Remcom Cables Private Limited

Introduction:
Remcom is a cable manufacturing company based in Mumbai that was established in
1998. They are currently operating from a 5000sq m factory, operating 8 hours of shift,
with a single shift a day and operating for 6 days a week.
Within that single shift the company employs over 25 employees.
The company has different product groups, Co-axial cables; UTP cables; Telephone
cables; and multi-core cables, the focus of this project is on marketing of these
commodities.
In this project, emphasis will be placed on the cables; the product line has been running
for some time and has a promising and steadily increasing demand.
The co-axial cable has been performing well and the company has been able to meet the
demand up until now.
Recently the products demand from their biggest customer has increased, also the
company is in the process of finalizing a new contract for a product similar to the current
co-axial cable with a similar demand and thus the new demand will be more than double
the current demand for submersible cables.
This project will use numerous marketing methods and tools, such as physical
distribution strategies, Production Capacity Calculations, Cost-Benefit Analysis to
investigate and find possible solutions to enable the company to meet their demand in the
most effective and cost efficient way.
With human habitation becoming denser, with lots of people and families living and
working within a single housing or commercial complex, the need for cables to be both
efficient and safe is paramount.
While Remcom fully understand that each clients needs are unique and inimitable we
bring to each endeavour with the same commitment and zeal and the same level of care.
Remcom is different from its competitors because it believes in thinking of what clients
want instead of thinking what the organisation wants.
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Also they pride on that they take pains to orchestrate positive change in these competitive
environment. Their insulated cables are made from specially formulated PVC polymers
that restrict the toxic gases and smoke as they are self-extinguishing and do not allow the
fire to spread. Remcom Cables is one of the largest Indian manufacturers of cables and
wires that deliver multiple benefits and has consistently led the way in innovation and
technology breakthroughs.

At Remcom Cables -

Safe, efficient and eco-friendly television cables manufacturing

Cable offers TV cables that meet the highest quality standards. These cables are popularly
used in cable TV and computer networking operations. Our cables are safe, reliable, fireretardant, fire-resistant, lead & halogen-free, and non-toxic. They are manufactured at an
advanced eco-friendly facility. They are one of Indias largest cable manufacturers and
have consistently raised the bar with technological innovations.

Best quality at Remcom cables

Quality is always of a prime importance at Remcom manufacturing process

Cables and wires that add safety to efficiency

With human habitation becoming denser, with lots of people and families living and
working within a single housing or commercial complex, the need for cables to be both
efficient and safe is paramount.

Low smoke and halogen wires and cables offer a safe, reliable, fire resistant, lead free,
nontoxic alternative that is environment-friendly and safe in use.

Insulated cables are made from specially formulated PVC Polymers that restrict the toxic
gases and smoke as they are self-extinguishing and do not allow the fire to spread.
Remcom Cables is one of the largest Indian manufacturers of cables and wires that
deliver multiple benefits and has consistently led the way in innovation and technology
breakthroughs.
Remcom basic aim is to satisfy clients by providing exactly what they want and so these
become another reason why we provide quality products and that is actually done to
retain customers for a long term relation with the organisation.

Labour Standards:
A section of the labour standards applicable in this report that is applicable on all the
employees in the factory according to the Employment act (Basic Conditions of
Employment Act, No. 75 of 1997) are summarized in to the following points:

Ordinary hours of work for a worker is no more than:

o 45 hours a week.
o 9 hours a day if the worker works for 5 days or less in a week.
o 8 hours a day if the worker works for more than 5 days in a week.

Overtime:
o Is not permitted except by an agreement.
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o A worker cannot work longer than 10 hours overtime in any week.

o an agreement may not require a worker to work more than 12 hours on any day.
o an agreement may increase overtime to 15 hours per week for up to 2 months in any
12month period.
o Must be paid at 1.5 times the workers normal wage.

Compressed working week:

o an employee may agree in writing to work up to 12 hours in a day without any overtime
pay.
o in this agreement the previous standards of ordinary hours still stand and the worker
may not work more than 45 ordinary hours a week, 10 hours overtime a week, or more
than 5 days in a week.

Averaging of hours of work:

o an agreement may permit the hours of work to be averaged over a period up to 4
months.
o Previous standards still stand and the worker is still not permitted to work more than an
average of 45 ordinary hours a week, and an average of 5 hours overtime a week in the
agreed period.

Meal intervals:
o The worker must have a meal interval of 60 minutes after every 5 hours of work.
o A written agreement may reduce the meal interval to 30 minutes, or fall away for
workers that work less than 6 hours a day.

Why it was selected?

Conventional wisdom holds that the unique ownership structure of a small scale
manufacturing industry. It gives them a long-term orientation that traditional large scale
manufacturing industry often lack.
But beyond that, little is known about exactly what makes small industries different.
Some studies suggest that, on average, they outperform other businesses over the long
term-but other studies prove the opposite.
My friends asked me to do internship and learn about various types of cables and wires
and manufactured in that company and can learn more about process and marketing for
various cables and wire sector and also to explain about overall growth in the sector
which made me to the internship at Remcom Cables.
Toward successful is tremendously important for a small scale manufacturing industry
business. Longer life spans mean that we are seeing more beanstalk
Small scale manufacturing businesses are dynamic in nature; the business and the owner
are part of the same network and this can enable younger generations to learn from such
successful businesses. However, conflict can occur when social values differ between
generations.
I was made to understand the business model of Distribution for wire and cable which let
me more interesting.
Capitalizing on the skills of the younger generation to innovate and explore new markets
is crucial for the long-term success of small manufacturing industries.
If you become an enormously successful industry, you might have started with nothing,
built an organization, you know, world-class enterprise, with good reason you take great
pride in the particular formula that led you to that success.
The problem is that, you know, many industries end up believing that they themselves,
and they alone have the answers to their own future because they have been able to
demonstrate that they can do a lot of things. So who is going to teach me anything? The
evolution of sustainable manufacturing has been facilitated by multi-level eco-innovation

Manufacturing industries have the potential to become a driving force for realizing a
sustainable society by introducing efficient production practices and developing products
and services that help reduce negative impacts. This will require them to adopt a more
holistic business approach that places environmental and social aspects on an equal
footing with economic concerns.
Their efforts to improve environmental performance have been shifting from end-ofpipe pollution control to a focus on product life cycles and integrated environmental
strategies and management systems. Furthermore, efforts are increasingly made to create
closed-loop, circular production systems in which discarded products are used as new
resources for production.
Many companies and a few governments have started to use the term eco-innovation to
describe the contributions of business to sustainable development while improving
competitiveness. Eco-innovation can be generally defined as innovation that results in a
reduction of environmental impact, no matter whether or not that effect is intended.
Various Eco innovation activities can be analyzed along three dimensions:

Targets (the focus areas of eco-innovation: products, processes, marketing methods,

organizations and institutions);

Mechanisms (the ways in which changes are made in the targets: modification,
redesign, alternatives and creation); and

Impacts (effects of eco-innovation on the environment).

