Chapter 11

Chapter 11 - Chapter 11: Distribution Customer Service and...

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Chapter 11: Distribution Customer Service and Logistics o Physical distribution gets it to customers Logistics : transporting, storing, and handling of goods in ways that match target customers' needs with a firm's marketing mix-both within individual firms and along a channel of distribution Also called physical distribution o Physical distribution customer service Customer service level : how rapidly and dependably a firm can deliver what they, the customers, want Should be invisible to most consumers Only gets their attention when something goes wrong Involves trade offs between costs, customer service levels, and sales Can be complicated Lowest cost approach may not be best if customers aren't satisfied o Physical distribution concept focuses on whole distribution system Physical distribution (PD) concept : says that all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer service level Both lower costs and better service increase customer value Have to decide what service to offer Focus on finding least expensive way to achieve the target level of service Total cost approach : evaluating each possible PD system and identifying all of the costs of each alternative o Coordinating logistics activities among firms Important to decide how PD functions can and should be divided within the channel How the PD functions are shared affects the other 3 P's- especially price A coordinated effort reduces conflict A key advantage of Just in Time for business customers is it reduces PD
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This note was uploaded on 03/05/2012 for the course BUSI 406 taught by Professor Perreault during the Fall '11 term at UNC.

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Chapter 11 - Chapter 11: Distribution Customer Service and...

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