www.mhhe.com/fourps distribution customer service and logistics for use only with...
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www.mhhe.com/fourps
Distribution Customer Service and LogisticsDistribution Customer Service and Logistics
For use only withPerreault/Cannon/McCarthy or Perreault/McCarthy texts.© 2008 McGraw-Hill Companies, Inc.McGraw-Hill/Irwin
CHAPTER ELEVEN
CH 12: Retailers, CH 12: Retailers, Wholesalers & Their Wholesalers & Their Strategy Planning Strategy Planning
Logistics customer Logistics customer serviceservice
• What it is• Level to offer• Cost • JIT and EDI
TransportingTransporting• Transport modes• Benefits and
limitations
StoringStoring• Inventory costs• Storing facilities
and distribution centers
CH 11: Distribution Customer Service & Logistics
CH 10: Place and CH 10: Place and Development of Development of Channel SystemsChannel Systems
Marketing Strategy Planning for Place (Exhibit 11-1)
Physical Distribution Concept Focuses on the Whole Distribution System
Info on Product Availability
Info on Product Availability
Order Processing Time
Order Processing Time
Backorder ProceduresBackorder
Procedures
Inventory Storage
Inventory Storage
Order AccuracyOrder Accuracy
Damage in Transit
Damage in Transit
Online Status Information
Online Status Information
Advance Info on Delays
Advance Info on Delays
Delivery TimeDelivery Time
Compliance with Customers
Compliance with Customers
Defect – Free Deliveries
Defect – Free Deliveries
FactorsAffecting PD
ServiceLevels
FactorsAffecting PD
ServiceLevels
Handling Adjustments/
Returns
Achieves Production Economies of Scale
Achieves Production Economies of ScaleAchieves Production Economies of Scale
Achieves Production Economies of Scale
Keeps Prices SteadyKeeps Prices SteadyKeeps Prices SteadyKeeps Prices Steady
Needed When Production Doesn’t Match Consumption
Needed When Production Doesn’t Match Consumption
Needed When Production Doesn’t Match Consumption
Needed When Production Doesn’t Match Consumption
Builds Channel Flexibility
Builds Channel Flexibility
The Storing Function and Marketing Strategy
Handling costsHandling costsHandling costs
Cost of inventory becoming obsolete
Cost of inventory becoming obsolete
Cost of risksCost of risksCost of risks
Cost of damage while in
inventory
Cost of damage while in
inventory
Cost of damage while in
inventory
Cost of storage facilities
Cost of storage facilities
Cost of storage facilities
Interest expense &
opportunity cost
Interest expense &
opportunity cost
Interest expense &
opportunity cost
Interest expense &
opportunity cost
Total Inventory Cost (Exhibit 11-7)
TotalInventory
Cost
TotalInventory
Cost
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