Distribution.pdf

Distribution.pdf
1 MODULE 3: INTRODUCTION TO DISTRIBUTION MANAGEMENT 8 HOURS INTRODUCTION; NEED AND SCOPE OF DISTRIBUTION MANAGEMENT; MARKETING CHANNELS STRATEGY; LEVELS OF CHANNELS CHANNEL INTEGRATION - VMS; HMS; CHANNEL MANAGEMENT; AND MARKETING CHANNEL POLICIES & LEGAL ISSUE INSTITUTIONS FOR CHANNELS- WHOLESALING AND RETAILING; DESIGNING CHANNEL SYSTEMS; CHANNEL MANAGEMENT; Dr. Noor Firdoos Jahan, Professor, RVIM
4P’S OF MARKETING MIX Dr. Noor Firdoos Jahan, Professor, RVIM 2
4P’S OF MARKETING MIX PLACE  Where do buyers look for your product or service?  If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue?  How can you access the right distribution channels?  Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies?  What do you competitors do, and how can you learn from that and/or differentiate? Dr. Noor Firdoos Jahan, Professor, RVIM 3
Distribution Management Transport Area of Supply Chain Management Sales Activities Store Warehouse Sales Depot CONCEPT OF DISTRIBUTION Manufacturing Warehouse Point of Sales Pre Production Activities Production Dr. Noor Firdoos Jahan, Professor, RVIM 4
WHERE DOES IT STAND IN THE COMPANY?? CEO Production Manufacturing Warehousing Marketing Product & Brand Sales / Distribution / Trade Marketing Customer Service Finance HR Admin Is distribution the most important function of all?? Dr. Noor Firdoos Jahan, Professor, RVIM 5
SO, WHAT DOES DISTRIBUTION MANAGEMENT DO??  Distribution management serves the primary function of ensuring the product or service is available to the consumer within an arm’s length of his / her desire.  It makes sure that the product or service is available to the consumer,  When they want  Where they want  How they want It provides “time”, “place” and “possession” utility to the consumer Dr. Noor Firdoos Jahan, Professor, RVIM 6
ISN’T DISTRIBUTION SAME AS SALES?  Distribution is a part of Overall Sales Activity  Distribution functions execute the overall Sales and Distribution Strategy  Distribution complement Sales and Distribution Strategy with the management of its elements (i.e. planning, budgeting, sales force management and channels as required) Sales Management Task Achievement of volume and market share Distribution Management Role Physical movement of goods and storage of products in the market Ensuring high shelf visibility Dr. Noor Firdoos Jahan, Professor, RVIM 7
Dr. Noor Firdoos Jahan, Professor, RVIM 8
Elements/Scope of Distribution Management Planning, Forecasting & budgeting Sales Force management Product pricing and promotion Product Visibility Distribution channels Channel Information Systems Warehousing and logistics From recruitment to motivating to leading the sales force Physical Goods movement and warehousing Getting the feedback from channel partners and insights The ways you deliver the product to the end consumer Making sure that the product is visible and is where it is supposed to be Promoting the product through different channels (consumer, sales force, channel partners etc) Strategically planning for sales and distribution. Forecasting and budgeting to achieve the same Dr. Noor Firdoos Jahan, Professor, RVIM 9
ELEMENTS/ SCOPE OF DISTRIBUTION MANAGEMENT  Planning, Forecasting & budgeting  Strategic planning  Deriving the Sales and Distribution strategy  Developing a Sales Forecast  Sales Forecasting Methods  Sales Budgets  Sales Force management  Recruitment the sales force  Training the sales force  Motivating the sales force  Compensating the sales force  Leading the sales force  Product pricing and promotion  Sales promotion  Type of promotion Dr. Noor Firdoos Jahan, Professor, RVIM 10
 Product Visibility  Product Availability & Visibility / Point of Sales Merchandizing  Ensuring the right product availability  Utilizing the Point of Sales  Distribution channels  Channel formats  Service channels  Prominent channel systems  Channel institutions Dr. Noor Firdoos Jahan, Professor, RVIM 11
 Channel Information Systems  Why an information system?  Elements of a Channel Information System  Channel performance evaluation  Warehousing and logistics  Scope of logistics  Order processing  Supply chain management  Focus areas of logistics and supply chain management  Technology in logistics management Dr. Noor Firdoos Jahan, Professor, RVIM 12
DISTRIBUTION CHANNELS DEFINED • Are sets of interdependent organizations involved in the process of making a product or service available for use or consumption • Whether selling products or services, marketing channel decisions play a role of strategic importance in the overall presence and success a company enjoys in the marketplace. Dr. Noor Firdoos Jahan, Professor, RVIM 13
