2. Abstract
Aim of the paper is to represent about distribution logistics.Logistics is the managemet of
the flow of goods between the point of origin and the point of destination.
İntegration of information,transportation,inventory,warehousing,material handling,packaging
and often security.Here is an example:In the early morning,a major supermarket’s own truck
delivers fresh supplies to replenish those that were sold on the previous day tight to the
loading ramp-all pre-picked for ghe retail outlets.At the same time,tje specialty-food retailer
next door is buying goods for that particular day from the wholesaler.Distribution logistics
adressess these types of deliveries and others as well.In the process,distribution logistics
covers much more then the simple shipment of a product from Point A to Point B.( [1]
Logistiksysteme | Pfohl 2004)
Figure 1. process of logistics
Introduction
The concept of logistics dates back to antiquity. Nevertheless, real interest toward the subject
of logistics arose during World War 2 when large quantities of men and material had to be
rapidly deployed around the world. Later on, in 1950s and 1960s the monetary and strategic
value of logistics expanded at a rapid rate.
Despite the fact that logistics exists in two forms (military and managerial), and both forms
are very similar, it is very important to differentiate among the two of them.
Military logistics is concerned with movement of goods and people. Managerial logistics
concentrates primarily on finished products.
Firstly,It could better to see the historical process of logistic.
1940-1960: Establishing phase of logistics
1960-1970: Understanding idea of logistics and gain a reputation
1970-1980: Interchange age of priorities and models
1980-until todays:New age of economic and technical change
Improvement of logistics can be added 3 main phase.
a)Desintegration(1960-1980):In this period,we can see that activities of constituent parts of
logistics are conducted separately.Some of following operations processing in a institution
and partially they were outsourcing.
• Deman providence
• Purchansing
• Requirements planning
• Production planning
• Factories’ stocks
• Warehousing
3. • Material processes
• Palletization
• Inventories
• Ordering process
• Shipment
• Customer services
• Distribution scheduling
b)Association(1980-2000):In this period logistical operations come under 2 main concept
• Materials and supplies management
• Pyhsical distribution
c)Total integration(2000-Nowadays):Still-continuing this process add up desintegration and
association gather under one single roof.Globalization,liberalization in world economy and
concordantly harmony efforts which force firms increases logictical activities importances
and reveal integrated logicstic concept.
If I make a group of logistic factors;
• Warehousing
• Transportation
• Stock management
• İnformation and control
• Packaging
• Clearance
• Customer services
If we analyze cost of logistic activities,we will see that shipment costs stand out.
Logistic Costs Ratio
Shipment costs %50-%65
Inventory and material handling %20-%35
Business layout design %10
costs(planning and managing of
storage and distribution centrals)
Communication and information %5
costs
Distribution Logistics presents a complete and balanced treatment of distribution logistics
by covering both applications and the required theoretical background, therefore extending its
reach to practitioners and students in a range of disciplines such as management, engineering,
mathematics, and statistics. There are some related areas of study for distribution logistics
includes;
Supply chain management
Network design and transportation
Demand forecasting
Inventory control in single- and multi-echelon systems
Incentives in the supply chain
Vehicle routing
(İhracatı Geliştirme Etud Merkezi/Lojistik Tarihçesi-History of logistic/Lojistik Elemanları-
Factors of logistics)
4. 1.Concept and scope of distribution logistics
Distribution logistics comprises all activities related to the provision of finished
products and merchandise to a customer. The products can be delivered
directly from the production process or from the trader’s stock located close to
the production site or, possibly, via additional regional distribution warehouses.
Like procurement logistics, distribution logistics is a market-linked logistics
system. It links a company’s production logistics with the customer’s
procurement logistics.
In distribution logistics, customer orientation plays a special role because of
the close link to the customer. Workers in a distribution center frequently have
more contact with the customer than sales representatives do.
The tremendous significance of service thinking in distribution logistics arises
from this customer orientation. The aim is to constantly search for innovative
ways that offer the customer improved logistics solutions. In the process,
special requirements are being made as the traditional marketing principle of
“produce in a market-focused manner” is being replaced by the future-oriented
marketing principle of “sell first, produce later.” Furthermore, service is
increasingly being provided to the customer in a multi-faceted way based on
the principle of “just for you.” Both trends require a great amount of service
speed and flexibility.
