Sales and Dist Assignment

8/8/2019 Sales and Dist Assignment

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Sales and Distribution AssignmentDone by:

Jaspreet Kaur

4843

BBS 3M


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What is distribution?

Product distribution (or place) is one of the four elements of the marketing mix. An

organization or set of organizations (go-betweens) involved in the process of making a

product or service available for use or consumption by a consumer or business user.

The other three parts of the marketing mix areproduct,pricing, andpromotion.

Distribution channel is the path or 'pipeline' through which goods and services flow in

one direction (from vendorto the consumer), and thepayments generated by them flow

in the opposite direction (from consumer to the vendor). A distribution channel can be as

short as being direct from the vendor to the consumer or may include several inter-

connected (usually independent but mutually dependent) intermediaries such

as wholesalers, distributors,agents, retailers. Each intermediary receives the item at

one pricing point and moves it to the next higher pricing point until it reaches thefinalbuyer. It is also called channel of distribution ormarketing channel.

A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers,

Retailer (also called dealerorreseller), who sells to end customers

Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be justas important for moving a service from producer to consumer in certain sectors, since

both direct and indirect channels may be used. Hotels, for example, may sell their

services (typically rooms) directly or through travel agents, tour operators, airlines,

tourist boards, centralized reservation systems, etc.

There have also been some innovations in the distribution of services. For example, there

has been an increase in franchising and in rental services - the latter offering anything

from televisions through tools. There has also been some evidence of service integration,

with services linking together, particularly in the travel and tourism sectors. For example,links now exist between airlines, hotels and car rental services. In addition, there has been

a significant increase in retail outlets for the service sector. Outlets such as estate

agencies and building society offices are crowding out traditional grocers from major

shopping areas.
http://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Promotion_(marketing)http://www.businessdictionary.com/definition/path.htmlhttp://www.businessdictionary.com/definition/pipeline.htmlhttp://www.businessdictionary.com/definition/goods.htmlhttp://www.businessdictionary.com/definition/services.htmlhttp://www.businessdictionary.com/definition/flow.htmlhttp://www.businessdictionary.com/definition/vendor.htmlhttp://www.businessdictionary.com/definition/consumer.htmlhttp://www.businessdictionary.com/definition/payment.htmlhttp://www.investorwords.com/1495/distribution.htmlhttp://www.businessdictionary.com/definition/independent.htmlhttp://www.businessdictionary.com/definition/dependent.htmlhttp://www.businessdictionary.com/definition/intermediary.htmlhttp://www.businessdictionary.com/definition/wholesaler.htmlhttp://www.businessdictionary.com/definition/distributor.htmlhttp://www.businessdictionary.com/definition/agent.htmlhttp://www.businessdictionary.com/definition/retailer.htmlhttp://www.businessdictionary.com/definition/receive.htmlhttp://www.businessdictionary.com/definition/pricing.htmlhttp://www.businessdictionary.com/definition/buyer.htmlhttp://www.businessdictionary.com/definition/channel-of-distribution.htmlhttp://www.businessdictionary.com/definition/marketing-channel.htmlhttp://en.wikipedia.org/wiki/Dealerhttp://en.wikipedia.org/wiki/Resellerhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Crowding_out_(economics)http://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Promotion_(marketing)http://www.businessdictionary.com/definition/path.htmlhttp://www.businessdictionary.com/definition/pipeline.htmlhttp://www.businessdictionary.com/definition/goods.htmlhttp://www.businessdictionary.com/definition/services.htmlhttp://www.businessdictionary.com/definition/flow.htmlhttp://www.businessdictionary.com/definition/vendor.htmlhttp://www.businessdictionary.com/definition/consumer.htmlhttp://www.businessdictionary.com/definition/payment.htmlhttp://www.investorwords.com/1495/distribution.htmlhttp://www.businessdictionary.com/definition/independent.htmlhttp://www.businessdictionary.com/definition/dependent.htmlhttp://www.businessdictionary.com/definition/intermediary.htmlhttp://www.businessdictionary.com/definition/wholesaler.htmlhttp://www.businessdictionary.com/definition/distributor.htmlhttp://www.businessdictionary.com/definition/agent.htmlhttp://www.businessdictionary.com/definition/retailer.htmlhttp://www.businessdictionary.com/definition/receive.htmlhttp://www.businessdictionary.com/definition/pricing.htmlhttp://www.businessdictionary.com/definition/buyer.htmlhttp://www.businessdictionary.com/definition/channel-of-distribution.htmlhttp://www.businessdictionary.com/definition/marketing-channel.htmlhttp://en.wikipedia.org/wiki/Dealerhttp://en.wikipedia.org/wiki/Resellerhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Crowding_out_(economics)


