
a small amount of the company trucks are refrigerated which results in high percentage
of products being delivered in poor condition.
Thirty eight percent of customers and middlemen said that they dont have a good
relationship with the company. Some of the contributing factors that were identified were
non availability and late delivery of products, poor relationship between the sales
representative, customers and middlemen. According to Massingham and Lancaster
(2004) they believed that the relationship between channel members must be
recognized as to allow a free flow of information. They also stated that it would increase
the efficiency and effectiveness of the company.
Results also showed that VFL has no current competitive advantage over its rivals.
According to Rees and Wall (2004), by paying vast attention to the distribution network
competitive advantage can be achieved by paying special attention to place from the
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marketing mix . Jessop and Morrison (1994), emphasize in order to master the place,
the distribution network is important.
Communication has also been a cause of concern to the success of the organization.
As stated by Usunier (2008) he believes, poor marketing communication desert
potential customers because the established ones are focused on too much. The
researcher observed that communication is a major problem with the company
distribution network and had affected customer service in a negative way.
As mentioned earlier it was noted that on frequent occasions products were not
available on the shelves or available to the middlemen due to the company being out of
stock. When investigated, the purchasing manager informed the researcher that the
suppliers were out of stock of a delay in shipping occurred. As Bucklin (1966) stated
that distribution channels are expected to move a product and its title from production
to consumption, but evidently; VFL channel does not accomplish this all the time and as
a result customers may turn to substitutes and middlemen may turn to the competitors
thereby reducing the companys market share and a decline in customer service.
Based on the above data and analysis it is evident that Vasha Foods does not have a
successful distribution network and implementation of the recommendations below can
indeed make it a successful network.
5.1 RECOMMENDATIONS
The research revealed many ideas and issues of the distribution network associated
with Vasha Foods Limited. Recommendations were presented from staff and customers
on ways to have a more effective and efficient distribution network. If these
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recommendations are implemented the benefits for Vasha Foods are; increased market
share, gaining a competitive advantage, increased sales, improved customer service
and economies of scale.
Distribution Network
As mentioned in the findings; data acquired from primary and secondary research; the
company currently employs one billing clerk; however five years ago the clerk was
billing approximately 13m per annum in sales. Sales as of end of last year totalled 37m.
This is an increase of over 200% with stem from increase market share and
diversification of the company in products and segments.
Therefore additional billing clerks suggested by the current billing clerk with add
efficiency to the network. Each clerk can be responsible for different segments of the
sales for the company example supermarkets, caterers, restaurants, Tobago etc.
Training is an important tool in the success of an organization and Thornton (1991)
stated that training a planned processin the work situation is to develop the abilities
of the individual and to satisfy the current and future needs of the organisation.
The recommended training suggested from the Quality Assurance Officer will involve
all staff that are part of the distribution network and will include training in the areas of
Health and Safety, this is necessary as to educate staff on how to identify hazards on
the workplace and also how to eliminate the hazard without decreasing the productivity
level.
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The drivers and lorry men would also required training on pulling of goods ; this
procedure involving the physical removing of products from the freezers and production
to warehousing department using forklifts and pallet jacks . This training is deemed
necessary as to maximize the temperature of the products when it comes out the
chillers and freezers because some products drop in temperature faster than others and
also a faster flow of products to the loading bay.
HACCP (Hazard Analysis Critical Control Point) is a food safety programme on
practices of food hygiene that will not lead to cross contamination and food poisoning.
The Production Manager is qualified to conduct this training and will be of minimal cost
to the company.
Evaluation is also important in determining whether training objectives have been met,
or whether money and resources were spent wastefully on ineffective training. Hence it
is recommended that there be more formalised training geared towards the distribution
network. Having formalised training indicates the alignment to the organisations
strategy and is highlighted by Torrington et al. (2005) a planned processin the
work situation, is to develop the abilities of the individual and to satisfy the current
and future needs of the organisation.
Currently VFL conducts a manual inventory system which impacts in a negative way in
the distribution network, products are depleting and on many occasions customers and
middlemen complained about not receiving goods because of the company being out of
stock.
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The Purchasing Manager suggested a computerised inventory system, which can
monitor the stock from his office without waiting for a manual report on a weekly basis,
which is inaccurate at times. This would improve the efficiency of the inventory system
and improved customer service.
The organisation needs to implement an improved relationship amongst all staff who is
involved in the network. By employing a vertical marketing system will improve the
flow of information. Massingham and Lancaster (1994) stated that a vertical marketing
system allows the free flow of information an each level of the distribution channel acts
in an organised and united way to achieve greatest efficiency for the channel as a
whole. He mentioned that each level in the channel would recognise interdependence
and function on the basis of interdependence. Therefore, middlemen and customers will
be satisfied and they will have created a competitive advantage.
