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Distribution DebateDistribution Debate

Harshil Dave (7076)Jhilam Chowdhury (7081)Naveen Panwar (7091)Rajeev Sharma (7096)

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O ver ViewO ver ViewTristar company had a turnover of 120Cr inTristar company had a turnover of 120Cr inrefrigerators and air refrigerators and air- -conditioners.conditioners.

Initially Mathurs flexible policies helpedInitially Mathurs flexible policies helped

boost fortunes.boost fortunes.

AC were produced in Thane, RefrigeratorsAC were produced in Thane, Refrigeratorswas made in Jalgaon.was made in Jalgaon.

8 branch office catering to 2 sales depots8 branch office catering to 2 sales depotseach.each.

Each sale depots serviced up to 50 dealers.Each sale depots serviced up to 50 dealers.

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Demands and challenges facedDemands and challenges faced

by Tristar.by Tristar.Due to shortage, goods were transported

between sales depots.

Arrival of arch-rival Pleasant Ac launchedsplit level Ac, hence customer demands had tobe met.

Pleasant operated in Western and SouthernMarkets.

Baroda Madras

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ContCont

Lock out of Koolidge from Madras.Lock out of Koolidge from Madras.

At this time, there was stockAt this time, there was stock- -outs as demandouts as demandwas more than supply.was more than supply.

Produced more, but outputs were stuck inProduced more, but outputs were stuck inwarehouse for the want of clear instructions.warehouse for the want of clear instructions.

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Mathurs O peration and suggestionsMathurs O peration and suggestions

Wants the customers to get the goods whenWants the customers to get the goods whenordered.ordered.

Believes to stock adequate goods in SalesBelieves to stock adequate goods in Salesdepots.depots.

Wants additional depot in Kerela to meetWants additional depot in Kerela to meetdemands in southern markets.demands in southern markets.

Vesting logistics with production departmentVesting logistics with production department ..

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Chopra Suggestions.Chopra Suggestions.

Wants zonal warehouses that would cater theWants zonal warehouses that would cater thedemands of dealers in the zone.demands of dealers in the zone.

Wants the branch depots to ask for stocks onlyWants the branch depots to ask for stocks onlywhen customers raise invoices.when customers raise invoices.

Branch depots should only receive, dispatchingBranch depots should only receive, dispatching

and invoice.and invoice.

Reduce inventories and slash space cost of Reduce inventories and slash space cost of ware houses.ware houses.

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Importance of a effectiveImportance of a effectivedistribution channel.distribution channel.

Involves companys connection to itscustomers and a significant portion of its totalcosts.

Effective Distribution channel can effectivelydeliver goods to customers duringemergencies.

Distribution channel should be flexible.

A company should identify who the channel

serves and what are the emerging needs of thatcustomer rou .

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Different Distribution StrategiesDifferent Distribution Strategiesadopted by companies.adopted by companies.

BoeingManufacture Customer

Binders, file folders,staplers, reams of

paper Whole sale Dealer

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O ur Proposed PlanO ur Proposed Plan

The products should be shipped to Zonal WarehouseThe products should be shipped to Zonal Warehouse ..

Dealers should coDealers should co- -ordinate to meet the customer ordinate to meet the customer demand.demand.

Manufacturing Firm Zonal Warehouse

Dealer1

Dealer2

Dealer3Minimum stocks

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Actions to support the plan.Actions to support the plan.

Use technology to monitor inventories to order Use technology to monitor inventories to order electronically from suppliers and other distributors.electronically from suppliers and other distributors.

Improving marketing logistics with the help of integratedImproving marketing logistics with the help of integratedLogistic systemLogistic system planning the demand and salesplanning the demand and sales

forecasting.forecasting.

Improving material handling costs and procedures, byImproving material handling costs and procedures, bydealer codealer co- -ordination to estimate the supplies.ordination to estimate the supplies.

Large dealers can be provided the materials directly fromLarge dealers can be provided the materials directly from

the production unit, in case of acute demand.the production unit, in case of acute demand.

Effectively control the manufacturing process.Effectively control the manufacturing process.

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ContCont

Develop measurements to track theDevelop measurements to track theperformance of individual dealers.performance of individual dealers.

Communicate effectively to individual dealers.Communicate effectively to individual dealers.

Encourage dealers to establish and maintain aEncourage dealers to establish and maintain aaccurate information of frequent customersaccurate information of frequent customersand their demands.and their demands.

Address and solve any conflicts between theAddress and solve any conflicts between thedealers.dealers.

Third party supply should be also incorporated.Third party supply should be also incorporated.

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Suggestions from usSuggestions from usZonal warehouse will utilize space optimally.Zonal warehouse will utilize space optimally.

Short terms loans should be avoided as itShort terms loans should be avoided as itaffects our workingaffects our working

capital.capital.

Have an effective inventory policy.Have an effective inventory policy.

Speed of delivery of products should beSpeed of delivery of products should be

maintained.maintained.

Dealer coDealer co- -operation is essential.operation is essential.

Marketing and production team should workMarketing and production team should workin sync.in sync.