Distribution Debate

Harshil Dave Jhilam Chowdhury Naveen Panwar Rajeev Sharma

(7076) (7081) (7091) (7096)

Over View
 Tristar company had a turnover of 120Cr in refrigerators and air-conditioners. air Initially Mathurs flexible policies helped boost fortunes.  AC were produced in Thane, Refrigerators was made in Jalgaon.  8 branch office catering to 2 sales depots each.  Each sale depots serviced up to 50 dealers.

Demands and challenges faced by Tristar.

Due to shortage, goods were transported between sales depots.
 

Arrival of arch-rival Pleasant Ac launched split level Ac, hence customer demands had to be met. Pleasant operated in Western and Southern Markets.

Baroda

Madras

Cont
 Lock out of Koolidge from Madras.  At this time, there was stock-outs as demand stockwas more than supply.  Produced more, but outputs were stuck in warehouse for the want of clear instructions.

Mathurs Operation and suggestions

 Wants the customers to get the goods when ordered.  Believes to stock adequate goods in Sales depots.  Wants additional depot in Kerela to meet demands in southern markets.  Vesting logistics with production department.

Chopra Suggestions.
 Wants zonal warehouses that would cater the demands of dealers in the zone.  Wants the branch depots to ask for stocks only when customers raise invoices.  Branch depots should only receive, dispatching and invoice.  Reduce inventories and slash space cost of ware houses.

Importance of a effective distribution channel.

 Involves companys connection to its customers and a significant portion of its total costs.  Effective Distribution channel can effectively deliver goods to customers during emergencies.  Distribution channel should be flexible.  A company should identify who the channel serves and what are the emerging needs of that customer group.

Different Distribution Strategies adopted by companies.

Boeing Manufacture

Customer

Binders, file folders, staplers, reams of paper

Whole sale

Dealer

Our Proposed Plan

 The products should be shipped to Zonal Warehouse.  Dealers should co-ordinate to meet the customer codemand.

Dealer1

Dealer2 Manufacturing Firm Zonal Warehouse Minimum stocks Dealer3

Actions to support the plan.

 Use technology to monitor inventories to order electronically from suppliers and other distributors.  Improving marketing logistics with the help of integrated Logistic system planning the demand and sales forecasting.  Improving material handling costs and procedures, by dealer co-ordination to estimate the supplies. co Large dealers can be provided the materials directly from the production unit, in case of acute demand.  Effectively control the manufacturing process.

Cont
 Develop measurements to track the performance of individual dealers.  Communicate effectively to individual dealers.  Encourage dealers to establish and maintain a accurate information of frequent customers and their demands.  Address and solve any conflicts between the dealers.  Third party supply should be also incorporated.

Suggestions from us
 Zonal warehouse will utilize space optimally.  Short terms loans should be avoided as it affects our working capital.  Have an effective inventory policy.  Speed of delivery of products should be maintained.  Dealer co-operation is essential. co Marketing and production team should work in sync.