Work culture in Remcom Cables

A good understanding of the underlying values, beliefs and assumptions of Indian culture
and how the manifest themselves in the market and workplace is essential for the success
of your business

A flexible approach Remcom Cables is important and it is often best for all the products
that our company provides.

Business Language

Equality for every employee

Good environment

Employees are like-minded and hold similar beliefs and ethical values

Employee Performance reward

Organization Structure

OWNER
(He is the proud owner of Remcom cables Ltd.)

MANAGER
(He is the person responsible for controlling and administering organization group of
staff.)

SUPERVISOR
(He actually supervises all the staff person and activity)

Factory Workers
(Workers here are especially employed for non-executive level task)

Types of products offered by the organization.

Flame Retardant Cables
Flexible cables offer insulation with Flame Retardant (FR) properties which ensures
better electrical and mechanical performance at higher temperature.

Flexible cables are an essential requirement of any industrial & commercial

establishment. Flame retardant (FR) cables with high levels of safety, reliability and
energy efficiency.

This advanced technology safeguards us & environment from harmful substances such as
lead, mercury, cadmium and chromium, also reduces leakage current which can cause
serious damage to you and to the installations in the house. It also comes with termite and
rodent repulsion properties that ensure, there is no short circuit that may lead to damage
of property and human life.

HEAT RESISTANT FLAME RETARDANT CABLES

Flexible cables offer insulation with (HR) Heat resistant along with Flame Retardant
properties which are suitable to bear a temperature up to 85C due to this feature flexible
cables are capable to carry higher current and ensures better electrical and mechanical
performance at higher temperature.

Flexible cables are an essential requirement of any modern home. Heat Resistant Flame
retardant (HRFR) cables with offers high levels of safety, reliability and energy
efficiency.

This advanced S3 technology safeguard us & environment from harmful substances such
as lead, mercury, cadmium and chromium, also reduces leakage current which can cause
serious damage to you and to the installations in the house.
It also comes with termite and rodent repulsion properties that ensure, there is no short
circuit that may lead to damage of property and human life

Innovation plays a key role in moving manufacturing industries towards sustainable

production, and the evolution of sustainable manufacturing initiatives has been facilitated
by eco-innovation. As those initiatives advance, the process of their implementation
becomes increasingly complex and industries need to adopt an approach that can
integrate the various elements of eco-innovation to leverage the maximum environmental
benefits.

Low tension copper/alum conductor PVC & amp; XLPE power / control cables.
Such advanced, multi-level eco-innovation processes are often referred to as system
innovation innovation characterized by shifts in how society functions and how its
needs are met.

Co- Axial cables:

Coaxial cable, or coax is a type of cable that has an inner conductor surrounded by a
tubular insulating layer, surrounded by a tubular conducting shield. Many coaxial cables
also have an insulating outer sheath or jacket. The term coaxial comes from the inner
conductor and the outer shield sharing a geometric axis. Coaxial cable differs from
other shielded cable used for carrying lower-frequency signals, in that the dimensions of
the cable are controlled to give a precise, constant conductor spacing, which is needed for
it to function efficiently as a transmission line.

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Multi core cables:

Multicore cable is a generic term for an electrical cable that has multiple cores made
of copper wire. The term is normally only used in relation to a cable that has more cores
than commonly encountered. For example, a four core mains cable is never referred to as
multicore, but a cable comprising four coaxial cables in a single sheath would be
considered multicore.

Submersible Cables:

The Submersible Cables are the Cables used in good casing for supplying current to the
Submersible Pump. Once the cable is enclosed it is not subjected to repetitive handling
during rapid servicing of the entire Submersible Pump Unit.

LAN cables:
An Ethernet crossover cable is a type of twisted pair Ethernet cable used to connect
computing devices together directly that would normally be connected via a
network switch, hub or router, such as directly connecting two personal computers via
their network adapters

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CHAPTER 2
Learning Objective

Discovering the latest required marketing technique was the work assigned to me.
Evaluating the customers according to their needs was the basic work allotted to me
by the senior manager in order to segregate customers according to the volume of
their consignments and adopt perfect targeted marketing efforts that would reap
ultimate customer satisfaction as well as to increase the overall profit at the same
time.
The major learning objective that I kept in mind before joining the organization was to
study the current market trends, marketing strategies, customer relations, sales promotion.

To understand what marketing means to business and academics.

To understand the ways that retailers use marketing tools and techniques to interact with
their customers.

EXPERIENCE IN PHYSICAL DISTRIBUTION MANAGEMENT

Introduction
An earlier resource pack described the decisions that must be taken when a company
organizes a channel or network of intermediaries who take responsibility for the
management of goods as they move from the producer to the consumer. Each channel
member must be carefully selected and the company must decide what type of
relationship it seeks with each of its intermediate partners. Having established such a
network, the organization must next consider how these goods can be efficiently
transferred, in the physical sense, from the place of manufacture to the place of
consumption.
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Physical distribution management (PDM) is concerned with ensuring the product is in the
right place at the right time.

Place has always been thought of as being the least dynamic of the 4Ps. Marketing
practitioners and academics have tended to concentrate on the more conspicuous aspects
of marketing. It is now recognized that PDM is a critical area of overall marketing
management. Much of its expertise is borrowed from military practice. During the
Second World War and the Korean and Vietnam wars, supplies officers had to perform
extraordinary feats of PDM, in terms of food, clothing, ammunition, weapons and a
whole range of support equipment having to be transported across the world. The military
skill that marketing has adopted and applied to PDM is that of logistics. Marketing
management realized that distribution could be organized in a scientific way so the
concept of business logistics developed, focusing attention on and increasing the
importance of PDM.

As marketing analysis became increasingly sophisticated, managers became more aware

of the costs of physical distribution. Whilst the military must win battles, the primary aim
of business is to provide customer satisfaction in a manner that results in profit for the
company. Business logistical techniques can be applied to PDM so that costs and
customer satisfaction are optimized. There is little point in making large savings in the
cost of distribution if, in the long run, sales are lost because of customer dissatisfaction.
Similarly, it does not make economic sense to provide a level of service that is not really
required by the customer and leads to an erosion of profits. This cost/service balance is a
basic dilemma that faces physical distribution managers.

