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IMPACT OF PACKAGING ON STORAGE AND DISTRIBUTION OF GOODS IN AN ORGANIZATION

ABSTRACT

This research work deals with the impact of packaging on storage and distribution of goods in an organization, with much emphasis on the function of packaging on storage and distribution effectiveness in manufacturing organizations. The overview of the problems of the study were made, which include insufficient packaging, storage and distribution material/facilities and mobility of companies to appraise the impact of packaging on storage and distribution of goods. In the research’s effort to find solution to these problems, to these problems, he took a good look on the significance and objectives of the study. The research work also deals on research design and methodology where various data related to this research work were collected presented and analysed.

CHAPTER ONE

1.0 INTRODUCTION

1.1 GENERAL OVERVIEW OF THE STUDY

It is imperative to note that one of the prime aspects organization’s should pay adequate attention to after production, is packaging of various products, objects and substances in suitable containers for protection against harm/damages which will help in storing product in a condition for future use and distribution of such products at a minimized risk/damage tendencies. The inability of companies to appraise the part of packaging on storage and distribution of goods gave risk to the indebt research paying special attention to star paper mill Aba.

BRIEF HISTORY OF THE COMPANY

Star paper mill Aba was founded by one chief Nnanna Kalu. The company was established in 1977 with factory located at Aba, which produces school exercise book, different rang of stationeries. It has an installed capacity of 25,000 metric tonnes per annum which translates into 38million exercise books per annum in addition to 152milion envelops of paper, and foolscap fly. The current percentage utilization is about 73 percent. The second factory was commissioned in 1984 as a waste paper rely thing plant, with an installed capacity of 10 metric tones of tissue paper in jumbo real per day. By 1992, a new paper machine was installed with the capacity of 15 metric tonnes of tissue per day. Presently, the Owerrinta plant has a total capacity of 60 metric tones per day. This plant utilizes waste paper and paper off-cut as its main sources of raw materials and that constitutes 90% both in volume and in naira value of the plant requirement locally sourced. In the plant exist a toilet rolls production line which utilizes the jumbo reel as import and produces 140,000,000 units of toilet rolls and paper napkins per year. These in effect, position the company as the largest producer of toilet rolls and tissue products in Nigeria with marketing outlets throughout the country.

The organization is managed by the board of directors and managing directors through whom decision made by the board reaches the staff. The organization is made of manager, production manager, human resource manager, administrative manager of both branches. Its other branches are used as serving point or distribution point for finished products. The company purchases their raw materials in large quantity which are store in order to have continuous production to satisfy their numerous customers and avoid operational risk.

1.2 STATEMENT OF PROBLEMS

When one considers the possible shapes and sizes goods that are to be transported, a variety of packaging materials available and the possible contributions of factors affecting package selection, it is not surprising that the distribution system has to deal with almost infinite assortment of package. Each consignor will lend to choose the type and shape of packaging which best suits his own operations. Traditionally, the major problems facing star paper mill Aba, can be seen as insufficient/inadequate packaging, improper storage and distribution of goods. This research work will then give an intent solution to the question. 1. What is the effect of improper packaging, of goods on star paper mill Aba? 2. What is the rate of cost incurred by star paper mill Aba on packaging, storage and distribution of goods? 3. What are the consequences of improper packaging storage and distribution of goods in star paper mill Aba?

1.3 OBJECTIVE OF THE STUDY

The research pays more attention on the following objectives highlighted below.

1. To examine whether star paper mill Aba effectively and efficiently implements its packaging, storage and distribution policies.

2. To identify how packaging, storage and distribution of goods are managed in star paper mill Aba.

3. To identify the reasons for poor packaging of goods in star paper mill Aba.

1.4 SIGNIFIFANCE OF THE STUDY

Star paper mill Aba is being used as a case study because of peculiar significance. It has an packaging storage and distribution of goods. Information gained from the study can be use by management of star paper mill Aba and any other similar organization for their planning and execution of appropriate packaging, storage and distribution policies in the organization. Finally, the study will help the management to know and embrace the impact of packaging on storage and distribution in the organization.

1.5 RESEARCH QUESTIONS

1. Is an organization packaging method supportive to its storage and distribution of goods?

2. What benefits are derivable from proper packaging of goods?

3. Do star paper mill Aba effectively and efficiently use storage.

4. Does packaging have any significant influences on the distribution of goods?

1.6 HYPOTHESIS

HO: Packaging does not significantly help in the storage and distribution of goods.

HI: Packaging significantly help in the storage and distribution of goods.

HO: Efficient storage and distribution system is not beneficial to manufacturing company.

HI: Efficient storage distribution is beneficial to manufacturing company.

1.7 SCOPE OF THE STUDY

The study is meant to show the impact of packaging on storage and distribution of goods with a special reference to star paper mill Aba.

1.8 LIMITATION OF THE STUDY

A number of issues tend to pose limitation in the process of writing this project.

(1) This study/research work is not generally applicable to all industries other than those with peculiar similarities. Apart from this, the attitude and co-operation of staff in star paper mill Aba could be another limitation.

(2) Many other factors also constituted to the limitations, such factors include tonne limitation, lack of finance, physical capacity and other problems e.g. lack of literally information e.t.c.

1.9 OPERATIONAL DEFINITION OF TERMS

a. Store: The store is an area of a building where all kinds of materials or components needed for production, distribution, maintenance and insurance are kept.

b. Chute: A chute is a wooden or metal trough inclined at and angle that article would shade down when placed upon its chute are used for transporting shares from upper to lower floors but they are conversant only for loose materials, robust packaging or other goods met liable to damages.

c. Bag the unit of steal: Shelving either double sided, open type or closed type.

d. Unit of Issue: The unit of the smallest quantities normally issue from a store house. A suitable unit of issue should be employed consistently in all receipt issues recording and provisioning procedures.

e. Still Ages: A still age is based plate usually wood with bearers to give a clearance to fork of a truck must probably on ground, raise it clear on the floor and reposition it while required still ages cannot be staked on top of others.

f. Demurrage: This is a charge made by the railway authority where a consignee holds weapons/large for more that twenty four hours or agreed hours without offloading. The charge is a rate per wagon per day and the rate increase as time goes on.

g. Consignor: This is a person or company who sends goods from the exporting country to the country it is needed.

h. Consignee: This is a person or company to whom goods are sent for or who receives them.

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