DISTRIBUTION CHANNELS •Are intermediaries or middlemen oExist because producers cannot reach all their consumers oMultiply reach and provide efficiency to the marketing process oFacilitate smooth flow and create time, place and possession utilities oHave the core competence and reach oProvide contact, experience, specialization and scales of operation Dr. Noor Firdoos Jahan, Professor, RVIM 14
TYPES OF CHANNELS •Sales: motivates buyers, shares information between company and its consumers, negotiates fair bargains for consumers and finances the transactions •Delivery channel meant only for physical part of the distribution •Service channel – performs after sales service Dr. Noor Firdoos Jahan, Professor, RVIM 15
LISTING OF CHANNEL MEMBERS •Company own sales team •C&FAs and CSAs •Distributors, dealers, stockists, value-added re-sellers •Agents and brokers •Franchisees •Electronic channels •Wholesalers •Retailers Dr. Noor Firdoos Jahan, Professor, RVIM 16
C&FAS / C&SAS •C&FA: carrying and forwarding agent and C&SA: carrying and selling agent – both are on contract with a company and its distributors •Both are transporters who work between the company •Collect products from the company, store in a central location, break bulk and despatch to distributors against indents •Goods belong to the company •C&SA also sells the goods on behalf of the company but remits proceeds after sale Dr. Noor Firdoos Jahan, Professor, RVIM 17
DISTRIBUTORS, DEALERS, STOCKIEST, AGENTS them •Name denotes the extent of re-distribution done by •Distributors invest in the products – buy products from the company •Are on commission, margins or mark-up •May or may not get credit – but extend credit •Distributors cover the markets as per a beat plan. All others merely finance the business. •Distributors could be exclusive for a company •Agents bring buyer and seller together Dr. Noor Firdoos Jahan, Professor, RVIM 18
WHOLESALERS •Operate out of the main markets •Deal with a number of company products of their choice •Are not on contract with any company •Sell to other wholesalers, retailers and institutions •Negotiate about 15 days credit from company distributors – also provide credit to their customers •Operate on high volumes and low margins Dr. Noor Firdoos Jahan, Professor, RVIM 19
RETAILERS •The final contact with consumers •Operate out of their shops and sell a large assortment and variety of goods •Located closest to consumers •Buy from company, distributors or wholesalers •Highest margins in the network •Provide personalized services to their customers Dr. Noor Firdoos Jahan, Professor, RVIM 20
INDUSTRIAL PRODUCTS Industrial Distributor Industrial Customer Industrial Distributor Industrial Customer Agent/middleman Customers may also direct from company sales force Producer Producer Dr. Noor Firdoos Jahan, Professor, RVIM 21
CONSUMER PRODUCTS Producer Producer Customer / consumer Retailer Distributor Distributor Retailer Customer/ Consumer Wholesaler Customer/ Consumer Retailer Retailers may also direct from company sales force Producer Dr. Noor Firdoos Jahan, Professor, RVIM 22
PATTERNS OF DISTRIBUTION •Determines the intensity of the distribution •Intensity decides the service level provided •Types of distribution intensity: oIntensive oSelective oExclusive Dr. Noor Firdoos Jahan, Professor, RVIM 23
DISTRIBUTION INTENSITY •Intensive: distribution through every reasonable outlet available •Selective: multiple, but not all outlets in the market – pharma, frozen food •Exclusive: may be only one outlet in a market - car dealers Dr. Noor Firdoos Jahan, Professor, RVIM 24
INTENSIVE DISTRIBUTION •Strategy is to make sure that the product is available in as many outlets as possible •Preferred for consumer, pharmaceutical products and automobile spares Ex. Motor oil is sold in quick-lube shops, farm stores, auto parts retailers, supermarkets, drugstores, hardware stores, warehouse clubs, and other mass merchandisers. Dr. Noor Firdoos Jahan, Professor, RVIM 25
SELECTIVE DISTRIBUTION •A few select outlets will be permitted to keep the products •Outlets selected in line with the image the company wants to project •Preferred for high value products •Keeps distribution costs lower Ex. Armani & Lucky Brand sell their clothing only through top department stores that appeal to the affluent customers who buy its merchandise. It does not sell in a chain megastore or a variety store. Dr. Noor Firdoos Jahan, Professor, RVIM 26
