Function of Physical Distribution Management and Distribution Channels
Revision of DTM for chapter 1 & 2
Function of physical distribution management and distribution channels 1) Definition of physical distribution management – Used in manufacturing and commerce to describe the broad range of activities concerned w/ the efficient movement of finished products from end of production line to consumer. * Emphasizes the flow of materials from the point of manufacture industrial user * Implies the control of the flow End consumers
Products supply > Warehousing > Distributution planning > Products delivering > Market outlets > Products display > Customers > Products Demand |
2) Role and importance of distribution – To bridge the geographical and time gaps between the producer and the consumer.
Consumer’s needs are the factor which set the whole process of production and distribution in motion.
Producers and manufacturers fulfill the demand of the consumer’s needs.
The job of the various distributive organizations is to ensure good are produced at the right time & place, at a reasonable price.
EFFICIENT AND SPEEDY TRANSPORT IS THE KEY FACTOR.
Raw materials have to be transported to the factories and finished goods have to be dispatched to wherever required. (1) The geographical gap.
Gap between the place of production and the place of consumption.
Example: Coffee beans grown in Brazil tin of coffee powder in the cupboard at home.
* Complex nature of distribution when we consider the enormous range of merchandise.
(2) The Time Gap
Gap between the time of production and time of consumption.
Scenario 1: Time gap may be short.
Example: Strawberries picked on Friday the same strawberries on tea table on SUNDAY
Scenario 2: Time gap may be long.
Example: Fireworks manufactured in Jan To be used in AUGUST during National Day
* The time period between production of goods and their eventual consumption must be bridged. * Perishable commodities such as fruits cannot keep for a
Function of physical distribution management and distribution channels 1) Definition of physical distribution management – Used in manufacturing and commerce to describe the broad range of activities concerned w/ the efficient movement of finished products from end of production line to consumer. * Emphasizes the flow of materials from the point of manufacture industrial user * Implies the control of the flow End consumers
Products supply > Warehousing > Distributution planning > Products delivering > Market outlets > Products display > Customers > Products Demand |
2) Role and importance of distribution – To bridge the geographical and time gaps between the producer and the consumer.
Consumer’s needs are the factor which set the whole process of production and distribution in motion.
Producers and manufacturers fulfill the demand of the consumer’s needs.
The job of the various distributive organizations is to ensure good are produced at the right time & place, at a reasonable price.
EFFICIENT AND SPEEDY TRANSPORT IS THE KEY FACTOR.
Raw materials have to be transported to the factories and finished goods have to be dispatched to wherever required. (1) The geographical gap.
Gap between the place of production and the place of consumption.
Example: Coffee beans grown in Brazil tin of coffee powder in the cupboard at home.
* Complex nature of distribution when we consider the enormous range of merchandise.
(2) The Time Gap
Gap between the time of production and time of consumption.
Scenario 1: Time gap may be short.
Example: Strawberries picked on Friday the same strawberries on tea table on SUNDAY
Scenario 2: Time gap may be long.
Example: Fireworks manufactured in Jan To be used in AUGUST during National Day
* The time period between production of goods and their eventual consumption must be bridged. * Perishable commodities such as fruits cannot keep for a