Sales & Distribution Management Module 4.pdf

Copyright © 2023 Jayanti Rajdevendra Pande. All rights reserved.
RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY
MBA
SEMESTER: 3
SPECIALIZATION
MARKETING
SUBJECT
SALES & DISTRIBUTION MANAGEMENT
MODULE NO : 4
SCM, E-ENABLED SELLING & DISTRIBUTION
- Jayanti R Pande
DGICM College, Nagpur

Q1. Explain supply chain management amd give the significance of supply chain management.
Supply Chain Management (SCM) is a strategic approach to planning, controlling, and optimizing the flow of materials,
information, and finances across the entire supply chain, from raw material suppliers to end customers. It encompasses a set of
activities, processes, and technologies aimed at efficiently and effectively managing the movement of goods and services, from
production to consumption. SCM involves coordination and collaboration among various entities in the supply chain, including
suppliers, manufacturers, distributors, retailers, and customers.
SIGNIFICANCE OF SUPPLY CHAIN MANAGEMENT
• Fosters Collaboration: Supply chain management fosters collaboration among all stakeholders in the supply chain. It promotes
open communication and cooperation, leading to better coordination, sharing of information, and alignment of goals. This
collaborative approach enables businesses to respond more effectively to changing market conditions.
• Minimizes Cycle Time: Effective supply chain management minimizes the cycle time required to move products from the initial
raw material stage to the final customer delivery. This reduction in cycle time ensures that products are available when needed,
minimizing delays, stock outs, and disruptions in the supply chain.
• Increases Efficiency: Supply chain management focuses on optimizing processes and eliminating inefficiencies. By implementing
best practices such as demand forecasting, just-in-time inventory management, and efficient transportation, it enhances
operational efficiency. This leads to cost savings and improved resource utilization.
• Increases Profitability: An efficiently managed supply chain contributes significantly to a company's profitability. By reducing
operational costs, optimizing inventory levels, and minimizing disruptions, supply chain management helps businesses achieve
higher profit margins. It also enhances customer satisfaction, leading to increased sales and revenue.
• Lowers Overhead Costs: Supply chain management plays a crucial role in lowering overhead costs. It achieves this by minimizing
inventory holding costs, optimizing transportation routes, and improving the allocation of resources. Lowering overhead costs
allows companies to allocate resources more effectively to core business activities or invest in innovation and growth.

Q2. Explain the components of supply chain management.
1. Inbound Supply Chain: The inbound supply chain involves sourcing materials and goods from suppliers. Supplier management includes selecting
and overseeing suppliers, negotiations, and contract management. Purchasing and procurement focus on acquiring materials at the right
quantity and cost. Inventory management ensures efficient storage and stock levels. Transportation and logistics handle material transportation,
and quality control ensures incoming materials meet quality standards. Example: An automobile manufacturer's inbound supply chain includes
suppliers providing steel for car bodies. Efficient supplier management ensures timely steel deliveries, procurement secures steel at competitive
prices, inventory management maintains optimal stock levels, and logistics ensures steel arrives just in time for production.
2. In-House Supply Chain: The in-house supply chain centres on transforming raw materials into finished products. Production planning schedules
production to meet demand efficiently. Manufacturing operations include processes like assembly and quality control. Inventory management
avoids overstocking or stock outs, while maintenance ensures machinery runs smoothly. Example: In a bakery's in-house supply chain,
production planning schedules bread baking based on daily demand. Manufacturing operations involve mixing, baking, and quality checks.
Inventory management keeps enough bread on hand, and maintenance ensures ovens run smoothly.
3. Outbound Supply Chain: The outbound supply chain delivers finished products to customers. Distribution and warehousing manage storage.
Order fulfilment includes order processing, packing, and shipping. Transportation and delivery ensure timely product arrival. Customer service
addresses inquiries, issues, and returns. Demand forecasting optimizes inventory and production planning. Example: A retail store's outbound
supply chain involves warehousing and distribution of clothing. Order fulfilment processes customer orders, packs clothes, and ships them.
Transportation and delivery ensure products reach customers quickly. Customer service handles inquiries and returns. Demand forecasting
helps maintain stock levels.
SUPPLY CHAIN MANAGEMENT COMPONENTS
1 Inbound Supply
Chain
2 In-House Supply
Chain
3 Outbound Supply
Chain