1.1Marketing with a delivery service
If the delivery service is considered to be an instrument of marketing strategy,
interdependencies with other instruments must be considered. This is because
the instruments used in marketing strategy have an effect on the customer only
when combined with the marketing mix . Information about the current
interdependencies will be provided in later articles about distribution logistics.
In the process, marketing instruments are combined into tools of product
strategy, contract policies or terms & conditions, communications strategy and
distribution strategy.( [1] Logistiksysteme | Pfohl 2004)
2.Third Pary Logistics
A third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides
service to its customers of outsourced (or "third party") logistics services for part, or all of
their supply chain management functions. Third party logistics providers typically specialize
in integrated operation, warehousing and transportation services that can be scaled and
customized to customers' needs based on market conditions and the demands and delivery
service requirements for their products and materials. Often, these services go beyond
logistics and included value-added services related to the production or procurement of goods,
i.e., services that integrate parts of the supply chain. Then the provider is called third-party
supply chain management provider (3PSCM) or supply chain management service provider
(SCMSP).(Selecting a Third Party Logistics (3PL) Provider Martin Murray,about.com-
http://en.wikipedia.org/wiki/Third-party_logistics)
2.1.Types of 3PL Providers
Third-party logistics providers include freight forwarders, courier companies, as well as other
companies integrating & offering subcontracted logistics and transportation services
Hertz and Alfredsson (2003) describe four categories of 3PL providers:
• Standard 3PL provider: this is the most basic form of a 3PL provider. They would
perform activities such as, pick and pack, warehousing, and distribution (business) – the
5. most basic functions of logistics. For a majority of these firms, the 3PL function is not
their main activity.
• Service developer: this type of 3PL provider will offer their customers advanced value-
added services such as: tracking and tracing, cross-docking, specific packaging, or
providing a unique security system. A solid IT foundation and a focus on economies of
scale and scope will enable this type of 3PL provider to perform these types of tasks.
• The customer adapter: this type of 3PL provider comes in at the request of the customer
and essentially takes over complete control of the company's logistics activities. The 3PL
provider improves the logistics dramatically, but do not develop a new service. The
customer base for this type of 3PL provider is typically quite small.
• The customer developer: this is the highest level that a 3PL provider can attain with
respect to its processes and activities. This occurs when the 3PL provider integrates itself
with the customer and takes over their entire logistics function. These providers will have
few customers, but will perform extensive and detailed tasks for them.(Hertz and
Alfredsson 2003)
2.2.On-Demand Transportation
On-demand transportation is a relatively new term coined by 3PL providers to describe their
brokerage, ad-hoc, and "flyer" service offerings. On-demand transportation has become a
mandatory capability for today's successful 3PL providers in offering client specific solutions
to supply chain needs.
These shipments do not usually move under the "lowest rate wins" scenario and can be very
profitable to the 3PL that wins the business. The cost quoted to customers for on-demand
services are based on specific circumstances and availability and can differ greatly from
normal "published" rates.
On-demand transportation is a niche that continues to grow and evolve within the 3PL
industry.
Specific modes of transport that may be subject to the on-demand model include (but are not
limited to) the following:
• FTL, or Full Truck Load
• Hotshot (direct, exclusive courier)
• Next Flight Out, sometimes also referred to as Best Flight Out (commercial airline
shipping)
• International Expedited(http://en.wikipedia.org/wiki/Third-party_logistics)
3.Outsourcing Distribution:More flexibility less risks
3.1.What is outsourcing?
Nowadays,firms want to focus their core job by this way they want to improve their ability.So
it reveal a tendency.That’s mean firms take some help for some organizations from another
logistical firms.Firms can set all other activities to the other firms except firms core ability.In
this way they both do resource savings,downsizing and they can focus their core business.
