A manufacturing company manufactures products. It then needs to deliver the manufactured products to the consumers. Many times, the place of manufacturing and the place where the consumers require the products is very far away from each other.
For example: Tata Motors has a "Indica car" manufacturing plant in Pune but its customers are all over India. So, Tata Motors needs to set up an efficient distribution system so that the products reach its consumers.
In case of some perishable food products, physical distribution is a very important part of the whole business. The transportation of "Amul Butter" to the stores that sell "Amul Butter" is a big challenge. While transportation, the butter has to be stored properly, so that it does not
…show more content…
So, what need to be done is to decide what minimum level of service the customers will be satisfied by.
For example: In case of a car, we may say that the minimum level of service is set to one day. This means that, the car has to be delivered within one day to the consumer. So, the distribution system/distribution channels of the company should be designed in such a way that the car can reach the consumer within one day flat. One day is the minimum level of service desired. If a company keeps the minimum level of service too high, it risks losing customers. In today’s competitive environment, if a car manufacturer delivers a car in one week and its competitors deliver the car in one day; the car manufacturer will lose business to the competitors. Today people will not wait a week if they can get something in a day.
On reading the above paragraphs, one may tend to think that the physical distribution system is only related to transportation of goods from the company to the consumer. However, physical distribution is a whole lot more.
Some of the major aspects of physical distribution are: * Transportation * Warehousing * Inventory Management * The problem with Inventory and Warehousing
Transporting a car from the car manufacturer to the customer every time an individual order is placed would be very costly. Not only would this be costly, but also it would take too much time and the time of delivery would exceed the
'Place ' is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers.
=Channel distribution is the path that a product takes from the producer to the consumer and physical distribution is the actual movement of products that path.
This is something that must be addressed in supply chain management because if one area of the company is operating below capacity the other sectors will not be able to make up this lack of production. Another main component of supply chain management is how to handle damaged goods. It is a waste of money to send out defective products because it costs the organization large amounts of money to recall the damaged materials back to the factory and replace them, slowing production efficiency. There must be quality controls and regulations that enable Ford to minimize inventory defects and returns. The Ford Motor Company must have damage control operations to continue manufacturing the same amount of automobiles so that they do not lose any necessary inventory. There must also be procedures in place that deal with delivery systems and the delays and unsuitable materials that could easily occur. This paper will fully break down the previous issues associated with the Ford Motor Company 's supply chain management and operations. SUPPLY CHAIN MANAGEMENT OF FORD Synopsis of Supply Chain Management as it Applies to Ford The definition of supply chain management (SCM) involves taking a systems approach to the entire supply chain with the overall goal of reducing the level of risk and uncertainty throughout the supply chain. This will ultimately permit lower
Selection of distribution locations that can give a suitable place for customers to purchase company products is a very important way to enhance the distribution advantage. Reliable delivery timing is another point that Siemens can build on to create the needed differentiation through distribution. As Siemens depend on partners in many locations all over the world to perform the task of distributing its products, providing the needed training and support for those partners can help to enhance the distribution differentiation over competitors.
Overall every component of the process could be considered to relay on each other. First it is fundamental to have a product generating demand within a specific target market. While the product generates demand consequently motivates companies to invest in manufacturing the product. At this point is where facilities come into consideration. Based upon product demand a production structure and distribution strategies are developed; the focus is for each facility to function productively, maximizing profits, avoiding unnecessary expenses (lowering cost), or avoid lost of sale due to lack of correct planning tactics. Once the product has been manufactured it is crucial to deliver to the locations where the consumers
Another component of an effective marketing plan is a distribution channel analysis. The path a product or service takes to reach the end consumer is referred to as a distribution channel, which can include wholesalers, retailers, distributors and the internet (Distribution Channel, 2013). A distribution channel analysis aids in the creation of a distribution strategy which will convey the company’s plan regarding the distribution of its products, determining whether to use a push or a pull strategy, and how that strategy fits the product, the target market, and overall marketing
Manufacturing Companies: A manufacturing firm transforms basic resources into finished goods. These companies add value by taking simple inputs, such as labor and materials, and combining them to create a complex product like an automobile. Success is measured by the ability of the manufacturer to sell the complex product for more than the cost of the inputs. Examples are Boeing, Caterpillar, and Ford.
Distribution is very important in the marketing mix because it deals with making products available when and where customers want them. As with all of the elements included in the marketing mix, place/distribution can be the difference between a successful or an unsuccessful business. The specific characteristics of The Olive Barrel’s place/distribution are the store’s physical location, its product distributors, and its availability to the customers.
First, in aspects of personal selling this cost will be deducted out of the salesperson’s salary whereas all sales personal receive the same amount of salary. Next, the order processing is role of businesses to deliver consumer products accurately when and where the consumer wants the product is beneficial to retail grocery stores, supermarkets and Foodservice wholesalers. Making deliveries order processing top priority will provide the Cooper Company the fortitude to create competitive prices as well as, make deliveries in a cost-effective manner (Sabri, E. H., Gupta, A. P., & Beitler, M. A. 2007).
Manufacturing is where items In bulk are made like cars there are made in a assembly line where each car part is set to different groups of people then when the car comes down the line they place there part on while the car is still moving and then continue with the other cars then at the end of the line they are checked over to see if every thing is fitted properly and then shipped of to the seller then once it has arrived to the customer by the transport there will be documents that are handed to the customer that tells him about the car.
✓ Develop distribution channels by doing alliances with distributors and dealers where the company is not well present and with high potential.
1. Describe the current distribution system of the company and explain why it is so important for its brand positioning? Please explain also how the brand is positioned on international markets.
Through the distribution metrics, the company is also able to measure the performance of the marketing and distribution plan, such as number of outlets, distribution gain, share of shelf etc.
Consequently, customer service and carrier control is of essential relevance to make certain ongoing patron loyalty and retention and in the end, provider profitability.
In centralized production a product is manufactured at only one location or through a chain of single stations, one station per operation at one location. Whereas in centralized distribution products are delivered to the customer directly from one or a few central