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This study titled “Performance of physical distribution of bank’s supplies and its
impacts on the profitability” was carried out as a case study of CRDB Bank Plc. The
purpose of this research was to study the performance of the physical distribution of
Bank supplies and its impacts on profitability of CRDB Bank Plc. Specifically, the
researcher aimed to answer the following research questions; what are the impacts of
transportation in physical distribution of bank supplies and on the profitability of
CRDB Bank Plc? What are the effects of order processing in physical distribution of
bank supplies and on the profitability of CRDB Bank Plc? What are the influences of
materials handling in physical distribution of bank supplies and on the profitability of
CRDB Bank Plc?
The study was descriptive in nature and a sample of 54 respondents was selected
from a population of 2000 staffs, purposive sampling was used because it is more
convenient and guaranteed inclusion of relevant element in the sample as a result
data were collected from Tender Board, Procurement unit, CRDB bank’s branches
and Hired transporter, and questionnaires, interviews and documentary review were
the methods used to analyze and collect data.
The study revealed that there are higher transportation costs, delays of delivery of
items to users, shipment of items to the wrong users, poor specification of ordered
items due to lack of considering users’ requirements, rush orders from customers,
injuries of labourers, theft, losses, and damage of items due to lack of materials
handling equipment such as automatic and mechanical and also, shortage of storage
space and result into poor performance of physical distribution which culminated
into increasing operational costs hence impacts into Bank’s under-achievement of
profitability targets. The researcher recommended that Government should improve
transport infrastructure to facilitate performance of physical distribution, CRDB
Bank should eradicate rush orders by complying with its budget and annual
procurement plan, and application of mechanical and automatic materials handling to
reduce injuries of labourers, damage, losses of items. |
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