The document discusses distribution strategies and logistics supply chain management. It defines distribution strategy as a plan to deliver products or services to targeted customers via a supply chain. It describes different types of distribution strategies like direct, indirect, intensive, exclusive, and selective channels. It also discusses distribution channels from zero intermediaries to three intermediaries. The document then covers benchmarking, describing it as measuring performance against best practices to improve. It outlines steps in benchmarking, components like financial and product benchmarking, and benchmarking the supply chain. Finally, it discusses outsourcing logistics, types of third-party logistics providers, and costs in logistics supply chain management.

1. unit 4

2. Distribution Strategy
• The best distribution strategy
definition is a plan to help you
deliver a product or a service to
the customers you are targeting
via a supply chain.

3. How to select the right Distribution Strategy
• Check the market status right
now
• Distribution costs
• Do you sell complex or simple
products?
• What profits are you targeting?
• What will be your market
share?
• Where your product is in its life
cycle

4. Types of distribution strategies
• a direct channel occurs when a
manufacturer sells straight to the
consumer.
• An indirect marketing channel, it
occurs when the path is long and
complex.
• An intensive distribution strategy is
more intensive and considers more
than just the size of a distribution
channel.
• an exclusive strategy when it has a
high brand value to protect. It will
open stores in major cities with
upper-income and classy customers
and still outdo its competitors
• a selective distribution strategy.
You will find them on almost every
street, or they may start a few
stores in every major town.

5. What are different distribution Channels?
• Zero – This distribution channel
involves direct contact between
manufacturers and customers. It is
the shortest.
• One – This one entails one
middleman standing between the
manufacturer and consumer.
• Two – It involves two
intermediaries, and this can be a
wholesaler and a retailer.
• Three – This distribution channel
has three middlemen, namely:
agent, wholesaler, and retailer.

6. What is benchmarking?
Ongoing process of measuring products,
services, practices and processes against the
best that can be identified in order to:
• Learn about & improve best practice.
• Achieve realistic targets.
• Integrate improvements into your strategy.
• Use best practice as inspiration for
innovation.
• Be externally focused.
• Be purposeful about improvement.
• Measure improvement.

7. Types of Benchmarking
• Internal which is focused on the
processes of a single company,
• External which examines processes
outside of a company
• Competitive Benchmarking is the
continuous measurement of the
company’s products, services, processes
and practices against the standards of
best competitors and other companies
who are recognized as leaders

8. Components of Benchmarking
• Financial benchmarking
• Product benchmarking
• Performance benchmarking
• Strategic benchmarking
• Functional benchmarking

9. Benchmarking the supply chain (Competitive
Benchmarking)
• What to Benchmark?
Supply Chain Council suggests: SCOR
(Supply Chain operations reference)
Plan, Source, Make & Deliver.
SCOR is designed to provide a
common framework to facilitate
cross organizational benchmarking.
• Who to Benchmark with?
Competitors
Significant opportunities for firms
in non competing industries

10. STEPS IN BENCHMARKING

11. Benchmarking Logistics Process
• Key Steps
1. Understand the structure of the process,
i.e., process mapping, process analysis,
flow charts
2. Identify the critical processing steps, i.e.,
process bottlenecks, critical path
3. Benchmark those critical processing
steps against ‘best in class’
4. Measure performance at
supplier/customer interface
5. Derive the most effective processes and
adopt the best control and
measurement tools

12. Setting Benchmarking

13. Performance measures in SCM
Measuring the extended activities like:
• On time delivery
• Product availability
• Inventory capacity
• End user requirements

14. Performance Measures

15. Types of SCM performance measures
Qualitative measures
• Customer Satisfaction – How satisfied a customer is
with a company’s product.
• Customer Complaints – The number of customer
complaints registered
• Customer Response Time – The amount of time
between an order and its corresponding delivery.
• Product Quality – How a customer finds the
product delivered to him/heron comparing it with
pre conceived quality.
• On Time Delivery – The percentage of orders
delivered on or before the due date.
• Accuracy – Percentage of accurate goods delivered
to clients.
Quantitative measures:
• Quantitative measures are used to measure
the performance, and compare or track the
performance or products.
Further these can be divided into three
categories:
• Non-financial measures
• Financial measures

16. Product Outsourcing
• Outsourcing logistics is when a
company uses an external provider (a
third-party) to handle various supply
chain functions.
• These can include a mix of shipping,
storing, packing and/or delivering a
company’s physical goods, from raw
materials all the way to the finished
product.

17. 4 types of 3PL
• Dedicated Contract Carriage (DCC):
• Supply shippers with tractors, drivers, and fleet management
• Trailers are normally included
• Contract terms can range from 1-7 years
• Domestic Transportation Management (DTM):
• Provide non-asset based, value-added transportation management
services
• Services are usually performed in conjunction with freight brokerage
• Services are often contractual
• International Transportation Management (ITM):
• Provide non-asset based, value-added international transportation
management services
• Services are usually performed in conjunction with freight
forwarding
• Services are often contractual
• Value-Added Warehousing and Distribution (VAWD):
• Provide long-term contract warehousing or distribution center
operations
• Often include a host of other value-added services

18. Programmes to Improve Quality and
Productivity in LSCM
• https://www.youtube.com/watc
h?v=PSFjsQ2Fk4M

19. Cost of LSCM
• Inventory management cost
• Warehousing Cost
• Transportation Mode Shifting Cost
• Distribution Costs