ch10_elliott_4e.pptx

A variation on the warehouse is the distribution

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A variation on the warehouse is the distribution centre, a type of warehouse that focuses on moving rather than storing goods. Distribution centres are designed to efficiently receive goods, assemble them into orders and ship them to customers with a minimum of handling.
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Transportation Transportation is the process of moving products from their place of manufacture to their place of consumption. The key modes of transportation are road, rail, sea, air and — somewhat less obviously — pipelines. Specialist transportation companies known as freight forwarders allow businesses with small volumes of freight to combine their products with the products of other businesses so that they can take advantage of containerisation and the efficiencies of larger loads.
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Technology in physical distribution The internet and other telecommunications technologies have enabled great advances in the efficiency of physical distribution. The term e distribution is often used to describe the full implementation of advanced telecommunications technologies in the physical distribution process. E distribution offers efficiencies internally and externally.
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10.3 Distribution of services Physical inputs The creation and delivery of most services products requires physical inputs. The service business must ensure that the various physical inputs it needs to deliver the service are available.
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Delivery infrastructure Some services are distributed via a physical infrastructure. Some service providers bring the service to you. For example, the electricity supply to your home is delivered via an extensive network of above ground, underground and undersea cables. The web has expanded the range of services available in this format, e.g. internet banking.
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Scheduling Scheduling in service businesses is designed to smooth demand. Just as producers and sellers of physical products must manage inventory to minimise holding costs yet maximise availability to consumers, service businesses must manage their capacity to ensure customers can be served but that there is not excess labour. Some businesses can not so easily control demand for their services, e.g. a hospital.
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10.4 Retailing Retailing describes any exchange in which the buyer is the ultimate consumer of the product. Retailing excludes transactions in which the buyer intends to resell the product or use it in the making of another product. Other businesses may undertake retailing, but their primary focus is on something else. The concept of retailing is not necessarily straightforward.
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Retailing strategy Location The natural geographic area from which customers will be drawn.
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