Q3. Elaborate the factors that influence supply chain management.
FACTORS THAT INFLUENCE SUPPLY CHAIN MANAGEMENT
1. Competition: Competition in the market significantly impacts supply chain management. Companies must respond to
competitive pressures by optimizing their supply chains to reduce costs, improve efficiency, and enhance customer service. Fierce
competition can drive innovations in supply chain strategies and technologies to gain a competitive edge.
2. Demand of Customers: Customer demand is a critical factor influencing supply chain decisions. Understanding customer
preferences, fluctuations in demand, and changing buying behaviours is essential for effective supply chain management.
Meeting customer expectations for product availability, delivery times, and customization requires responsive supply chain
strategies.
3. Globalization: The globalization of markets and supply chains has introduced both opportunities and complexities. Companies
often source materials and products from multiple countries, necessitating coordination across international borders. Global
supply chains require managing factors like currency fluctuations, geopolitical risks, and diverse regulations in different countries.
4. Government Regulations: Government regulations can significantly impact supply chain operations, particularly in industries
like pharmaceuticals, food, and automotive. Regulations related to safety, environmental standards, import/export, and labour
practices can influence supply chain decisions, often requiring compliance and documentation.
5. Information and Communication Technology (ICT): The rapid advancement of information and communication technology plays
a crucial role in supply chain management. Technologies like data analytics, IoT (Internet of Things), block chain, and cloud
computing enable real-time visibility, tracking, and optimization of supply chain processes. Effective use of ICT can enhance
decision-making and collaboration across the supply chain.

Q4. Explain the logistical activities performed in supply chain management.
ACTIVITIES PERFORMED IN SUPPLY CHAIN MANAGEMENT
4. Warehousing: Warehousing involves the storage and
management of inventory and products at various stages of the
supply chain. Warehouses serve as storage facilities for raw
materials, work-in-progress items, and finished goods. Effective
warehousing practices help in optimizing inventory levels,
reducing lead times, and ensuring product availability.
5. Inventory Management: Inventory management is the
process of tracking, controlling, and optimizing the stock of
goods within the supply chain. It includes activities such as
demand forecasting, replenishment planning, safety stock
management, and cycle counting. Effective inventory
management aims to balance the costs of holding inventory with
the need to meet customer demand.
6. Reverse Logistics: Reverse logistics involves the management
of product returns, recycling, and disposal. It includes activities
such as handling returned merchandise, refurbishing or recycling
products, and managing waste disposal in an environmentally
responsible manner. Efficient reverse logistics can reduce waste,
recover value from returned goods, and enhance customer
satisfaction.
1. Order Processing: Order processing involves receiving and
managing customer orders efficiently. This includes order entry,
verification, payment processing, and order confirmation.
Accurate and timely order processing is crucial for meeting
customer expectations and ensuring on-time deliveries.
2. Material Handling: Material handling encompasses the
physical movement and management of materials, products, and
goods within the supply chain. This includes tasks such as loading,
unloading, packing, and transporting items within warehouses,
production facilities, and distribution centres. Proper material
handling reduces the risk of damage, minimizes handling costs,
and improves operational efficiency.
3. Transportation: Transportation is a core logistical activity in
supply chain management. It involves the movement of goods
from one location to another, be it from suppliers to
manufacturers, from manufacturers to distributors, or from
distribution centres to end customers. Transportation methods
can include trucks, ships, trains, airplanes, and more. Efficient
transportation management is crucial for timely deliveries and
cost control.

