ABSTRACT

The rice industry in Abia state is growing exponentially, it is yet to fully maximize it potentials in terms of logistics management practices (warehousing, storage facilities, transportation, physical distribution) to consumers and low cost of distribution. Only in a simplest marketing system will a producer sell directly to the final consumer. Therefore, it is in view of this that the study considers it imperative to look at the logistic management practices and marketing performance of rice distributors in Abia State. The broad objective of the study is to examine the effect of logistics management practices and marketing performance of rice distributors in Abia state. The specific objectives are to: ascertain the effect of transportation on sales volume, determine the effect of warehousing on distribution of rice, examine the relationship between physical distribution and customer loyalty as it affects rice distributors, effect of other logistic management related practices (business experience, cost of personnel management, market share) on warehouse volume capacities of the rice distributors in Abia state and effect of pooled costs of operation of logistic management practices on the profit performance of rice distributors. The study was carried out is Abia State of Nigeria. Survey research design was adopted for these study, 30 respondents selected from each of the two major cities in the State namely; Aba and Umuahia metropolis making a total of 60 respondents. Primary data was collected via the administration of well-structured questionnaires and data was analysed using simple regression, correlation models, probit, profitability ratio and multiple regression. The regression result showed that transportation is negatively significant at 1%. Warehousing is positively significant at 1%. The correlation result showed a strong positive relationship between physical distribution and customer loyalty of rice distributors in Abia state. There is a significant effect of other logistic management related practices (business experience, cost of personnel management, market share) on warehouse volume capacities of the rice distributors in Abia state. There is a significant effect of pooled costs of operation of logistic management practices on the profit performance of rice distributors.In line with the findings of this work the researcher concluded that logistics management practices have significant influence on marketing performance of rice distributors in the study area. More so, in the area of cost, its cost implication is equally high, however, it can be managed to certain minimal level that can bring about cost effectiveness. Efforts should be consolidated in maximizing logistics management practices and distribution system (transportation, warehouses, and physical distribution). This is a bold step in achieving improve efficiency of operations and save cost. Rice distributors in Abia state should at all-time determine the best practice in managing logistics and distribution system. This is because optimum application of logistics management and distribution resources will guarantee customer satisfaction which in turn will yield loyalty and retention.