Distribution

Managem
ent
Presentation by Team 1
Aanchal Rajput, Abhishek Pise, Aishwarya Khavasi, Alisha Vaz, Alina Patil
 Distribution – steps taken ton move and store a
product from the supplier stage to the customer
stage in supply process
Outbound

Manufacturer
Retailer
Supplier Distributor Costumer

Inbound
Distribution
Management
Distribution Management refers to the
process of overseeing the
movement of goods from supplier or
manufacturer to the point of sales
 Need for Distribution Management
Optimum utilization of Real-time visibility of
resources secondary sales
data
Accurate Inventory Seamless Delivery and
Management returns Management

Effective Order Well ordered

Management payment Collection

Improved targets &

Promotions and
effective reporting
Pricing
 Distribution
Network
Distribution network is an interconnected
group of storage facilities and
transportation systems that receives
inventories of goods and deliver them
to customers
 Distribution Network Design Factors

Customer Service
Supply chain cost
 Distribution Network Design Factors
Customer Service

Response Time Customer Experience

Product Variety Time to market

Product Availability Order visibility

Returnability
 Distribution Network Design Factors
Supply Chain Cost
01 02
Inventories Transportatio
n

04 03
Information Facilities & Handling
Relationship between No. of facilities & other factors

Response time and No. of facilities No. of facilities &

required number of & Inventory Transportation
facilities Cost cost
Relationship between No. of facilities & other factors

No of facilities No. of facilities, Response time

& Facility and logistics Cost
cost
What is the transportation
transportation is the movement of goods,
peopleand product from place to
Logistic is the management
another. of inward and
outward transportation of good from the
manufacture to end user
Mode of Transportation

Roadways

Railway
 Airways

Waterways/sea

Pipelines
Criteria of Decision
i. Cost Transport
ii. Safety
iii. Budget
iv. Reliability and regularity of services
v. Time scale
vi. Flexibility
Transportation Infrastructure
Transportation Infrastructure is the
fixed installation structure and network
that provide a framework for the
movement of people and goods
Packing In Transportation
Is the process of designing a
package for consumer product and material
used to cover and safeguard the product
Purpose of Packaging
a) Product Protection
b) Product Attractiveness
c) Product Identification
d) Product Convenience
e) Effective Sales Tools
DESIGN OPTIONS FOR
DISTRIBUTION NETWORKS
● Distribution network choices from the
manufacture to the end consumer

● Two key decisions

1. Will product will delivered to the customer location or
picked up from a prearranged site?

2. Will product flow through an intermediary (or

intermediate location)?
•The six main types of designs of distribution
network are discussed as below;

1. Manufactures storage with Direct shipping

2. Distributor Storage with carrier Delivery
3. Manufacturer or Distributor storage with consumer
pick-up
4. Manufacturer storage with Direct shipping and In-
Transit Merge
5. Distributor storage with Last Mile Delivery
6. Retail storage with customer Pick-Up
  Distribution of Network in practice

• Ownership Structure of the Distribution Network can

have as big an Impact as the Types of distribution
Network

• Deciding Distribution Strategy

• Product price, commoditisation, and Criticality affect

the

• Types of Distribution System Preferred by customers

• Integrate the Internet with the Existing Physical

Network
•Energy

•Flexibility

•Global Marketplace

•Government Involement

•Information systems

1. Real-Time
2. Paperless
3. Standardised
• Accountability
 Factors affecting cost of road transportation

1 2 3

Fuel Cost Labour Market Customer Loyalty

4 5 6

Government Regulations Vehicle Capacity Distance