ABSTRACT

This study analyzed in details the effect of logistics management on marketing performance of water packaging enterprises in Abia State Nigeria. The study examined the cost implication of logistics management, performance of the enterprise and determinants of performance. Fifty (50) water packaging enterprises were selected from the major cities of the state. Descriptive (tables, frequencies and charts) and inferential (cost and returns, multiple regression) statistics were adopted in the data analysis. The result showed thata mean of 9 years indicates that these enterprises have been in existence for a minimum of this period. The result revealed further that 74% of the water packaging enterprises in Abia State are located in the urban centers while 26% in the rural centers. Majority (50%) of the enterprises were medium-scaled, 30% large scaled and 20% small-scaled. Given that 62% of the managers had tertiary education, this implies that a very high level of literacy (ability to read and write) abides in the study area.The study shows that 96% of the water packaging enterprises in the study area made use of distributive systems while only 4%. The cost share among these components shows that 61% of the total logistics management budget was spent on transportation with 21% and 18% spent on warehousing and inventory control respectively. Estimated gross revenue of N 800,000, total cost of N 486,215 and net return of N 313,785 were received. A profitability ratio of 0.40 indicates that 40% of the total revenue received was accounted for by net revenue showing that water packaging enterprises in Abia State are profitable.An R² shows that 76% of changes in the performance (profit) of water packaging enterprises were accounted for by the explanatory variables included in the model while 24% was accounted for by random disturbances in the model. Performance of the enterprises was positively influenced by turnover and business experience of the managers at 5% significant level respectively and negatively influenced cost of operation, age of the enterprises and government charges at 1%, 5% and 10% significant levels respectively.The result of the probit regression showed that logistics management was positively related to size of firm, location of firm and demand for the product and negatively related to cost of logistics and distance to the target market. The correlation result showed a strong positive relationship between logistics management and performance of the water packaging enterprises at 5% level of significance. It was recommended that water packaging enterprises should ensure that their transportation system is efficient and affective so as to guarantee place and time utility of their products, warehouse management must be given special consideration. This may involve the engagement of commercial warehouses that will ensure momentum and profit boost;these enterprises are also advised to ensure an efficient inventory control system as this has the capacity of enhancing sales and turnover; Government should review their charges on these enterprises and thereby reduce the unnecessary burden on them.