A final reason for the growing importance of PDM as a marketing function is the
increasingly demanding nature of the business environment. In the past it was not
uncommon for companies to hold large inventories of raw materials and components.
Although industries and individual firms differ widely in their stockholding policies,
nowadays, stock levels are kept to a minimum wherever possible. Holding stock is
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wasting working capital for it is not earning money for the company. A more financially
analytical approach by management has combined to move the responsibility for carrying
stock onto the supplier and away from the customer pointed out that this has an effect
throughout the marketing channel, with each member putting pressure on the next to
provide higher levels of service.

Logistical issues facing physical distribution managers today is the increasing application
by customers of just-in-time management techniques or lean manufacturing. This topic
was discussed in, but it is re-emphasized here Remcom stresses that companies who
demand JIT service from their suppliers carry only a few hours stock of material and
components and rely totally on supplier service to keep their production running. This
demanding distribution system is supported by company expediters whose task it is to
chase the progress of orders and deliveries, not only with immediate suppliers, but right
along the chain of supply (called supply chain integration). Lean manufacturing has
been widely adopted throughout the automotive industry where companies possess the
necessary purchasing power to impose such delivery conditions on their suppliers. Their
large purchasing power also necessitates stringent financial controls, and huge financial
savings can be made in the reduction or even elimination of stockholding costs where this
method of manufacturing is employed.

To think of the logistical process merely in terms of transportation is much too narrow a
view. Physical distribution management (PDM) is concerned with the flow of goods from
the receipt of an order until the goods are delivered to the customer. In addition to
transportation, PDM involves close liaison with production planning, purchasing, order
processing, material control and warehousing. All these areas must be managed so that
they interact efficiently with each other to provide the level of service that the customer
demands and at a cost that the company can afford.

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Distribution
Remcom is the group of activities associated with the supply of finished product from the
production line to the consumers. The physical distribution considers many sales
distribution channels, such as wholesale and retail, and includes critical decision areas
like customer service, inventory, materials, packaging, order processing, and
transportation and logistics. You often will hear these processes be referred to as
distribution, which is used to describe the marketing and movement of products.

Functions of Physical Distribution

The key functions within the physical distribution system are:

Customer service

Order processing

Inventory control

Transportation and logistics

Packaging and materials

Order processing is designed to take the customer orders and execute the specifics
the customer has purchased. The business is concerned with this function because
it directly relates to how the customer is serviced and attaining the customer
service goals. If the order processing system is efficient, then the business can
avoid other costs in other functions, such as transportation or inventory control.
For example, if the handbag business has an error in the processing of a customer
order, the business has to turn to premium transportation modes, such as next day
air or overnight, to meet the customer service standard set out, which will increase
the transportation cost.

15

Inventory control is a major role player in the distribution system of a business.

Costs include investment into current inventory, loss of demand for products, and
depreciation.

DESIGN
The objective of the study is to evaluate the current distribution distributor to the retailer
and suggest ways to improve the system.
The system uniqueness is

Nature of the product

Demand variations

Logistics constraints

Time of delivery so as not to lose sale

The maintaining of good stock

Unsold stock return

Pricing

Future

After studying the entire supply chain, the project deliverables were decided.

To reduce the transit time or the transaction time for distribution.

To reduce the distribution cost.

To indicate the optimum inventory or stock required in the system.

To indicate the feasibility of safety stock to meet the variations in demand.

To study the flow of information in the system.

In depth study of supply chain by visits to warehouse processing plant,

distributors and retailers.

Data collection and analysis of past sales.

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Study the transportation routing and transaction times.

Study the process for maintenance of stock facilities.

In depth study of the distribution process.

Conduct survey to quantify stock out.

Analysis of past sales to check the feasibility of safety stock with respect to stockout.
The inventory at each stage depends on the sale.
The sales depend on

Manufacturing of various products

Manufacturing

Growth in Production

Distributor Incentive schemes

4PC of Marketing

Competitor activity

Performance Standards:
As a growing wire and cable company, performance wire and cables strives to meet and
exceed ever-increasing performance standards.

We not only provide the highest quality material, but at a reasonable cost.
We are flexible to meet custom needs when it comes to products or order specifications.
Our main priority as a top industrial wire and cable company is to provide our customers
with wire and cable products as quickly and efficiently as possible.

At Performance Wire and Cable, we apply todays technology to produce high-quality

wire and cable products.

17

To assure that our products are made from the best material, we conform to the standards
set by UL, NEMA, ASTM, and IEEE. Our products are offered in many different sizes,
colours, lengths, and labelling.

We conform to the standards to ensure quality, and we conform to our customers needs
to ensure satisfaction. Most orders ship in one weeks time. For more information on our
products and services, or to request a quote, please contact us today.

Performance Wire and Cable is a leading manufacturer and distributor of wire and cable,
including tracer wire, pet fencing, ground wire, and electrical wiring.

Our cable and wire products are made using the highest quality materials and are ideal
for a wide range of applications.

Performance Wire and Cable is your source for cathodic protection cable, also known as
CP cable or CPC. Our pipeline cathodic protection cable offers superior resistance to
abrasions, crushing, chemicals, oils, sun damage, and moisture.

The cables can be directly installed in just about any type of soil, as well as fresh,
brackish or salt water environments.

Performance Wire and Cables dual insulation is made up of fluoropolymer insulation,

allowing the cable to exhibit superior chemical resistance, as well as additional resistance
to corrosive chlorine and hydrogen gases.
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Our cables primary layer is most resistant to sulfuric and hydrochloric acid, as well as
chlorine.

The secondary layer is made up of a high molecular weight polyethylene (HMWPE)

insulation, allowing for pliable strength and is capable of withstanding excessive
manipulation during installation.

Cathodic protection cable from Performance Wire and Cable is ideal for direct earth
burial or water submerged applications, including storage tanks, pipelines, good casings,
and more.

In a pipeline cathodic protection system, there is protection against galvanization and

electrolytic corrosion of the object its meant to protect.
Cable is also available from PWC and, like its counterparts, it offers exceptional
resistance to chemicals.

It provides superior resistance to chlorine, sulfuric acid, as well as hydrochloric acid,

which the HMWPE insulation cannot withstand on its own.

KYNAR protection cable is constructed much like HALAR cable, including HMWPE
outer jacketing, which provides flexibility and strength to withstand natural abuse without
damaging the conductor.

