Transcript Channels of Distribution - Institutional Repository Undip

Channels of Distribution
Andi Wijayanto, S.Sos., M.Si
7/18/2015
PENGERTIAN
 Physical
distribution channel is the term
used to describe the method and means
by which a product or a group of
products are physically transferred, or
distributed, from their point of production
to the point at which they are made
available to the final customer.
 Saluran Distribusi diartikan sebagai suatu
jalur yang dilalui oleh arus barangbarang dari produsen ke perantara dan
pemakai akhir (David A. Revzan)
 Organisasi dalam dan luar perusahaan
yang terdiri atas agen, dealer,
pedagang besar dan pengecer, yang
7/18/2015
Jenis dan Struktur Saluran Distribusi Fisik
Alternative distribution channels for consumer products to retail outlets
7/18/2015
Generic Channels Of Distribution
7/18/2015
The Alternative Channels:

Manufacturer Direct To Retail Store.
The manufacturer or supplier delivers direct from the
production point to the retail store. As a general rule, this
channel is only used when full vehicle loads are being
delivered.

Manufacturer Via Manufacturer's Distribution Operation To
Retail Store.
The manufacturer or supplier holds its products in a finished
goods warehouse, a central distribution centre (CDC) or a
series of regional distribution centres (RDCs). The products
are trunked (line-hauled) in large vehicles to the sites,
where they are stored and then broken down into
individual orders that are delivered to retail stores on the
supplier's retail delivery vehicles.
7/18/2015
The Alternative Channels:

Manufacturer Via Retailer Distribution Centre to Retail
Store.
Manufacturers supplying their products to National
Distribution Centres (NDCs), which are sites run by the
retail organizations. The retailers then deliver full
vehicle loads of all the different manufacturers
products to their own stores. Most retailers now use
third parties to run these final delivery operations.

Manufacturer to Wholesaler to Retail Shop.
Wholesalers acted as the intermediaries in distribution
chains, providing the link between the manufacturer
and the small retailers' shops.
7/18/2015
The Alternative Channels:

Manufacturer to cash-and-carry wholesaler to retail
shop.
These are usually built around a wholesale organization
and consist of small independent shops collecting their
orders from regional wholesalers, rather than having
them delivered. The increase in cash-and-carry facilities
has arisen as many suppliers will not deliver direct to
small shops because the order quantities are very small.

Manufacturer via third-party distribution service to retail
shop.
A number of companies have developed a particular
expertise in warehousing and distribution. These
companies consist of those offering general distribution
services as well as those that concentrate on providing a
'specialist' service for one type of product or for one
client company.
7/18/2015
The Alternative Channels:

Manufacturer via small parcels carrier to retail shop.
Very similar to the previous physical distribution channel,
these companies provide a 'specialist‘ distribution
service where the 'product' is any small parcel. The
competition generated by these companies has been
quite fierce.

Manufacturer via broker to retail shop.
A broker is similar to a wholesaler in that it acts as
intermediary between manufacturer and retailer. Its role
is different, however, because it is often more
concerned with the marketing of a series of products,
and not really with their physical distribution. Thus, a
broker may use third-party distributors, or it may have its
own warehouse and delivery system. The broker can
provide an alternative physical distribution channel.
7/18/2015
Additional Channels
For Industrial Products

Mail order.
Goods are ordered by catalogue, and delivered to
the home by post or parcels carrier. The physical
distribution channel is thus from manufacturer to mail
order house as a conventional trunking (line-haul)
operation, and then to the consumer's home by post
or parcels carrier, bypassing the retail store.

Factory direct to home.
It can occur by direct selling methods, often as a
result of newspaper advertising. It is also commonly
used for one-off products that are specially made
and do not need to be stocked in a warehouse to
provide a particular level of service to the customer.
7/18/2015
Additional Channels
For Industrial Products

Internet and shopping from home.
Initial physical distribution channels were similar to those used
by mail order operations - by post and parcels carrier. The
move to internet shopping for grocery products has led to the
introduction of specialist home delivery distribution operations.
These are almost all run by third-party companies. In addition,
it is now possible to distribute some products, such as music,
software and films, directly, computer to computer.

Factory to factory/business to business.
The factory-to-factory or business-to-business channel is an
extremely important one, as it includes all of the movement of
industrial products, of which there are very many. This may
cover raw materials, components, part-assembled products,
etc. Options vary according to the type and size of product
and order, may range from full loads to small parcels, and
may be undertaken by the manufacturers themselves or by a
third party.
7/18/2015
The Main Differences Among
Channel Structures Are:
 The
types of intermediaries (as shown
above);
 the number of levels of intermediaries
(how many companies handle the
product);
 the intensity of distribution at each level
(ie: are all or just selective intermediaries
used at the different levels?).
7/18/2015
Channel Selection


Normally be considered by a company in the course of its distribution
planning process to ensure that the most appropriate channel structure is
developed:
To make the product readily available to the market consumers at which
it is aimed. The most important factor here is to ensure that the product is
represented in the right type of outlet or retail store. Having identified the
correct marketplace for the goods, the company must make certain that
the appropriate physical distribution channel is selected to achieve this
objective.
To enhance the prospect of sales being made. This can be achieved in a
number of ways. The most appropriate factors for each product or type
of retail store will be reflected in the choice of channel. The general aims
are to get good positions and displays in the store, and to gain the active
support of the retail salesperson, if necessary. The product should be
'visible, accessible and attractively displayed'. Channel choice is
affected by this objective in a number of ways:
- Does the deliverer arrange the merchandise in the shop?
- Are special displays used?
- Does the product need to be demonstrated or explained?
- Is there a special promotion of the product?
7/18/2015
CHANNEL SELECTION


