Distribution Management
Time based competition as one author says, has become the norm in
many markets from banking to automobiles.
The ground imperative in the present scenario of speed and time is to
identify knots consuming time.
Logistics is a chain between inbound raw materials inclusive of supplies
and outbound finished goods flow, linked with myriad of complex activities,
the management of which is a pre requisite for the survival cum growth of
the organization.
Hal Mather, president of Hal Mather Inc., Atlanta said, "Distribution costs,
not direct labor costs, are going to be the determining factors as to where
the products of tomorrow are going to be produced.
He observed that distribution costs were increasing at a faster pace than
the costs of manufacturing goods. Logistics is becoming ‘a coup sour’ to
the success of the business.
Distinction between some of the interrelated buzz words of distribution
they are….
a) Physical The process of delivering Transportation, Warehousing,
Distribution the product to the
marketing channels &
consumers.
Inventory management.
b) Marketing
Logistics
Covers physical
distribution in full
measure, plus a part of
the function of marketing
channels.
Marketing logistics bring in greater
value addition in the delivery chain,
beyond mere transportation or
distribution.
c) Supply chain
Management
Both Physical distribution
& marketing logistics.
Procurement of inputs,
Inbound logistics,
Conversion of inputs into products,
Physical distribution,
Marketing logistics & channel
functions,
End products to the consumer.
The steps involved in designing a physical distribution system
1. Articulating distribution objectives & specifying the minimum service
level desired I product delivery.
2. Finding out what the customer want in product delivery.
3. Finding out what competitors do.
4. Keeping the cost of the system as low as possible, without disturbing
the guaranteed minimum service level.
5. Keeping the system sufficiently flexible.
Functions of physical distribution
1) Transportation Time utility & Place
utility to the product
Assessment of requirement, transport
mode, route, operational plans,
implementation, transportation cost
2) Warehousing An activity to store
finished goods until
they are sold.
The Physical Job
Creating & running the network of storage
points.
The Managerial task
Controlling the inventory levels without
sacrificing service levels.
3) Inventory
Management
It is the finished
products, not the raw
material required for
the processing.
Operational stocks kept at the pot of sale.
Stock in transit at any given point of time.
Stock awaiting shipment.
Buffer stocks for meeting emerging sales
requirement.
Time based competition as one author says, has become the norm in
many markets from banking to automobiles.
The ground imperative in the present scenario of speed and time is to
identify knots consuming time.
Logistics is a chain between inbound raw materials inclusive of supplies
and outbound finished goods flow, linked with myriad of complex activities,
the management of which is a pre requisite for the survival cum growth of
the organization.
Hal Mather, president of Hal Mather Inc., Atlanta said, "Distribution costs,
not direct labor costs, are going to be the determining factors as to where
the products of tomorrow are going to be produced.
He observed that distribution costs were increasing at a faster pace than
the costs of manufacturing goods. Logistics is becoming ‘a coup sour’ to
the success of the business.
Distinction between some of the interrelated buzz words of distribution
they are….
a) Physical The process of delivering Transportation, Warehousing,
Distribution the product to the
marketing channels &
consumers.
Inventory management.
b) Marketing
Logistics
Covers physical
distribution in full
measure, plus a part of
the function of marketing
channels.
Marketing logistics bring in greater
value addition in the delivery chain,
beyond mere transportation or
distribution.
c) Supply chain
Management
Both Physical distribution
& marketing logistics.
Procurement of inputs,
Inbound logistics,
Conversion of inputs into products,
Physical distribution,
Marketing logistics & channel
functions,
End products to the consumer.
The steps involved in designing a physical distribution system
1. Articulating distribution objectives & specifying the minimum service
level desired I product delivery.
2. Finding out what the customer want in product delivery.
3. Finding out what competitors do.
4. Keeping the cost of the system as low as possible, without disturbing
the guaranteed minimum service level.
5. Keeping the system sufficiently flexible.
Functions of physical distribution
1) Transportation Time utility & Place
utility to the product
Assessment of requirement, transport
mode, route, operational plans,
implementation, transportation cost
2) Warehousing An activity to store
finished goods until
they are sold.
The Physical Job
Creating & running the network of storage
points.
The Managerial task
Controlling the inventory levels without
sacrificing service levels.
3) Inventory
Management
It is the finished
products, not the raw
material required for
the processing.
Operational stocks kept at the pot of sale.
Stock in transit at any given point of time.
Stock awaiting shipment.
Buffer stocks for meeting emerging sales
requirement.
No comments:
Post a Comment