1University of Technical Education University of Sunderland HO CHI MINH CITY 200Cha!ter 2OUT"INE#$ %lace &$ %oints in the chain of distri'ution ($ Selection of distri'ution channel)$ %hysical distri'ution2$ *istri'ution channels3#$ %laceDistribution:processofgetting products to consumers.Chainofdistribution:theprocess whichenablestheflowofgoods betweentheproducerandthe consumer.Distributionchannel:themeansof getting the goods to the consumer.4The five +ri,hts- of distri'utionThe RI!T productIn the RI!T place"t the RI!T timeIn the RI!T #uantit$%or the RI!T price&2$ So.e 'asic functions contri'utin, to distri'ution channel Transport 'toc(holding and storage )ocal (nowledge *romotion Displa$ +/actors affectin, the nature of the su!!ly chain Customer characteristic,umbereographic dispersion*urchasing patterns-u$ers. susceptibilit$ to different selling methods. *roduct characteristic Compan$ characteristics*erishabilit$-ul(*roduct standardisation'er/ice support re#uirement0nit /alue'i1e of organisation*roduct mi2*ast channel mi2*ast channel mi2 e2perience3&$ %oints in the chain of distri'ution,e2t,e2tManufactureConsu.er0etailer1holesaler# 2&(4 Retailer 5holesalers 6offer a range of products7 Distributors and dealer 6offer narrower product range7 "gents 6earn a commission7 %ranchisees 6under the name of a parent organisation7 8ultiple stores 6supermar(ets7 Direct selling9Manufacturer 1holesaler 0etailer Consu.erManufacturer 0etailer Consu.erManufacturer Consu.er *irect distri'ution2 3ctive*irect distri'ution2 3ctiveIndirect distri'ution2 !assiveIndirect distri'ution2 !assive($ Selection of distri'ution channel1:Channel desi,n decisions Customer *roduct characteristics Distribution characteristics Channel chosen b$ competitors The supplier.s own characteristics11Channel decision 5hat t$pes of distributor are to be used; !ow man$ of each t$pe will be used;5howillcarr$ourspecificmar(eting tas(s;!owwillperformanceofdistributorsbe e/aluated;12Su!!lier 3 Su!!lier 4 Su!!lier C Su!!lier *Custo.er 3 Custo.er 4 Custo.er C Custo.er *Inter.ediaryInter.ediary13)$ %hysical distri'utionTrans!ortation"ocation of 5arehouses"o,istics .ana,e.ent14Modes of trans!ort 0oad trans!ort1&Modes of trans!ort 0ail trans!ort1+Modes of trans!ort 1ater trans!ort13Modes of trans!ort 3ir trans!ort14"ocation of 5arehouse'electing the area 6mar(et potential7Choosing the site 6local transport facilities< its geographical position719"o,istic .ana,e.entCustomer benefitsCost sa/ingsTrends2:6ust in ti.e 76IT8Definition=IT:anin/entor$controls$stemwhich deli/ers input to its production or distribution siteonl$attherateandtimeitisneeded. Thusitreducesin/entorieswhetheritis usedwithinthefirmsinthedistribution s$stemchannel.Itisapulls$stemwhich replacesbufferin/entorieswithchannel member cooperation.21