Distribution Logistics
Currently there are only five out of fifteen refrigerated trucks that are delivering 85% of
frozen goods to customers and middlemen. The unanimous recommendations among
drivers, is that another five trucksbe refrigerated so as to decrease the possibility of
products reaching customers at a defrosted state. This would also result in a fifty
percent improvement in the quality or condition of the products reaching the customers
and middlemen, customer complaints, damages and spoilages will also be reduced by a
substantial amount resulting in improved customer satisfaction. The remaining insulated
trucks can be used in close proximity areas within an half an hour radius.
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Distribution Channel
One of the major problems identified from the preceding analysis was delivery time to
the customers and middlemen. This was contributed from drivers and lorry men
reporting to work late, traffic on the roads, and absenteeism with drivers. The
Operations Manager suggested a penalty for arriving to work late such as a reduction in
salary or a warning letter on the other hand the driver that report to work early can also
be rewarded for driver of the month with some financial reward. By drivers leaving
earlier would also reduce the traffic time on the road.
A part time driver can be employed by the company to increase the efficiency of the
distribution system. This would result in increased customer satisfaction. This was noted
by Ibbetson and Newell (2007),physical distribution, through the provision of customer
service, can contribute to the success of the firm and, can work to enhance customer
satisfaction and repurchase intentions.
This research has indeed proven the need for training, additional staff, new policies and
additional refrigerated trucks within the distribution network. Management should take a
proactive approach in implementing these recommendations to ensure a dynamic
distribution network within Vasha Food Limited.
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6.0 REFERENCES
Armstrong, G and Kotler, K (2006), Principles of Marketing 11th Edition: London Pearson
Education Ltd, F/T Prentice Hall
Blythe, J (2003), Essentials of Marketing Communications, 2nd Edition: London Pearson
Education Ltd, F/T Prentice Hall
Bucklin, L.P.A (1966), Theory of Distribution Channel Structure: USA, Berkeley,
University of California
Chisnall, P (2005), Marketing Research, 7th Edition: New York, Mc Graw Hill,
International Ltd
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Student ID # 0770991
Christopher, M (1998), Logistics and Supply Chain Management: London
Pearson Education Ltd, F/T Prentice Hall
Cole, A.G (1996), Management Theory and Practice, 5 th Edition: England, Letts Ltd
Companys Manual. Vasha Foods Limited (2004:p21-27)
Fisher, L (1976), Industrial Marketing, Business Books: London, Pearson Education Ltd,
F/T Prentice Hall
Galvin, E and OConnor, J (2005), Marketing in the Digital Age, 3 rd Edition, Pearson
Edition Ltd
Gilbert, D (2003), Retail Marketing, 2nd Edition: London Pearson Education Ltd, F/T
Prentice Hall
Graham, J and Cateora, P (2005), International Marketing, 12 th Edition: New York,
Mc Graw Hill, International Ltd
Hannagan, T (2002), Management Concepts and Practices, 3rd Edition: London
Pearson Education Ltd, F/T Prentice Hall
Hart, S and Baker, M (1999), Product Strategy and Management: London Pearson
Education Ltd, F/T Prentice Hall
Hussey, R and Collis, J (2003), Business Research, 1st Edition, Palgrave, Macmillan
Jessop, D and Morrison, A (2004), Storage and Supply of Materials, Pitman
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Student ID # 0770991
Jobber, D and Lancaster, G (2000), Selling and Sales Management, 5th Edition: London
Pearson Education Ltd, F/T Prentice Hall
Kent, R (2002), Marketing Research: Measurement, Method and Application, 1st Edition:
United Kingdom, Business Press, Thomas Learning
Kotler, P and Keller, K.L (2006), Marketing Management, 12 th Edition: London Pearson
Education Ltd, F/T Prentice Hall
Little, P (1986), Communication in Business, Pitman
Lowe, R and Doole, I (2005), Strategic Marketing Decisions in Global Markets 1 st
Edition: United Kingdom, Business Press, Thomson Learning
Lynch, R (2003), Corporate Strategy, 3rd Edition: London Pearson Education Ltd, F/T
Prentice Hall
Massingham, L and Lancaster, G (1994), Essentials of Marketing, 3 rd Edition: New York,
Mc Graw Hill, International Ltd
Mullins, J.L (2002) Management and Organisational Behaviour, 6 th Edition: London
Pearson Education Ltd, F/T Prentice Hall
Ranchod, A (2004), Marketing Strategies: A Twenty-first Century Approach, 1 st Edition:
London Pearson Education Ltd, F/T Prentice Hall
Rees, B and Wall, S (2004), International Business 3 rd Edition: London Pearson
Education Ltd, F/T Prentice Hall
