distribution management
DESCRIPTION
Definition, Functions, Location Analysis, transportation, Material handling, Customer service, Packaging, warehousing, inventory controlTRANSCRIPT
Distribution Management
Distribution Management
Definition: The management of efficient transfer of goods from the place of manufacturer to the point of sale or consumption.
This includes activities such as warehousing, material handling, packaging, stock control, order processing and transportation.
Importance
The use of intermediaries results from their greater efficiency in making goods available to target markets.
• Contacts,• Experience,• Specialization,• Scale of operation.
Offer the firm more than it can achieve on it’s own
through the intermediaries:
Purpose: match supply from producers to demand
from consumers
Functions
Information
Promotion
Contact
MatchingNegotiation
Physical Distribution
Financing
Location Analysis
Political risks, government rules.
Cultural and economic issues
Location of markets
Labor talent, productivity, costs
Availability of supplies, communications, energy
Land/construction costs
Proximity to raw materials and customers
Rail Cost-effective for shipping bulk products
Rail Cost-effective for shipping bulk products
WaterLow cost for shipping bulky, low-value,
non perishable goods, slowest form.
WaterLow cost for shipping bulky, low-value,
non perishable goods, slowest form.
TruckMost important carrier for consumer
goods, flexible.
TruckMost important carrier for consumer
goods, flexible.
AirHigh cost, ideal when speed is needed or
distant markets have to be reached
AirHigh cost, ideal when speed is needed or
distant markets have to be reached
PipelineCarry petroleum based products,
very low cost, requires little energy.
PipelineCarry petroleum based products,
very low cost, requires little energy.
Transportation Modes
InternetWeb sites have products available, used
especially for services.
InternetWeb sites have products available, used
especially for services.
Material Handling
• Material handling is the movement, storage, management and guard of materials, goods and products during all the stages under manufacturing, distribution, consumption and disposal.
Warehousing
• One key consideration in managing inventories is warehousing, which embraces a range of functions, such as assembling, dividing, and storing products and preparing them for reshipping
Inventory Control
The goal of inventory control is to satisfy the order-
fulfillment expectations of customers while minimizing both
the investment and fluctuations in
inventories
Just-in-Time:• JIT combines inventory
control, purchasing, and production scheduling
• Applying JIT, a firm buys in small quantities that arrive just in time for production and then it produces in quantities just in time for sale
Packaging
Packaging is the science, art and technology of enclosing or protecting
products for distribution, storage, sale, and use.
Packaging also refers to the process of design, evaluation,and production
of packages.
Order Processing
The starting point in a physical distribution system is order processing, which is a set of
procedures for receiving, handling, and filling orders promptly and
accurately
Electronic data interchange (EDI): • Between customer and supplier orders,
invoices, and other business functions are transmitted by computer
• Originally, EDI required a direct computer link between supplier and customer, now it is being conducted via the Internet
• EDI can trim the cost of order processing significantly, which in turn may reduce purchase prices
Customer Service
From a logistics perspective, customer service is the outcome
of all logistics activities or supply chain processes.
Customer service, when utilized effectively, is a prime variable
that can have a significant impact on creating demand and
retaining customer loyalty.
"Do not go where the path may lead, go instead where there is no path and leave a trail.“
by
Nikil
Jacob
by Nikil Jacob