COMMERCE 2MA3 Lecture Notes - Lecture 7: Enterprise Resource Planning, Break Bulk Cargo, Order Processing
24 Apr 2016
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Document Summary
A distribution strategy has two critical components: (1) marketing channels and (2) logistics and supply chain management. Physical distribution extends beyond transportation to include such important decision areas as customer service, inventory control, materials handling, protective packaging, order processing, and warehousing. Marketing (distribution) channel: system of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to customer. Physical distribution: broad range of activities aimed at efficient movement of finished goods from the end of the production line to the consumer. Supply-chain management: control of the activities of purchasing, processing, and delivery through which raw materials are transformed into products and made available to final consumers. Direct channel: carries goods directly from a producer to the business purchaser or ultimate user. Direct selling: strategy designed to establish direct sales contact between producer and final user. Gives small producers access to hundreds of retailers. Gives small retailers access to wholesaler"s specialized distribution skills.