Q5. Define logistics & give the objective & function of logistics.
LOGISTICS is the process of planning, implementing, and controlling the efficient flow and storage of goods, services, and
information from the point of origin to the point of consumption. It involves managing the movement and coordination of
resources and activities within the supply chain to meet customer requirements while minimizing costs.
OBJECTIVES OF LOGISTICS
1. Better Customer Service: Logistics aims to provide better customer service by ensuring that products are available when and
where customers need them. This includes timely deliveries, accurate order fulfilment, and responsive customer support.
2. Decreasing Costs and Total Turnover: Efficient logistics can help reduce transportation, warehousing, and inventory holding
costs, contributing to lower operational expenses and increased profitability. It also facilitates faster turnover of goods,
improving cash flow.
3. Generating Place and Time Utilities: Logistics creates place utility by ensuring that products are located where customers
want them. It also generates time utility by making products available when customers need them, reducing wait times and
lead times.
4. Speedy Response: Logistics enables a speedy response to customer demands and market changes. By optimizing supply
chain processes, businesses can adapt quickly to fluctuations in demand or unexpected disruptions.
5. Creating Additional Sales: Effective logistics can create opportunities for additional sales. For example, businesses can expand
their customer base by offering faster shipping options or reach new markets by improving distribution networks.

FUNCTIONS OF LOGISTICS
1. Building Good Customer Relations: Logistics plays a vital role in building and maintaining positive customer relationships
by ensuring on-time deliveries and responsive service.
2. Promotional Strategy: Logistics can support promotional strategies by enabling timely delivery of promotional
materials, products, or samples to target markets.
3. Creating Finished Products: In some industries, logistics may be involved in the assembly or configuration of finished
products, especially in make-to-order or configure-to-order manufacturing processes.
4. Better Customer Service: Customer service is both an objective and a function of logistics. Logistics activities, such as
order processing and returns management, directly impact the level of customer service provided.
5. Creating Finished Product (Repetition): Creating finished products is a key function in logistics when it involves assembly
or customization based on customer specifications.

Q6. What are the different types of material handling equipment.
TYPES OF MATERIAL HANDLING EQUIPMENT
1. Fixed Path Equipment: Fixed path equipment includes devices like overhead cranes and monorails, which move along
predetermined paths to transport materials within a fixed area.
2. Variable Path Equipment: Variable path equipment, such as forklifts and reach trucks, provides greater flexibility in material
handling as they can navigate various paths and directions.
3. Conveyors: Conveyors are systems used to move materials continuously from one location to another. They are commonly
used in manufacturing and distribution facilities.
4. Industrial Trucks: Industrial trucks, including forklifts, pallet jacks, and stackers, are versatile vehicles used to lift, transport,
and stack materials within warehouses and factories.
5. Robots: Robots are increasingly used for material handling tasks in manufacturing and logistics. They can pick, place, and
transport materials with precision and automation.
6. Containers: Containers, such as pallets, crates, and bins, are used to store, protect, and transport materials. They are often
used in conjunction with other equipment.
7. Roller Conveyors: Roller conveyors utilize rollers to move materials along a fixed path. They are suitable for transporting
heavy or bulky items.
8. Electric Cranes: Electric cranes, including overhead cranes and gantry cranes, are used for lifting and moving heavy loads in
industrial settings.
9. Hand Trucks: Hand trucks, also known as dollies, are simple, manually operated devices used for moving smaller loads. They
are commonly used for transporting items short distances.
10. Automated Guided Vehicle (AGV): AGVs are autonomous, driverless vehicles that follow predefined paths to transport
materials within factories, warehouses, and distribution centres. They can be equipped with various attachments for
different material handling tasks.

