Revision of DTM for chapter 1 & 2 Function of physical distribution management and distribution channels 1) Definition of physical distribution management – Used in manufacturing and commerce to describe the broad range of activities concerned w/ the efficient movement of finished products from end of production line to consumer. * Emphasizes the flow of materials from the point of manufacture industrial user * Implies the control of the flow End consumers Products supply > Warehousing > Distributution planning > Products delivering > Market outlets > Products display > Customers > Products Demand | 2) Role and importance of distribution – To bridge the geographical and time gaps between the …show more content…
Thus, out-of-stock conditions result in lost sales, loss of goodwill and loss of customers. * Order processing [Having a set of procedures for handling and filing orders] Eg. Provision for billing, granting credit, preparing invoices and collecting accounts. * Transportation [Involves shipping of products to customers] 4) Functions of Distribution Centres * Receiving (Unload incoming material, count the material, and record any shortage/damage.) * Inspection (Determine if the product meets the specifications and requirements of the purchase order) * Inventory control (Materials are moved from the inspection area to picking location. To control the location and quantities of materials on hand, it is important to assign responsibility for routing materials to their proper locations.) * Storage (Physical act of moving materials from inspection and placing them in storage) * Replenishment (When distribution management assigns a special area for picking stock, it is necessary to move stock in cartons from general storage area to replenishment area.) * Order Picking (Performed after the distribution center has received an invoice. The order picker goes about selecting items in the quantity requested and unitizing them in a container/a pallet/station.) * Checking (Perfoms checks on each order for accuracy of item, quantity and condition before packing and shipping) * Packing and marking (Less-than-full-carton quantities of
The Process is that when received, all items are counted manually and taken to the warehouse - loaded on to special shelves. Information is recorded on the computer. Each department identifies goods needed. A list is made and items taken for display and sale in the shop. Department staff replenish the shelves when needed under close supervision and management in order to supply a high class service to customers.
The ordering process begins with the decision of the customer to submit their order simply by either calling, faxing or mailing their order information. When a customer calls in their order, the customer service representatives takes down pertinent customer information, which includes the customer's name, billing and shipping address, product number and description, quantity and shipping instructions. While taking down the order, the customer service representative access the company's order entry system where inventory checks are conducted as well as credit checks are processed. In addition, delivery options are advised to the customer. Here the customer decides
'Place ' is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers.
All goods purchased pass through a receiving department under the direction of the chief purchasing agent. The duties of the receiving department are to unpack, count, and inspect the goods. The quantity received is compared with the quantity shown on the receiving department’s copy of the purchase order. If there is no discrepancy, the purchase order is stamped “OK—Receiving Dept.” and forwarded to the accounts payable section of the accounting
ØChecking financial documents relating to purchasing of goods - making sure that goods have been delivered from people who have sent invoices.
In the San Diego distribution center (DC) information flow example, dealers not being notified automatically of order status would be classified as
First, in aspects of personal selling this cost will be deducted out of the salesperson’s salary whereas all sales personal receive the same amount of salary. Next, the order processing is role of businesses to deliver consumer products accurately when and where the consumer wants the product is beneficial to retail grocery stores, supermarkets and Foodservice wholesalers. Making deliveries order processing top priority will provide the Cooper Company the fortitude to create competitive prices as well as, make deliveries in a cost-effective manner (Sabri, E. H., Gupta, A. P., & Beitler, M. A. 2007).
The next system changing is the way the product is shipped. First, the department has to fill out the sales order then it transferred to the buyer’s shipping and billing system. The orders are then shipped to the Apiso Warehouse to get looked over. Then once they looked at to see for any mistakes and ready for shipment. The number of the truck, the time, and the date is renewed into the buyer’s shipping and billing system, just in case they needed to track it. The flow chart will demonstrate the process of shipping.
The payment is either done through credit card or wire transfer based customer convenience. The accounting department confirms the rode and sends to the supply and distribution department. The product is sent to the service department based on the bill shared by accounting department. The service department then takes care of the request and reaches out to the customer.
1. Enables the breakdown of pallets inside the warehouse facility, which will optimize the use of available space by storing equipment on industrial
This list is transferred to the warehouse where the warehouse operator obtains all the required equipments and from the specified manufacturers. Employees are assigned the various packs and tasked to assemble onto a counter all supplies for one pack at a time. The employees obtain the materials from the storage area and assemble them on the counter and later to a convey belt. Since the packs are bulky, there is use of lifts and cranes to move these packs while processing the orders. These items are passed through a conveying belt where they are confirmed by two attendants. For instance, when an order comes through, a station leader will request scalpels from one manufacturer, hospital linen from another supplier, forceps from another supplier to be assembled on the work area, and they are all loaded to the conveyor belt. All components must be assembled and verified before they are sent to the decontamination room.
A method used to initiate the purchase of routine items. Typically, each item has a predetermined order point and order quantity
2. (p. 463) Logistics is the activity that controls the transmission of physical materials through the value chain, from procurement through production and into distribution.
To conduct the study an In-depth interview was initially conducted with the distributors and retailers. Based on the interview questionnaire was framed. Based on the questionnaire responses were taken from distributors and retailers. Secondary sources like online articles were also referenced for the purpose of this study.
goods. They can also be in process between different locations. Holding of inventories can cost a