Place

Click to edit Master subtitle style Distribution/marketing

channel, a link of intermediaries performing independent functions , between the manufacturer & the customer
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Maintaining flow of goods, payments &

Functions of the distribution channel

information

Providing services Platform for promotions Breaking bulk Offering credit Offering assortments
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Types of channels
0-level 1-level 2-level 3-level Manufactur Manufactur Manufactur Manufactur er er er er Wholesaler Wholesaler Retailer Retailer Retailers
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Jobbers

Designing the distribution channel

1. Analyze customer expectations (lot size , waiting time, location preference, product assortment, services offered.) 2. 3. Understand objectives & constraints Identify major channel alternatives ( types of members, number of members, responsibility of each member.) 4.
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Evaluate alternatives

Market coverage forms

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What is Wholesaling?
All activities involved in selling goods/services to those who buy for further sale
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Functions of a wholesaler
Selling & promoting Assortment Bulk breaking Warehousing Transportation Financing Risk bearing Market information
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Types of wholesalers

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What is Retailing?
Click to edit Master subtitle style

Derived from French word retaillier meaning . to break bulk

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Formats of Retail

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Physical distribution/market logistics and then transporting of goods It is the stocking

to be delivered at the final destination.

Supply chain management (SCM)

Procuring the right inputs, converting them into finished products and dispatching them to final destinations.

Demand chain planning

Firstly think about the target market and then design the supply chain backwards.
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Major logistics decisions

I. Order processing
Understanding the order-to-payment cycle. This involves:
.Order transmission by salesperson .Order entry & customer credit check .Inventory & production scheduling .Order delivery
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Major logistics decisions

II. Warehousing
Storing goods until they are sold, bridging the gap between production & consumption. Types of warehouses
Private vs. public warehouse Storage warehouses Distribution warehouses Traditional vs. Automated warehouses
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Major logistics decisions

III. Inventory
(Stock of raw material, semi-finished and finished products.) Re-order point Order processing cost Running cost Inventory carrying cost(storage cost , cost of capital, taxes & insurance , depreciation)
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Major logistics decisions

IV. Transportation
Containerization followed by
Piggyback (rail & trucks) Fishyback (water & trucks) Trainship (water & rail) Airtruck (air & trucks)

Ownership
1. Private carrier
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