Distribution and Delivery Higher Business Management
Distribution and Delivery <ul><li>The successful manufacture of goods is only one part of the overall business </li></ul><...
Warehousing <ul><li>Organisations make use of warehousing facilities to bulk store their goods </li></ul><ul><li>Warehouse...
amazon.co.uk
Design and Layout <ul><li>Ideally warehouses should be located on the ground level </li></ul><ul><li>Those goods that are ...
Mechanical Handling <ul><li>Organisations may use specialist stock handling equipment which can be very costly to purchase...
Pallets
Transportation <ul><li>The decision on which type of transport to use will be based on the needs of the particular busines...
Transport and Delivery in Britain <ul><li>During the last decade, British businesses have become more dependent on the roa...
Source: www.transtat.dtlr.gov.uk
Problems with Road Transport <ul><li>UK government has consistently raised fuel duty and road tax and has a policy of rest...
Distribution Mix <ul><li>The route through which a manufacturer distributes products is known as the distribution mix… </l...
Scheduling <ul><li>Making sure that all the factors of production are taken into account and are working harmoniously with...
Questions <ul><li>Outline  why organisations may need to have warehousing facilities? </li></ul><ul><li>(3 marks) </li></u...
Solution <ul><li>? </li></ul>
Solution <ul><li>? </li></ul>
Solution <ul><li>? </li></ul>
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Distribution And Delivery

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Distribution And Delivery

  1. 1. Distribution and Delivery Higher Business Management
  2. 2. Distribution and Delivery <ul><li>The successful manufacture of goods is only one part of the overall business </li></ul><ul><li>Safe and efficient distribution to wholesalers, retailers or delivery to the customer are essential </li></ul><ul><li>Finished goods, work in progress and raw materials are all held in stock </li></ul><ul><li>The type of storage depends on: </li></ul><ul><li>- stock being held </li></ul><ul><li>- finance available </li></ul><ul><li>- company policy </li></ul><ul><li>- the number and location of customers </li></ul>
  3. 3. Warehousing <ul><li>Organisations make use of warehousing facilities to bulk store their goods </li></ul><ul><li>Warehouse space may be owned, leased or rented by the organisation </li></ul><ul><li>The warehouse may be a centralised function of the organisation or it may be located a distance from the main operations </li></ul><ul><li>Stocks of finished goods are stored in order to meet demand quickly </li></ul><ul><li>The main aspects of warehousing are: </li></ul><ul><li>- design and layout </li></ul><ul><li>- mechanical handling </li></ul><ul><li>- transportation </li></ul>
  4. 4. amazon.co.uk
  5. 5. Design and Layout <ul><li>Ideally warehouses should be located on the ground level </li></ul><ul><li>Those goods that are moved most frequently should be located in a readily accessible area </li></ul><ul><li>A stock rotation system should operate to avoid deterioration in quality </li></ul>
  6. 6. Mechanical Handling <ul><li>Organisations may use specialist stock handling equipment which can be very costly to purchase </li></ul><ul><li>However, benefits from it’s use can be substantial </li></ul><ul><li>Space used and time required to move stock are minimised </li></ul><ul><li>Pallets are often used in warehouses and are relatively cheap </li></ul><ul><li>They are easily moved using forklift trucks and enable stock to be stored off the floor </li></ul>
  7. 7. Pallets
  8. 8. Transportation <ul><li>The decision on which type of transport to use will be based on the needs of the particular business and the costs involved </li></ul><ul><li>Organisations may own transport, hire transport or use public transport </li></ul><ul><li>Unreliable </li></ul><ul><li>Poor value for money </li></ul><ul><li>Little control </li></ul><ul><li>No capital investment </li></ul><ul><li>Cheaper </li></ul>Public <ul><li>Less control </li></ul><ul><li>No capital investment </li></ul><ul><li>Ability to change requirements quickly </li></ul>Hired <ul><li>High initial investment </li></ul><ul><li>continuing running costs </li></ul><ul><li>Complete control </li></ul>Own DISADVANTAGES ADVANTAGES TYPE
  9. 9. Transport and Delivery in Britain <ul><li>During the last decade, British businesses have become more dependent on the roads network for transport and delivery of goods and services </li></ul><ul><li>Use of railways has decreased and the road system in under constant pressure </li></ul><ul><li>Choice of transport comes down to the associated costs and benefits… </li></ul><ul><li>Air transport is the most costly, but may be the only option in some cases (for fast delivery) </li></ul><ul><li>Large freight carriers have their own fleet of cargo planes </li></ul><ul><li>Prestwick International Airport in Ayrshire is the largest cargo airport in Scotland </li></ul>
  10. 10. Source: www.transtat.dtlr.gov.uk
  11. 11. Problems with Road Transport <ul><li>UK government has consistently raised fuel duty and road tax and has a policy of restricting the number of new roads being built </li></ul><ul><li>Working time regulations also restrict how long a driver can operate for and this also increases costs </li></ul><ul><li>Some transport companies have found it financially viable to move their businesses to Europe </li></ul><ul><li>Bad weather, road works and congestion </li></ul><ul><li>can delay/hinder successful delivery </li></ul>
  12. 12. Distribution Mix <ul><li>The route through which a manufacturer distributes products is known as the distribution mix… </li></ul>Distribution Mix The Product Legal Restrictions Manufacturer’s Distribution Capacity Finance Available Reliability of other Organisations
  13. 13. Scheduling <ul><li>Making sure that all the factors of production are taken into account and are working harmoniously with each other </li></ul><ul><li>Raw materials, components, workers, machinery, transport systems and sales outlets have to be organised in such a way as to make sure that the work flows through the stages of production and delays and unused resources are avoided </li></ul><ul><li>The production function of an organisation has a central role to play and has to maintain close links with all other departments </li></ul>
  14. 14. Questions <ul><li>Outline why organisations may need to have warehousing facilities? </li></ul><ul><li>(3 marks) </li></ul><ul><li>  </li></ul><ul><li>Describe the factors that determine the method of transport used. </li></ul><ul><li>(3 marks) </li></ul><ul><li>Explain the reasons why road and rail transport are not popular methods of transporting goods in this country. </li></ul><ul><li>( 3 marks) </li></ul>
  15. 15. Solution <ul><li>? </li></ul>
  16. 16. Solution <ul><li>? </li></ul>
  17. 17. Solution <ul><li>? </li></ul>

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