EXCLUSIVE DISTRIBUTION •Highly selective choice of outlets – may be even one outlet in an entire market •Could include outlets set up by companies •Producer wants a close watch and control on the distribution of his products. Ex. Franchisor legally requires a franchisee to sell only the franchisor’s products Dr. Noor Firdoos Jahan, Professor, RVIM 27
28 INTEGRATED DISTRIBUTION Manufacturer acts as wholesaler and retailer for its own products.  EX. Sherwin-Williams Paint, Merle Norman  Ex. The Gap or Ann Taylor sells its clothing in company- owned retail stores. Dr. Noor Firdoos Jahan, Professor, RVIM
DISTRIBUTION CHANNEL STRATEGY marketing strategy •Derived from the corporate strategy and the •Steps for designing the distribution strategy are: oDefining customer service levels oDistribution objectives and steps oStructure of the network required oPolicy and procedure to be followed oKey performance indicators oCritical success factors Dr. Noor Firdoos Jahan, Professor, RVIM 29
CUSTOMER SERVICE LEVELS •Defined by the nature of the industry, the products, competition and market shares. •Affordability also decides the service level •It should at least match competition. •Customer expectations have no limit Dr. Noor Firdoos Jahan, Professor, RVIM 30
DISTRIBUTION OBJECTIVES •Influenced by the customer expectations •Defines the extent of time, place and possession utility which the customer can expect out of the channel network Dr. Noor Firdoos Jahan, Professor, RVIM 31
SET OF ACTIVITIES •Manner in which the company and its marketing channels go about achieving the customer service levels •Some of these steps could be: o Sales forecasts o Despatch plans o Market coverage beat plans o Journey plans for service engineers o Collection of sales proceeds o Carrying out promotional activities •The company also decides as to who is to perform which task Dr. Noor Firdoos Jahan, Professor, RVIM 32
DISTRIBUTION ORGANIZATION •Extent of company support and outsourcing to be  decided •Budget for the cost of the distribution effort •Select suitable channel partners – C&FAs, and  distributors •Setting clear objectives for the partners •Agree on level of financial commitments by the channel partners . Dr. Noor Firdoos Jahan, Professor, RVIM 33
POLICY & PROCEDURE •Define policy and implementation guidelines through Operating Manuals •Policy guidelines include oCode of conduct for channel members oSystem for redressal of complaints oAny additional subsidies etc oHandling institutional business oService policy for engineering products Dr. Noor Firdoos Jahan, Professor, RVIM 34
KEY PERFORMANCE INDICATORS •For measurement of effectiveness. Some of these could be: oConsistent achievement of targets by product groups, periods and territories oAchievement of market shares oAchievement of profitability oZero complaints from customers oNo stock returns oAbility to handle emergencies and sudden spurts in demand Dr. Noor Firdoos Jahan, Professor, RVIM 35
KEY PERFORMANCE INDICATORS •For measurement of effectiveness. Some of these could be: oBalanced sales achievement during a period – no period end skews oMarket coverage with ready stocks oExcellent management of accounts receivables oMinimize losses on account of stock-outs oMinimize damages to products Dr. Noor Firdoos Jahan, Professor, RVIM 36
CRITICAL SUCCESS FACTORS •The distribution strategy also needs the support and encouragement of top management to succeed •Some of the CSFs could be: oClear, transparent and unambiguous policy and procedure oSerious commitment of the channel partners oFairness in dealings oClearly defined customer service policy oHigh level of integrity oEquitable distribution at times of shortage oTimely compensation of channel partners Dr. Noor Firdoos Jahan, Professor, RVIM 37
38 DESCRIBE WHEN A CHANNEL WILL BE MOST EFFECTIVE The channel must be properly managed Recognize the importance of their task and make informed decisions Each member is assigned tasks it can do best Dr. Noor Firdoos Jahan, Professor, RVIM
39 DESCRIBE WHEN A CHANNEL WILL BE MOST EFFECTIVE (CONT.) Channel members share a common goal  Commitment to quality of the product  Satisfying the target market’s needs and wants  All members cooperate to attain overall channel goals  If the channel is not effective, conflict occurs….. Dr. Noor Firdoos Jahan, Professor, RVIM
40 DISTINGUISH BETWEEN HORIZONTAL AND VERTICAL CONFLICT Horizontal Conflict: occurs between channel members at the same level  Good, old-fashioned business competition  Ex: two retailers selling pet supplies compete to sell to the same target market Dr. Noor Firdoos Jahan, Professor, RVIM