6. A firm can’t be the best in every area.If firm can not shirk some of their function they can
leave it to firms which are more exprienced than them.In basic of traditional outsourcing,firm
procure raw materials from the outside.But nowadays,they outsource everything except their
raw materials.For example,Westinghouse is very well at producing but they realise that there
are well-exprienced company for transportation and they had an agreement with this
exprienced logistic company.There is another example for outsourcing.Roll-Royce is the
world famous car company in car industry.Once they had a big crisis.In 1991-1992 they lost
150 million dollar(Silver Spur Touring Limuzin).The only way was outsourcing for them and
they did it.Now they outsource vehicle body,axle tree etc. otherwise they focus
engine,paint,leather etc.
Outsourcing means global sourcing.For decreasing material cost,firms make a bargain with
another firms which is far from there about 8000 mile.(Richard L. Dalt, Management,2. Edition,
Dryden Press, London, 1991, page 611---http://www.msxlabs.org/forum/ekonomi/73392-
outsourcing-dis-kaynak-kullanma-kavrami.html#ixzz1sF853RlU)
3.2.Outsourcing Product Distribution
When distribution is not a core competency for your company and you do not have the
resources to make it one, outsourcing the function can help your company grow by allowing
you to focus on your mission-critical activities. There are two types of outsourcing that are
common among start-ups - traditional distribution and drop ship fulfillment.(DSF)
Traditional distribution outsourcing involves hiring a third party to store and distribute your
products through its national or international distribution network; this party provides the
staff, warehouses, distribution center and transportation fleet.The second type of outsourcing,
DSF, has grown in parallel with B2C retailing over the Internet. With DSF, a start-up
company sells a product, charges the customer, generates a purchase order, and sends the PO
to the manufacturer or supplier, who then fulfills the order by shipping the product directly to
the customer. Since the start-up never possessed the product, the company does not incur any
of the costs associated with storing or purchase the product. Many Internet start-ups have
adopted this streamlined business model.
Unfortunately, companies need to be careful when choosing an outsourcing partner.
Outsourcing is not a panacea - if your third-party distributor's procedures and performance are
not carefully monitored, you risk permanently alienating the customers you have worked so
hard to attract.
The key to a successful outsourcing relationship includes understanding the process,
specifying objectives, establishing internal procedures for evaluating performance against
objectives, and deploying systems that help to manage the function effectively.
Watching Costs and Service
If the manufacturer or distributor, which may be the same company, fulfills the customer's
order correctly, everyone is happy. However, in most cases, there are problems in one or more
of these key areas:
· Customer service - Another company may be distributing your products, but ultimately you
are responsible for the customer relationship. True, your company does not have direct control
over the distribution process, but the customer only cares about receiving the product - not
7. who sent it or how it got there. If something goes wrong, you are responsible and must do
what is necessary to correct the situation.
· Shipping costs - Most manufacturers are setup to ship truckloads or pallets of products, not
multiple orders of a single product. There are also manufacturers that require you to purchase
more products you need, others set ridiculously high prices for the service, and some simply
will not ship the orders. In some cases, start-ups are "kitting" a number of products, not
because it adds value for the customer, but because it pushes the dollar value of their order
above a threshold where the manufacturer will agree to DSF the products.
· Profitability - Shipping costs directly affect your bottom line. Many start-ups are passing
along the manufacturer's shipping costs to their customers, raising the price of their products
and putting themselves at a disadvantage in a competitive market. If the start-up does not pass
along the entire cost, the shipping expense cuts into the profitability of every transaction.
Getting Automated Help
Successfully managing a third-party distributor requires establishing internal monitoring
processes and requiring that specific employees are responsible for this function.
These employees should also be responsible for developing and deploying computer systems
to help automate the management function. Here are five critical requirements for your
outsourcing relationship with your distributor:
· Establish measurable standards for distributor performance.
· Conduct periodic performance reviews.
· Visit distributor sites to check security procedures (only if the start-up owns the inventory).
· Monitor customer feedback and satisfaction levels.
· As sales volume grows, periodically revisit the decision to outsource the distribution
function.
The right computer system can improve your ability to manage the distribution function in
three areas:
· Communication - To allow you to automate communication with your suppliers and
manufacturers, you must establish a back-end system. This means that you should not rely
just on basic email, generated by an employee, to track orders. For example, you send the
supplier an email to check on a backlogged product, someone then emails you back with a
response, and finally you re-key the information into your system - imagine a handful of
employees checking 500 products. To be more efficient, you need a system that will scale this
function as your volume expands and will use automated email, fax, Web portals and/or EDI
to communicate order information.
