Aims to treat the many different elements that come under the broad category of distribution and logistics as one single integrated system.

Is a situation that involves losing one quality or aspect of something in return for gaining another quality or aspect

FOUR DIFFERENT LEVELS OF TRADE-OF :

those trade-offs that occur within single functions.

those trade-offs between the different elements in distribution.

there are a number of areas of interface between company functions where trade-offs can be made.

where a trade-off may be beneficial for two companies that are associated with each other

Planning should be undertaken according to a certain hierarchy that reflects different planning time horizons

General Clas ification of Planning:

set of procedures for making decisions about the organization’s long-term goals and strategies.

Medium to long-term horizon, 1to5 year (plus) time span, overall ‘structural’ decisions, trade-offs between company functions, trade-offs with other organizations, corporate financial plans and policies, policy decisions developed into strategic plan

– a set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing

focus on the major actions a unit must take to fulfil its part of the strategic plan.

Short to medium-term horizon, six-month to 1year (plus) time-span, subsystem decisions are made – should not impose on other logistics components, Annual budgets provide finance/cost basis, corporate financial plans and policies, the strategic plan detail is made into an operational plan.

the process of identifying the specific procedures and processes required at lower levels of the organization.

day-to-day decision making, operations controlled against the standards and rules, control via weekly/monthly reports. The implementation of the operational plan.

customer service, channel of distribution, supply points, production locations, location and size of depots, transport modal choice, third party or own account, direct delivery and stock level

vehicle types/sizes/numbers, contract hire, delivery schedule, design and layout, space allocation, handling methods, stock location and control, and documentation.

goods receipts and checking, bulk storage, order picking, stock replenishment, order marshalling, load scheduling, returns, and vehicle maintenance

system-wide management of entire logistics chain as a single entity, instead of separate management of individual logistical functions.

is a technique of allocating all of the appropriate costs and allowances to a given product. DPP techniques can identify the costs of specific products to individual customers and so provide invaluable information for effective marketing strategies.

have been developed as sophisticated, computerized planning tools that aim to make the necessary materials or inventory available when needed.

an inventory control technique for determining dependent demand for manufucturing supply.

systems operate by breaking down the flow of material from the source of supply through the distribution network of depots and transportation modes.

originated as a new approach to manufacturing and has been successfully applied in many industries such as the automotive indust

provide a production system that eliminates all activities that neither add value to the final product nor allow for the continuous flow of material – in simple terms, that eliminates the costly and wasteful elements within a production process.

The objectives of JIT are vitally linked to distribution and logistics, including as they do: - the production of goods the customer wants; - the production of goods when the customer wants them; - the production of perfect-quality goods; - the elimination of waste (labour, inventory, movement, space, etc.)

viewed as a single entity rather than a series of fragmented elements such as procurement, manufacturing, distribution, etc

is very much a strategic planning process, with a particular emphasis on strategic decision making rather than on the operational systems.

provides for a very different approach to dealing with inventory. Traditionally, inventory has been used as a safety valve between the separate components within the pipeline – thus leading to large and expensive stocks of product

aims to alter this perspective so that inventory is used as a last resort to balance the integrated flow of product through the pipeline.

Often it is thought of as the route taken by a product as it moves from the producer to the consumer or other ultimate user.

Other define it as the path taken by the title to goods as it moves through various agencies.

A loose coalition of business firms that have banded together for purposes of trade.

Is a set of practices or activities to transfer the ownership of goods from the point of productions to the point of consumptions.

The three basic divisions of the marketing channel are:

consists of firms that are involved in extracting, growing or making products

includes firms that make everything from straight pins to jet planes and that vary in size from one-person operations to giant multinational corporations with many thousands of employees and multibillion-dollar sales volumes.

are independent businesses that assist producers and manufacturers (and final user) in the performance of negotiatory functions and other distribution task

Two basic levels of operations:

consists of businesses that are engaged in selling goods for resale or business use to retail, industrial, commercial, institutional, professional or agricultural firms, as well as to other wholesalers

types and kinds of wholesalers

are firms engaged primarily in buying, taking title to, usually storing and physically handling products in relatively large quantities. They then resell the products in smaller quantities to retailers, other wholesalers and to industrial, commercial or institutional concerns

A.K.A. Wholesalers, Jobber, Distributors, Industrial distributor, Supply house, Assembler, Importer, Exporter and others.

are also independent middlemen who do not, for all or most of their business, take title to the goods in which they deal. They are actively involved in negotiatory functions of buying and selling while ‘acting on behalf of their clients. They are usually compensated in the form of commissions on sales or purchases.

A.K.A Manufacturers agents, commission merchants, brokers, selling agents and import and export agents

are owned and operated by manufacturers but are physically separated from manufacturing plants. They are used primarily for the purpose of distributing the manufacturer’s own products at wholesale. Some have warehousing facilities where inventories are maintained, while others are merely sales offices.

best wholesale companies in the philippines

is provided by merchant wholesalers to manufacturers because the markets for the products of most manufacturers consists of many customers spread over large geographical areas

is a valuable service provided by merchant wholesalers. If a manufacturers product is sold to many customers over a large geographical area, the cost of covering the territory with its sales force can be prohibitive

Merchant wholesaler take title to, and usually stock, the products of the manufacturers whom they represent. By doing so, they can reduce the manufacturers financial burden and reduce some of the manufacturers risk associated with holding large inventories.

performed by wholesalers is very helpful to manufacturers because many customers buy in small quantities.

Wholesalers are usually quite close to their customers geographically and in many cases have continuous contact through frequent sales calls.

– is the final distribution task that wholesalers provide for manufacturers. Products may need to be exchange or returned, or a customer may require setup, adjustment, repairs or technical assistance. This extra support by the wholesalers, often referred to as value added services

Distribution tasks performed by Merchant Wholesaler

also referred to as manufacturers representatives or rep. For example specialize mainly in performing the market coverage and sales contact distribution tasks for manufacturers.

usually perform more distribution tasks than manufacturers representatives. They provide more market coverage, sales contact, order processing, marketing information, product availability, and customer service

– define as a go-between or a party who brings buyers and sellers together so that a transaction can be completed.

Distribution tasks performed by Agent Wholesalers

consist of business firms engaged primarily in selling merchandise for personal or household consumption and rendering services incidental to the sale of goods.

Internet-based online retail channels

business firms that assist in the performance of distribution tasks other than buying, selling and transferring title.

Here are some of the more common types of facilitating agencies:

firms offering transportation services on a public basis such as United Parcel Service (UPS) and Federal Express as well as the U.S. Post Offices.

consist mainly of public warehouses that specialize in the storage of goods on a fee basis.

are firms specializes in order fulfillment tasks. For example Catalog Resources Inc

sometimes referred to as “3PLs” or “TPLs” are firms that specialize in providing logistics services to companies or organizations that are not capable or wSho find it more convenient and efficient to let an outside firm perform most or all of the distribution tasks involved in supply chain managemen

offer the channel member expertise in developing promotion strategy.

consist of firms such as banks, finance companies, and factors that specialize in discounting accounts receivable.

provide the channel manager with a means for shifting some of the risks inherent in any business venture, such as fire and theft losses, in￾transit damage of goods and, in some cases, inclement weather.

most large cities now have a number of marketing research firm offering a wide range of skills. The channel manager can call these firms to provide information when his or her own firm lacks the necessary skills to obtain marketing information relevant to distribution