41 DISTINGUISH BETWEEN HORIZONTAL AND VERTICAL CONFLICT (CONT.) Vertical Conflict: occurs between channel members at different levels within the same channel  Producers and wholesalers, wholesalers & retailers, or producers and retailers Dr. Noor Firdoos Jahan, Professor, RVIM
So there are conflicts at all levels …… To eradicate conflicts , Modern channel management has evolved to develop vertical marketing systems (VMS) Dr. Noor Firdoos Jahan, Professor, RVIM 42
• Vertical Marketing Systems (VMS) consists of producers, wholesalers, and retailers acting as a unified system - that seek to maximize profits for whole channel. • Here, one channel members- owns the others, has contracts with them or use so much power that they all cooperate. • Such systems occur to control channel behavior and manage channel conflict. Dr. Noor Firdoos Jahan, Professor, RVIM 43
A conventional marketing channel versus a vertical marketing system Dr. Noor Firdoos Jahan, Professor, RVIM 44
Vertical marketing systems (VMS) Corporate VMS Contractual VMS Administered VMS Wholesaler- sponsored voluntary chains Retailer cooperatives Franchise organizations Dr. Noor Firdoos Jahan, Professor, RVIM 45
 Combines successive stages of production and distribution under single ownership.  Breweries and petrol stations are examples. Dr. Noor Firdoos Jahan, Professor, RVIM 46
• Independent firms join contractually at different levels to create efficiencies and economies . • 3 types : • Wholesaler-sponsored voluntary chains of independent retailers organised to compete against large organisations. Eg: Coca-Cola bottler is a manufacturer-sponsored wholesaler. • Retailer co-operatives • Franchisee Dr. Noor Firdoos Jahan, Professor, RVIM 47
– retailer cooperatives; are contractual marketing systems in which ; – retailers organize a new or – jointly owned business to carry on wholesaling and possibly production. – Eg ; Indian Coffee House , Mother Dairy , Karnataka Milk Federation (KMF). Dr. Noor Firdoos Jahan, Professor, RVIM 48
– franchise organizations; are contractual marketing systems in which a channel member, called a franchiser, links several stages in the production-distribution process. There are three forms of franchisees; • manufacturer-sponsored retailer franchisee system e.g. Ford licenses dealers to sell its cars. The dealers are independent business people who got sponsered by manufacturer. • manufacturer-sponsored wholesaler franchisee system e.g. Coca-Cola licenses bottlers (wholesalers) in various markets who buy Coca-Cola syrup concentrate and then carbonate, bottle and sell the finished product to retailers in local markets. Dr. Noor Firdoos Jahan, Professor, RVIM 49
• service-firm-sponsored retailer franchisee system in which a service firm licenses the retailers to bring its service to consumers. • Example; Dr. Noor Firdoos Jahan, Professor, RVIM 50
• One member of the channel is large and powerful enough to coordinate the activities of the other members without an ownership stake. • Examples ; Dr. Noor Firdoos Jahan, Professor, RVIM 51
• High operating Efficiency . • Each layers has clearly defined functions and responsibilities. • Closely monitor and control . Dr. Noor Firdoos Jahan, Professor, RVIM 52
• Horizontal marketing systems is a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity. • The major benefit is that companies combine their capital, production capabilities, marketing resources and therefore accomplish more. Dr. Noor Firdoos Jahan, Professor, RVIM 53
• E.g. Coca-Cola and Nestle formed a joint venture to market ready-to-drink coffee and tea worldwide. Dr. Noor Firdoos Jahan, Professor, RVIM 54
• Greater satisfaction due to greater freedom and autonomy . • Provides streamline due to absence of multiple structured layers . Dr. Noor Firdoos Jahan, Professor, RVIM 55
56 CHANNEL MANAGEMENT DECISIONS Channel strategy is not formulated in a vacuum  Channel strategy and product strategy  Channel strategy and price strategy  Channel strategy and promotion strategy Dr. Noor Firdoos Jahan, Professor, RVIM
57 DESCRIBE CHANNEL MANAGEMENT DECISIONS Decisions about a product’s physical movement and transfer of ownership from producer to consumer.  FIRST - Setting channel objectives  Determine what the company is trying to achieve  Meet the needs and wants of their target market  Give their product a competitive edge  SECOND - Channel members: – Selection – Management – Motivation – Evaluation Dr. Noor Firdoos Jahan, Professor, RVIM
