LECTURER:

DIPLOMA EKSEKUTIF RIFDI SYAZWAN

PENGURUSAN LOGISTIK BIN MOHD ISA
[DEPL]
 DISTRIBUTION AND
LOGISTICS CHAIN SYSTEM
Content
 Definition of Distribution
 Definition of Logistics
 Supply Flow System Concept
 Supply Flow Strategy and Planning
 Role of Depot, Warehouse and Distribution Center
 Distribution Channel
 Value Added Services

DISTRIBUTION AND LOGISTICS CHAIN SYSTEM [DEPL]

Definition of Distribution
 It refers to the entire process of getting finished
goods delivered from a manufacturer or
supplier directly to the retailer, distribution
centers or directly to end user.
 Definition of Logistics
 Logistics is the management of the flow of
things between the point of origin and the
point of consumption to meet the
requirements of customers.
 Supply Flow
System Concept
Supply Flow System Concept

DISTRIBUTION AND LOGISTICS CHAIN SYSTEM [DEPL]

 MATERIAL FLOW
 This is the flow of the physical product from
supplier all the way down to the customer. This
flow is usually very direct and it only flows one
direction from supplier to customer.

 However, in certain situation, when the customer

returns the product, the flow of the product will
using backward process.
 INFORMATION FLOW
 Information flow is the flow of information from
supplier to customer and from customer back to
supplier.

 The type of information that flows between

customers and suppliers include quotations,
purchase orders, delivery status, invoices,
customer complaints and so on.
 FINANCIAL FLOW

 Financial flow involves the movement of

money from the customer to the supplier.
Usually, when the customer receives the
product and verifies it, the customer pays
and the money travels back to the supplier.
Supply Flow Strategy
and Planning
Supply Flow Strategy and Planning
 Helps you match product supply with
customer demand using forecasting,
pricing strategy and inventory
management techniques.
Supply Flow Strategy and Planning

1. Just-In-Time (JIT) Strategy/Planning

2. Vendor Management Strategy/Planning
3. Outsource Strategy/Planning
4. Strategy In Adoption Emerging Technologies
Just-In-Time (JIT) Strategy/Planning
 Is a workflow methodology aimed at
reducing flow times and costs within
production systems and the distribution of
materials.
Vendor Management Strategy/Planning
 Is designed for the unique challenges in the
industry. Configurable and user-friendly, is the
strategy to improve the speed and responsiveness
for today’s demand-driven in supply chain.
Outsource Strategy/Planning
 One of the main goals of a supply flow strategy is
to bring down cost and improve efficiency. This
target can be achieve if the outside partners
could do part of your supply chain’s management
operations better and cheaper.
Strategy In Adoption Emerging Technologies
 New technology can improve the distribution process,
increase accuracy and speed reaction times, provide real
time information and more reliable supply network.
Role of Depot,
Warehouse and
Distribution Center
 Depot
 Generally refer to the outdoor or large open
space use to stored bulk item, equipment,
transportation and a place in which supplies
are stored for distribution.
Roles Of Depot
 Storing of bulk item
 Storing of heavy item
 Storing of transportation/machinery
 Loading/Unloading place
 Balance the limited space in warehouse
 Warehouse
 A large building where raw materials or
manufactured goods may be stored before it
been export or distribution for sale.
 Warehouse are central locations that manage
both inbound and outbound products.
Roles Of Warehouse
 Provides storage facility
 Protect the goods
 Risk bearing
 Grading and packing
 Reduce lead time
Warehouse Provide Storage Facility

 Warehouse provides space for storing

surplus goods of businesses. All the
goods which are not needed immediately
in the market are stored in warehouse till
their demand arises.
 Protect The Goods
 Storing goods safely till their demand
arises is one of the primary functions
performed by warehouse.

Risk Bearing
 Warehouse transfers the risk
involved in handling goods from
the owner of goods to warehouse
owners. Once goods are handed
over to the warehouse owners, it is
their obligation to look after all
these goods.
 Grading and Packing
 Grading and packing of goods is another
important function performed by warehouse.
Nowadays, warehouse pack the goods in
convenient packages and do the grading of
goods into different categories as per their
standards and quality.
 Reduce Lead Time
 Warehouse reduce the gap between
the production and consumption of
products. It reduce the waiting time for
the product because of it ability to
stored large amount of goods. It plays
an important role in always supplying
the goods as per the market demands.
 Distribution Center
 An important component of the supply chain,
distribution center store goods only for a
short period of time. It involved receiving,
then distribute inventories to resellers and
retailers.

 In the case of perishable items, such as

produce or flowers, distribution center
commonly hold the inventory for less than a
day before distributing.
Role of Distribution Center
 Facility for distribute goods
 Break bulk
Facility For Distribute Goods
 The primary function of distribution
center is not on the storage of the
goods but improve the efficiency of
flow of goods distribution.
Break Bulk
 The larger bulks which are incoming
will broken down into smaller bulks
and then transported to the short
distance of shipments.
Distribution Channel
Distribution Channel
 Is a chain of businesses or intermediaries
through which a good or service passes
until it reaches the final buyer or the end
consumer. Distribution channels can
include wholesalers, retailers and
distributors.
Direct Indirect
Value Added Services
 Value Added Services

 Value Added Services (VAS) are usually

follow to the wishes and needs of the
customer. In most cases, it is an effort to
create a more efficient service to satisfy
the customer.
 Value Added Services
 Same day delivery
 Shipment tracking
 Assembly
 Packaging and re-packaging
 Labeling and re-labelling
 Break bulk