1.
PRODUCT SELECTION,
PROCUREMENT AND
DISTRIBUTION
Presented by – Chandresh
Upadhyay
bhavana Verma
Ankit Gupta
Ankit Jangid
Anurag Wadhwa

2.
PRODUCT
SELECTION
Product selection, a key
element of the logistics
cycle, is directly linked to
serving customers by
defining what products
are procured and used in
the health system and the
range of products that a
customer can receive.

3.
PURPOSE OF PRODUCT
SELECTION
• Limiting the variety of products that are used and available at public
sector facilities can make the supply chain more manageable.
• Selecting products enables the development and implementation of a
national coordinated logistics system, and allows for the
redistribution of products throughout the system.
• Prioritizing particular products can be a tool for supply chain
managers to ensure availability of those products.
• Selecting products is a prerequisite to quantification, because it
identifies the products that should be quantified.

4.
PRODUCT SELECTION

5.
PROCUREMENT
Concerned with purchasing and arranging
inbound movement of materials, parts, and/or
finished inventory from suppliers to
manufacturing or assembly plants, warehouses,
or retail stores thereby ensuring availability of
materials/ assortments where and when
needed. -Inbound logistics.

6.
Q. WHAT IS THE ROLE
PROCUREMENT IN SUPPLY CHAIN
MANAGEMENT ?
• Procurement means obtaining some things or services with
optimization of cost, time, space, other factors depends upon
requirement.
• As supply chain consist of numerous chains at various points
procurement needs are different and different specialist may
require at different point.
• For e.g. In supply chain of chemical industry for procurement
of raw materials can be performed by some chemical engineer
but for decision of it's logistics, transporter/shipping vendor
will be performed by other person having knowledge of
shipping. The procurement at warehouse activities (repacking,
labelling, storing,safety etc.) might be done by some other

7.
PROCUREMENT PERFORMANCE
CYCLES

8.
CONTD..
• Procurement performance cycles are
invariably longer excepting in those cases
where the value of material or component may
justify paying higher freight rates for faster
inbound transport.
• A critical issue in procurement is uncertainty
in respect of price change, and/or supply
discontinuity.

9.
DISTRIBUTION
Distribution (or place) is one of the four elements of
the marketing mix.
Distribution is the process of making a product or
service available for the consumer or business user
that needs it.
This can be done directly by the producer or service
provider, or using indirect channels with distributors
or intermediaries. The other three elements of
the marketing mix are product, pricing,
and promotion.

10.
Q. WHAT IS THE ROLE OF
DISTRIBUTION MANAGEMENT IN
SUPPLY CHAIN MANAGEMENT?
The "new" supply chain and distribution channel has several key
components, which fall under the supply chain management
"umbrella."
These components include:
1. Distribution--the physical logistics of moving inventory
along a chain of distribution.
2. Inventory management--the entities that control how much
is moved and where it is stored.
3. Customers--identifying who the "real" customers are and
keeping their loyalty despite all of the changes to the supply
chain and distribution channel.

11.
STRATEGIC APPROACHES TO
DISTRIBUTION
Approach Definition
Intensive
distribution
The producer's products are stocked in the majority of
outlets. This strategy is common for basic supplies, snack
foods, magazines and soft drink beverages.
Selective
distribution
Means that the producer relies on a few intermediaries to
carry their product. This strategy is commonly observed for
more specialised goods that are carried through specialist
dealers, for example, brands of craft tools, or large
appliances.
Exclusive
distribution
Means that the producer selects only very few
intermediaries. Exclusive distribution occurs where the seller
agrees to allow a single retailer the right to sell the
manufacturer's products. This strategy is typical of luxury
goods retailers such as Gucci.

12.
TRENDS IN DISTRIBUTION
Channel switching- Channel-switching is the action of consumers
switching from one type of channel intermediary to a different type of
intermediary for their purchases.
Examples include switching from grocery stores to convenience stores
or switching from top tier department stores to mass market discount
outlets.
Customer value - The emergence of a service-dominant
logic perspective has focussed scholarly attention on how distribution
networks serve to create customer value and to consider how value is
co-created by all the players within the distribution chain, including the
value created by customers themselves.
Disintermediation - Disintermediation occurs when
manufacturers or service providers eliminate intermediaries from the
distribution network and deal directly with purchasers.

13.
THANK YOU…..