1 / 36

Unit 9 Distribution

Unit 9 Distribution. Distribution. How did the merchandise get to the stores? Where is the merchandise kept before it goes to the store? How does the owner of a store know when to order more merchandise?. Unit 9 Vocabulary. Drop Shippers E-marketplace E-tailing Exclusive Distribution

urbana
Download Presentation

Unit 9 Distribution

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit 9Distribution

  2. Distribution • How did the merchandise get to the stores? • Where is the merchandise kept before it goes to the store? • How does the owner of a store know when to order more merchandise?

  3. Unit 9 Vocabulary • Drop Shippers • E-marketplace • E-tailing • Exclusive Distribution • Exempt Carriers • Freight Forwarders • Indirect Distribution • Integrated Distribution • Intensive Distribution • Intermediaries • Inventory • Inventory Management • Inventory Turnover • Just-In-Time (JIT) Inventory System • Memorandum Buying • Model Stock List • Agents • Basic Stock List • Blind Check Method • Bonded Warehouse • Brick-and-mortar Retailers • Carload • Centralized Buying • Channel of Distribution • Common Carriers • Consignment Buying • Contract Carriers • Cycle Counts • Decentralized Buying • Direct Check Method • Direct Distribution • Distribution Center • Dollar Control

  4. Unit 9 Vocabulary • Selective Distribution • Six-month Merchandising Plan • Source Marketing • Spot Check Method • Stockkeeping unit (SKU) • Storage • Ton-mile • Transportation • Unit Control • Want Slips • Wholesale Buyers • Wholesalers • Never-out List • Organizational Buyers • Open-to-buy (OTB) • Perpetual Inventory System • Physical Distribution • Physical Inventory System • Preretailing Marketing Method • Private Carriers • Private Warehouse • Public Warehouse • Quality Check Method • Rack Jobbers • Real-time Inventory Systems • Receiving Record • Retail Buyers • Retailers • Reverse Auction

  5. Unit 9 EssentialQuestion • How is distribution knowledge utilized to manage supply-chain activities?

  6. Essential Question 1 Distribution • What are the channels of distribution and the factors that influence the length/width of each channel?

  7. Agents Retailers Indirect Wholesalers Channels of Distribution Manufacturers / Producers Direct Industrial Distributors Industrial Users

  8. Channel of Distribution • Channel of Distribution: The path a product takes from producer or manufacturer to final user.

  9. Direct vs. Indirect Channels • Direct Distribution: channel that exists when the product is sold from the producer to the final user. • Indirect Distribution: channels that exists when one or more intermediaries: middleman, are involved.

  10. Pg 450

  11. Pg 451

  12. Distribution Intensity • How widely a product will be distributed. • Intensive Distribution: Involves the use of all suitable outlets for a product. • Selective Distribution: A limited number of outlets in a given geographic area used to sell the product. • Exclusive Distribution: Involves protected territories for distribution of a product in a given geographic area.

  13. Essential Question 2 Distribution • What are the marketing activites of transportation and storage?

  14. Modes of Transportation Trucking • Most frequently used form of transportation. • Used primarily for lightweight shipments over moderate distances. • Accounts for 80% of shipments weighing less than 1000 pounds.

  15. Modes of Transportation Rail Transportation • Major type of transportation in the United States. • Used for moving heavy and bulky freight.

  16. Modes of Transportation • One of the oldest forms of transportation. • Primary means of international distribution. Water Transportation

  17. Modes of Transportation • Normally owned by the company using them. • Most frequently used to transport oil and natural gas. Pipelines

  18. Modes of Transportation • Used to ship high-value low-weight items. • Greatest advantage is speed. • Greatest disadvantage is cost. Air Transportation

  19. Storage Warehousing • Private Warehouse: Facility designed to meet the needs of its owner. • Public Warehouse: Storage and handling facilities to any individual or company that will pay for its use. • Distribution Center: Warehouse designed to speed delivery of goods and to minimize storage costs. • Bonded Warehouse: Stores products that require the payment of a federal tax. Products may not be moved until the tax is paid.

  20. Essential Question 3 Distribution • What are the common terms associated with buying and shipping?

  21. Buying • Buyers: Purchase goods for resale. • Consignment Buying: Goods are paid for only after the final customer purchases them. • Memorandum Buying: Occurs when the supplier agrees to take back any unsold goods by a certain pre-established date. • Reverse Auction: Companies post what they want to buy and suppliers bid for the contract.

  22. Shipping • Common Carriers: Provides transportation services to any business in their operating area. • Contract Carrier: For-hire carriers that provide equipment and drivers for specific routes. • Private Carrier: Transport goods for an individual business. • Ton-mile: The movement of one ton of freight one mile. • Freight Forwarder: Private companies that combine less-than-carload or less-than-truckload shipments from several different businesses and deliver them to their destinations.

  23. Essential Question 4 Distribution • What is the receiving process?

  24. Receiving Process • The receiving process: • Receive the goods • Check the goods • Mark the goods (if necessary) • Deliver the goods for use, storage, or sale

  25. Essential Question 5 Distribution • What is the purpose of inventory management and how is inventory controlled?

  26. Inventory Management • The purpose of inventory management is to find and maintain inventory levels that are neither too small nor too large.

  27. Tracking Inventory • Keeping tabs on how much inventory you have is the first step in controlling inventory levels.

  28. Tracking Inventory • Visual Inventory Systems: Looks at how much inventory is on hand and compares it to what is wanted on hand. • Perpetual Inventory Systems: As inventory is sold, it is subtracted from the inventory list. As new inventory arrives, it is added. • Partial Inventory Systems: A combination of systems. A perpetual system is used only for those items that account for a large share of sales. • Just-in-time (JIT) Inventory Systems: The responsibility of inventory is shifted to the vendor and is delivered just before it is used.

  29. Inventory Costs • Financing Costs: The interest you pay to borrow money to purchase inventory. • Opportunity Cost: Loss of the use of money tied up in inventory. • Storage Costs: The amount of money spent on renting or buying the space needed to store the inventory.

  30. Inventory Costs • Insurance Costs: The amount spent to insure the inventory on hand against loss. • Shrinkage Costs: Money lost when inventory items are broken, damaged, spoiled, or stolen. • Obsolescence Costs: Money lost when products or materials become obsolete while in inventory.

  31. Essential Question 6 Distribution • How does distribution affect the cost of products?

  32. Distribution Costs • Many factors go into determining the distribution costs of a product: • Channel or channels used • Transportation method used • Intensity of distribution • Inventory costs • Who does the selling • Buying and shipping • Economic issues

  33. Essential Question 7 Distribution • What are the distinguishing characteristics of retailers, wholesalers, agents, and brokers?

  34. Channel Members • Retailers: Sell products to the final consumer for personal use. • Brick-and-mortar retailers:Sell products to the consumer from their own physical store. • E-tailing: Involves retailers selling products to the consumer over the internet.

  35. Channel Members • Wholesalers: Businesses that buy large quantities of goods from manufacturers, store the goods, and then resell them to other businesses – also referred to as distributors. • Rack jobbers:Manage inventory and merchandising for retailers by counting stock, filling it in when needed, and maintaining store displays. • Drop shippers: Own the goods they sell but do not physically handle the actual products.

  36. Channel Members • Agents: Act as intermediaries by bringing buyers and sellers together. • Independent Manufacturers’ Representatives:Works with several related (but not competing) manufactures in a specific industry. They are paid commissions based on what they sell. • Brokers:Brings buyers and sellers together in order to make a sale. They negotiate the sale, are paid a commission, and then look for other customers.

More Related