Q7. Write about the various modes of transportation.
TRANSPORTATION is a critical component of supply chain management that encompasses the movement of goods from
production facilities to customers. It involves various modes such as roadway, railway, waterway, airway, and more, each tailored
to specific requirements of speed, distance, and type of cargo. Efficient transportation is essential for enabling timely and cost-
effective sales and distribution operations within the supply chain.
MODES OF TRANSPORTATION
1. Roadway: Road transportation, using trucks and vehicles, is a commonly used mode for the distribution of products to
various destinations. It offers flexibility in reaching customers in urban and remote areas efficiently.
2. Railway: Rail transport is particularly effective for transporting bulk goods and heavy products over long distances. It plays a
vital role in the distribution of raw materials and finished products.
3. Waterway: Water transportation via ships and barges is important for moving goods across rivers, lakes, canals, and oceans.
It's especially relevant for international distribution and the movement of large volumes of goods.
4. Airway: Air transportation is known for its speed and efficiency in reaching distant markets quickly. It is often used for high-
value or time-sensitive products, enabling rapid distribution to various destinations.
5. Ropeways: While less common, ropeways (cable cars or gondolas) can be used for transportation in certain geographical
areas, such as mountainous regions or areas with challenging terrain.
6. Pipeline: Pipelines are used for the transportation of fluids and gases, typically in industries like oil and gas. They facilitate the
movement of bulk materials over long distances efficiently.
7. Intermodal Transportation: Intermodal transportation involves the combination of multiple modes of transportation within a
single journey. For example, goods may be transported by truck to a rail terminal, then by train to a port, and finally by ship
to an international market. Intermodal transportation provides flexibility and cost-efficiency in distribution.

Q8. Explain the importance of e-enabled selling & e-enabled distribution?
E-Enabled Selling: E-enabled selling, also known as e-commerce or online selling, involves using electronic platforms, typically
websites and mobile apps, to reach customers and conduct sales transactions. It encompasses the entire online sales process,
including product presentation, order placement, payment processing, and customer service.
IMPORTANCE OF E-ENABLED SELLING:
• Global Reach: E-enabled selling allows businesses to reach a global audience, breaking down geographical barriers and
expanding market reach.
• Cost Efficiency: It often reduces the cost associated with maintaining physical stores, as businesses can operate with lower
overhead costs.
• Convenience: Customers can shop 24/7, providing them with convenience and flexibility in making purchases.
• Personalization: E-commerce platforms can leverage data to offer personalized product recommendations and tailored
shopping experiences.
• Data Analytics: Businesses can collect valuable data on customer behavior, helping them make informed decisions and
improve marketing strategies.

E-Enabled Distribution: E-enabled distribution involves the use of digital technologies to optimize the distribution process.
This includes order processing, inventory management, transportation management, and delivery tracking.
IMPORTANCE OF E-ENABLED DISTRIBUTION:
1. Efficiency: E-enabled distribution streamlines the movement of goods, reducing lead times and increasing order
accuracy.
2. Visibility: It provides real-time visibility into inventory levels, order statuses, and transportation routes, allowing for
better decision-making and proactive issue resolution.
3. Inventory Optimization: Businesses can optimize their inventory levels, minimizing carrying costs while ensuring product
availability.
4. Customer Experience: E-enabled distribution ensures timely and reliable deliveries, enhancing the overall customer
experience.
5. Cost Reduction: By automating processes and optimizing routes, e-enabled distribution can lead to cost reductions in
warehousing and transportation.

Q9. What is e-enabled selling? What are the tools of e-enabled selling?
E-Enabled Selling refers to the use of electronic and digital technologies to facilitate sales processes, often conducted online.
It involves leveraging various tools and platforms to reach customers, present products or services, and facilitate transactions.
Here are some tools commonly used in e-enabled selling:
TOOLS OF E-ENABLED SELLING
1. Personal Computers (PC): Personal computers are the fundamental tools for e-enabled selling. Sales professionals use PCs to
access the internet, create and manage digital content, communicate with customers, and perform various tasks related to
online sales.
2. Notebook Computers: Notebook computers, or laptops, provide mobility to sales representatives. They can access sales-
related information and communicate with customers from anywhere, making them particularly valuable for field sales and
remote work.
3. Software: Various software applications are essential for e-enabled selling. This includes Customer Relationship
Management (CRM) software to manage customer data, sales tracking software, e-commerce platforms for online sales, and
presentation software for showcasing products or services.
4. Email: Email is a primary communication tool for e-enabled selling. It enables sales professionals to communicate with
customers, send product information, follow up on inquiries, and handle other aspects of customer engagement.
5. Voice Mail: Voice mail systems allow sales representatives to receive and respond to customer inquiries and messages even
when they are not available for a live conversation. This ensures that no potential sales leads are missed.

