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.

• Logistics involves the integration of information,

transportation, inventory, warehousing,
material handling, and packaging, and
occasionally security.
 Obj. of logistics
• is the management of the flow of goods information
and other resources.
• integration of information
• Cost reduction
• Improving customer service
• Rapid Response
• Reduce total distribution costs
• Generating additional sales
• Creating time and place utilities
• Quality improvement
 Information logistics

• Information Logistics (IL) can be defined as

"managing and controlling information handling
processes optimally with respect to time (flow time
and capacity), storage, distribution and
presentation in such a way that it contributes to
company results in concurrence with the costs of
capturing (creation, searching, maintenance etc)."
 Goal
information logistics is about providing:
• the correct information product
• at the accurate point of time
• in the correct format / quality
• for the intended recipient
• at the right location
 transportation
• Transportation plays a connective role among the
several steps that result in the conversion of
resources into useful goods in the name of the
ultimate consumer.
• It is the planning of all these functions and sub-
functions into a system of goods movement in order
to minimize cost maximize service to the customers
that constitutes the concept of business logistics.
 Mode of transport

• 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

• 1. A balance between demand and supply

• 2. Storage of goods at various stages of
production
• 3. A place for product assembly, product
aggregation and bulk breaking
• 4. Specialized services
 IMPORTANCE OF WAREHOUSING
• 1. Stability of prices of goods
• 2.An opportunity for saving on transportation
costs
• 3. Cost savings passed on to the consumers
• 4.Facilitation of foreign trade
 Main decision in warehousing
• 1. number of warehouse
• 2. location of the warehouse
• 3. macro prospective in warehouse location
• 4.micro prospective in warehouse location
conclusion
• Thank u