Beverages distribution in Malta : an analysis from an economic and customer perspective : a case study

Abstract

A beverage manufacturing company has several units contributing towards its success. This research explored the role that downstream logistics plays to conclude how the involved activities add value to a firm. It shows the importance of logistics operations within the context of Malta for a mature industry. The research concerned one large beverage company for which logistics plays a critical part in its competitive advantage. It has a logistics department which handles distribution using different distribution models. The activities of department were explored while the incurred costs were examined. Information relating to affecting distribution forces was explained by deliverymen who also provided their views on customer requests. Customers provided their perception of the delivery service and highlighted areas of improvement. The sales perception presented logistical improvements which are deemed to have an effect on company sales. The highest cost contributor within logistical operations is distribution costs. Internal and external forces affect the distribution of beverages. Distribution improvements should focus on aspects relating to reliability, flexibility and reverse logistics. Deliverymen attitude affects customers purchase decisions who prefer to have goods delivered by the same employees regularly. Involved transportation makes an impact on the environment. Deliverymen have an important role and are essential in developing customer relationships. The downstream logistical functions add value by concluding a chain of efforts of all the members involved in the company by ultimately delivering required products to customers.