Distribution management

 It is the process of overseeing the movement of goods from supplier or manufacturer to point
of sale.

Distribution Planning

 is systematic decision making regarding the physical transfer of goods and services from
manufacturer to final user

 Transportation: the way on how to transfer goods from producer/ manufacturer to buyer/
consumer
 Warehousing: Storing goods in a safe and secure location until they are needed.
 Inventory management: Keeping track of the quantity and location of goods in inventory.
 Order fulfillment: Picking, packing, and shipping goods to customers.
 Logistics: Planning and executing the transportation of goods.
 Reverse logistics: Collecting and recycling returned goods.
 Packaging: the ability to make product presentable

Distribution channel

 Is the network of organizations and individuals involved in moving a product or service from
the producer to the final consumer. It includes all the intermediaries that help to get the
product to the customer, such as wholesalers, retailers, and distributors.

Types of distribution channels

 Direct channels: The company sells directly to the end consumer, without using any
intermediaries. This is often the case for products that are high- value or have a short shelflife.
 Indirect channels: The company uses intermediaries, such as wholesalers or retailers, to sell its
products. This is often the case for products that are low-value or have a long shelf life.
 Hybrid channels: The company uses a combination of direct and indirect channels. This is
often the case for products that are sold online and in stores.
Factors to consider when choosing a distribution channel

 The type of product: Some products are better suited for direct channels, while others are
better suited for indirect channels. For example, high-value products are often sold through
direct channels, while low-value products are often sold through indirect channels.
 The target market: The target market's needs and preferences will also affect the choice of
distribution channel. For example, if the target market is price-sensitive, then an indirect
channel may be more appropriate.
 The desired level of control: The company may want to have more control over the
distribution of its products, in which case it may choose a direct channel. Or, the company
may be willing to give up some control in order to reach a wider audience, in which case it
may choose an indirect channel.
 The available budget: The cost of using a particular distribution channel will also be a factor.
Direct channels are often more expensive than indirect channels.

Railroads

Carry heavy, bulky items that are low in value over long distance. Some of the product are
inexpensive and low selling price

Roadways

the most common form of transportation, and it includes cars, trucks, buses, and motorcycles.
Roadways are relatively inexpensive to build and maintain, and they can be used to transport a wide
variety of goods and people. However, they can also be congested and polluting.

Waterways

form of transportation is the most efficient way to transport goods over long distances. Waterways
are also relatively inexpensive to build and maintain. However, they can be slow, and they are not
always available.

Pipelines
form of transportation is used to transport liquids and gases over long distances. Pipelines are
relatively inexpensive to build and maintain, and they are not polluting. However, they are not as
flexible as other forms of transportation.

Airways

form of transportation is the fastest way to transport goods and people over long distances. However,
it is also the most expensive form of transportation. Air travel is also not as environmentally friendly
as other forms of transportation.

THE FOUNDER

What are the different types of distribution channels used by mcdonald's?

 Direct channels: McDonald's owns and operates over 38,000 restaurants in 100+ countries.
These restaurants are the primary way that McDonald's distributes its products.
 Indirect channels. McDonald's also distributes its products through other channels, such as:
 Airports: McDonald's has restaurants in many arports around the world
 College campuses: McDonald's has restaurants on many college campuses
 Online: McDonald's customers can order food online and have delivered to their homes or
offices

What are the factors to consider when choosing a distribution channel for a fast food chain?

 The product: The type of product being will have a big impat on the best distribution channel
for example, a perishable product like food will need a shorter and more direct than non-
perishable product like
 The target market: The target market for the fastfood chain will also affect the best
distribution channel, for example a chain targets young people may want to use social media
or online ordering, while a chain that targets families may want touse brick-and-mortars
restaurants.
 The cost: The cost of the distribution channel is another important factor to consider. Some
channels, such as direct mail, can be very expensive, while others, such as online ordering can
be much more cost-effective.
 The level of control: The level of control that the fastfood chain wants to have over the
distribution process is also important. Some channels, such as owning and operating their own
 restaurants, give the chain alot of control, while other channels, such as selling to wholesalers,
give the chain less control.
 The availability of the channel: The availability of the channel is also an important factor. for
example, a fastfood chain wants to reach customers in rural areas, they may need to use a
different channel than if they want tor each customers in urban areas.
 The competitive landscape: The competitive landacape is another important factor to
consider. If there are a lot of other fastfood chains using the same distribution channel, the
fastfood chain may have to offer a lower price or better service to compete.

How can distribution be used to improve customer service?

 Providing accurate and timely delivery: Customers expect their orders to be delivered
accurately and on time. By having a well-functioning distribution system, companies can
ensure that their customers receive their orders when they expect them
 Offering a variety of delivery options: Customers appreciate having a variety of delivery
options to choose from. This could include options such as same-day delivery, next-day
delivery, or free shipping. By offering a variety of delivery options, companies can make it
easier for customers to get their orders when they need them
 Providing tracking information: Customers want to know where their orders are and when
they can expect them to arrive By providing tracking information, companies can give
customers peace of mind and help them to plan accordingly.
 Being responsive to customer inquires. When customers have questions about their orders,
they want to be able to get answers quickly and easily. by having a responsive customer
service team, companies can ensure that customelr inquiries are addressed promptly
 Resolving customer issues quickly and efficiently: When there are problems with an orders,
customers want them to be resolved quickly and efficiently. by having a process in place for
resolving customer issues, companies can minimize the impact of these problems on the
customer experience

How can distribution used to reduce cost?

 Optimizing inventory levels: by keeping inventory levels at a minimum, companies can reduce
the amount of money they spend on storage and handling cost.
 Negotiating better shipping rates: By negotiating better shipping rates with carriers,
companies can reduce the cost of transporting their products
 Using more efficient transportation methods: By using more efficient transportation methods,
such as rail or water, companies can reduce the cost of transporting their products
 Consolidating shipments: By consolidating shipments, companies can reduce the number of
shipments they make, which can save money on shipping costs.
 Using third-party logistics providers: By using third-party logistics providers, companies can
outsource their distribution activities to a specialist, which can save them money on labor and
overhead costs.
 Automating distribution processes: By automating distribution processes, companies can
reduce the amount of manual labor required, which can save money on labor costs
 Using technology to track inventory and shipments: By using technology to track inventory
and shipments, companies can reduce the risk of stockouts and delays, which can save money
on lost sales and customer dissatisfaction.
 Making products available to more customers: By expanding the distribution channels,
companies can make their products available to more customers. This can lead to increased
sales.
 Providing a better customer experience: By improving the distribution process, companies can
provide a better customer experience. This can lead to increased customer satisfaction and
loyalty, which can lead to increased sales
 Reaching new markets: By using distribution channels that target new markets, companies
can reach new customers and increase sales