Logistic of Distribution
Logistic of Distribution
Logistic of Distribution
By
Gautam paul(67)
Shankar paul(71)
Distribution?
• Product distribution (or place) is one of the four
elements of the marketing mix.
• Movement of goods and services from the source
through the distribution channel, right up to the
final customer, consumer, or user and the
movement of payment in the opposite direction,
right up to the original producer or supplier
The distribution channel
• It refers to the distribution of a good from one
business to another. It can be factory to supplier,
supplier to retailer, or retailer to end customer.
• It is defined as a chain of intermediaries, each
passing the product down the chain to the next
organization, before it finally reaches the consumer
or end-user.
• This process is known as the 'distribution chain' or
the 'channel.'
Logstics??
• Logistics is the management of the flow of
goods and services between the point of origin
and the point of consumption in order to meet
the requirements of customers.
• Aviation
• rail transport
• road transport
• water transport
• pipelines
Inventory management
• Managing inventory in distribution system is
one of the most critical activity in logistic
management system.
• Inventory level directly influence the
profitability of a company
Why we need inventory
• Improve customer service
• Reduce cost
• Smoothing the operations of the logistic
system
• avoiding stock out problem
Inventory control decision
• Pull and push inventory control
• Order quantity decision
• Risk pooling
warehousing
• A warehouse is a commercial building for
storage of goods.
• Warehouses are used by manufacturers,
importers, exporters, wholesalers, transport
businesses, customs, etc.
FUNCTIONS OF WAREHOUSING