INTRODUCTION

Distribution Chain This is the whole route which a product moves from the point of production to the final consumer. It is used to target a particular target group of customers.it attaches a permanent description to its target, associating them with distinctive form of a typical chain.

Value Value is the amount a customer is willing to pay for the products or services provided by an organization. Value added is therefore the difference between what the customer pays and the cost to the organization of providing the product or service.

CASE STUDY: CHOMA PICHA BREWERIES LTD Background Information The firm is an upcoming brewery is located in Rongai, approximately 30 kilometres from Nairobi City. It was established in 2008 and its main products are a range of beers, wines and spirits. It has various distributions around the country. Since it is young and slowly developing, it is mainly focusing on widening its market scope to increase its revenue and earn more from their customers. This is because of the stiff competition that is there in the market.

Choma Breweries Ltd can increase the value at each distribution chain in the following ways:
1. Replenishing Decisions The company should come up with a computerized system that connects the companys main distribution centres which in turn should connect to the main plant at Rongai so as to make efficient and timely orders to replenish stocks.

2. Product range handled The company should come up with ways to distribute their products using the available and most cost effective ways. 3. Have receipt and handling schedule The alcoholic products from the main centre are dispatched mainly in the evening to ensure timely deliveries since there is little traffic in the evening moving from Rongai.

4. Product storage Product storage systems should be properly maintained to avoid shortages. Stock levels should be be properly and accurately determined and adhered to. Movement of products (wine, beer and spirits) from manufacturing department should be properly determined and monitored.

5. Coverage of potential market Choma Picha Breweries Ltd should engage in activities that will completely reach the potential market. This should be done through activities such as sponsoring activities in the community to boost consumption of their products in potential markets.

6. Breaking bulk Breaking bulk is an important step in the distribution chain. It helps move the product in the desired packages to the customers as they desire. 7. Order receipt and processing Orders from specific organizations should be received electronically. There should be an electronic system of receiving orders from specific organizations like restaurants or orders for supplying functions.

8. Cash control All monies received at each distribution centre should be banked daily. Copies of bank slips should be submitted to the head office at the main distribution centre for recording. 9. Pricing administration The internal costing department should be the ones solely responsible for the administration of prices of the various brands and products.

10. Merchandise promotions management, representation and sales canvassing The company should engage in merchandise promotions to increase its sales volumes. Sponsoring societal activities like sports, community development can boost its reputation across the board. 11. Customer relations The company should ensure an effective system of receiving feedback from customers and working on the shortcomings reported by the customers. Interviews with rewards can be conducted to encourage responses from the market.

12. Competitor action The company should develop ways to ensure that it edges out competition in the market and gains a strategic position. Information on consumer pricing, market base and promotions should be considered to make plans on how to beat them. 13. Quality of products Choma Picha Ltd should make that its products are of the best quality. The various wines, beers and spirits should meet the health standards and legal requirements. They should be such that they are of the best quality to meet the customers needs most effectively.

CONCLUSION Successful logistic managers in the 21st Century will be characterized by their broad understanding of their organizations strategic plan and role of logistics in bringing the plan to fulfillment. Logistics will no longer be subjectmatter; instead, logistics managers will work with marketing, manufacturing and finance to identify these activities that add value to the organizations products and services.

REFERENCES David J. Closs and Donald J. Bowersox, 1996, Logistical Management, International Editions John L. Gattorna, 1992 (C.I.P.S), The Gower Handbook of Logistics and Distribution Management 4th Edition Malcolm Saunders, 1997, Strategic Purchasing and Supply Chain Management 2nd Edition