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IMPACT OF CONTAINERIZATION IN INTERNATIONAL FREIGHTING

ABSTRACT

This project is made up of five chapters which contains different information about the project. The importance of containerization as a marketing tool was examined with the aim of assessing its contributions towards the purchase of industrial products to carryout research work, a total of one hundred (100) industrial buyers were used as sample while case study was drawn from Okigwe road, Enugu, Agbani. To gather data, personnel interview and two set of questionnaire were used one for industrial user and the other two staff. In the analysis of the result, percentage was used while chi-square technique is adopted in testing the hypothesis and it was tested at 5% level of significance. The following hypothesis were tested. Containersation of a product attract a buyer, containerization of a product affect’s users decision to buy. In the course of the research, useful findings were made which among others include, using a good colour combination materials and adequate shape and design to attract buyer’s attention. It was also found that containerization play an important role of impact for promotion of product apart from its traditional role of protection. The belief in the container is a silent sales man. Apart fro this, industrial buyers are motivated to and quantity, therefore for a company to achieve it’s goals. Management should give containerization an intelligent leadership and support. Since containers in a dynamic complex and controversial business area. This involve improving their containers policies are properly implemented. Container or packaging as the name implies has many uses vis, protection, identification, differentiation of a particular brand for storage purpose of the prPoduct.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Containerization in a modern phenomenon in transportation since its emergence has swept all the modes of transportation and transport vehicles can combine with one another in initiating and completing journeys in cargo transportation. Containerization is the use of large boxes for packing goods to be transported o long distances in order to facilitate handling and transfer among different vehicles since its emergence in transportation, containerization port authorities’ government/ industrialists. According to Amanze (1989:24-25) containers help to economies the number of movement and handling required in conveying a given quantity of cargo and ensure generally ‘posses’ three unique features, these are: a. They are standardized:- They must be of the same size, shape and material so that they can easily be carried by different vehicles in the different modes of transportation in different countries and contents. b. They are strong and weather proof: Transport containers must be strong or tough and weather proof, so that can withstand the hard conditions as the seas and ports and ensure the safety of the goods they are carrying. For these reasons, containers are made of steel, aluminum or combination of these and other metals which do not rust easily. c. They are large: Container must be larges that they can be used to carry bulk materials. Where containers are very small. The amount of trans-shipment handling required would be much, thereby defeating the aim of containerization. However containers must not be so large to the extent that they cannot fit into the vehicles used for carrying large cargo in the different modes of transportation.

The use of large containers for want and overseas transportation and distribution of goods began in the early part of the twentieth century. But in 1926 London Midland and Scottish Railways were the first firms to use container whose original business was road haulage started a containership service between New York and Porto-Rico. According to the American container trade journal in edition (1966:11-12), the main brake through in containerization was attained by sea-but in 1966 with the intention to enter the Trans Atlantic trade with containership. This decision seen to have jotted other shipping likes lines from slumber. Nigerian become involved in containerization revolution in 1968 when the first substantial container vessels landed with over 100 tones general cargo at the Apapa wharf port containerization has also made a significant impact on road and railway transportation since August 1980 when inland containers Nigeria Ltd (ICNC) made its trail-blazing relationship from Lagos kano will a single container within ten days.

The process of containerization has been surged ove the last several decades but Nigeria Ports and their supporting container distribution network have struggled to increase capacity to match this expansion. This article seeks to review and organize existing container network capacity literature into a taxonomy base on the interrelated stake holders of container flows. The artily first establish the industry capacity influences from stake holders, inducting shippers; port authorities, terminal operations, long shore labour, railroads drayage carriers, intermediaries, ocean carriers, government and local communities. The centralize distribution and activity received cargo that must be sorted before transshipment to the (SSA) supply support activities or owing unit. The majority of cargo will arrive in 20 and 40 foot container: single consignee cargo and ammunition will not pass through the centralized distribution activities but will be throughout to the users.

1.2 STATEMENT OF THE PROBLEM

Containerization is very essential and useful in the setting of industrial goods; it is often referred to as nearest company salesman. There are exiting problem associated with containerization on transport and distribution of industrial goods and services. Expanding system wild container capacity is extremely difficult. a. For one container flows involves a series of linked capacity factors driven by different stakeholders such as port, railroads, truck carries and steamship lines. b. While in surface the problem appears to be a direct application of Goldraths theory of constraints.
c. Container flows may be identified as the drum, but their landing involves a series of linked factors controlled by the stakeholders. d. The further compounding the problems are unpredictable changes in security requirement, terrorize activities military deployment.

e. Updating if list of authorized person in the organization due to constant movement of staff as a result of promotions. Resignation and transforms formal list of person which are able of request stock and sample signature are very difficult to maintain properly and tend to become out of data very quickly. f. Non employment professional in the organization-the staff employed in the organization have professional who can be light competent in the execution of the job. This is due to the fact there are no employees (ie professional).