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Channel decisions

Channel strategy

Gravity & Gravity

Push and Pull strategy Product (or service)

Cost

Consumer location

The channel decision is very important. In theory at least, there is a form of trade-off: the

cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed,

most consumer goods manufacturers could never justify the cost of selling direct to their

consumers, except by mail order. Many suppliers seem to assume that once their product

has been sold into the channel, into the beginning of the distribution chain, their job is

finished. Yet that distribution chain is merely assuming a part of the supplier's

responsibility; and, if they have any aspirations to be market-oriented, their job should

really be extended to managing all the processes involved in that chain, until the product

or service arrives with the end-user. This may involve a number of decisions on the part

of the supplier:

Channel membership

Channel motivation Monitoring and managing channels

Type of marketing channel

1. Intensive distribution - Where the majority of resellers stock the 'product'

(with convenience products, for example, and particularly the brand leaders in

consumergoods markets) price competition may be evident.

2. Selective distribution - This is the normal pattern (in both consumer andindustrial markets) where 'suitable' resellers stock the product.

3. Exclusive distribution - Only specially selected resellers orauthorized

dealers (typically only one per geographical area) are allowed to sell the 'product'.

Channel motivation
http://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/w/index.php?title=Authorized_dealers&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Authorized_dealers&action=edit&redlink=1http://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/w/index.php?title=Authorized_dealers&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Authorized_dealers&action=edit&redlink=1


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It is difficult enough to motivate direct employees to provide the necessary sales and

service support. Motivating the owners and employees of the independent organizations

in a distribution chain requires even greater effort. There are many devices for achieving

such motivation. Perhaps the most usual is `incentive': the supplier offers a better margin,

to tempt the owners in the channel to push the product rather than its competitors; or a

compensation is offered to the distributors' sales personnel, so that they are tempted to

push the product. Dentdefines this incentive as a Channel Value Proposition or business

case, with which the supplier sells the channel member on the commercial merits of

doing business together. He describes this as selling business models not products.

Monitoring and managing channels

In much the same way that the organization's own sales and distribution activities need to

be monitored and managed, so will those of the distribution chain.

In practice, many organizations use a mix of different channels; in particular, they may

complement a direct sales force, calling on the larger accounts, with agents, covering the

smaller customers and prospects. these channels show marketing strategies of an

organisation. Effective management of distribution channel requires making and

implementing decision in these areas.

What is logistics?

Logistics is the management of the flow ofgoods, information and other resources in

a repair cycle between the point of origin and the point of consumption in order to meetthe requirements of customers. Logistics involves the integration of

information, transportation,inventory, warehousing, material handling, andpackaging,

and occasionally security. Logistics is a channel of the supply chain which adds the valueof time and place utility. Today the complexity of production logistics can be modeled,

analyzed, visualized and optimized by plant simulation software.

Logistics management is that part of the supply chain which plans, implements andcontrols the efficient, effective forward and reverse flow and storage of goods, services

and related information between the point of origin and the point of consumption in order

to meet customer and legal requirements. A professional working in the field of logisticsmanagement is called a logistician.

In the present day, the term logistics is applied to the movement of store activities,important not only to the military, but also to every business activity in the economy. The

term is common in the field of agriculture, industry and trading.
http://en.wikipedia.org/wiki/Denthttp://en.wikipedia.org/wiki/Channel_Value_Propositionhttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Spare_part#repair_cyclehttp://en.wikipedia.org/wiki/Transportationhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Warehousinghttp://en.wikipedia.org/wiki/Packaginghttp://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Denthttp://en.wikipedia.org/wiki/Channel_Value_Propositionhttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Spare_part#repair_cyclehttp://en.wikipedia.org/wiki/Transportationhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Warehousinghttp://en.wikipedia.org/wiki/Packaginghttp://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Supply_chain


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Business logistics systems can be classified into four categories:

Balanced System. Firms with a balanced system have reasonably balanced inbound and

outbound flows.

