Professional Documents
Culture Documents
Why Distribution
Principle of minimum transactions Principle of assortment and sorting Principle of proximity Principle of Massed reserves Principle of Stability
Economic Utility
Form The quantity/mode of the product most preferred by the customer
Time
The availability of the product when the customer needs it. The availability of the product where it is needed. In B2B, it involves rapid/frequent product delivery. The process by which the customer obtains ownership or the right to use a product/service.
Place
Possession
Provide fast delivery Provide segment-base product assortment Provide local credit
Anticipate needs
User Training
Think about the different training needs of corporate customers vs. consumers
Product Information
Dealers are likely to emphasize what an offering can accomplish, rather than how it can accomplish it
Financing
Institutional buyers are likely to expect suppliers/distributors to arrange credit.
Inventory Management
Often the largest logistics cost. Inventory management tools are important for reducing logistics costs. While lower inventory levels result in lower costs, lower inventory levels may result in more frequent and costly transportation.
Transportation
Involves the choice of water, air, truck, rail, or pipeline. Slower transportation methods usually have lower costs, but imply larger safety stocks and longer lead times.
Warehousing
As inventory increases, so do warehousing costs. Lowering inventory levels and warehousing costs can lead to stockouts. Channels that focus on rapid movement of goods (as opposed to storage of large quantities) are likely to utilize distribution centers.
Expertise
Information
Reward
Coercion
Identification
Legitimate
What is Retailing?
It is that business that is engaged in the sale of goods and services to consumers for their personal, family or household use. It is the final link in the distribution process.
Functions of a Retailer
Sorting Bulk Breaking Reach Information collection Payment Services Promotion
The Eight Ways To Win In Retailing The Pentagon & The Triangle
PLACE
COMMUNICATION
SYSTEM Systems
PRODUCT
Place
Location
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Product
Assortment
Intensity
Quality
Value
Price
People
Communication
LOGISTICS
SUPPLIERS
Physical movement of goods from vendors to storesA major frontier for improving asset management and reducing cost throughout the channels of distribution Partners in marketing and distribution Effectiveness of the relationships determine both the rate and cost of sale, and the ability to implement some of the key triangle activities
Asset Turnover
Financial Leverage