1.3 OBJECTIVE OF THE STUDY

It is necessary to look or to identify the social and psychological past in order to appreciate what we are trying to do in the present so as to do better in the future. The study will provide marking opportunities challenges and prospects that exist for marketers to improve on their packaging through repeat purchases. The aim of this research survey is to:

i. To identify the supplier willingness to meet the need of the customers no matter how urgent.

ii. To examine a variety of option on shipment load carrier.

iii. To examine maximize customer services while minimizing cost.

iv. To determine safe delivery of merchandise.

v. To identify the speed at which others are treated.

vi. To examine the reactness of the supplier to except replacement of defective suppliers.

vii. The availability of technical know how in terms of installation and after sales services from the supplier in Nigerian brewery Enugu.

1.4 RESEARCH QUESTION

The following are the research questions which this research work is set out to tackle:

i. Does container have any effect on the buying pattern of the industrial users?

ii. What is the role of container with reference to price, quality and quantity?

iii. How does container affect the decision to buy the users of Nigerian brewery Enugu product?

iv. Does container serves as competition tool in the marketing of industrial product?

1.5 STATEMENT HYPOTHESIS

In conducting this research, the following will be tested:

1. Hi: The containerization of a product attracts a buyer

Ho: The containerization of a product does to attract a buyer.

2. Ho: The containerization of a product effect consumers buying decision.

Hi: The containerization of a product does not affect consumers buying decision.

1.6 SIGNIFICANCE OF THE STUDY

The research study is very significant in that it will be immense benefit to students in the purchasing and supply management department and interested persons in related fields and study and work who are research minded. The research work is indeed very significant and a treasure chest for the research minded students and scholars because of the comprehensive nature of this investigative survey and realistic write up. The study will certainly serve as a dependable reference guide for students in the purchasing and supply management also show how need for effective planning and control can work hand in hand with purchasing section to achieve greater organization efficiency.

It is also for the partial fulfillment and award of Higher National Diploma (HND). It is equally significant because it will out line the various needs for the impact of containerization in international purchasing comparison with other department can be used to improve the overall organization concept.
It also gathers toward creating sound need for the impact of containerization in international purchasing in Nigerian Brewery Enugu. This study is significance because it will increase the body of academic knowledge available as a research study. It is also relevant in the sense that it will serve as reference to future researchers on issue connected with the present research problem.

1.7 SCOPE OF THE STUDY

The activities of freighting function in industry among the industry are the same throughout the country. They have problems and objective exception policies and management style which are at individual discretion. Since, the project explores how the needs for the impact of containerization in international purchasing improve the level of productivity in the organization. However, there are a lot of industries in reigned and as a result it will be extremely difficult and impossible for the researcher to study all of them considering the time space given. I decided to use the top company above to enable me carry on in depth study of the organization.

1.8 LIMITATION OF THE STUDY

The limitation of the study includes

i. Inadequate financial and material resources with which to carry out such an elaborate product.

ii. Inability of the product ie those interviewed to give the relevant information on variable under study.

iii. Insufficient time. Since the researcher still had to attend lectures for the competion of this course works.

iv. Natural factor, natural factors like rainfall, sun hampered the researcher’s movement in bid to collect data/information.

v. Unsteady power supply by the power holding company in which questionnaire and respond.

1.9 DEFINITION OF TERMS

CONTAINERISATION: Is an advancement of the concept of unit load. A container in a box with steel framework, a strong floor base, paneled sides and a roof. Containers can equally be classified according to their sizes we have the (ISO) that is the International Standard Organization. Standard Container of 8x8ff. Containers vary with respect to length. The length are 10ft, 20ft and 40ft are used to suit a particular need.

THE DISTRIBUTION PROCESS: Begin when a supplier receives an order from a customer. The customer is not too concerned with the design of the suppliers distributing system, nor in any supply problems.

ORDER PROCESSING: This is the first in logical process. The efficiency of order processing has a direct effect on lead time. Orders are received from the sales team through the sales department. Many companies establish regular supply performs satisfactorily very often contracts are drawn up and repeat orders forming part of the initial contract are made at regular interval during the contract period.

INVENTORY: If is a critical area of international purchasing) because stock levels have a direct effect on levels of services and customer satisfaction. The optimum stock level in a function of the type of market in which the company operates, few companies can say that they never run out of stock, but if stock outs happens regularly, their market share will be lost to more efficient competitors. Techniques for determining optimum stock levels are illustrated later in this chapter, the key lies in ascertaining the re-order point.