Heavy inbound. These firms have a very heavy inbound flow but a very simple outbound

flow. Firms with heavy inbound flow typically do not warehouse their finished goods, for

example, aircraft manufacturers.

Heavy outbound. These firms have a complex outbound flow and a very simple inbound

flow. Their inbound flow is usually raw material from a relatively short distance.

Typically their outbound shipments are a wide variety of packaged finished goods

requiring storage and transportation to the final consumer.

Reverse system. Reverse supply chain logistics systems have reverse flows on the

outbound side of their system. Durable products are returned for credit, trade-in, repair,

salvage or disposal or the firm utilized returnable or reusable containers.

What is warehouse management?

A warehouse management system, or WMS, is a key part of the supply chain and

primarily aims to control the movement and storage of materials within a warehouse and

process the associated transactions, including shipping, receiving, put-away and picking.

The systems also direct and optimize stock put-away based on real-time information

about the status of bin utilization.

Warehouse management systems often utilize Auto ID Data Capture (AIDC) technology,

such as barcode scanners, mobile computers, wireless LANs and potentially Radio-

frequency identification (RFID) to efficiently monitor the flow of products. Once data

has been collected, there is either batch synchronization with, or a real-time wireless

transmission to a central database. The database can then provide useful reports about the

status of goods in the warehouse.
http://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/wiki/Automated_identification_and_data_capturehttp://en.wikipedia.org/wiki/Barcode_scannerhttp://en.wikipedia.org/wiki/Mobile_computerhttp://en.wikipedia.org/wiki/Wireless_LANhttp://en.wikipedia.org/wiki/RFIDhttp://en.wikipedia.org/wiki/RFIDhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/wiki/Automated_identification_and_data_capturehttp://en.wikipedia.org/wiki/Barcode_scannerhttp://en.wikipedia.org/wiki/Mobile_computerhttp://en.wikipedia.org/wiki/Wireless_LANhttp://en.wikipedia.org/wiki/RFIDhttp://en.wikipedia.org/wiki/RFID


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The objective of a warehouse management system is to provide a set of computerized

procedures to handle the receipt of stock and returns into a warehouse facility, model and

manage the logical representation of the physical storage facilities (e.g. racking etc),

manage the stock within the facility and enable a seamless link to order processing and

logistics management in order to pick, pack and ship product out of the facility.

Warehouse management systems can be stand alone systems, or modules of

an ERP system or supply chain execution suite.

The primary purpose of a WMS is to control the movement and storage of materials

within a warehouse you might even describe it as the legs at the end-of-the line which

automates the store, traffic and shipping management.

In its simplest form, the WMS can data track products during the production process and

act as an interpreter and message buffer between existing ERP and WMS systems.Warehouse Management is not just managing within the boundaries of a warehouse

today, it is much wider and goes beyond the physical boundaries. Inventory management,

inventory planning, cost management, IT applications & communication technology to be

used are all related to warehouse management. The container storage, loading and

unloading are also covered by warehouse management today. Warehouse management

today is part of SCM and demand management. Even production management is to a

great extent dependent on warehouse management. Efficient warehouse management

gives a cutting edge to a retail chain distribution company. Warehouse management does

not just start with receipt of material but it actually starts with actual initial planning

when container design is made for a product. Warehouse design and process design

within the warehouse (e.g. Wave Picking) is also part of warehouse management.

Warehouse management is part of Logistics and SCM.

Warehouse Management monitors the progress of products through the warehouse. It

involves the physical warehouse infrastructure, tracking systems, and communication

between product stations.

Warehouse management deals with receipt, storage and movement of goods, normally

finished goods, to intermediate storage locations or to final customer. In the multi-

echelon model for distribution, there are levels of warehouses, starting with the Central

Warehouse, regional warehouses services by the central warehouses and retail

warehouses at the third level services by the regional warehouses and so on. The

objective of warehousing management is to help in optimal cost of timely order

fulfillment by managing the resources economically. Warehouse management =
http://en.wikipedia.org/wiki/Enterprise_resource_planninghttp://en.wikipedia.org/wiki/Wave_Pickinghttp://en.wikipedia.org/wiki/Supply_chain_managementhttp://en.wikipedia.org/wiki/Enterprise_resource_planninghttp://en.wikipedia.org/wiki/Wave_Pickinghttp://en.wikipedia.org/wiki/Supply_chain_management


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"Management of storage of products and services rendered on the products within the

four walls of a warehouse"

What is inventory management?