Performance Wire and Cable is a trusted supplier of cathodic protection cables for the
most demanding direct burial applications. We can also customize CP cable orders to
meet your specifications with our array of different sizes, colours, lengths, and labelling.

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Roles and responsibility

Business development officer:

Develop business

Sales promotions and merchandising

Ensure proper forecasting

Better realization of return

Distributor:

Delivery

Collect and Realize return various wire and cables products

Placing order

Collect Payment

Promotion model

Field officer:

Networking

Sales promotions

Maintain relationship with retailers

Literature Review

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Physical distribution is the group of activities associated with the supply of finished
product from the production line to the consumers. The physical distribution considers
many sales distribution channels, such as wholesale and retail, and includes critical
decision areas like customer service, inventory, materials, packaging, order processing,
and transportation and logistics. You often will hear these processes be referred to as
distribution, which is used to describe the marketing and movement of products.

Remcom is counting for nearly half of the entire marketing budget of products, the
physical distribution process typically garnishes a lot of attention from business managers
and owners. As a result, these activities are often the focus of process improvement and
cost-saving initiatives in many companies.

Importance of Physical Distribution

The importance of physical distribution to a company can vary and is typically associated
with the type of product and the necessity it has to customer satisfaction. Strategically
staging products in locations to support order shipments and coming up with a rapid and
consistent manner to move the product enables companies to be successful in dynamic
markets.

Physical distribution is managed with a systems approach and considers key interrelated
functions to provide efficient movement of products. The functions are interrelated
because any time a decision is made in one area it has an effect on the others. For
example, a business that is providing custom handbags would consider shipping finished
products via air freight versus rail or truck in order to expedite shipment time. The
importance of this decision would offset the cost of inventory control, which could be
much costlier. Managing physical distribution from a systems approach can provide
benefit in controlling costs and meeting customer service demands.

Key Activities of Physical Distribution

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The key functions within the physical distribution system are:

Customer service

Order processing

Inventory control

Transportation and logistics

Packaging and materials

The customer service function is a strategically designed standard for consumer

satisfaction that the business intends to provide to its customers. As an example, a
customer satisfaction approach for the handbag business mentioned above may be that
75% of all custom handbags are delivered to the customer within 72 hours of ordering.
An additional approach might include that 95% of custom handbags be delivered to the
customer within 96 hours of purchase. Once these customer service standards are set, the
physical distribution system is then designed to attain these goals.
Order processing is designed to take the customer orders and execute the specifics the
customer has purchased. The business is concerned with this function because it directly
relates to how the customer is serviced and attaining the customer service goals. If the
order processing system is efficient, then the business can avoid other costs in other
functions, such as transportation or inventory control. For example, if the handbag
business has an error in the processing of a customer order, the business has to turn to
premium transportation modes, such as next day air or overnight, to meet the customer
service standard set out, which will increase the transportation cost.
Inventory control is a major role player in the distribution system of a business. Costs
include investment into current inventory, loss of demand for products, and depreciation.

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CHAPTER 3
Work offered to me was under marketing field.

The subfield that I worked on was sales promotion and another marketing
department.

Keeps clientele informed by notifying them of preferred customer sales and future
merchandise of potential interest.

Advises customers by providing information on products.

Processes payments by totalling purchases; processing cheques, cash, and store or

other credit cards.

Contributes to team effort by accomplishing related results as needed.

Is this role right for me?

I myself had a personal inclination towards marketing of the cable products &
developing myself in the same field might help me to increase my market
approach and contacts for my future use.

This role might help me groom my communication skills.

Know and be enthusiastic about the products being sold the industry.

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Where might the role take me?

Promotion opportunities will depend on your sales results. Progression may involve
taking on responsibility for a larger area or moving into sales management. You could
become a national product manager, sales executive, working closely with one or more
large store.
Basic output of physical distribution systems
The output from any system of physical distribution is the level of customer service. This
is a key competitive benefit that companies can offer existing and potential customers to
retain or attract business. From a policy point of view, the desired level of service should
be at least equivalent to that of major competitors.
The level of service is often viewed as the time it takes to deliver an order to a customer
or the percentage of orders that can be met from stock. Other service elements include
technical assistance, training and after-sales services. The two most important service
elements to the majority of firms are:
1. Delivery - reliability and frequency;
2. Stock availability - the ability to meet orders quickly.

PDM is concerned with ensuring that the individual efforts that go to make up the
distributive function, are optimized so that a common objective is realized. This is called
the systems approach to distribution management and a major feature of PDM is that
these functions be integrated.

Because PDM has a well-defined scientific basis, this chapter presents some of the
analytical methods which management uses to assist in the development of an efficient
logistics system.
There are two central themes that should be taken into account:

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1. The success of an efficient distribution system relies on integration of effort. An

overall service objective can be achieved, even though it may appear that some
individual components of the system are not performing at maximum efficiency.

2. It is never possible to provide maximum service at a minimum cost. The higher

the level of service required by the customer, the higher the cost. Having decided
on the necessary level of service, a company must then consider ways of
minimizing costs, which should never be at the expense of, or result in, a
reduction of the predetermined service level.

The distribution process

The distribution process begins when a supplier receives an order from a customer. The
customer is not too concerned with the design of the suppliers distributive system, nor in
any supply problems. In practical terms, the customer is only concerned with the
efficiency of the suppliers distribution. That is, the likelihood of receiving goods at the
time requested. Lead-time is the period of time that elapses between the placing of an
order and receipt of the goods. This can vary according to the type of product and the
type of market and industry being considered. Lead-time in the ship building industry can
be measured in fractions or multiples of years, whilst in the retail sector, days and hours
are common measures. Customers make production plans based on the lead-time agreed
when the order was placed. Customers now expect that the quotation will be adhered to
and a late delivery is no longer acceptable in most purchasing situations.

Order processing

Order processing is the first of the four stages in the logistical process. The efficiency of
order processing has a direct effect on lead times. Orders are received from the sales team
through the sales department. Many companies establish regular supply routes that
remain relatively stable over a period of time providing that the supplier performs
satisfactorily. Very often contracts are drawn up and repeat orders (forming part of the
initial contract) are made at regular intervals during the contract period. Taken to its
25

logical conclusion this effectively does away with ordering and leads to what is called
partnership sourcing. This is an agreement between the buyer and seller to supply a
particular product or commodity as and when required without the necessity of
negotiating a new contract every time an order is placed.

