CHAPTER ONE

INTRODUCTION

1.1    Background of the Study

This research work focuses on the impact of information technology on the supply function of an organization, a case study of the Nigeria Breweries (NB) Plc. This research work is carried out in order to know the benefit or role information technology has impacted in the modern day business operation and in the entire human life as a whole.

Information technology is the application of computers and telecommunication equipment to store, retrieve, transmit and manipulate data. Information technology, as defined by the Information Technology Association of America (ITAA) is “the study, design, development, implementation, support or management of computer-based information systems, particularly software application and computer hardware. Information technology deals with the use of electronic computer and computer software to convert, store, protect, process, transmit and securely retrieve information. Information technology has introduced modern ways of working in many organization which Nigeria Breweries Plc is not an exemption, because the primary reason for the increase in popularity and utilization of information technology especially in large manufacturing industry like Nigeria Breweries (NB) is efficiency, speed, low procurement cost and accuracy in handling of multiple task simultaneously than using the manual system of keeping record because it is very difficult to consider running a business today without information technology.

1.2    Historical Background of Nigeria Breweries Plc

Nigeria Breweries Plc, the pioneer and largest brewery company in Nigeria, was incorporated in 1946. In June 1949, the company recorded a landmark when the first bottle of Star lager beer rolled off its Lagos brewery bottling lines. This first brewery in Lagos has undergone several optimization process and as today boasts of the most modern brew house in the country.

In 1957, the company commissions its second brewery in Aba. Kaduna brewery was commissioned in 1963 while Ibadan brewery came on stream in 1982. In 1993, the company acquired its fifth brewery in Enugu. In October 2003, a sixth brewery, sited at Ameke, in Enugu State was commissioned and christened Ama Brewery. Ama brewery is today, the biggest and most modern brewery in Nigeria, operations in the old Enugu brewery were however discontinued in 2004, while the company acquired a malting plant in Aba in 2008.

In October 2011, Nigeria Breweries acquired majority equity interest in Sona System Associates Business Management Limited (Sona System) and life breweries limited from Heineken N.V. This followed Heineken’s acquisition of controlling interests in five breweries in Nigeria from Sona group in January 2011.

Sona systems two breweries in Ota and Kaduna and life breweries in Onitsha have now become part of Nigeria Breweries Plc, together with the three brands: Goldberg lager, Malta gold and Life continental larger.

Thus, from the humble beginning in 1946, the Nigeria Breweries now has eight operational breweries from which its high quality products are distributed to all parts of Nigeria in addition to the ultra modern malting plant in Aba and Kaduna.

Products

Alcoholic Drinks

-              Star lager, launched in 1949

-              Gulder larger, launched in 1970

-              Legend extra stout, launched in June 1998.

Non-Alcoholic Drinks

-              Maltina, launched in 1976 the grouped into Strawberry and Maltina pineapple.

-              Amstel Malta, launched in 1994

-              Maltina sip-it launched in 2005.

-              Fayrouz in pear and pineapple.

The company has a total of 2,240 employees with Kola B. Jamodu as the Chairman and M.J. Herkeniyi as the C.E.O. Its total net profit is N30,332,118,000 while its total revenue is N186,122,212,000.