DISTRIBUTING PRODUCT

CASE STUDY

Group Member :

Henda Gunawan (09111403002)

Susilo Giono (09111403004)

Muslim (09111403024)

Gede Wirnaya (09111403026)

FAKULTAS ILMU KOMPUTER

UNIVERSITAS SRIWIJAYA

2012

Case: Distribution Decisions by Novak, Inc.

Novak, Inc., is a wholesaler in business to sell engineparts for cars. It recently installed a

website order system.The system allows a customer (such as a car repairshop) to order

inventory parts from anywhere in theUnited States. Novak can ship directly to the customer.

Larry Novak, president of Novak, Inc., decided to sellmore than car engine parts. His plan

was to sell technicalexpertise to provide his customers who own repairshops with information

pertaining to car engine parts.With recent technological changes and an increasednumber of

imports entering the United States, repairshops must now handle many different car

engineparts. Larry placed his company in a position to be morecompetitive in the industry by

emphasizing informationrather than price. His website offers numerous productcatalogs and

handbooks that provide extensive, detaileddescriptions and diagrams of every transmission,

as wellas specific parts needed to complete the repairs.

With the staggering selection of transmissions in usetoday, shops cannot begin to keep all the

essential parts.To help alleviate this problem, Novak has organized a national computer

network linking its regional officesaround the country. It provides information on the status

of in-stock inventory, orders expected to come in,and shipping schedules for parts expected

to go out.With this information, salespeople can access data onthe availability of a product

anywhere in the UnitedStates and have it shipped to them directly.

Questions

Is Novak a wholesaler or a retailer?

What is the advantage that Novak is now providing to its customers?

Is Novak considered an intermediary? How manylevels do Novak’s channels of

distribution include?

Does Novak have a quick distribution process? Ifso, how?

ANSWER

1. Novak is a Wholesaler because they sell a product to car repair shop as a retailer (

Two level Channel). Novak also Providing sales expertise and information as serve of

wholesaler. Furthermore Novak can ship directly to the customer that mean include

on alternative one level channels of distribution systems.

2. Novak has organized a national computer network linking its regional offices to

provide information on the status of in-stock parts, orders, and delivery schedules.

The market coverage distribution is selective because all truck repair shops do not

specialize in transmission repair. The rationale is a certain level of expertise is

required because transmission installation will vary among different trucks. Novak

assures its customers that there will be easy access to the product with fast and

efficient service with an online national distribution system.

3. Certainly Novak have two lavel channel. From Producer distributing to the

Wholesaler (Novak Inc) , and wholesaller sell into retailer (car repairshop) then sell

again to the customer. In this case Novak as a wholesaler and this firm sell their

product to the retailler before directly to the customer, in other side Novak also can

ship directly to the customer, it means part of Alternative one level channel when

producer distributing to wholesaler and then directly sell to the customer.

4. We think Novak have a quick distribution process because this firm has installed a

wesbsite order system. A website order system will usefull for retailler and customer

to see the product which ordered by product catalog, it mean also Novak use a e-

marketing for efficiently process of distribution. Novak also organized a national

computer network linking its regional offices around the country. It provides

information on the status of in-stock inventory, orders expected to come in,and

shipping schedules for parts expected to go out. With this information, salespeople

can access data on the availability of a product anywhere in the UnitedStates and have

it shipped to them directly. From all of that Novak can achive of quick distribution

process. Novak also has a quick distribution process by offering fast and efficient

service to its customer base. In an industry that emphasizes product variation, Novak

will carry an inventory of many different transmissions, thus providing an optimal

level of customer service. Novak is fast and efficient and, in the long run, saves

money for the truck operators because of this service.