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m  




By : Gautam Paul(67) &Shankar Paul(71)


Distribution?
 ÷   
(or ) is one of the four
elements of the marketing mix.
 ëovement of goods and services from the source
through the distribution channel, right up to the final
customer, consumer, or user and the movement of
payment in the opposite direction, right up to the
original producer or supplier
  
 Mt refers to the distribution of a good from one
business to another. Mt can be factory to supplier,
supplier to retailer, or retailer to end customer.
 Mt is defined as a chain of intermediaries, each passing
the product down the chain to the next organization,
before it finally reaches the consumer or end-user.
 This process is known as the 'distribution chain' or the
'channel.'
§onsumer Marketing § annels & Levels
Channel Level - A Layer of Intermediaries that Perform Some Work in
Bringing the Product and it¶s Ownership Closer to the Buyer.

§ 
M Direct C

§ 
Indirect
M R a C

§ 
M a W R a C

§ 

M a W a J a R a C
Logstics??

 m is the management of the flow of


goods and services between the point of
origin and the point of consumption in order
to meet the requirements of customers.

 mogistics involves the integration of


information, transportation, inventory,
warehousing, material handling, and
packaging, and occasionally security.
bj. of logistics
 is the management of the flow of goods information
and other resources.
 integration of information
 Cost reduction
 M 
   
   

    

 
 
 
 
   
 
  
    

Logistics
Systems
Costs Order Processing
Minimize Costs of Submitted
Attaining Logistics Processed
Objectives Shipped

Logistics
Functions
Transportation Warehousing
Water, Truck, Storage
Rail, Distribution
Pipeline & Air

Inventory
When to order
How much to order
Just-in-time
Mnformation logistics

 Mnformation mogistics (Mm) can be defined as


"managing and controlling information handling
processes optimally with respect to time (flow time
and capacity), storage, distribution and presentation
in such a way that it contributes to company results
in concurrence with the costs of capturing (creation,
searching, maintenance etc)."

information logistics is about providing:
 the correct information product
 at the accurate point of time
 in the correct format / quality
 for the intended recipient
 at the right location
transportation
 Transportation plays a connective role among the
several steps that result in the conversion of resources
into useful goods in the name of the ultimate
consumer.
 Mt is the planning of all these functions and sub-
functions into a system of goods movement in order
to minimize cost maximize service to the customers
that constitutes the concept of business logistics.
w 
  


Yation¶s largest carrier, cost-effective
for shipping bulk products, piggyback
w 
Flexible in routing & time schedules, efficient
for short-hauls of high value goods

Low cost for shipping bulky, low-value
goods, slowest form

 
Ship petroleum, natural gas, and chemicals
from sources to markets


High cost, ideal when speed is needed or to
ship high-value, low-bulk items
Mnventory management

 ëanaging inventory in distribution system is


one of the most critical activity in logistic
management system.
 Mnventory level directly influence the
profitability of a company
£ y we need inventory

 Mmprove customer service


 Reduce cost
 Smoothing the operations of the logistic
system
 avoiding stock out problem
Mnventory control decision

 Pull and push inventory control


 Order quantity decision
 Risk pooling
ware ousing

 D 0  is a commercial building for


storage of goods.
 £arehouses are used by manufacturers,
importers, exporters, wholesalers, transport
businesses, customs, etc.
Ú §MS Ú £ SM
 1. D balance between demand and supply
 2. Storage of goods at various stages of
production
 3. D place for product assembly, product
aggregation and bulk breaking
 4. Specialized services
MMP§ Ú £ SM

 1. Stability of prices of goods


 2.Dn opportunity for saving on transportation
costs
 3. Cost savings passed on to the consumers
 4.Facilitation of foreign trade
Main decision in ware ousing

 1. number of warehouse
 2. location of the warehouse
 3. macro prospective in warehouse location
 4.micro prospective in warehouse location
conclusion

 Mnvolves getting the right product to the right


customers in the right place at the right time.
 Companies today place greater emphasis on
logistics because:
effective logistics is becoming a key to winning
and keeping customers.
logistics is a major cost element for most
companies.
the explosion in product variety has created a
need for improved logistics management.
information technology has created opportunities
for major gains in distribution efficiency
Thank
you

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