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Student ID # 0770991
Scholes, K and Johnson, G.W (2005), Exploring Corporate Strategy 7th Edition: London
Pearson Education Ltd, F/T Prentice Hall
Simkin, L and Dibb, S (2001), the Marketing Casebook 2nd Edition: United Kingdom,
Business Press, Thomson Learning
Tailby, S, Nicholls, P and Hollinshead, G (2003), Employees Relations: London Pearson
Education Ltd, F/T Prentice Hall
Thornhill, A, Lewis, P and Saunders, M (2003), Research Methods for Business
Students 2nd
Edition: London Pearson Education Ltd, F/T Prentice Hall
Usunier, C.J (2000), Marketing Across Culture: London Pearson Education Ltd, F/T
Prentice Hall
Wright, R (2004), Business to Business Marketing 1st Edition: London Pearson
Education Ltd, F/T Prentice Hall
7.0 BIBLIOGRAPHY
Adel. L, El-Ansary and Louis, W, Stern John, F. G Journal of Marketing, Vol. 48, No. 3
(summer, 1984), pp. 9-29
Armstrong, G and Kotler, K (2006), Principles of Marketing 11th Edition: London Pearson
Education Ltd, F/T Prentice Hall
Blythe, J (2003), Essentials of Marketing Communications, 2nd Edition: Pearson
Education Ltd, F/T Prentice Hall
Bucklin, L.P.A (1966), Theory of Distribution Channel Structure: USA, Berkeley,
University of California
67
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68/79
Student ID # 0770991
Chisnall, P (2005), Marketing Research, 7th Edition: New York, Mc Graw Hill,
International Ltd
Christopher, M (1998), Logistics and Supply Chain Management: London Pearson
Education Ltd, F/T Prentice Hall
Cole, A.G (1996), Management Theory and Practice, 5 th Edition: England, Letts Ltd
Companys Manual. Vasha Foods Limited (2005:p7-22),
Fisher, L (1976), Industrial Marketing, Business Books: London Pearson Education Ltd,
F/T Prentice Hall
Galvin, E and OConnor, J (2005), Marketing in the Digital Age, 3 rd Edition, Pearson
Edition Ltd
Gilbert, D (2003), Retail Marketing, 2nd Edition: London Pearson Education Ltd, F/T
Prentice Hall
Graham, J and Cateora, P (2005), International Marketing, 12 th Edition: New York,
Mc Graw Hill, International Ltd
Hannagan, T (2002), Management Concepts and Practices, 3rd Edition: London
Pearson Education Ltd, F/T Prentice Hall
Hart, S and Baker, M (1999), Product Strategy and Management: London Pearson
Education Ltd, F/T Prentice Hall
Hussey, R and Collis, J (2003), Business Research, 1st Edition, Palgrave, Macmillan
68
7/31/2019 Disseration on Distribution 0770991
69/79
Student ID # 0770991
Jessop, D and Morrison, A (2004), Storage and Supply of Materials, Pitman
Jobber, D and Lancaster, G (2000), Selling and Sales Management, 5th Edition: London
Pearson Education Ltd, F/T Prentice Hall
Johnson J. L Journal of Marketing, Strategic Integration in Industrial Distribution
Channels, Washington State University
Kent, R (2002), Marketing Research: Measurement, Method and Application, 1st Edition:
United Kingdom, Business Press, Thomas Learning
Kotler, P and Keller, K.L (2006), Marketing Management, 12 th Edition: London Pearson
Education Ltd, F/T Prentice Hall
Little, P (1986), Communication in Business, Pitman
Lowe, R and Doole, I (2005), Strategic Marketing Decisions in Global Markets 1 st
Edition: United Kingdom, Business Press, Thomson Learning
Lynch, R (2003), Corporate Strategy, 3rd Edition: London Pearson Education Ltd, F/T
Prentice Hall
Massingham, L and Lancaster, G (1994), Essentials of Marketing, 3 rd Edition: New York,
Mc Graw Hill, International Ltd
Mullins, J.L (2002) Management and Organisational Behaviour, 6 th Edition: London
Pearson Education Ltd, F/T Prentice Hall
Ranchod, A (2004), Marketing Strategies: A Twenty-first Century Approach, 1 st Edition:
London Pearson Education Ltd, F/T Prentice Hall
69
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70/79
Student ID # 0770991
Rees, B and Wall, S (2004), International Business 3 rd Edition: London Pearson
Education Ltd, F/T Prentice Hall
Rugman, A and Hodgetts, R. (2003), International Business: 3rd Edition: London
Pearson Education Ltd, F/T Prentice Hall
Saunders, M., Lewis, P. and Thornhill, A. (2003), Research methods for Business
Students 3rd Edition: London Pearson Education Ltd, F/T Prentice Hall
Scholes, K and Johnson, G.W (2005), Exploring Corporate Strategy 7th Edition: London
Pearson Education Ltd, F/T Prentice Hall
Simkin, L and Dibb, S (2001), the Marketing Casebook 2nd Edition: United Kingdom,
Business Press, Thomson Learning
Tailby, S, Nicholls, P and Hollinshead, G (2003), Employees Relations: London Pearson
Education Ltd, F/T Prentice Hall
Thornhill, A, Lewis, P and Saunders, M (2003), Research Methods for Business
Students 2nd Edition: London Pearson Education Ltd, F/T Prentice Hall
Usunier, C.J (2000), Marketing Across Culture: London Pearson Education Ltd, F/T
Prentice Hall
Wall, S. and Rees, B. (2004), International Business (2nd edition): Prentice Hall
Wright, R (2004), Business to Business Marketing 1st Edition