Distribution Management Module

YT LINKS TO WATCH (COPY AND PASTE TO WATCH)

What is Distribution Management? - YouTube

https://www.youtube.com/watch?v=afr6c2JIewc&t=44s

https://www.youtube.com/watch?v=4c0GisBW_zQ&t=115s

(13) DISTRIBUTION MANAGEMENT COURSE ORIENTATION - YouTube

(13) Secrets of Distribution Management in Home Goods Retail - YouTube

https://www.youtube.com/watch?v=r1_lOELZ9HQ

What Is Distribution Management?

Distribution management is the process used to oversee the movement of
goods from supplier to manufacturer to wholesaler or retailer and finally to the
end consumer. Numerous activities and processes are involved, including raw
good vendor management, packaging, warehousing, inventory, supply chain,
logistics and sometimes even blockchain.

What Is a Distributor?
A distributor is an entity that supplies products to retailers and other businesses
that sell directly to consumers. Take, for example, a wholesale liquor distributor
that supplies alcohol to restaurants, grocery stores and liquor stores.

Other examples include a produce distributor that supplies lettuce, tomatoes

and other produce to restaurants; and a pharmaceutical distributor that supplies
a variety of prescription-controlled drugs to pharmacies.
Distribution vs. Logistics
Logistics refers to the detailed planning and processes involved with the
effective supply and transportation of goods. Logistics includes activities and
processes such as supply management, bulk and shipping packaging,
temperature controls, security, fleet management, delivery routing, shipment
tracking and warehousing. It is perhaps easiest to think of logistics as physical
distribution.

Distribution is a management system within logistics that is focused on order

fulfillment throughout distribution channels. A distribution channel is the chain
of agents and entities that a product or service moves through on its way from
its point of origin to a consumer. Examples of distribution channels include
ecommerce websites, wholesalers, retailers and 3rd party or independent
distributors. Distribution includes activities and processes such as consumer or
commercial packaging, order fulfillment and order shipping. In short, distribution
is most easily understood as commercial or sales distribution.

Why Is Distribution Management Important?

Distribution management is first and foremost about organizing everything
involved in getting goods to the buyer in a timely fashion and with the least
amount of waste. Therefore, it has a direct impact on profits.

What Is a Distribution Network and What Are

the Benefits?
A distribution network is a connected group of storage facilities and
transportation systems. It is formed in accordance with a distribution strategy
designed to move goods from manufacturer to wholesalers, retailers or buyers.
Advantages of Distribution Management
Besides delivering higher profits, distribution management eliminates waste in
a number of ways, ranging from reduced spoilage to reduced warehousing
costs since products and goods can be delivered as needed (“just in time”
inventory), rather than stored in bigger bulk (“just in case” inventory).

Distribution management leads to decreased shipping charges and faster

delivery to customers, and it also makes things easier for buyers as it enables
“one stop shopping” and other conveniences and rewards, such as customer
loyalty rewards programs.

Distribution Management Challenges

Distribution challenges can arise from a variety of disruptions. Natural
disruptions include severe weather events, raw material shortages (e.g. bad
crop years), pest damages, and epidemics or pandemics. Human disruptions
include riots, protests, wars and strikes.

Transportation disruptions include transport vehicle disrepair, maintenance

downtimes and accidents, as well as delayed flights and restrictive or new
transportation regulations such as those regularly seen in trucking.

Economic challenges include recessions, depressions, sudden drops or

increases in consumer or market demands, new or changes in fees or
compliance costs, changes in currency exchange values and payment issues.

Product disruptions include product recalls, packaging issues and quality

control issues. Buyer disruptions include order changes, shipment address
changes and product returns.
5 Factors That Influence Distribution
Management
Many things can influence distribution management. The five most common
are:

1. Unit perishability – if it’s a perishable item then time is of the essence to

prevent loss,
2. Buyer purchasing habits – peaks and troughs in purchasing habits can
influence distribution patterns and therefore varying distribution needs
that can be predicted,
3. Buyer requirements — e.g. changes in a retailer’s or manufacturer’s just
in time inventory demands,
4. Product mix forecasting – optimal product mixes vary according to
seasons and weather or other factors and
5. Truckload optimization – relies on logistics and fleet management
software to ensure every truck is full to capacity and routed according to
the most efficient path.