Order-processing systems should function quickly and accurately. Other departments in

the company need to know as quickly as possible that an order has been placed and the
customer must have rapid confirmation of the orders receipt and the precise delivery
time. Even before products are manufactured and sold the level of office efficiency is a
major contributor to a companys image. Incorrect paperwork and slow reactions by the
sales office are often an unrecognized source of ill-will between buyers and sellers. When
buyers review their suppliers, efficiency of order processing is an important factor in their
evaluation.
A good computer system for order processing allows stock levels and delivery schedules
to be automatically updated so management can rapidly obtain an accurate view of the
sales position. Accuracy is an important objective of order processing as are procedures
that are designed to shorten the order processing cycle.

Inventory Management

Inventory, or stock management, is a critical area of PDM because stock levels have a
direct effect on levels of service and customer satisfaction. The optimum stock level is a
function of the type of market in which the company operates. Few companies can say
that they never run out of stock, but if stock-outs happen regularly then market share will
be lost to more efficient competitors. Techniques for determining optimum stock levels
are illustrated later in this chapter. The key lies in ascertaining the re-order point.
Carrying stock at levels below the re-order point might ultimately mean a stock-out,
whereas too high stock levels are unnecessary and expensive to maintain. The stock/cost
dilemma is clearly illustrated by the systems approach to PDM that is dealt with later.

26

Stocks represent opportunity costs that occur because of constant competition for the
companys limited resources. If the companys marketing strategy requires that high stock
levels be maintained, this should be justified by a profit contribution that will exceed the
extra stock carrying costs. Sometimes a company may be obliged to support high stock
levels because the lead-times prevalent in a given market are particularly short. In such a
case, the company must seek to reduce costs in other areas of the PDM mix.

CHAPTER 4
Department Visited:
Warehousing department
American marketing texts tend to pay more attention to warehousing than do British
texts. This is mainly because of the relatively longer distances involved in distributing in
India, where it can sometimes take days to reach customers by the most efficient road or
rail routes. The logistics of warehousing can, therefore, be correspondingly more
complicated. Currently, many companies function adequately with their own on-site
warehouses from where goods are dispatched direct to customers. When a firm markets
goods that are ordered regularly, but in small quantities, it becomes more logical to locate
warehouses strategically around the country.

To summarize, factors that must be considered in the warehouse equation are:

Location of customers;

Size of orders;

Frequency of deliveries;

Lead times.

Transportation department
Transportation usually represents the greatest distribution cost. It is usually easy to
calculate because it can be related directly to weight or numbers of units. Costs must be
27

carefully controlled through the mode of transport selected amongst alternatives, and
these must be constantly reviewed. During the past 50 years, road transport has become
the dominant transportation mode in the India. It has the advantage of speed coupled with
door-to-door delivery.

Except where goods are highly valuable in relation to their weight, air transport is not
usually an attractive transport alternative for distribution within the India where distances
are relatively short in aviation terms. For long-distance overseas routes it is popular.
Here, it has the advantage of quick delivery compared to sea transport, and without the
cost of bulky and expensive packaging needed for sea transportation, as well as higher
insurance costs.
The chosen transportation mode should adequately protect goods from damage in transit
(a factor just mentioned makes air freight popular over longer routes as less packaging is
needed than for long sea voyages). Not only do damaged goods erode profits, but
frequent claims increase insurance premiums and inconvenience customers, endangering
future business.

The systems or total approach to PDM

One of the central themes of this text has been to highlight the need to integrate
marketing activities so they combine into a single marketing effort. Because PDM has
been neglected in the past, this function has been late in adopting an integrated approach
towards it activities. Managers have now become more conscious of the potential of
PDM, and recognize that logistical systems should be designed with the total function in
mind. A fragmented or disjointed approach to PDM is a principal cause of failure to
provide satisfactory service, and causes excessive costs.

Within any PDM structure there is potential for conflict. Individual managers striving to
achieve their personal goals can frustrate overall PDM objectives. Sales and marketing
management will favor high stock levels, special products and short production runs
28

coupled with frequent deliveries. Against this, the transport manager attempts to reduce
costs by selecting more economical, but slower transportation methods, or by waiting
until a load is full before making a delivery.

Financial management will exercise pressure to reduce inventory wherever possible and
discourage extended warehousing networks. Production managers will favor long
production runs and standard products. It is possible for all these management areas to
appear efficient if they succeed in realizing their individual objectives, but this might
well be at the cost of the chosen marketing strategy not being implemented effectively.

Monitoring and control of PDM

The objective of PDM is: Getting the right goods to the right place at the right time for
the least cost.
The objective seems reasonable, although it gives little guidance on specific measures of
operational effectiveness. Management needs objectives or criteria that, in turn, allow
meaningful evaluation of performance. This is the basis of monitoring and control.
Basic output of physical distribution systems

The output from any system of physical distribution is the level of customer service. This
is a key competitive benefit that companies can offer existing and potential customers to
retain or attract business. From a policy point of view, the desired level of service should
be at least equivalent to that of major competitors.

The level of service is often viewed as the time it takes to deliver an order to a customer
or the percentage of orders that can be met from stock. Other service elements include
technical assistance, training and after-sales services. The two most important service
elements to the majority of firms are Delivery and Stock availability.

To use a simple example, a companys service policy may be to deliver 40 per cent of all
orders within seven days from receipt of order. This is an operationally useful and
specific service objective that provides a strict criterion for evaluation. A simple delivery
29

delay analysis will inform management whether such objectives are being achieved or
whether corrective action is necessary to alter the actual service level in line with stated
objectives. Such an analysis can be updated on receipt of a copy of the dispatch note.
Management can be provided with a summary, in the form of a management report, from
which they can judge whether corrective action is necessary. There can, of course, be
over-provision of service, as well as under provision.

Distribution of goods
Remcom is the group of activities associated with the supply of finished product from the
production line to the consumers. The physical distribution considers many sales
distribution channels, such as wholesale and retail, and includes critical decision areas
like customer service, inventory, materials, packaging, order processing, and
transportation and logistics.
You often will hear these processes be referred to as distribution, which is used to
describe the marketing and movement of products.

Functions of Physical Distribution

The key functions within the physical distribution system are:

Customer service

Order processing

Inventory control

Transportation and logistics

Packaging and materials

Inventory management

30

Inventory (or stockholding) can be described as the accumulation of an assortment of

items today for the purpose of providing protection against what may occur tomorrow.
An inventory is maintained to increase profitability through manufacturing and marketing
support.
Manufacturing support is provided through two types of inventory system:

An inventory of the materials for production;

An inventory of spare and repair parts for maintaining production equipment.

Similarly, marketing support is provided through:

Inventories of the finished product;

Spare and repair parts that support the product.