· Visibility - You must know if a product is available before it is sold, and you cannot know
this until you view your supplier's inventory to find out how much product you have been
allocated and what is available. To do this, you need an application that provides you with
visibility into your supplier's inventory tracking system.
· Track and Trace - Customers want to know the status of their order: When was it shipped,
where is it now, and when will I get it? If you want to retain customers, you need to be sure
8. your computer system helps you manage returns, exchanges and refunds efficiently. A
consulting organization that specializes in distribution and transportation can help you setup
effective internal processes and, if necessary, build and deploy the computer systems you
need to manage an outsourced distribution function for maximum benefit. Part of a
consultant's value can be in the area of knowledge transfer, educating your organization on
how the distribution and transportation function works at the macro level and helping you set
realistic expectations.(Logistics and Supply Chain online magazine
Aug. 2, 2000)
3.3. Benefits of Outsourcing
• Even for small amount of goods,firms’ marketing and distributing network achieve
every point of destination.Thus,firms can move more fast to customer in outlet.
• Decreasing stocking costs.
• In the market shipment and transportation costs are so high.Firms can economise costs
than they can face their fields of activity.
• Shipment costs can decrease with logistic service providers’ high volume capacity and
leading ability.
• Stock level can be minimized.
• Saving manpower.
• Some situation like losts,accidents and thieves can be assigned to logistic firms.
• Firms can reach worldwide abilities and new technology
There are some facts can effect firms for using(or not use) 3PL;
1. Centralization
2. Risk and control
3. Expenditure and service activities
4. Information technology
5. Relationships
Transportation
Transport or transportation is the movement of people, animals and goods from one
location to another. Modes of transport include air, rail, road, water,cable, pipeline, and space.
The field can be divided into infrastructure, vehicles, and operations. Transport is important
since it enables trade between peoples, which in turn establishes civilizations.
Transport infrastructure consists of the fixed installations necessary for transport, and may
be roads, railways, airways, waterways, canals and pipelines, and terminals such
as airports, railway stations, bus stations, warehouses, trucking terminals, refueling depots
(including fueling docks and fuel stations), andseaports. Terminals may be used both for
interchange of passengers and cargo and for maintenance.
Vehicles traveling on these networks may
include automobiles, bicycles, buses, trains, trucks, people, helicopters, and aircraft.
Operations deal with the way the vehicles are operated, and the procedures set for this
purpose including financing, legalities and policies. In the transport industry, operations and
ownership of infrastructure can be either public or private, depending on the country and
mode(http://en.wikipedia.org/wiki/Transport)
9. Distribution Centre
A distribution center for a set of products is a warehouse or other specialized building, often
with refrigeration or air conditioning, which is stocked with products (goods) to be
redistributed to retailers, to wholesalers, or directly to consumers. A distribution center is a
principal part, the order processing element, of the entire order fulfillment process.
Distribution centers are usually thought of as being demand driven. A distribution center can
also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break
center, and a package handling center. The name by which the distribution center is known is
commonly based on the purpose of the operation. For example a "retail distribution center"
normally distributes goods to retail stores, an "order fulfillment center" commonly distributes
goods directly to consumers, and a cross-dock facility stores little or no product but distributes
goods to other destinations.
Distribution centers are the foundation of a supply network, as they allow a single location to
stock a vast number of products. Some organizations operate both retail distribution and
direct-to-consumer out of a single facility, sharing space, equipment, labor resources, and
inventory as applicable.
A typical retail distribution network operates with centers set up throughout a commercial
market, with each center serving a number of stores. Large distribution centers for companies
such as Wal-Mart serve 50–125 stores. Suppliers ship truckloads of products to the
distribution center, which stores the product until needed by the retail location and ships the
proper quantity.
Since a large retailer might sell tens of thousands of products from thousands of vendors, it
would be impossibly inefficient to ship each product directly from each vendor to each store.