3 Distribution Management Strategies

At the strategic level, there are three distribution management strategies:

1. Mass. The mass strategy aims to distribute to the mass market, e.g. to
those who sell to general consumers anywhere.
2. Selective. The selective strategy aims to distribute to a select group of
sellers, e.g., only to certain types of manufacturers or retail sectors such
as pharmacies, hair salons, and high-end department stores
3. Exclusive. The exclusive strategy aims to distribute to a highly limited
group. For example, the manufacturers of Ford vehicles sell only to
authorized Ford dealerships, and producers of Gucci-brand goods only
sell to a narrow slice of luxury goods retailers.
Choosing a Distribution Management
System
Choosing the right distribution management system for your organization
depends a great deal on your organization’s distribution goals and challenges,
and the distribution models and channels your company uses. But as a general
rule, companies should evaluate:

▪ Ease of integration and compatibility with legacy systems.

▪ Scalability and elasticity
▪ Security
▪ Data management and analytics, including real-time data streaming and
ecosystem data-sharing
▪ Adaptability, whether the system is agile enough to accommodate the
rapid changes needed to overcome obstacles or seize new opportunities

What Are the 4 Channels of Distribution?

There were historically three distribution channels:

1. Wholesaler. Goods are distributed from manufacturers to wholesalers in

this channel. For example, liquor distillers distribute their brands of liquors
to wholesalers.
2. Retailer. Goods are distributed from manufacturer or wholesaler to
retailers. For example, big name designer clothing and accessories are
distributed to higher end retailing chains such as Neiman Marcus,
Nordstrom and Macy’s.
3. Distributor. This channel moves goods from the source or manufacturer
to an authorized distributor. For example, a Ford factory distributes
various Ford makes and models to authorized Ford dealerships for sale
to consumers or company fleets.
4. Ecommerce. This is the newest and most disruptive distribution channel
wherein goods and services are represented virtually online and then
distributed directly to the buyer. Ecommerce as a fourth channel has led
 to rapid changes and makes distributors rethink their traditional
strategies.

What Are the Elements of Distribution

Management?
The elements of distribution management systems are the steps involved in
getting the product from the manufacturer to the end customer and can include:
supply chain, blockchain, logistics, a purchase order and invoicing system,
vendor relationship management (VRM), customer relationship management
(CRM), an inventory management system (IMS), a warehouse management
system (WMS) and a transportation management system (TMS).

What is NetSuite CRM?

(13) What is NetSuite CRM (Customer Relationship Management)? - YouTube

https://www.youtube.com/watch?v=iLILakB8Ehs&t=33s

NetSuite’s Customer Relationship Management (CRM) solution helps

companies manage interactions with current and potential customers, partners
and suppliers in a single place. With all the capabilities of a traditional CRM
solution, such as sales force automation (SFA), customer service management
and marketing automation, plus the ability to manage quotes, commissions,
sales forecasts and partner relationships, NetSuite CRM provides a seamless
flow of information across the entire customer lifecycle — from lead all the way
through opportunity, order, fulfillment, renewal, upsell, cross-sell and support

What is NetSuite Inventory Management?

NetSuite Inventory Management provides a single, real-time view of inventory
across all locations and sales channels, allowing businesses to reduce
inventory on hand to free up cash while avoiding stockouts. By optimizing
inventory levels and ensuring product availability across multiple channels,
NetSuite Inventory Management helps businesses keep inventory costs low
while exceeding customer expectations.

NetSuite Inventory Management Benefits

• Optimize Inventory Levels. Demand-based planning using historical
demand, sales forecasts and seasonality ensures you have the right
amount of stock.
• Boost Profitability. Managing inventory is more efficient and cost-
effective with company-wide inventory visibility.
• Decrease Cost of Goods Sold. Intelligent fulfillment minimizes handling
expenses and reduces shipping costs.

Automate Inventory Tracking

Relying on spreadsheets or pen and paper to track inventory is neither efficient
nor accurate. With NetSuite, your business can easily track inventory across
multiple locations by automating inventory management in one unified solution.

What is NetSuite Warehouse Management?

NetSuite Warehouse Management System (WMS) optimizes day-to-day
warehouse operations using industry-leading practices, such as mobile RF
barcode scanning, defined strategies for put away and picking, task
management, return authorization receipts and cycle count plans. With
hundreds or even thousands of SKUs to handle, often across multiple locations,
warehouse management can quickly become a manual, chaotic and inefficient
process if you're relying on spreadsheets — or worse, pen and paper. NetSuite
WMS eliminates manual processes, allowing you to minimize handling costs,
run your warehouses more efficiently and consistently meet customer
expectations.