If supply and demand could be perfectly coordinated, there would be no need for
companies to hold stock. However, future demand is uncertain, as is reliability of supply.
Hence inventories are accumulated to ensure availability of raw materials, spare parts and
finished goods. Generally speaking, inventories are kept by companies because they:

Act as a hedge against contingencies (e.g. unexpected demand, machinery

breakdown);

Act as a hedge against inflation, price or exchange rate fluctuations;

Assist purchasing economies;

Assist transportation economies

Assist production economies;

Improve the level of customer service by providing greater stock availability.

Inventory planning is largely a matter of balancing various types of cost. The cost of
holding stock and procurement has to be weighed against the cost of stock-out in terms
of production shut-downs and loss of business and goodwill that would undoubtedly arise
& these various costs conflict with each other. Larger inventories mean more money is
tied up in stock and more warehousing is needed. However, quantity discounts are
usually available for large orders and if fewer orders have to be placed, then purchasing
administrative costs are reduced. Larger inventories also reduce the risks and costs of
stock-outs.
31

When the conflicting costs just described are added together, they form a total cost that
can be plotted as a U-shaped curve. Part of managements task is to find a procedure of
ordering, resulting in an inventory level that minimizes total costs. This minimum total
cost procurement concept is illustrated.

Discussion of PDM usually takes place from the viewpoint of the supplier. Understanding
of physical distribution is, however, just as important to the purchaser. There is
consequently a close link between PDM and purchasing. Work study-techniques and
operations management can also be linked with PDM because management is concerned
with efficiency and accuracy throughout the distributive function. Whilst a logistical
system should not be inflexible, if routines can be established for certain functions they
will assist the distribution process.

Project Design

The objective of the study is to evaluate the current distribution of wire and cables Brand
from distributor to the retailer and suggest ways to improve the system.

The system uniqueness is

Nature of the product

Demand variations

Logistics constraints

Time of delivery so as not to lose sale

The maintaining of good stock

Unsold stock return

Pricing

Future

32

After studying the entire supply chain, the project deliverables were decided.

To reduce the transit time or the transaction time for distribution

To reduce the distribution cost as far as possible so as to maximize its utilization

in another works

To indicate the optimum inventory or stock required in the system

To indicate the feasibility of safety stock to meet the variations in demand

To study the flow of information in the system

In depth study of supply chain by visits to warehouse of Wire and cables Brand
processing plant, distributors and retailers

Data collection and analysis of past sales

Study the transportation routing and transaction times and try to consolidate the
shipments in order to reduce transportation cost

Study the process for maintenance of stock facilities

In depth study of the distribution process

Conduct survey to quantify stock out and be updated about the current stock and

Analysis of past sales to check the feasibility of safety stock with respect to stock
out

Inventory needs to be evaluated to compute the optimum stocking point for wire and
cables in the chain. This has to be done to

Minimize returns

Increase Sales where Stock-outs are occurring

The inventory at each stage depends on the sale.

The sales of wire and cables depend on

Manufacturing of various products

Manufacturing of sweet products

Growth in Production
33

Distributor Incentive schemes

Media Campaigns

Competitor activity

Key Observations
CURRENT SCENARIO
SALES AND DISTRIBUTION

RETAIL OUTLET FORECAST

DISTRIBUTORS FORECAST

The sales department sends a weekly plan to the plant based on the target sales and
forecast. This forecast depends on the distributors forecast and retail outlets forecast

Once the Wire and cables is processed it is distributed to the distributors according to the
order given by the distributor. The distributor further distributed wires and cables to the
retailers but the distribution is not according to the demand because there are stock outs
at some outlets and return from others.

There is no system in place to track stock out or lost sale. There should be optimum stock
at the retail outlet so that there are no lost sales.
34

Survey to track stock

To quantify stock out in Mumbai. The survey was conducted in maximum numbers retail
outlets for Customer Wire and cables in various parts of the city of Mumbai.

The survey was conducted in such a manner so that the stocks in outlets are taken
between 3PM to 6PM. In these maximum retail outlets for wire and cables could be
analyzed. For each outlet the stock taken were analyzed to quantify stock out.

For each outlet the probability of stock out in each wire and cables retailers is calculated.
The detailed probability of stock out in each wire and cables retailers wise is given in
annexure. FALSE indicates that the retailers order is not placed.

Route wise sorting can be done at the plant such that at the distributors end the
material is directly loaded to secondary vehicles. The material can be sorted and
counted on the route.

Receive
Vehicle

Count
Material

Place
Material

Sort
Material

Bill material

35

Send Vehicle
to
Retailers

Take Payment

The tag on the shippers comes of the shipper

The shippers or the tags on the shippers should be color coded to prevent
confusion. Each retailer in Mumbai should be transported in the color-coded
shippers or with the tag that is color-coded. This can reduce sorting time at the
secondary delivery.

Assign a single transporter and delivery boy for every route. This will improve the
relationship of the retailer with the delivery boy and the transporter. This can help
to push the product into the market.

Conduct regular research. This should be done to explore and continually

investigate market trends in consumption of cables in different areas within
Mumbai.

Order from the retail outlets should be taken at dusk, after morning and evening
sales so that processed wire and cables from the plant can be distributed
uniformly according to the demand.

The entry of return done at distributor, to keep a track of sale at retail outlets,
should be done on the date it was supplied and not the date it was returned.
Currently the entry in the record is done on the 3rd day when it is returned.

The stock should be delivered to the retailer when he needs them. Thus proposal
is to start second delivery.

To derive maximum benefit, we have to have provision for second delivery from
the distributor.

This will mean maintaining a reserve stock at the distributor point itself.

The savings through reduction in returns and preventing loss of sale should
adequately cover the extra cost of delivery.

Experiences for forecast of sale

36

A forecast need to be sent to the plant so that they know how much daily wire and cables
to process. The forecast is based on the above given factors.

In the plant the forecast is received for different retailers of products. From here a bird
requisition sheet is taken out. This contains the number, the various Wire and cables and
of different segment is required. The logistics department procures the industry Wire and
cables according to the requisition sheet.

Convention of PDM

Route wise sorting will take the same amount of manpower and time at the plant
but will save an hour at the distributors end and thus help reach the target of
Operation 1, which aims at delivering wire and cables at all retailers and
wholesalers shop and in Mumbai by 1pm.

It will reduce manual errors by delivery boys during sorting at the distributors
end, which can cause short supply in certain routes. The cumulative effect will
reduce lost sale due to late delivery.

Reduce sorting time

Second delivery will ensure that wires and cables reaches the right place at the
right time in right quantity.

They are branded with proper logo and banners for advertising.