Many retailers own and run their own distribution networks, while smaller retailers may
outsource this function to dedicated logistics firms that coordinate the distribution of products
for a number of companies. A distribution center can be co-located at a logistics center.
Storage locations and storage containers
Goods (products) arrive and are stored in a distribution center in varying types of storage
locations and containers suited to the product characteristics and the amount of product to be
transported or stored. These types of locations and containers have specific industry-accepted
names. Specialized pieces of equipment (material handling equipment, or MHE) are used to
handle the various types of containers. The following is a list of some of the names and
characteristics of common storage containers:
Intermodal containers (shipping containers) are used for the efficient transportation of goods.
Standards specify the volume and dimensions of containers to facilitate efficient handling.
Pallets are one of the most commonly used means to store and move product in a distribution
center. There are many specialized devices (material handling equipment or MHE) used to
handle pallets - see forklift truck,pallet jack,pallet inverter and unit load automated storage
and retrieval systems (ASRS). Pallets are stored on the floor, may be stacked, and may be
stored in pallet ranking.
Gaylords are large single boxes usually connected or attached to a pallet.
10. Cases and Cartons are boxes usually containing many items. In distribution centers there is a
generally accepted distinction made between the terms "carton" and "case", although both are
boxes. Goods are received and stored in cartons, while goods are shipped in cases. A stored
carton is called a case once it has been picked or pulled for shipment.
Totes are reusable containers used to hold and transport goods.
Packaging
Packaging is the science, art, and technology of enclosing or protecting products for
distribution, storage, sale, and use. Packaging also refers to theprocess of design, evaluation,
and production of packages. Packaging can be described as a coordinated system of preparing
goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects,
preserves, transports, informs, and sells.In many countries it is fully integrated into
government, business, institutional, industrial, and personal use.
Consumer Goods Delivery
Most consumer goods are delivered from a point of production (factory or farm) through one
or more points of storage (warehouses) to a point of sale (retail store), where the consumer
buys the good and is responsible for its transportation to point of consumption. There are
many variations on this model for specific types of goods and modes of sale. Products sold via
catalogue or the Internet may be delivered directly from the manufacturer or warehouse to the
consumer's home, or to an automated delivery booth. Small manufacturers may deliver their
products directly to retail stores without warehousing. Some manufacturers maintain factory
outlets which serve as both warehouse and retail store, selling products directly to consumers
at wholesale prices (although many retail stores falsely advertise as factory outlets). Building,
construction, landscaping and like materials are generally delivered to the consumer by a
contractor as part of another service. Some highly perishable or hazardous goods, such
as radioisotopes used in medical imaging, are delivered directly from manufacturer to
consumer. Home delivery is often available for fast food and other convenience products,
e.g. pizza delivery. Sometimes home delivery of supermarket goods is possible. A milk
float is a small battery electric vehicle (BEV), specifically designed for the delivery of
fresh milk.
Delivery Vehicles
Vehicles are often specialized to deliver different types of goods. On land, semi-trailers are
outfitted with various trailers such as box trailers, flatbeds, car carriers, tanks and other
specialized trailers, while railroad trains include similarly specialized cars. Armored
cars, dump trucks and concrete mixersare examples of vehicles specialized for delivery of
specific types of goods. On the sea, merchant ships come in various forms, such as cargo
ships, oil tankers and fishing boats. Freight aircraft are used to deliver cargo.
(http://en.wikipedia.org/wiki/Distribution_center)
1.Logistics for Customer Satisfaction
Before ending this topic I want to explain something about customer satisfaction related with
Logistics.
The term logistics is often misintrepreted to mean transportation. In fact, the scope of logistics
goes well beyond transportation. Logistics forms the system that ensures the delivery of the
product in the entire supply pipeline. This includes transportation, packaging, storage and
handling methods, and information flow. The impact of logistics in the ability of a company
11. to satisfy its customers cannot be overstated. All other efforts at modernization within a
company would not bear fruit until the logistics system is carefully designed to facilitate the
smooth and efficient flow of goods in the system.