Inventory refers to the stock of resources that possess economic value, held by an

organization at any point of time. These resource stocks can be manpower, machines,capital goods or materials at various stages.

Inventory management is primarily about specifying the size and placement of stockedgoods. Inventory management is required at different locations within a facility or within

multiple locations of a supply network to protect the regular and planned course of

production against the random disturbance of running out of materials or goods. Thescope of inventory management also concerns the fine lines between replenishment lead

time, carrying costs of inventory, asset management, inventory forecasting, inventory

valuation, inventory visibility, future inventory price forecasting, physical inventory,available physical space for inventory, quality management, replenishment, returns and

defective goods and demand forecasting. Balancing these competing requirements leads

to optimal inventory levels, which is an on-going process as the business needs shift and

react to the wider environment.

Inventory management involves a retailer seeking to acquire and maintain a proper

merchandise assortment while ordering, shipping, handling, and related costs are kept incheck.

Systems and processes that identify inventory requirements, set targets, provide

replenishment techniques and report actual and projected inventory status.

Handles all functions related to the tracking and management of material. This would

include the monitoring of material moved into and out of stockroom locations and thereconciling of the inventory balances. Also may include ABC analysis, lot tracking, cycle

counting support etc.

Management of the inventories, with the primary objective of determining/controllingstock levels within the physical distribution function to balance the need for product

availability against the need for minimizing stock holding and handling costs.

What is transportation management?

Transportation involves the physical movement or flow of goods. The transportation

system is the physical link that connects customers, raw material suppliers, plants,

warehouses and channel members. These are the fixed points in a logistics supply chain.
http://en.wikipedia.org/wiki/ABC_analysishttp://en.wikipedia.org/wiki/ABC_analysis


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The basic modes of transportation are water, rail, motor carrier, air and pipeline. Water

being the slowest mode with rail, motor carrier, and air following in order of speed of

delivery. Generally, the order is reversed when looking at costs.

Selection of the appropriate carrier has several steps. First the firm selects a

transportation mode. The shipper must compare the service desired with the rate or cost

of service. Service usually means transit time or the time that elapses from the time the

consignor makes the goods available for dispatch until the carrier delivers to the

consignee. Pickup and delivery, terminal handling and movement between origin and

destination account for the time involved in transporting goods.

The firm must balance the "need for speed" with the costs inherent in the mode of

transport. This includes the rate charged for the service, minimum weight requirements,

loading and unloading facilities, packaging, possible damage in transit, and any special

services that may be desired or required. If next day delivery is imperative, the shipperwill utilize an air freight carrier but will pay a premium price for such rapid service. If

time is not a particularly critical element the shipper may elect to use rail or a motor

carrier, or may even utilize a water carrier if time is inconsequential. Water-based modes

of transportation are the least expensive and are used for commodity type products such

as grain, coal, and ore. Some firms even utilize more than one mode of transportation,

called intermodal transport, to move their goods.

Once a mode is selected, the shipper must decide the legal classification or type of carrier

they wish to utilize: common, regulated, contract, exempt or private.

Common carriers serve the general public at reasonable prices and without

discrimination. They cannot refuse to carry a particular commodity or refuse to serve a

particular point with the scope of the carrier's operation. Common carriers are liable for

all goods lost, damaged, or delayed unless caused by an act of God, an act of a public

enemy, an act of public authority, an act of the shipper, or some defect within the good

itself.

Regulated carriers are required to provide safe and adequate service and facilities upon

reasonable request and are liable for damage up to limits established by the carrier.Regulated carriers can be motor carriers or water carriers and are subject to minimal

federal controls.

A contract carrier does not serve the general public, but, rather serves one or a limited

number of contracted customers. They have no legal service obligation. They often


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provide a specialized service and usually have lower rates than common or regulated

carriers.

Exempt carriers are exempt from regulation regarding rates and services. Exempt status

comes from the type commodity hauled or the nature of the carrier's operation. Exempt

motor carriers are usually local and typically transport such items as agricultural goods,

newspapers, livestock, and fish. Exempt water carriers transport bulk commodities such

as coal, ore, grain, and liquid. Exempt rail carriers transport piggy-back shipments and

exempt air carriers haul cargo.

