The Management of

International Distribution and

Logistics (Ch10)
Objectives

 Strategically evaluate potential foreign distribution options

 Discuss the complexities of efficiently managing intermediaries

 Advise and recommend potential solutions to developing a logistics in foreign

market

 Understand the export documentations process

Introduction

 International distribution is the

processes, relationships and fulfilment
that you set in place to get your
products into overseas markets. Not
to be confused with international
ecommerce. That’s just international
shipping. International distribution is
about wholesaling into new countries.
If you choose to control distribution in
each country you operate in you will
need to research and understand your
legal requirements regarding
distribution agreements, customs &
duty taxes, terms & conditions in each
and every country.
Challengers in Managing International
Distribution Strategy
 1) Difference between Customer Expectations across Countries

 2) Differences in Channel Structure & Trade Practices

 3) Differences in the Quality of Physical Infrastructure

 4) Differences in Distribution Systems between Countries

Channels
 Direct channels
A direct distribution channel is organized
and managed by the manufacturer itself

 Indirect channels
An indirect distribution channel relies on
intermediaries to perform most or all
distribution functions, otherwise known as
wholesale distribution
Selecting Foreign Country Market
Intermediaries
 intermediaries, also referred to Middlemen as, play a vital part in
ensuring that the distribution channel between the producer and the
consumer is complete.
Various kinds of Middlemen in Distribution Channel

 Merchant middleman—takes title to products by buying them, e.g.

distributors.

 Functional middleman—helps in the transfer of ownership of products but

does not take title to the products

 Retailer—buys from producers or other middlemen and sells to consumers.

 Wholesaler—a middleman that sells products to other firms.

What are distribution channels?

 https://www.youtube.com/watch?v=ALoo4vrKKUw
Building relationships in foreign market
channels

 Motivating international marketing intermediaries

Trends in retailing in international
markets
 Traditional
 Intermediary
 Advanced
 The globalization
 internet
The management of the physical
distribution of goods
 The logostics approach to physical distribution

 Customer service

 Transportaion

 Export processing zones

 Administrative problems resulting from cross-border transfer of good

 Documentation

 Packaging

 The export sales contract