1.1The value of Logistics
Material handling and storage are typically labelled as "non-value adding" activities. While
one can appreciate the motivation behind such labeling as one directed towards waste
reduction, it can lead to is an erroneous assumption that all material handling and storage can
be avoided. While manufacturing processes provide "form utility", logistics related activities
provide "time and place" utility to a product. The challenge is to provide the time and place
utility at a competitive cost. If a company can achieve this goal, it will gain a significant
competitive advantage in the marketplace.
1.2Pull vs. Push Systems
There are two basic approaches of bringing the product to its final destination, i.e., the
customer. In a Push system (See Figure 1), products are pushed from the manufacturing plants
to distribution points based on a sales forecast. The second approach is the Pull system (See
Figure 2) which requires that the product be pulled from the plants based on actual demand.
In a Push system, since all the product is deployed based on the sales forecast for each region,
an inaccurate sales forecast incurs several severe penalties which include:
• Increased safety stock
• Larger Distribution Centers/Godowns
• Higher stock transfer rates
The pre-order deployment of product increases safety stock. Since there is greater uncertainty
associated with forecasts, which are often little better than educated guesses, the system must
provide for variations in the demand in a particular region serviced by the particular godown.
In addition the system must provide for errors in the overall forecast for the country as a
whole. These concerns lead to the carrying of larger safety stocks, which necessitate larger
godowns.
12. The irony in the concept of safety stocks is that although sufficient stocks may exist in the
system, the product mix demanded in a particular region may not exist in the regional
godown. This necessitates inter-godown transfer of goods. The result is an increase in the
transportation costs system-wide, in addition to handling and shipping costs, information
costs, product loss and damage, and poor customer service. The more points of distribution in
the system, the greater the penalties incurred for unpredictable order fluctuations.
The goal of any logistics system is to maintain or improve customer service. In the Push mode
of operation, the penalties of higher safety stock, larger godowns, and inter-godown transfer
are not the only penalties. Stock rotation becomes more difficult to maintain. Handling of all
products at each godown involves unloading, staging, storing, picking, staging and loading for
shipment. All these activities involve an element of cost. In addition, there is a potential for
product damage each time a product is handled.
There are some positive aspects of a Push system as well. These are:
• Small plant warehouses
• Potential for higher customer service
• Lower transportation costs
Since the majority of the product is stored at the godowns, the plant needs to maintain a low
inventory of finished goods. This allows the plant to utilize its space for production and
eliminate the need for a full warehouse staff. If the forecast is accurate, the Push system
provides the potential for higher customer service by having the product ready for delivery
directly to the customer/retailer. Finally, by having the products deployed in the godowns, the
plants have the capability of shipping full truckloads and thereby reducing the system-wide
transportation costs.
A Push system works best when sales are consistent, the product variety is small, and there
are a few regionsl distribution points.(Indian Institute of Materials Management-
http://www.iimm.org/knowledge_bank/1_logistics-for-customer-satisfaction.htm)
Distribution Systems
Before settling for a distribution system the marketer has too keep in mind various factors
affecting distribution system (like marketing decision and relationship issues).
The following distribution designs are available to the marketer for his distribution system:
1. Direct Distribution Systems
2. Indirect Distribution Systems
3. Multi-Channel or Hybrid Distribution Systems
1. Direct Distribution Systems
In direct distribution system the marketer reaches the target consumer directly
without the use of any intermediary. The distribution chain is small and no other party
can take ownership of the product being distributed. The direct distribution system can
be further sub-divided on the basis of the methods of communication that takes place
during sale between marketer and consumer. These methods are:
• Direct Marketing Systems
13. In this system the consumer buys the product based on information
gained from impersonal contact with the marketer like by visiting the
marketer's website or ordering from the marketer's catalog. Or he buys based
on information gathered through some personal communication with a
customer service personnel who is not a salesperson and can be reached
through a toll-free number.
• Direct Retail System
In this type of system the marketer operates his own retail stores. A
perfect example of this system is Starbucks.
• Personal Selling Systems
In this system the distribution of the product is carried forward by people
whose main responsibility is creating and managing sales (for instance a
salesperson). He persuades the buyers into placing an order. This order may
not be handled by the salesperson but through websites or toll-free telephone
numbers. The sales person plays a vital role here in generating sales.