WAREHOUSING: International marketing texts pays more attention to warehousing than do local once. This is mainly because of the relatively longer distance involved in distributing internationally, where it can sometimes days, weeks, month to get to customers. The logistics’ of warehouse can therefore be corresponding more complicated. However, the principles remains the same and indeed the European Union should be viewed as a large home market, currently, many companies function adequately with their own on-site warehouse from where goods are dispatched direct to customers.

TRANSPORTATION: Usually represents the greatest distribution cost, it is usually easy to calculate because it can be related directly to weight or numbers of units-cost must be carefully controlled through the mode of transport selected amongst alternative, and these must be constantly reviewed. During the past 50 years, sea transport has become the dominant transportation mode in international purchasing. The patterns of retailing that have developed and the pressure caused by coin stock holding and short-lead times, have made sea transport indispensable; where the volume of goods being transported reaches a certain level, some companies purchase their ownership, rather than use the service of cargo contractors.

REDUCTION IN CARGO HANDLINGS COST: The use of containers by water vessels for packing cargo has been shown by tenth according to staff (1984:132).

INTERMODAL CO-OPERATION (COMBINATION): The handlings of cargo at ports have been reduced to about one third as a result of the adoption of containerization. This is one of the reasons why Nigerian ports quickly embarked on the construction of special berths for handling container ships, when the concept was proposed to them and after they had studied the result of its adoption in other ports.

FASTER INLAND DISTRIBUTION OF SHIPPED CARGO: International cooperation between ship and road vehicles among ships, railway vehicles and vehicles (fishy back) is made possible (and actually resulted) outing after the adoption of containerization by ports and shipping lines.

FASTER INLAND DISTRIBUTION OF SHIPPED CARGO: Containerized shipped cargos are more easily off- loaded from ships, handled and cleared at port and takes to inland destinations faster than those that are none containerized.

INCREASED SHIPPING TURN-AROUND TIMES: By facilitating handling cargoes at ports, containerization has greatly helped to increase the turn-around time of ships when cargo are containerized, ports handling time is reduced to only about one fifth of that required in the loading and off-loading of conventional ship.

FASTER LOADING AND OFF-LOADING AT TERMINALS: Containerized cargoes are normally loaded and off-loaded faster at ports. The use of roll-on, roll off operations makes these even faster.

HIGH VOLUME FLOWS AT PORTS AND BETWEEN PORTS: With a drastic reduction in the time needed for handling containerize cargoes at ports and increase in turn-around time of ships, containerization makes possible higher volume of cargoes flow at ports and between ports.

CARGO SAFETY: When cargoes are containerized, they are not usually opened a transit terminals or when being unloaded. This reduces the tendency of pilferage. Handling of cargoes is minimized and action of weather on it is also reduced when containerized. All these help to enhance the safety of cargoes on transit and terminals.

HANDLING OF CARGOES EASIER: The handling of cargoes is minimized and made more convenient when containerized. It becomes easier to automatic handling and make use of material handling equipment, such as forklift, crane and roll-on roll off devices.

INCREASED TURN-AROUND TIMES VEHICLES: The faster handling permitted by containerization helps to quickly free vehicles at terminals and increases other turn-around times.

ENHANCEMENT OF VEHICULAR SPACE EFFICIENCY: When containers are loaded on a vehicles its cargo space is utilized more efficiently.

FASTER AND CHEAPER INLAND DISTRIBUTION: By reducing the cost and time for handling cargo at terminals and combing the efficiency of different modes of transportation containerization helps to promote faster and cheaper inland distribution of goods.

THIN SKINNED CONTAINERS: Are constructed with the sole aim of offering protection against weather and theft they have no insulating effect with regards to temperature control.

INSULATED CONTAINERS: They have no real system of temperature control, they are made of thick materials, having some sort of fiber glass or other materials which reduce that loses and gains thus giving perfect protection to cargoes against unfavourable temperature.

FRIGERATED CONTAINERS: Are controlled with an inbuilt refrigerator, it is used in the carriage of goods or materials that requires cold temperature while in transit.

DIFFICULT IN CARGO INSPECTION: Containerised cargoes are not normally inspected at ports or materials. They are usually pre-shipment inspected. If pre-shipment inspection had not been properly done, there is the possibility that containers might be used to smuggle illegal goods into a country.

EXTRA BURDEN OF CONTAINERS: Containers are essentially an added burden to transport vehicle and shipping lines. Apart from adding to the load of vehicles when conveying cargoes, empty containers have to be returned for them to be re-used, these serves as extra burden to transport and their vehicles.

POSSIBILITY OF ROUGH HANDLINGS OF CONTAINERS: Docks workers and others engaged in loading and off-loading contains may rough handle them without knowledge of the fragile nature of their contents. Because of this, some containerized cargoes get damaged before getting into the hands of their owners.

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