58 1. SELECTING CHANNEL MEMBERS Determine the types of members the belong in the channel, as well as the channel length (total number of channel members)  Usually based on the nature of the product  Factors to consider:  Create product value that others cannot or are not willing to provide  Channel the product to its desired market  Have a pricing and promotion strategy compatible with the product’s needs  Offer customer service compatible with the products needs  Be willing and able to work cooperatively with other members within the product’s channel Dr. Noor Firdoos Jahan, Professor, RVIM
59 1. SELECTING CHANNEL MEMBERS (CONT.) Involves determining the characteristics that distinguish the better ones by evaluating channel members Do they: Provide value? Perform a function? Expect an economic return ? Years in business Lines carried Profit record Policies, strategies, & image Experience & track record Dr. Noor Firdoos Jahan, Professor, RVIM
60 1. SELECTING CHANNEL MEMBERS (CONT.) Selecting intermediaries that are sales agents involves evaluating Number and character of other lines carried Size and quality of sales force Dr. Noor Firdoos Jahan, Professor, RVIM
61 1. SELECTING CHANNEL MEMBERS (CONT.)  Market segment - must know the specific segment and target customer  Selecting intermediates that are retail stores that want exclusive or selective distribution involves evaluating Store’s customers Store locations Growth potential Dr. Noor Firdoos Jahan, Professor, RVIM
62 2. MANAGING CHANNEL MEMBERS  Determining channel responsibilities • Members must work together appropriately and perform the tasks they are best suited for  The company must sell not only through the intermediaries but also to/with them Dr. Noor Firdoos Jahan, Professor, RVIM
63 2. MANAGING CHANNEL MEMBERS (CONT.)  Partner relationship management (PRM) and supply chain management (SCM) software are used to • Forge long-term partnerships with channel members • Recruit, train, organize, manage, motivate, and evaluate channel members Dr. Noor Firdoos Jahan, Professor, RVIM
64 3. MOTIVATING CHANNEL MEMBERS  Develop a cooperative/collaborative and balanced relationship with the partner  Understand the partner’s customers – their needs, wants, and demands  Understand the partner’s business – operationally and financially and what’s really important to them  Look at the partner’s needs in terms of customer support, technical support, and training  Establish clear and agreed upon expectations and goals  Develop recognition programs focusing on the partner’s contributions  Build internal support systems and dedicate resources to the partner Dr. Noor Firdoos Jahan, Professor, RVIM
65 3. MOTIVATING CHANNEL MEMBERS (CONT.)  Motivation can be positive or negative Sanctions may be imposed on middlemen not performing well Chargebacks – financial penalties assessed for a variety of problems Incentives may be offered for reaching performance goals Dr. Noor Firdoos Jahan, Professor, RVIM
66 4. EVALUATING CHANNEL MEMBERS Produces must evaluate intermediaries performance against such standards as:  Sales quota attainment  Average inventory levels  Customer delivery time  Treatment of damaged and lost goods  Cooperation in promotional and training programs. Dr. Noor Firdoos Jahan, Professor, RVIM
67 4. EVALUATING CHANNEL MEMBERS (CONT.) Should constantly evaluate the channel: What is working? What is not working? What can be improved? Dr. Noor Firdoos Jahan, Professor, RVIM
68 4. EVALUATING CHANNEL MEMBERS (CONT.) Risks & Dangers of Distribution Decisions  Transaction costs both apparent & hidden  Risks include loss in transit, destruction, negligence, non- payment and so on.  So, careful choice & evaluation of each & every channel partner is a necessity. Dr. Noor Firdoos Jahan, Professor, RVIM
69 DISTRIBUTION DECISIONS - MAJOR CONSIDERATIONS…  Multiple channels  Control vs. costs  Intensity of distribution desired  Involvement in e-commerce Dr. Noor Firdoos Jahan, Professor, RVIM
70 1. MULTIPLE CHANNELS  Some products meet the needs of both industrial and consumer markets.  J & J Snack Foods sells its pretzels, drinks and cookies using multiple channels to:  Supermarkets  Movie Theaters  Stadiums  Schools  Hospitals Dr. Noor Firdoos Jahan, Professor, RVIM
71 2. CONTROL VS. COSTS  All manufacturers and producers must weigh the control they want to keep over the distribution of their products against the costs and profitability.  Direct sales force – company employees are expensive with payroll, benefits, expenses; may set sales quotas and easily monitor performance  Agents – work independently, running their own businesses; less expensive = less control; agents sell product lines that make them more money Dr. Noor Firdoos Jahan, Professor, RVIM
