PAF-K.I.E.

T
DISTRIBUTION MANAGEMENT

SESSION ONE

BY
NAEEM BHOJANI
 PAF-K.I.E.T
“ management of movement, inventory control, protection and
storage of raw materials and processed or finished goods to and
from the production line.” (Charles A Taff)

“Physical distribution is a broad range of activities concerned

with efficient movement finished goods products from the end
of the production line to the consumer…. And in some cases
includes movement of raw material from the source of supply to
the beginning of the production line.”
 PAF-K.I.E.T
 Logistics
 Physical distribution
 Materials management
 Supply Chain Management
 Need for physical distribution
• Management conflicts
• Rising costs
• Cost reduction opportunities
• Time constraints
 PAF-K.I.E.T
 Functions of physical distribution
• Transportation management
• Inventory control
• Warehousing
• Industrial packaging
• Material handling
• Order processing
• Locational analysis
• Management of information flow
 Marketing forces affecting physical distribution
 Demand characteristics
 Product characteristics
 Dynamic environment
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 Physical distribution concept
 Total cost perspective
 Relevant trade-offs
o Intra activity
o Inter activity
o Inter functional
o Inter organizational
 Zero Sub-optimization
 Total system perspective
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 Distribution channels
 Role of marketing channels
 Channel functions
 Information gathering
 Consumer motivation
 Bargaining
 Placing orders
 Financing
 Risk bearing
 Inventory management
 Services
• Pre sale
• Post sale
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• Sales channel
• Delivery channel
• Service channel
 Channel structure
• Direct/indirect channel
• Vertical marketing system
• Horizontal marketing system
• Multi-channel system
 Internet
• B2B
• B2C
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 Designing distribution channel
 Specifying the role of distribution channel
 Selecting the type of channel
 Determining the intensity of distribution
o Intensive
o Selective
o exclusive