PAMANTASAN NG LUNGSOD NG MUNTINLUPA

University Road Poblacion, Muntinlupa City

College of Business Administration

DISCUSSION

Based on the alternative channels of distribution, is there a perfect fit for business
operation, or is it applicable to all kinds of business operations? Why or why not?

 In my opinion, the alternative channels of distribution are a perfect fit for every
business, but it depends on how they operate. Mail order is perfect for electronics,
plumber, office supplies and computer provider and home furnishing business
since they used catalogue or mail to promote their product and mostly they
delivered it house to house by post or parcels carrier. Businesses that sell clothing
or beauty products often utilize factory direct to home deliveries just like Avon and
Natasha. They provide flyers and brochures to their customers so they can browse
and know more about their products before purchasing. While, internet and
shopping from home are the most common channel nowadays, since technology
is everywhere and people tend to find the most convenient way as possible to
purchase a product. It is a type of indirect channel wherein businesses post their
products and services online and customers will browse and place their orders
before they receive the parcel. Lastly, factory to factory/business to business are
applicable to food industry like restaurants and bakeries, wherein they directly
purchase their raw materials from their suppliers.

Businesses are considering the type of market, the product, and the competition in the
market. Based on this perception, how do businesses assume that using a short or long
channel will be favorable to their operations?

 Businesses take into account those impressions in order to choose the best
channels to use in order to deliver the product in the most convenient way to the
final consumer. They want to make sure that they deliver sufficient amount of
products that can cater the population or size of their target market. Knowing the
right product before distributing it is essential because there are time-sensitive
products like cakes and bread that needs to be deliver on time and products with
a handling constraint wherein you need to handle with care and precaution. Then,
in terms of competition businesses observe their competitor if they are selling
similar products and seize that opportunity to create something new.

Reflect on the relevance of outsourcing a third-party logistics. Is it advantageous to

outsource rather than use the company’s distribution operation?

 I think it is advantageous to outsource rather than using the company’s distribution

operation because costs can be decreased through outsourcing, and profits can
go up while customers are more satisfied.
 Outsourcing can open up lots of potential opportunities such as you can have
positive and cooperative alliances to eliminate the combative culture, identify and
introduce methods of service improvement or cost reduction, it can also lead to the
creation of integrated global contractors and introduction and use of better metrics.