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LogisticsManagement (3)
WholesalersDuties?-   Take ownership of goods where agents do not-   Storage-   Reduce physical contact cost between produ...
RetailersNB role in distribution of products-   Strong personal relationship with customer-   Hold several brands and prod...
AgentsSecure order for producer and takes  commission.No title of goods.“Stockist agent” could hold consignment   stock.Di...
Traditional distribution chain  Importer  Producer                      Wholesaler   Retailer   ConsumerManufacturer  Supp...
Only one retailer  Importer  Producer                  Wholesaler   Retailer   ConsumerManufacturer  Supplier
Two retailersManufacturer     Retailer      Retailer   Consumer
International distribution channel  Overseas franchisor        Local(Coke USA)      manufacturer                 (Amalgama...
Planning an international distribution system                                   SA producer/ manufacturer/ supplier       ...
The distribution channel for industrial                         materials               Trading company                 Us...
Intermediaries involved in the industrial                distribution of food products                Consumables Agricult...
The flow of industrial products in the         distribution of food products                                             C...
The typical distribution channelChoice depends on target market, marketing objectives and the nature of the product
The distribution channel for services
Four distinguishing characteristics of services  IntangibilityInseparability of production and  consumption  Perishability...
The service actNature of the product   People                 ThingsTangible actions        Directed at the body   Goods a...
The service actNature of the product   People                 ThingsTangible actions        Directed at the body   Goods a...
The service actNature of the product   People                 ThingsTangible actions        Directed at the body   Goods a...
The service actNature of the product   People                 ThingsTangible actions        Directed at the body   Goods a...
The service actNature of the product   People                 ThingsTangible actions        Directed at the body   Goods a...
Method of service delivery                                           Availability of service outletsNature of interaction ...
Method of service delivery                                           Availability of service outletsNature of interaction ...
Method of service delivery                                           Availability of service outletsNature of interaction ...
Method of service delivery                                           Availability of service outletsNature of interaction ...
Method of service delivery                                           Availability of service outletsNature of interaction ...
Method of service delivery                                           Availability of service outletsNature of interaction ...
Method of service delivery                                           Availability of service outletsNature of interaction ...
Method of service delivery                                           Availability of service outletsNature of interaction ...
Guidelines for designing service channels                                 Distribution alternatives and strategies        ...
Guidelines for designing service channels                            Distribution alternatives and strategies             ...
Guidelines for designing service channels                                 Distribution alternatives and strategies        ...
Logistics management 3
Logistics management 3
Logistics management 3
Logistics management 3
Logistics management 3
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Logistics management 3

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Transcript of "Logistics management 3"

  1. 1. LogisticsManagement (3)
  2. 2. WholesalersDuties?- Take ownership of goods where agents do not- Storage- Reduce physical contact cost between producer and consumer i.e. customer service costs- Could take on marketing responsibilities
  3. 3. RetailersNB role in distribution of products- Strong personal relationship with customer- Hold several brands and products- Offer credit to consumers- P&S promoted & merchandised- Sets final price … well, not always- Brand name
  4. 4. AgentsSecure order for producer and takes commission.No title of goods.“Stockist agent” could hold consignment stock.Difficult to keep control due to distances.
