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RESUMEN DISTRIBUTION SYSTEMS

DAVID QUINTERO RODRIGUEZ

PROFESOR: RAMIRO ANDRADE

21 marzo de 2018

SERVICIO NACIONAL DE APRENDIZAJE- SENA


The modern concept of logistics that is applied in current organizations, is characterized by the
leading role in the integration plan of the activities of the production and distribution system,
where its maximum exponent has to do with the assurance of a flow that is directed to the
clients that need the demanded products and services that have pending the request of the
same moment that the necessity increased, that yes, fulfilling the standards of quality and the
costs that are willing to pay. In this way, it focuses on its activity in the coordination of activities
to ensure a flow that guarantees a high level of customer service and the optimization of
resources in the direction of operations. The main areas involved in this topic (Fields ):

 Warehouse.
 Reception of supplies.
 Procurement and purchases.
 External transport.
 Internal transportation.
 Inter-company transport.
 Distribution.
 Treatment and attention of orders.
 Recycling of waste and of the products discarded by the customer.
 Production planning.
 Production control.
 Information and communications.
 Maintenance.
 Sales.

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General Structure of the Distribution Channels

The general structure of the distribution channels present in all distribution networks and used
by different companies to make products and services for final consumption available. In
addition, distribution channels require updates to evolve and process as a result of changes
that occur in the environment.

Functions of the Distribution Channels

For the logistics strategy and operation, a strategic plan aligned with the strategic business
plan is built, detailing the mission, vision, strategic objectives and program of actions to guide
the logistic management at all levels, that is: the planning of the inventories, supply, product
receipts, mobility, third-party services, distribution and customer service. Some of the main
characteristics that must be taken into account when planning are the following :

 Centralize basic marketing decisions.


 They participate in the financing of the products.
 Contribute to reduce costs in products because they facilitate storage, transportation.
 They become an asset item for the manufacturer.
 Intervene in the pricing, advising the most appropriate.

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 They have great information about the product, competition and market.

 Actively participate in promotional activities.

 They position the product in the place they consider most appropriate.

 Intervene directly or indirectly in the after-sales service.

 Collaborate in the image of the company.

 Act as factory sales force.

 Reduce control expenses.

 Contribute to the professional rationalization of management.

 Sell products in places that are difficult to access and not profitable for the manufacturer.

Levels of Distribution Channels

You can talk about two levels of channels, direct and indirect:

Direct channel (Short circuits of commercialization).


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The producer or manufacturer sells the product or service directly to the consumer without
intermediaries. This is the case of most services; It is also common in industrial sales because
demand is quite concentrated (there are few buyers), but it is not so common in consumer
products. For example, a hairdresser provides the service and sells it without intermediaries;
the same happens with banks and savings banks. Examples of consumer products can be the
Avon products, the Círculo de Lectores, Dar Ibérica (Tupperware) that are sold at home. It is
also a direct channel selling through vending machines, also called vending.

Direct Channel
Maker--------------------------------------------------> Consumer

Indirect channel

A distribution channel is usually indirect, because there are intermediaries between the supplier
and the user or final consumer. The size of the distribution channels is measured by the
number of intermediaries that form the path that the product travels. Within the indirect
channels can be distinguished between short and long channel.

A short channel has only two steps, that is, a single intermediary between the manufacturer
and the end user. This channel is common in the commercialization of automobiles, household
appliances, designer clothes ... in which the retailers or retailers have the exclusivity of sale for
an area or commit to a minimum of purchases. Another typical example would be the purchase
through a hypermarket or hyper.

Short Channel
Maker---------------------------------> Retailer ----> Consumer

In a long channel, many intermediaries (wholesalers, distributors, stockists, resellers, retailers


and commercial agents, etc.) intervene. This channel is typical of almost all consumer
products, especially convenience products or frequent purchases, such as supermarkets,
traditional stores, markets or food galleries.

Long Channel
Maker-----------------> Wholesaler ----> Retailer ----> Consumer

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In general, it is considered that short distribution channels lead to reduced retail sales prices
and, conversely, that long distribution channels are synonymous with high prices. This is not
always true; it may be the case that products bought directly from the producer (for example,
wine or dig to a winery, in origin) have a higher sale price than in a commercial establishment.

Characteristics that Identify the Distribution Channels

The following graphic shows the different functions performed by the channel members shown
sequentially.

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