Major stock out is in Stores where the retailer does not push the product and is not
actively involved in sales. Thus for those outlets a notepad can be used to track
lost sale.

Every week delivery boy can give a notepad to the retailers. All the customer has
to do is mention the time

Its the responsibility of the field officer to collect all the notepads for the
previous week from the distributor.
37

It is important to note that the notepad is on the better visibility.

To get the safety stock we need to note the variation in demand. This is because once the
variation in demand is known we need safety stock to remove the variation.

The retailer can call up the number directly where all the information about the
problems can be resolved.

The call center can send a mail to the respective companies responsible for
damage or other problem and to the person in charge of tracking problems.

Communication of company policies to the links of the supply chain

Avoid data attenuation or modification

Proper format for recording irregularities and penalties for failing to report the
same

Automated ordering and payment facility

PRICING
The pricing of the Wire and cables is very important most of the times it remains the
same but at this time the price of the product has been changed innovational or
redesigning of the products
Dealer has to pay the company case or cheque or RTGS on delivery and company pays its
debt in 21 days and this way the liquidity is maintained
Also special discount of 10% is given to distributor who wishes to pay in advance.
Special incentives are also there for achieved targets
Differentiating with respect to other supplier is of utmost importance. Having a much
more customer friendly interface that attracts the customers to buy the product without
any apprehension. Also, all customer complaints should be promptly answered. After all,
it is the customers who drive the business. So, a distinct differentiation has to be created
their mind Apart from this, the application forms for Direct Marketing should be made
much more informative. The aspect of convenience should be highlighted here too.
38

Packaging is one of the most augmented aspects of the product. So we would sell the
product in very attractive packing with different pack size. Packing size varies.
Depending upon the portion of product.

Major FAQs
Questions and Answers

Who sets the standards for House wiring cable? What is the Indian Standard
for House Wiring Cable (HWC)?

House wiring cable standards are set by Bureau of Indian Standards (BIS).
BIS is the national Standards Body of India working under the aegis of Ministry of
Consumer Affairs, Food & Public Distribution and Government of India? The applicable
standard is 694 and it defines the types of cable, construction, tests required and testing
methods for cable.

What is the difference between unsheathed and sheathed cable?

For unsheathed cables, the conductor will be insulated and there will be no outer layer
called sheathing. For sheathed cable, there is an outer layer covering the primary
insulation called sheathing. This is generally done in the next process after insulation.

What is the expansion of FR and how is this property achieved?

FR stands for Flame Retardant. Flame Retardant is a property of cables to retard or slow
the progress of fire and flame. This is achieved through the use of materials that do not
readily burn and will tend to self-extinguish.

39

What type of insulation do House wiring Cables have?

There is only one type of insulation for House wiring cables as per the prevailing
standard of IS 694 and that is Polyvinyl Chloride. However different categories or Types
of PVC are available.

What are the different Categories/Types of House wiring cables available?

The following are the different categories of House wiring cables:

FR Flame Retardant

FRLSH Flame Retardant, Low Smoke & Low Halogen

HR Heat Resistant

What is Conductor class?

Copper conductor standards are defined by IS: 8130 (Indian Standards). This standard
defines a conductor class based on the maximum diameter (Class 5) and minimum
number of strands (Class 2) in a conductor.

What is HFT?

HFT means high flexibility triple safe technology. V-Guard is using triple extrusion
with three specially formulated PVC for insulation layers which assure increase in
flexibility of the wires and triple safety to the customer.

What are the parameters to be considered while selecting a cable for an

installation?

You must consider the following while selecting a cable:

Voltage

40

Current carrying capacity

Length of the cable required

Voltage drop

Type of Environment

With this the category /type and size can be decided

Why is solid copper conductor preferred over copper clad steel conductor in
closed circuit television applications?

The copper clad steel conductor was specifically developed for use in coaxial cables
intended for RF use. RF implies that the signal being carried by the coax is of high
frequency. All conductors that carry alternating currents have losses that are
associated with the conductors resistance.

Due to skin effects, the resistance increases when an alternating current flows in it.
This effect causes the current to flow more in the outer region of the conductor and
not in the centre, and is due to inductive effects. This effect also increases with the
magnitude of the frequency of the alternating current, so much so that at RF, only the
very thin surface layer is useful for carrying currents.

Therefore, to reduce the cost of the cable, the centre of the conductor is replaced with
a low cost material such as steel. Closed circuit television applications employ the
base video signal, which consists of alternating currents of much lower frequency
than RF.
At these frequencies, the skin effect is not as significant, so a greater proportion of the
conductor can be utilized for carrying the video signal current.
Therefore, the solid copper conductor will have a lower loss for video signal when
compared to a copper clad conductor, so it is preferred for CCTV applications.

41

What does RG mean?

RG refers to Radio Grade or Guide.

What is Impedance?

Impedance is the total opposition a cable offers to alternating current. It includes both
resistance and reactance and is generally expressed in Ohms.

What is SRL?

SRL refers to Structural Return Loss. It is a measurement of the manufacturing

consistency and quality of a cable.

What is the bend radius of Coaxial Cables?

As a General rule of thumb, the bend radius of Coaxial Cables is 10 times the overall
diameter of the cable.

What are the construction differences between CCTV and CATV (RG6)
cables?

CCTV cables generally have a Bare Copper Conductor; CCTV cables also have a high
percentage (95%) braid either of fine wires of Copper or Aluminium-Magnesium Alloy.
CATV cables can have either a Copper Covered Steel, or Bare Copper Conductor. CATV
cables have an aluminum foil (100%) and a general 55% to 65 % Aluminum Magnesium
Alloy Braid.

42

Chapter 5
Learners Experience

What are importance of physical distribution system and marketing?

Distribution arrangement or system designed to move the goods from producers and
manufacturers to the users has a definite role. That is why; all wise business firms have
forged ahead with investment of good deal of time, treasure and talent in physical
distribution system improvements to get best to others.

It provides a new orientation for marketing. It gives distribution factors the importance
they deserve in marketing and business policies, plans and decisions. This dark
continent the other half of marketing has some constructive contributions to make. These
are:

1. Creation of utilities:
The physical distribution function of a firm provides the place and time dimensions
which contribute a basic element of marketing mix. The major components of physical
distribution are transportation and warehousing.

Creation of or addition of utility is addition of value to a thing. It is transport system that

creates place utility making goods more useful by bringing them from the places where
they are not needed to the places where they are badly needed.

