DELIVER
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Example of Exclusive Distribution
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Exclusive Distribution:
Advantages
Maximize control over service level/output
Enhance product’s image & allow higher
markups
Promotes dealers loyalty, better forecasting,
better inventory and merchandising control
Restricts resellers from carrying competing
brands
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Exclusive Distribution:
Disadvantages
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Example of Intensive Distribution
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Intensive Distribution
Advantages:
– Increased sales, wider customer recognition, and
impulse buying
Disadvantages:
– Characteristically low price and low-margin products
that require a fast turnover
– Difficult to control large number of retailers
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Example of Selective Distribution
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Selective Distribution
Advantages:
– Better market coverage than exclusive distribution
– More control and less cost than intensive distribution
– Concentrate effort on few productive outlets
– Selected firms capable of carrying full product line and
provide the required service
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Selective Distribution
(cont’d)
Disadvantages:
– May not cover the market adequately
– Difficult to select dealers (retailers) that can match your
requirement and goals
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Factors Affecting Transportation
Decisions
Carrier Shipper
(party that performs the move) (party requiring movement of goods)
– investment decisions – supply chain design
– operating policies – transportation mode choice
– Costs considerations: – assignment of shipment to
» Vehicle-related: Type? Number? transportation mode
» Fixed operating: e.g. Terminal – Cost considerations:
facilities » Transportation: paid to carriers
» Trip-related: labour and fuel » Inventory: at intermediate
» Quantity-related: warehouses, retailers, etc.
loading/unloading » Facility: e.g. warehouse operating
costs
» Overhead: planning/scheduling,
» Processing: loading/unloading,
information technologies invoicing, etc.
– Capacity utilisation » Service level: expediting, safety
– Responsiveness/Service level offered stock, etc.
– Responsiveness; Delivery guarantees
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Transportation Modes
Trucks
– TL
– LTL
Rail
Air
Package Carriers
Water
Pipeline
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