disseration on distribution 0770991

7/31/2019 Disseration on Distribution 0770991

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Student ID # 0770991

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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http://www.imageshare.web.id/images/mi2o6ggeyp70drilcyw8.jpg


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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


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,

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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

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Fisher, L (1976), Industrial Marketing, Business Books: London, Pearson Education Ltd,

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Hannagan, T (2002), Management Concepts and Practices, 3rd Edition: London


Hart, S and Baker, M (1999), Product Strategy and Management: London Pearson


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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Jobber, D and Lancaster, G (2000), Selling and Sales Management, 5th Edition: London


Kent, R (2002), Marketing Research: Measurement, Method and Application, 1st Edition:

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Little, P (1986), Communication in Business, Pitman

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Lynch, R (2003), Corporate Strategy, 3rd Edition: London Pearson Education Ltd, F/T

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Massingham, L and Lancaster, G (1994), Essentials of Marketing, 3 rd Edition: New York,


Mullins, J.L (2002) Management and Organisational Behaviour, 6 th Edition: London


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Scholes, K and Johnson, G.W (2005), Exploring Corporate Strategy 7th Edition: London


Simkin, L and Dibb, S (2001), the Marketing Casebook 2nd Edition: United Kingdom,

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Thornhill, A, Lewis, P and Saunders, M (2003), Research Methods for Business

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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


7.0 BIBLIOGRAPHY

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