Warehousing system is known for creating time utility. By holding the goods from the
time of their production till their consumption thus avoiding gluts and shortages over a
given period of time. The outcome is the maximisation of consumer satisfaction and
profits to the firm.
43

2. Improved consumer services:

In general terms, consumer service is the service provided to the customer from the time
of order placed till the product is delivered.

In fact, it is much more than this and covers price, sales representation, after-sale
services, product range offering, product availability and the like. Customer service in
physical distribution function consists of providing products at the time and location
corresponding to the customer needs. Improvement in customer service is possible when
we talk of a service level.

A customer service level is a measure of how well the customer service function is being
performed. Customers would be cent-percent satisfied if a wide range of products were
available at the right place and time in sufficient quantities to meet the needs and wants
of all who were willing and able to buy.

This is an ideal case indeed which is rate to a customer. However, high levels of customer
satisfaction can be possible through a viable distribution system that takes into account
the factors that affect customer service such as time, dependability, communication,
availability and convenience.

3. Cut in distribution costs:

The prices paid by the user consist of not only production costs but also delivery costs.
Experts have estimated that the physical distribution costs are in the range of 20 to 25
percent of the price.

44

If the total physical distribution costs are taken, transportation accounts for 45 percent;
warehousing 25 percent; inventory carrying costs 10 per cent; receiving and shipping
costs 5 percent; packing 6 percent; administration 5 per cent and order processing 4
percent. Therefore, physical distribution system can be instrumental in slashing down
these costs.

There are tangible and intangible costs for which the customer is to bear the brunt.
Economy can be brought about in tangible and intangible costs by systematic planning of
inventory levels, warehousing location and operations, transportation schedules and
modes, material handling, order processing and communication. It is the last frontier for
cost economies and the economys dark continent. It is the virgin land for cost control
and cost reduction.

4. Increased market share:

A new look and approach to physical distribution can contribute beyond the attainment of
the twin objectives of improving consumer satisfaction and dealer profit margins. An
increased market shares one of the major aims of any growth aspiring marketing unit can
be possible. There are definite ways in which an efficient physical distribution system can
contribute towards this end.
A well designed physical distribution frame can decentralize its warehousing operations;
devise the combinations of efficient and economic means of transport to pen errata into
the areas untapped so far, planning inventory operations to avoid stock-outs and gluts.

These minute points are constructive in arresting the loss of consumer interest and
loyalty. Thus, it can also add to rebuilding the class of customers the greatest asset for
any marketing organisation that is adaptive.

45

5. Price stabilization:
Physical distribution can contribute considerably to the attainment of the situation of
price stabilisation. Physical distributional components are capable of bringing about
much desired price stabilization.

Among other things the customers expect price stability over a period and place. It is the
best use of available transport and warehousing facilities that can bring about amicable
and matching adjustment between the demand for and supply of goods thus preventing
price fluctuations and distortions.

This is of particular importance in all the underdeveloped and developing economies

where these components particularly transportation and warehousing have not reached
the heights of sophistication and refinement.

ROLES & RESPONSIBILITY - BUSINESS DEVELOPMENT

OFFICER:

Develop business

Sales promotions and merchandising

Ensure proper forecasting

Better realization of return

DISTRIBUTOR:

Delivery

Collect and Realize Return Wire and cables

Placing order
46

Collect Payment

FIELD OFFICER:

Networking

Sales promotions

Maintain relationship with retailers

The distribution of Remcom brand is not as simple as it seems. There is ample of

planning and hard work behind this sheet of paper. Its distribution task is not just
restricted to the delivery of the Wire and cables but also timely delivery
Distribution plays a very crucial role in the whole process of providing us the right
delivery at the right time, in the right place. Also time is a very important factor in
growth, where production is the main factor for electronic products. If timely delivery is
not distributed the one department, it ultimately affects the whole distribution process.
Through this project I have realized, how some simple distribution strategies good
execution can provide better satisfaction to our customer.

47

RESEARCH
What is the frequency of Wire and cables purchase?

Daily

Weekly

Monthly

S. No.

What is the frequency

No. of Respondents

of Wire and cables

1.
2.
3

purchase
Daily
Weekly
Monthly

0
7
3

48

What is major source of regular purchase?

Company Sales Persons

Regular Delivery Boy
Marketing Manager

S. No.

What is major source of

No. of Respondents

1.
2.
3

regular purchase?
Company salesperson
Delivery boy
Marketing manager

6
2
1

49

What is the major criteria for buying wires and cable brand?

Various wire and cable

Price

Quality

Guarantee

S. No.

What is the major criteria for buying wires

No. of Respondents

1.
2.

and cables brand?

Various cable and wires
Price

6
2

3
4

Quality
Guarantee / buy back scheme

1
1

What do you think should be the ideal packing?

Polyurethane

Carton container

Eco-friendly packing

S. No.

What do you think

No. of Respondents

should be the ideal

1.
2.
3

packing?
Polyurethane
Carton container
Eco-friendly packing

6
2
1

50

What is level of satisfaction from present supplier?

Average

Good

Very good

Excellent

S. No.

What is level of satisfaction from

No. of Respondents

present supplier?

1.
2.
3
4

Average
Good
Very good
Excellent

3
2
3
2

51

Are you aware about the branded wires and cables availability?

Yes

No

S. No.

Are you aware about the

No. of Respondents

branded WIRES AND CABLES

availability?
1.
2.

Yes
No

8
2

52

Given an option which wires and cables you would prefer to buy?

S. No.

Discount
Promotion
Target
Given an option which wires

No. of Respondents

and cables you would prefer to

1.
2.
3.

buy?
Discount
Promotion
Target

3
2
5

53

CONCLUSION
The analysis of the distribution system for industrial goods Remcom wires and cables
product reveals the fact that the structure of the marketing channels is determined
according to the nature of products, characteristics of potential buyers, and competition in
the market.
The operation of the marketing channels and sales commission margins as well as credit
terms of sales are also determined according to the nature of products and competition in
the market. For the products that have high risks of getting affected by market trends;
sales advantages so given to intermediaries are more favorable. That is, the higher the
risk associated with distribution the greater the sales advantages for intermediaries.
For products that have a high sales rate, sales advantages given to intermediaries are
reduced by producers as much as possible. Although sales commission margins given to
intermediaries vary from product to product, a relatively constant rate is practiced for any
intermediary that are loyal or are the regular customers to the organization.

54

Bibliography

Marketing Strategy Walker, Boyd, 4th Edition

Federation of Indian Chambers of commerce and Industry

Industrial technology (Magazine)

Webliography

www.study.com/physicaldistribution

www.businessdictionary.com/definition/physical-distribution.html

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