A firm's own transportation is termed a private carrier. Private carriers are not "for-hire"

and not subject to the same federal regulations as other types of transport. However, the

carrier's primary business must be something other than transportation.

Once the mode and type of carrier is determined a final decision can be made based onother factors. Accessibility is one such factor. Some firms have geographic limits to their

routing network. Others may not possess physical access to needed facilities or have the

ability to provide the equipment and facilities that movement of a particular commodity

may require. Reliability, the consistency of the transit time a carrier provides, is also a

key factor. Finally, convenience and communication are other important considerations

when selecting a carrier.

Measures that a transportation firm would use to judge its performance include: orders

shipped on time, orders shipped complete, order preparation time, product availability,

and transit time. From the customer perspective performance can be gauged from orders

received on time, orders received complete, orders received damage free, orders filled

accurately, and orders billed accurately.

Modes of transportation managements and their advantages and disadvantages?

Best Practices in solutions for Transportaion helps to maximize performance of the entiretransportation system through improved navigation and fleet management, reduced traffic

congestion, increased safety, and superior monitoring of the physical status of vehicles

and infrastructure. Key areas of growth will include:

Fleet management systemsElectronic tools incorporating GPS (global positioning system), GIS (geographic

information systems), onboard diagnostics, and specialized software are emerging that

allow for more efficient management, routing, monitoring, dispatch, and maintenance offleet vehicles.


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Internet based exchanges

Transportation exchanges over the Internet can perform a number of functions to improve

the efficiency of supply chains and logistics value chains. An important example includesmatching shippers with excess capacity with less-than-load (LTL) customers.

Logistics managementIncreased outsourcing of fulfillment and logistics, brought about by the explosion in e-

commerce will require expanded logistics IT solutions.

Real-time traffic and infrastructure monitoring systems

Systems that combine sensors, cameras, and Internet platforms are being developed to

alert drivers and fleet managers to site-specific traffic conditions.

Transportation ModesTransport modes are the vehicles supporting the mobility of passengers, freight and

information and the infrastructures supporting their movements.

Road transportation

Road infrastructures are large consumers of space with the lowest level of physicalconstraints among transportation modes. However, environmental constrains are

significant in road construction. Road transportation has an average operational flexibility

as vehicles can serve several purposes but are rarely able to move outside roads. Roadtransport systems have high maintenance costs, both for the vehicles and infrastructures.

They are mainly linked to light industries where rapid movements of freight in small

batches are the norm.

Rail transportation

Railways are composed of a traced path on which are bound vehicles. They have anaverage level of physical constrains linked to the types of locomotives and affected by the

gradient. Heavy industries are traditionally linked with rail transport systems, althoughcontainerization has improved the flexibility of rail transportation by linking it with road

and maritime modes.

Maritime transportation

Main maritime routes are composed of oceans, coasts, seas, lakes, rivers and channels.However, maritime circulation takes place on specific parts of the maritime space. The

Atlantic Ocean is very important since it accounts for 78% of the global trade, 68% of its

value and for 75% of the maritime trade. The construction of channels, locks and

dredging are attempts to facilitate maritime circulation by reducing discontinuity.Comprehensive inland waterway systems include Western Europe, the Volga / Don

system, St. Lawrence / Great Lakes system, the Mississippi and its tributaries, the

Amazon, the Panama / Paraguay and the interior China. Maritime transportation has highterminal costs, since port infrastructures are among the most expensive to build, maintain

and improve. High inventory costs also characterize maritime transportation. More than

any other mode, maritime transportation is linked to heavy industries, such as steel andpetrochemical facilities adjacent to port sites.


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Air transportation

Air routes are practically unlimited, but they are denser over the North Atlantic, inside

North America and Europe and over the North Pacific. Air transport constraints aremultidimensional and include the site (a commercial plane needs about 3,300 meters of

track for landing and take off), the climate, fog and aerial currents. Air activities are

linked to the tertiary and quaternary sectors, notably finance and tourism that requiremovements of people. More recently, air transportation has been accommodating

growing quantities of high value freight.

Transporation Solutions


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Sales and Dist Assignment