Q10. How to develop e-enabled systems? Mention the electronic intermediaries.
DEVELOPING E-ENABLED SYSTEMS: Developing e-enabled systems involves several key steps to ensure the successful integration of
digital technologies. Here's a simplified outline of the process:
1 Determine Information Requirements: Identify the specific information and data that your e-enabled system needs to collect, process,
and utilize. Consider both internal (business operations) and external (customer interactions) data.
2 Organize Information: Organize the required information into three main categories:
A. Collection: Determine how you will gather data. This may involve customer input, automated sensors, or data from external sources.
B. Processing: Define how data will be analysed, manipulated, or transformed to derive insights and support decision-making.
C. Storing: Establish storage mechanisms, such as databases or cloud platforms, to securely retain data for future use.
3 Decide on Information Use: Determine the specific purposes for which the information will be used. This could range from improving
customer experiences to optimizing business operations.
ELECTRONIC INTERMEDIARIES: Electronic intermediaries play roles as intermediaries in various digital transactions and interactions.
Here are some examples:
1 Market Middlemen (e.g., Brokers): Market intermediaries like brokers facilitate transactions between buyers and sellers in various
industries. For instance, real estate brokers connect property buyers with sellers, assisting in negotiations and transactions.
2 Web Intermediaries:
A] Search Engines: Search engines like Google and Bing serve as intermediaries by helping users find information on the internet. They
index web content and provide relevant search results.
B] B2B Exchanges and Referral Services: Business-to-Business (B2B) exchanges connect businesses looking to buy or sell products and
services. Referral services connect consumers with service providers based on their needs.
C] Shop Bots (Shopping Bots): Shopping bots, also known as price comparison engines, are software programs that search the web for the
best prices on products and services. They assist consumers in finding the most cost-effective options online.

IMPORTANT DEFINITIONS IN THIS MODULE
1 Supply Chain Management
• The efficient coordination of activities to move products from suppliers to customers is called SCM.
• Cooper & Ellram – SCM is an integrative philosophy to manage the total flow of distribution channel from the supplier to
the ultimate user.
2 Market Logistics
• The planning and execution of activities to ensure products are available when and where needed to meet market demand
is known as market logistics.
3 Order Processing
• The systematic handling of customer orders, from order placement to fulfilment is called as Order Processing.
4 Material Handling
• The physical management of goods, including tasks like loading, unloading, and transporting is Material Handling.
• American Materials Handling Society – Material handling is the art and science involving the movement, packaging and
storing of substances in any form.
5 Transportation
• The movement of goods from one location to another using various modes like trucks, ships, or planes is known as
Transportation.
• Burkart & Medlik – Transportation can be defined as the means to reach the destination & also the means of movement at
the destination.

6 Inventory
• The stock of goods and materials held by a business for production, distribution, or sale is inventory.
7 Warehousing
• The practice of storing goods and products in a designated facility (warehouse) to ensure their safekeeping, efficient
organization, and timely distribution within the supply chain.
8 Reverse Logistics
• The process of handling product returns, recycling, and disposal within a supply chain is known as Reverse logistics.
9 E enabled selling
• The use of digital technologies and the internet for conducting sales and transactions online is called E enabled selling
10 E Enabled distribution
• The use of digital technologies to optimize distribution processes, including order management, inventory control, and
delivery tracking is said to be E Enabled distribution.

Copyright © 2023 Jayanti Rajdevendra Pande.
All rights reserved.
This content may be printed for personal use only. It may not be copied, distributed, or used for any other
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For any further queries contact on email: jayantipande17@gmail.com

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