Factors affecting the perfomance of physical distribution of beverages : A case of Coca Cola Tanzania Limited Morogoro

Abstract

This study aimed at determining the factors affecting physical distribution performance of beverages in Morogoro Municipal specifically the study sought to determine the effects of transportation on physical distribution performance; to examine the influence of order processing time on physical distribution performance and to examine the influence of material handling on physical distribution performance. The study is informed by the Theory of constraints, Bargaining Theory of Distribution and Resource Based View Theory. It was conducted through a mixed method design, using a cross sectional survey. The study employed a nonproportional stratified sampling technique to select sample and sample elements. This resulted to a sample of 178 respondents. A semi structured questionnaire as a data collection instrument was used. The field data were statistically analyzed using descriptive, inferential and narrative summary analyses. The findings indicate that order processing time has significant effects on physical distribution performance (sales, markets share, profits, inventory and growth prospects). The findings further ascertained that; order processing time account for 42.4% of all the variations in the physical distribution performance, while transportation account for 33.8% and material handling accounts for the remaining 23.8% of the variations in the physical distribution performance of beverages in Morogoro a case of coca cola. The researcher recommendations to the Coca cola company includes that, they should computerize their transport and logistics processes and systems to improve the delivery lead time, profits, sales markets share, to reduce inventory and ensuring customer satisfaction all time.