Lastly Pumas distribution centre handles about 200 e commerce and 700 wholesale

Lastly pumas distribution centre handles about 200 e

This preview shows page 9 - 12 out of 20 pages.

Lastly, Puma’s distribution centre handles about 200 e-commerce and 700 wholesale lines per hour per. This is anywhere from two to three more than Puma’s operation and with the increased efficiency the system can easily ramp up to meet peak seasonal volume as orders are received at the facility the warehouse management system communicates with the exacta warehouse execution system and AutoStore system (Bastian Solutions Inc., 2020) . PREPARED BY: Cornie Chong Chu Le 9
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BBDS2063 WAREHOUSE & DISTRIBUTION CHANNELS – FINAL E- ASSESSMENT– 2019/20 Q2: DISCUSS THEIR DISTRIBUTION CHANNELS. ANSWER: 2.0 Puma’s distribution channels. Puma is a sports footwear, apparel and accessories brands leading brands. Therefore, it is classified in the physical distribution channel as the product it sells is physically transferred, or distributed from its point of production to the point at which it is made available to the final customer. Puma has three main distribution channels, which are ‘manufacturer to wholesales to retail stores’, ‘manufacturer via third-party distribution service to retail store’, and ‘direct deliveries- Internet and shopping from home’. Previously, there are only the first two channels is using by Puma, but e-commerce has risen nowadays, so Puma adds in the ‘manufacture to end customers’ channels (Puma Inc., 2018). 2.1 Manufacturer to wholesaler to retail shop Puma’s wholesale as it accounted for 79% and 74.6% of net sales in 2015 and 2019 respectively, the own physical and e-commerce stores accounted for the remaining percentage (Appendix 3) . Despite the risen in e-commerce, wholesaler remains the highest sales channel throughout the years (Puma Inc., 2018) . Wholesalers extend Puma’s geographical reach much more easily and quickly as they act as an intermediary between manufacturers and retail stores, therefore the customer can purchase the products wherever there are retail stores. In another way, the warehousing is done by wholesalers and inventory cost bear by retailers, hence it saves up a lot of costs such as inventory cost and transportation cost (Osborn, 2018) . PUMA's focus on wholesale business is to continue to establish joint products and marketing plans with major customers. These measures will increase the business share of PUMA ’s most important wholesale net sales, thereby improving the quality of net sales. 2.2 Manufacturer via third-party distribution service to own retail store Secondly, Puma delivers from the production point to the retail stores via the third party who is Melo Worldwide Logistics in Singapore (Material Handlings & Logistics, 2010) . The logistics management relationship’s scope includes domestic transportation, the use of Menlo's warehouse management system (SIMS) and a range of value-added services, for example, price tags at retail distribution points, return management and tender orders for overseas shipments. Menlo’s multi-client warehouse management solution provides PREPARED BY: Cornie Chong Chu Le 10
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BBDS2063 WAREHOUSE & DISTRIBUTION CHANNELS – FINAL E- ASSESSMENT– 2019/20
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