To achieve co-operation with regard to any relevant
distribution factors. These factors may be from the
supplier's or the receiver's point of view, and include
minimum order sizes, unit load types, product handling
characteristics, materials handling aids, delivery
access (eg vehicle size) and delivery time constraints,
etc.
To achieve a given level of service. Once again, from
both the supplier's and the customer's viewpoints, a
specified level of service should be established,
measured and maintained. The customer normally
sees this as crucial, and relative performance in
achieving service level requirements is often used to
compare suppliers and may be the basis for
subsequent buying decisions.
7/18/2015
CHANNEL SELECTION
 To
minimize logistics and total costs.
Clearly, costs are very important, as they
are reflected in the final price of the
product. The selected channel will reflect
a certain cost, and this cost must be
assessed in relation to the type of
product offered and the level of service
required.
 To receive fast and accurate feedback
of information. A good flow of relevant
information is essential for the provision
and maintenance of an efficient
distribution service. It will include sales
trends, inventory levels, damage reports,
7/18/2015
Types Of Third-party Distribution
Operation
Dedicated (or exclusive) distribution operation. This is where a
complete distribution operation is provided by a third-party
company. The third party undertakes to provide the customer
with all its distribution requirements, exclusively, on a national or
regional basis. The resources used will include warehouses,
distribution centres, transport fleets, managers, etc. These are
obviously confined to very large companies.
 Multi-user (or shared-user) distribution operation. Similar to
dedicated operations, the principal difference being that a small
group of client companies is catered for, rather than just a single
client. One of the characteristics of this type of service is that
ideally the clients are all manufacturers or suppliers of goods and
their products are all delivered to the same or similar customers,
for example grocery products to grocery stores, supermarkets,
catering establishments, etc. These are also known as shared user
operations. The advantage of this approach is that expensive
distribution costs are shared between the clients, so all parties
enjoy the benefits.

7/18/2015
Types Of Third-party Distribution
Operation
Specialist distribution operation. These distribution
operations are used for the storage and movement
of products that require special facilities or services,
and the distribution operation run by the third-party
company is especially tailored to suit these needs.
There are several examples, such as frozen food
and hanging garment distribution.
 Regional multi-client distribution operation. These
operations are provided for any number of clients
and for most product types. They are usually
provided by a 'general' third-party distributor that
has probably started as a very small operation and
grown into a regional operation concentrated in a
specific small geographic area.

7/18/2015
Types Of Third-party Distribution
Operation


National multi-client distribution operation. Similar to
the previous one, a service being provided for any
number of clients and product types. The main
difference relates to the size of the operation. This is
nationwide, and would include a trunking (line-haul)
operation between the companies' sites, so that if
necessary a client company can have a delivery
service to anywhere in the country.
Satellite or cross-docking operation. These are
operations where the operator is not involved in the
storage of any products, but is only providing a
collect, break-bulk and delivery service. Thus, no
unordered stocks are held, although some minor
stockholding may occur for a limited number of
product lines.
7/18/2015
Types Of Third-party Distribution
Operation
Joint venture. A limited number of operations have been set up
whereby a third-party operator and a client company form a
separate distribution company called a joint venture. This may
occur where a company with its own distribution operation has
some underutilized resources. It will then link up with a third-party
operator and offer the services on a wider basis. This has
occurred in the hanging goods and the high-tech sectors.
 International distribution operations. These may be dedicated but
are most likely to be multi-user, enabling a client to achieve
international movements between sites and delivery to final
customers over a broad international area.
 Occasional use. Many companies use third-party services on an
occasional basis or as an aid to support their own-account
operations. There are a number of reasons why a company might
do this: to cover seasonal peaks in demand; to cover weekly
demand peaks; for non-standard products that don't fit easily into
their own operation (very small or very large products); to deliver
to peripheral geographic areas where there is only limited
demand for their products; or for non-standard operations
(returns, collections, etc).

7/18/2015
KEY DRIVERS FOR THIRD-PARTY
DISTRIBUTION
Cost (capital cost, operating cost, Economies of scale, cost
lag or cushion effect, change-over costs)
 Service (greater flexibility)
 Organizational (concentrate on their core business, oss of
control over, the delivery operation, loss of control over the
company’s logistical variables, lack the experience, service
levels are poorer, balance of power is shifted, loss of
distribution and logistics expertise, problem trying to coordinate third-party delivery service with a client
company’s sales service, loss of direct influence at the
point of delivery, brand integrity, the confidentiality of
information, cultural incompatibility)
 Physical factors (greater flexibility, solve any industrial
relations problems, drop characteristics of some products,
Vehicle characteristics, Basic delivery systems may be
incompatible, Some products may be incompatible)

7/18/2015
REFERENSI

Alan Rushton, Phil Croucher, & Peter Baker. 2006.
The Handbook Of Logistics And Distribution
Management. Kogan Page, Ltd.

Kodrat, David Sukardi. 2009. Manajemen Distribusi
Berbasis Teori dan Praktek. Yogyakarta: Graha
Ilmu.

Slide ini dapat anda download di:
http://andiwijayanto.blog.undip.ac.id
7/18/2015