Logistics And Phyical Distribution Essay example

=Channel distribution is the path that a product takes from the producer to the consumer and physical distribution is the actual movement of products that path.

Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.

As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.

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The company has a broad customer base. Their fleet consists of more than 3,500 trucks, all of which serve thousands of points throughout the U.S., Canada, Mexico and the Caribbean. They also international transportation services to roughly 100 different countries and more than 300 foreign destinations around the world. The majority of their business is located in the southern and eastern part of the country. Their customer base is mainly large retailers and automobile industry, but also you’re well known third party logistics companies

The reasons for this new transportation business is because of many changes in the transportation laws concerning the hours of service and not enough trucks to get the cargo around the states. The hours of service have been causing the markets

In addition to the objectives stated above, management wished to evaluate an alternate mode and methods of transportation. The company could stop the use of the freezer cars for delivery up to Butte, Montana, and use trucking instead. The delivery to the retail outlets would also continue to be done by motor carrier. It was decided that if any changeover is economical for the company and the new system (if any at all) works well for Tender Most in 2011, in subsequent years, similar feasibility exercises could be carried out for other products. The cost for common-carriage TL transportation was estimated to be $12.60 per cwt. from Kentucky to Butte, MT (minimum load of 30,000 lbs.). The lead time for this option is 3 days with a standard deviation of ½ day.

- Explain the structures of the road and rail cargo industries and the current issues facing the industries.

The Canadian National Railways is a part of the Railway Industry and it is the most popular and longest system all over North America. It is the only “transcontinental railway” company that Canada has which crosses the Atlantic Coast in Nova Scotia to the Pacific Coast in British Columbia. The CN Railway system provides transportation services to coal, automobiles, grain, beverages, lumber and metal products. They use railway containers which is a cost-effective method that helps easily transport Canadian and American goods. CN Railway’s profit increases every year due to the vast amount of items it transports and this causes multiple consumers and businesses to be involved with the CN Railway Company. (Canadian National, 2015).

A distribution strategy is in relation to how a company will distribute the product or services they are offering to

• Delivery of products on a daily basis to either the facilities loading docks or main reception areas and transferring corporate mail and other important correspondence.

Addressing the needs of its employees. Meeting the needs of the employees and maintaining a profit margin.

The director of logistics at Happy Chips Incorporated had recently circulated a letter that came from the only mass merchandiser, Buy 4 Less, complaining of poor performance. Buy 4 Less is looking for Happy Chips to increase deliveries by one per

Transportation is a key element in the logistic chain. It joins together those components that are considered to be separated. In order for transportation and logistics to work together successfully, there must be good management between them. It plays a

Transport plays a critical role in the supply chain and according to Bhattacharya et al. (2014) it is becoming one of the key components of the whole supply chain valuation for many organizations. Transportation is the movement of good from one location to another. Supply chain is a network of individuals, organizations, activities, resources and technology that is involved in formation and sale of a product, which is from the delivery of source materials from the supplier to the manufacturer, through to the end user. Hopkins (2007) states that supply chain professionals look at whole business procedures, which is from raw materials to manufacturing, wholesaling and retailing. And by