72 MANAGEMENT’S DESIRE FOR CONTROL OF DISTRIBUTION • In general, the shorter the channel structure, the higher the degree of control, and vice versa. • The lower the intensity of distribution, the higher the degree of control, and vice versa. Dr. Noor Firdoos Jahan, Professor, RVIM
73 3. DISTRIBUTION INTENSITY  Exclusive Distribution  Selective Distribution  Intensive Distribution  Integrated Distribution Dr. Noor Firdoos Jahan, Professor, RVIM
74 4. INVOLVEMENT IN E-COMMERCE  = means by which products are sold to customers and industrial buyers through the Internet.  Consumers have also become accustomed to buying products online.  one-stop shopping and substantial savings for industrial buyers.  E-marketplaces provide smaller businesses with the exposure that they could not get elsewhere Dr. Noor Firdoos Jahan, Professor, RVIM
75 CHANNEL DESIGN DECISIONS  Channel design/structure = form or shape that a marketing channel takes to perform the tasks necessary to make products available to consumers.  Includes ALL the parties involved  Efficient movement of finished product from the end of the production line to customers.  Coordinate the execution of distribution plans  So as to provide good customer service at acceptable cost. Dr. Noor Firdoos Jahan, Professor, RVIM
76 CHANNEL STRUCTURE/DESIGN 1. Setting distribution objectives  Meeting customer needs is the ultimate goal 2. Specifying distribution tasks  who does what along the supply chain (channel of distribution) 3. Considering alternative channel structures  Three dimensions:  Length/Intensity/Types of intermediaries 4. Choosing optimal channel structures  each participant in the marketing channel focuses on performing those activities at which it is most efficient. This results in much greater efficiency and higher output. Dr. Noor Firdoos Jahan, Professor, RVIM
77 THREE DIMENSIONS OF CHANNEL DESIGN 1.Length of the channel 2.Intensity of various levels (Exclusive, Selective, Intensive) 3.Types of intermediaries involved Dr. Noor Firdoos Jahan, Professor, RVIM
78  Channel length = number of levels in a distribution channel. Manufacturer Manufacturer Manufacturer Manufacturer Consumer Consumer Consumer Consumer Retailer Retailer Retailer Wholesaler Wholesaler Agent 2 level 3 level 4 level 5 level LENGTH OF CHANNEL Dr. Noor Firdoos Jahan, Professor, RVIM
79 DETERMINANTS OF CHANNEL STRUCTURE 1. The distribution tasks that need to be performed 2. The economics of performing distribution tasks 3. Management’s desire for control of distribution 4. Transaction Efficiency (refers to the effort to reduce the number of transactions between producers &consumers). Dr. Noor Firdoos Jahan, Professor, RVIM
80 Customer Warehouse Call Center Online Order Inventory Check Items in Stock? No, Customer Notified of Backorder Yes, Item Packed for Shipment Accounts Receivable Processes Payment Item Shipped Actions to Facilitate Order Processin g Dr. Noor Firdoos Jahan, Professor, RVIM
81 DESCRIBE THE ROLE OF CUSTOMER SERVICE IN FOLLOWING UP ON ORDERS  Following up with your customers after the sale is an important part of providing good customer service.  Should customer have questions or problems it is your duty to make sure they have a positive experience with your company. Dr. Noor Firdoos Jahan, Professor, RVIM
82 USE OF TECHNOLOGY IN DISTRIBUTION  Some businesses have the capacity to distribute most or all of their products through the internet  e-commerce: Products are sold to customers and industrial buyers through the Internet.  e-marketplace  Satellite tracking = a dispatcher has current knowledge of a delivery truck’s location and destination Dr. Noor Firdoos Jahan, Professor, RVIM
83 USE OF TECHNOLOGY IN DISTRIBUTION (CONT.)  Tracking of package  Bar coding on package  Package scanned at transition points in distribution chain  Customer uses internet to follow package along distribution chain; e-mail may be used  Global distribution: in some countries the postal service is not reliable; package tracking facilitates global trade Dr. Noor Firdoos Jahan, Professor, RVIM
84 USE OF TECHNOLOGY IN DISTRIBUTION (CONT.)  Problems  Cost of technology  Changing technology = updating equipment  Need for compatible systems within and between businesses & countries Dr. Noor Firdoos Jahan, Professor, RVIM
END Dr. Noor Firdoos Jahan, Professor, RVIM 85

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