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Abu Md.

Tasfiqul Hoque
ID: 1207006
 A distribution system is a key external resource. Normally it takes years to build
and is not easily changed. It ranks in importance with key external resources such
as manufacturing, research, engineering, and field personnel and facilities.
( Corey,1976)

Physical view
Distribution channel
Economic view
Distribution process

3 effective ways are available for product:

 Bring customer to the product.
 Bring the product to the customer.
 Convenient location for both customer and manufacturer.

For service:
Customer going to the service provider or service provider going to the customer.
Goutam Saha
ID- 1207011
Developing A Distribution Strategy
 Need to be resolved in developing and implementing a logistics strategy.
 Key green issues were packaging & waste creation, the disposal of waste, noise & emission levels,
consumption of fuel resources.(Szymankiewics 1993)
Conventional Approach
 Speed and timeliness with which products are delivered
 Distance and means by which they travel
 The location that they travel to and from
 The costs and risks involved in their movement

Green Approach
 Add eco-efficiency along with above elements of conventional approach

Channel Network
Design Strategy

Warehouse Transportation Material

Design & Management Management

Information Policies & Facilities & Organization &

System procedure Equipment Change Management
Creating more efficient distribution system which produce less pollution and waste per product moved can
be tackled in several ways-
Facility Location
 Attempt to optimize the number and location of retail outlets & distribution depots to create a more efficient
pattern of production and customer journey.
 Help companies to decide how many outlets and depots they need, and hoe to locate them.
Facility Design
 Companies can site and design facilities to minimize their environmental impact.
 Major environmental investment gained the company awards and considerable public relations benefits.
Vehicle Policy
 Vehicles purchase policy adapted to give a priority to fuel-efficient, aerodynamic and low-emission vehicles.
 HGV produce less environmental impact per unit than smaller trucks.
 Driver training.
Choice of transport mode
 Road and Rail transport modes have considerable environmental impacts in their operation and in the
construction of their infrastructure.
 Rail track is estimated to need 80% less land, 90% less aggregate for construction and maintenance compared
to a motorway capable of handling the same level of freight (TEST 1991).
 Transportation development and environmental objectives must be integrated.
Choice of transport services provide
 Companies are becoming increasingly reliant on third parties for distribution services.
 British Road Services, Peter Lane Transport, Excel Logistics have implemented environmental programs.
Material Handling
 It also create environmental impacts including energy use by merchandise handling equipment, noise produced
from the operation of a goods depots and the release of CFCs from refrigeration equipment.
 JIT initiatives can increase the efficiency of the distribution process by reducing the need for product storage
and the associative additional material handling requirements.
Shipping Packaging
 It contains and presents the product on the retailer’s shelf. It includes wooden pallets, shrink wrap and
large cartons which contain the individual product together with labelling instructions.
 Companies are seeking to reduce , reuse or recycle as much of their packaging materials as possible.
 Design skills once only applied to products and product packaging are now being applied to shipping
Shahin Miah
ID- 1207051
Creating Greener Distribution Strategy

AT B & Q logistics has formatted a key component of

a greening strategy in 1993

 The development of centralized distribution at B & Q bringing environmental benefits

such as reduced vehicle movements and a reduction in transit packaging

 The establishment of a policy and targets aimed at reducing vehicle emission

Distribution and Availability

Backer(1992) puts forward the argument that

Consumption is function of availability.
 Availability of product
 The location
 Physical layout
Channel Choice

 Geographic Coverage
 Number of Intermediaries
 Channel of Particular Product

 If the product is heavy or technological then or complex and innovative then

small socialist or dealers.
 If the product is industrial then the channel choice by the company sales force.
Impact and advantages of Channel Choice

 Environmental Impact
 Social Impact

Advantages of Channel Choice

 Product can be physically Delivered
 Distribution system have tend to be fragmented
ID- 1207037
The Role Of Retailers

 The Power Of Retailers

 The Greening of traditional Retailers
 The Emergence of Green Retailers
 Green direct marketing
The power of retailers

 The traditional view of marketing is that the decision- making power within supply
channels rests with the producer, with retailers acting as relatively passive
 Shultz(1987) sees the increasing size of retailers of retailers through acquisition and
merger, and the informational power given to retailers by their electronic point of
sale(EPOS) systems .
 Hopefenbeck (1993) Retailers have an important role as gatekeepers controlling the flow
of products and information between producers and consumers.
 Swindley (1991) found that over half of a sample of retail buyers felt that ecological
considerations were important in their buying decisions.
The greening of traditional retailers

Strong found six influential factors to adopt with green product

 Product range being purchased
 Visibility of the issues to consumers
 Ability of supplier to improve eco-performance cost effectively
 Promotion ability of environmental benefits.
 Media interest in related green issues.
 Pressure group influence
The emergence of green retailers

The first and probably the best green channel is The body shop.
 Earth General
 Earth Mercantile
 Restore
 The Earth store
 Eco-wise
Green Direct Marketing

Direct mail can be used as a distribution channel as well as means of promotion. The use
direct channels can reduce the human , physical and financial resources consumed
within the marketing channel by ordering, handling, storing, displaying, promoting, selling
and delivery of the tangible product among different links in the supply chain.
For example: One of the most successful green direct mail retailers is seventh
Betterware support social and environmental causes
with annual donations. Its follow several policy:
 A tree for a tree
 A reuse of catalogue
 Sustainable sourcing for wooden products.
 CFC- free products
 Child- resistant caps
 Measure strips on bottles
 A minimal packaging policy
 A spare parts availability policy

Reverse Logistics
Goods and information move down
the supply chain, money, and perhaps
information ,flow back up it.
Green challenge is introducing the
logic of “what goes up must come
back down.”
Both manufacturers and retailers
have a responsibility to take back
consumer packaging.
Closing The loop

 The ultimate aim of greener distribution is

to help to “close the loop” so that products
are reused instead of travelling from cradle
to grave.
 It ranks alongside total quality as something
to strive towards and something that many
companies are pursuing.
 In the future the supply loop may be closed
by legislative force rather than by its
economic appeal to companies, in response