  5. 5. Traditional distribution chain Importer Producer Wholesaler Retailer ConsumerManufacturer Supplier
  6. 6. Only one retailer Importer Producer Wholesaler Retailer ConsumerManufacturer Supplier
  7. 7. Two retailersManufacturer Retailer Retailer Consumer
  8. 8. International distribution channel Overseas franchisor Local(Coke USA) manufacturer (Amalgamated Bottling Industries) Local wholesaler (Makro) Local retailer (corner café) Consumer
  9. 9. Planning an international distribution system SA producer/ manufacturer/ supplier SA intermediary: -International trading company -Export merchant -Agent - Resident buyers - Allied manufacturers - Export management company - Export commission house Indirect exporting D Direct exportingForeign intermediary: Direct investment: -Merchants Transfer of -Sales subsidiary - Agents expertise or ideas: - Manufacturing - Importers -Licensing subsidiary Strategic alliances - Wholesaler - Joint ventures - Franchising - Foreign branch - Retailer- Industrial distributor - Contracting subsidiary Foreign markets and customers
  10. 10. The distribution channel for industrial materials Trading company User Wholesaler UserManufacturer Wholesaler User Sales company Dealer User Wholesaler Distributor User
  11. 11. Intermediaries involved in the industrial distribution of food products Consumables Agricultural Food service goodscommodities manufacturers providers Restaurants Retail food Consumer chains Supermarkets Food Wholesale/ Processors producers Distributors
  12. 12. The flow of industrial products in the distribution of food products Chemicals/ Packaging Farmers materials Ingredient processers Food and packagedGrocery wholesaler goods processers Food service distributor Supermarket Take-away Restaurant outlet Eat food at home Eat food @ Take- restaurant or food outlet away
  13. 13. The typical distribution channelChoice depends on target market, marketing objectives and the nature of the product
  14. 14. The distribution channel for services
  15. 15. Four distinguishing characteristics of services IntangibilityInseparability of production and consumption PerishabilityHeterogeneity
  16. 16. The service actNature of the product People ThingsTangible actions Directed at the body Goods and physical possessionsIntangible actions Directed at the mind Intangible assets
  17. 17. The service actNature of the product People ThingsTangible actions Directed at the body Goods and physical possessionsIntangible actions Directed at the mind Intangible assets
  18. 18. The service actNature of the product People ThingsTangible actions Directed at the body Goods and physical possessionsIntangible actions Directed at the mind Intangible assets
  19. 19. The service actNature of the product People ThingsTangible actions Directed at the body Goods and physical possessionsIntangible actions Directed at the mind Intangible assets
  20. 20. The service actNature of the product People ThingsTangible actions Directed at the body Goods and physical possessionsIntangible actions Directed at the mind Intangible assets
  21. 21. Method of service delivery Availability of service outletsNature of interaction Single site Multiple set sitesbetween C and serviceorganisationC goes to serviceorganisationService organisation goesto cC and service organisationtransact at arm’s lengthi.e. mail or electorniccommunication
  22. 22. Method of service delivery Availability of service outletsNature of interaction Single site Multiple set sitesbetween C and serviceorganisationC goes to serviceorganisationService organisation goesto cC and service organisationtransact at arm’s lengthi.e. mail or electorniccommunication
  23. 23. Method of service delivery Availability of service outletsNature of interaction Single site Multiple set sitesbetween C and serviceorganisationC goes to serviceorganisationService organisation goesto cC and service organisationtransact at arm’s lengthi.e. mail or electorniccommunication
  24. 24. Method of service delivery Availability of service outletsNature of interaction Single site Multiple set sitesbetween C and serviceorganisationC goes to serviceorganisationService organisation goesto cC and service organisationtransact at arm’s lengthi.e. mail or electorniccommunication
  25. 25. Method of service delivery Availability of service outletsNature of interaction Single site Multiple set sitesbetween C and serviceorganisationC goes to serviceorganisationService organisation goesto CC and service organisationtransact at arm’s lengthi.e. mail or electorniccommunication
  26. 26. Method of service delivery Availability of service outletsNature of interaction Single site Multiple set sitesbetween C and serviceorganisationC goes to serviceorganisationService organisation goesto cC and service organisationtransact at arm’s lengthi.e. mail or electorniccommunication
  27. 27. Method of service delivery Availability of service outletsNature of interaction Single site Multiple set sitesbetween C and serviceorganisationC goes to serviceorganisationService organisation goesto cC and service organisationtransact at arm’s lengthi.e. mail or electorniccommunication
  28. 28. Method of service delivery Availability of service outletsNature of interaction Single site Multiple set sitesbetween C and serviceorganisationC goes to serviceorganisationService organisation goesto cC and service organisationtransact at arm’s lengthi.e. mail or electorniccommunication
  29. 29. Guidelines for designing service channels Distribution alternatives and strategies - At airline’s own outlet - Telephone directly from airline - Telephone from travel agent Airline tickets - Internet - Delivery to C Seek physicalmanifestation of services - Direct classroom contact - Televised lecturers - Web-based training Education - Combining contact with a distance-learning approach - CDR/ course website
  30. 30. Guidelines for designing service channels Distribution alternatives and strategies - Travelling bus - Mail-order books Library services - Interlibrary loans - Web-based access to periodicals and journals Developalternative contacts - Personal banker coming to your office Bank - Internet banking - Purchase cell phone air time @ ATM
  31. 31. Guidelines for designing service channels Distribution alternatives and strategies - Repair my fridge at my home Repairs - Handyman services at my homeDevelop logisticschannels where none existed before - Collect clothing to be dry-cleaned - Inthebag.co.za Collection and - Buying executive wardrobe and personal items delivery from office via telephone, catalogue or selecting from samples brought to office
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