Physical Distribution Decision Areas
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The document discusses key areas of physical distribution for an MBA class, including order processing, inventory control systems, warehousing, and transportation. Order processing involves receiving, recording, filling, and assembling customer orders. Inventory control systems aim to meet market demands by fulfilling customer orders while balancing ordering costs, inventory carrying costs, and costs of stock outs. Warehousing and transportation complete the physical distribution process by storing and shipping goods and materials.
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For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/DistMang
Join us on Facebook: http://www.facebook.com/welearnindia
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Read our latest blog at: http://welearnindia.wordpress.com
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This document discusses inventory management. It defines inventory as physical goods held by an organization awaiting use, processing, or sale. The purpose of holding inventory is to ensure continuous production and sales despite fluctuating demand. Effective inventory management aims to maintain optimal inventory levels to balance costs with avoiding stockouts. Tools for inventory management include determining stock levels, safety stocks, economic order quantity, ABC analysis, and inventory reports. The document also outlines different inventory ordering systems.
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A product can be anything offered to satisfy a want or need, including physical goods, services, and ideas. There are different levels of products from the core benefit that satisfies customer needs to augmented products that may change in the future. Products are also organized in a hierarchy from broad needs down to specific item variations to help categorize them.
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1. The document discusses power, conflicts, and control within marketing channels. It outlines different types of power bases like referent, expert, and coercive power that companies can use.
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The document discusses distribution channel management and logistics. It describes how distribution channels help adjust discrepancies through sorting, accumulating, allocating, and assorting products. It also discusses channel design, establishing the channel structure, motivating channel members, and resolving conflicts. Channel management aims to coordinate activities and behaviors of channel members.
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The document discusses criteria for selecting and appointing channel members or distributors, including their size, sales strength, product lines, reputation, market coverage, sales performance, management, advertising, and compensation acceptance. When appointing distributors, the key points to consider are properly defining their area and market, setting margins for products, establishing terms for distribution methods, staffing, agreement time periods, merchandise flow, payment terms, and sales promotion issues.
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The document discusses different ways to motivate and compensate channel members in a distribution and logistics system. It outlines financial rewards like higher margins and bonuses, as well as non-financial rewards like contests and training. The main forms of compensation for intermediaries mentioned are quantity discounts, trade discounts, and commissions, with commissions paid as a percentage of sales to agents for services like order booking and debt recovery.
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The document discusses different types of warehouses and factors to consider when designing a warehouse. It outlines the key functions of a warehouse as receiving goods, storing, order taking, and dispatching. The main types of warehouses mentioned are general warehouses, specific warehouses, bonded warehouses, bulk storage warehouses, and refrigerated warehouses. When deciding on a warehouse location, managers must choose between centralized warehouses and decentralized warehouses, weighing the benefits and drawbacks of each such as transportation costs, customer service, inventory control and market share.
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The document discusses logistics systems and physical distribution as part of marketing mix. It defines physical distribution as planning, implementing, and controlling the flow of materials and goods to meet customer needs profitably. The main costs of physical distribution include transportation, warehousing, and costs of lost sales from lack of product availability. When firms have stock shortages, customers may permanently or temporarily switch sellers or purchase substitutes. An effective physical distribution system can increase market share, create utilities, stabilize prices, improve customer service, and reduce distribution costs.
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The document discusses various modes of transportation including roadways, railways, waterways, airways, and pipelines. For each mode, it lists the main strengths and weaknesses in terms of cost, speed, reliability, cargo capacity, and suitability for different types of goods. The key factors in determining the best transport medium for a particular shipment are listed as cost, performance criteria such as frequency, safety, product suitability, availability, speed, versatility and reliability.
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The document discusses distribution channel management and marketing channels. It defines distribution channels as interdependent organizations involved in making products available for consumption. The key roles of distribution channels are to adjust discrepancies in assortment, minimize distribution costs, facilitate searching, and provide a place for buyers and sellers to meet. The document outlines the ex ante and ex post phases of distribution channel management and lists various tasks and functions involved, including developing strategy, organizing activities, motivating members, and resolving conflicts. It also discusses the different flows that occur through marketing channels, such as physical possession, ownership, promotion, negotiation, financing, risk taking, ordering, and payment.
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The document discusses distribution channel management and marketing channels. It defines distribution channels as interdependent organizations involved in making products available for consumption. The key roles of distribution channels are to adjust discrepancies in assortment, minimize distribution costs, facilitate searching, and provide a place for buyers and sellers to meet. The document outlines various distribution channel management tasks like setting objectives, designing channel structure, and resolving conflicts. It also discusses the different functions performed by intermediaries in marketing channels like transportation, storage, ordering and various "facilitating functions".
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The document discusses various distribution channel design considerations for marketing products. It covers determining distribution objectives, evaluating direct and indirect distribution system alternatives, and factors that affect channel structure choices like market characteristics, product attributes, and firm capabilities. The key aspects of an effective channel design are selecting entities to perform distribution activities and establishing service output levels, activity flows, and performance responsibilities within the channel network.
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The document discusses various distribution channel design considerations for marketing products. It covers determining distribution objectives, evaluating direct and indirect distribution system alternatives, and factors that affect channel structure choices like market characteristics, product attributes, and firm capabilities. The key aspects of an effective channel design are selecting entities to perform distribution activities and establishing service output levels, activity flows, and performance responsibilities within the channel network.
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The document discusses new product development, outlining the process from idea generation through commercialization. It identifies key challenges such as high failure rates and short product lifecycles. The development process involves idea generation, screening, concept development and testing, determining marketing strategy, business analysis, product development, market testing, and commercialization. Successful new product development requires moving through each stage of the process to determine commercial and technical feasibility before a product is launched.
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Physical Distribution Decision Areas
- 1. Amity Business School MBA Class of 2010, Semester II Distribution & Logistics Management Ms.Vandana Gupta
- 6. Customer places An order Inventory on Hand checked Production Scheduled Goods packaged, Sorted, tagged And sent to Local warehouse Goods stored until enough orders are placed Orders shipped to individual customers Supplier Receives And enters order Sufficient goods In stock Insufficient goods In stock Physical Distribution activities involved in a typical order cycle
Editor's Notes
- Amity Business School