• Assisted Marketing System
In this form of distribution system the marketer handles the distribution
of his product and helps it reach directly to the end user. However he needs
assistance from others to spread awareness about his product among the
customers. An example of assisted marketing system is e-bay, here the buyers
and sellers are brought together for a fee. Agents and brokers can also be
included in this category.
2. Indirect Distribution System
In indirect distribution system the marketer includes intermediaries or other
members in his distribution chain. These resellers make sure the product reaches the
end user, while performing their duties they take complete ownership of the product.
However the reseller may sell products on a consignment basis wherein the reseller
pays for the product only when the product is sold. The resellers may be expected to
take up a few responsibilities to help boost the sales of the product.
Indirect methods include the following:
• Single-Party Selling System
In this system the marketer involves another party to sell and distribute
his product to the end user. An example of single-party selling can be when the
product is sold through large store-based retail chains or through online
retailers. In this case the distribution system is also referred to as trade selling
system.
• Multiple-Party Selling System
In multiple-party selling system the distributor involves two or more reseller in the
distribution process before the product reaches the end user. This is most likely to
happen when a wholesaler buys the product from the manufacturer and then sells it
to the retailer.
3. Multi-Channel (Hybrid) Distribution System
14. A marketer is said to be using a multi-channel or hybrid distribution system
when he utilizes more than one distribution design. As we have studied earlier in the
example of Starbucks, multiple distribution designs are put to use in the distribution of
its product. It uses a direct retail system when it sells its products in company-owned
stores, a direct marketing system by selling via direct mail and single party selling
system is put to use when its products are sold through grocery stores. Apart from
these other distribution systems are also put to use.
Multi-Channel distribution system is advantageous as it expands the distribution
system and more customers can be reached. The possible disadvantage again is
channel conflict of which the marketer should always be cautious.(
http://www.tutorsonnet.com/marketing_homework_help/distribution/distribution_syst
ems_assignment_help_tutoring.htm)
REFERENCES(All references include of this date:10.04.2012)
http://www.msxlabs.org/forum/ekonomi/73392-outsourcing-dis-kaynak-kullanma-
kavrami.html
http://www.biymed.com/pages/makaleler/makale41.htm
http://en.wikipedia.org/wiki/Transport
The Handbook of Logistics and Distribution
Management(http://www.amazon.com/Introduction-Distribution-Logistics-Statistics-
Practice/dp/0471750441)
![Abstract
Aim of the paper is to represent about distribution logistics.Logistics is the managemet of
the flow of goods between the point of origin and the point of destination.
İntegration of information,transportation,inventory,warehousing,material handling,packaging
and often security.Here is an example:In the early morning,a major supermarket’s own truck
delivers fresh supplies to replenish those that were sold on the previous day tight to the
loading ramp-all pre-picked for ghe retail outlets.At the same time,tje specialty-food retailer
next door is buying goods for that particular day from the wholesaler.Distribution logistics
adressess these types of deliveries and others as well.In the process,distribution logistics
covers much more then the simple shipment of a product from Point A to Point B.( [1]
Logistiksysteme | Pfohl 2004)
Figure 1. process of logistics
Introduction
The concept of logistics dates back to antiquity. Nevertheless, real interest toward the subject
of logistics arose during World War 2 when large quantities of men and material had to be
rapidly deployed around the world. Later on, in 1950s and 1960s the monetary and strategic
value of logistics expanded at a rapid rate.
Despite the fact that logistics exists in two forms (military and managerial), and both forms
are very similar, it is very important to differentiate among the two of them.
Military logistics is concerned with movement of goods and people. Managerial logistics
concentrates primarily on finished products.
Firstly,It could better to see the historical process of logistic.
1940-1960: Establishing phase of logistics
1960-1970: Understanding idea of logistics and gain a reputation
1970-1980: Interchange age of priorities and models
1980-until todays:New age of economic and technical change
Improvement of logistics can be added 3 main phase.
a)Desintegration(1960-1980):In this period,we can see that activities of constituent parts of
logistics are conducted separately.Some of following operations processing in a institution
and partially they were outsourcing.
• Deman providence
• Purchansing
• Requirements planning
• Production planning
• Factories’ stocks
• Warehousing](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)