Title: Distribution and Supply Chain Management
Introduction to Distribution and Supply Chain Management
Definition:
o Distribution Management: The process of moving goods
from the manufacturer to the final consumer.
o Supply Chain Management (SCM): The oversight of
materials, information, and finances as they move from
supplier to manufacturer, wholesaler, retailer, and finally to
the consumer.
Importance in Marketing Management:
o Ensures that the product is available at the right time, place,
and quantity.
Key Components of Distribution in Marketing
Channels of Distribution:
o Direct (Manufacturer → Consumer)
o Indirect (Manufacturer → Wholesaler → Retailer →
Consumer)
Types of Distribution Channels:
o Intensive: Products are available widely (e.g., Coca-Cola)
o Selective: Available in specific locations (e.g., branded
electronics)
o Exclusive: Limited distribution (e.g., luxury brands like
Rolex)
Example:
Apple's Distribution Strategy (Selective and Exclusive): Selling
through Apple stores, authorized resellers, and limited online
channels.
Functions of Distribution Channels
Facilitating the Exchange of Goods:
o Breaking bulk, accumulating, sorting, and assorting products.
Providing Customer Convenience:
o Time, place, and possession utilities.
Supporting After-Sales Services:
o Installation, warranty, repairs, etc.
Introduction to Supply Chain Management
Key Elements of SCM:
o Suppliers → Manufacturers → Distributors → Retailers
→ Consumers
Objectives of SCM in Marketing:
o Minimizing costs, maximizing efficiency, improving
customer satisfaction.
Supply Chain Strategies
Lean Supply Chain:
o Focus on efficiency and waste reduction.
o Example: Toyota’s Just-In-Time (JIT) production.
Agile Supply Chain:
o Focus on flexibility and responsiveness to changes in
demand.
o Example: Zara’s fast fashion supply chain, where design to
retail takes less than a month.
Role of Technology in Supply Chain Management
Automation and Robotics:
o Improving warehouse efficiency and reducing manual labor.
o Example: Amazon’s automated fulfillment centers.
Distribution and Supply Chain Challenges
Challenges in Distribution:
o Handling perishable goods, ensuring product availability,
dealing with large geographic markets.
Challenges in Supply Chain:
o Supplier delays, inventory shortages, transportation
bottlenecks.
Example:
COVID-19 Impact: How global supply chains were disrupted,
especially in medical supplies and consumer goods.
Global Supply Chain Management
Global Sourcing:
o Procuring products and services from suppliers around the
world to take advantage of lower costs.
Logistics in International Markets:
o Managing imports, exports, customs, tariffs, and varying
regulations.
Example:
Nike's Global Supply Chain: Balancing production between low-
cost countries and ensuring timely distribution worldwide.
E-Commerce and Omnichannel Distribution
E-Commerce Impact on Supply Chains:
o Changing consumer behavior and expectations for fast,
reliable deliveries.
Omnichannel Strategy:
o Integrating physical and online retail channels for a seamless
customer experience.
Example:
Amazon and Omnichannel Retail: Offering both online ordering
and physical store options via Amazon Go.
