Documentos de Académico
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Distributio
n
(PD) Physical
Distribution or Channel
Logistic Management
Management
Creating
Alternative Evaluation of
Selection of
Channels, channel members
Channel
Inventory Evaluation appraisal
Transportation Warehousing members in the
Management Selection of Counselling
selected
Appropriate Rewarding or
channel
Channel that Repremanding
meets objective
Supply Chain
Management
Operations or Logistics
connected with movement of Outbound Logistics
Inbound Logistics
goods from stores into Movement of “FG” from place
(Purchase, Receipt) stocking
production line on to finished of Manufacture or warehouse
of Raw Material , Components
goods warehouses (infactory, to trademembers or turther
from suppliers into factory
Integrated
field warehouse or C&F on to consumers
Materials Agents) Marketing
Managemen Logistics
t
Distribution cost is second only to the material cost. Raw Material is the largest
cost. DC is the most neglected area of management i.e. this was the most
inefficient and unproductive area of operation. Following are the reasons:
However in the last decade, most of the Indian manufacturing companies has
substantially increased their bottom line thanks to use of the following:
1. information technology,
2. SCM techniques like SAP, ERP, etc.
3. Use of modern inventory management techniques mostly electronic data
interchange (EDI) and Inventory Management
4. Introduction concepts of Carrying and Forwarding agents (C&F) in place of
national distribution houses (such as Voltas, Godrej, etc.)
This has helped in substantially increase in profits. Due to this most of the Indian
companies are able to keep their balance sheets healthy and clean. Not only with
respect to non-moving and slow moving stock and debtors but also in the debt to
equity ratios. Today most of the companies have repaid most of their high interest
debts resulting in < 1 debt to equity ration. This is a indication of a very healthy
Balance Sheet
Typically in most engineering and product companies material 40% to 60% of the
Total Selling price.
Logistic Management is concerned with physical movement of goods from the place
of manufacture to the place of consumption. Therefore three important activities
are inventory management, warehousing and Transportation.
C
o
s
t
Optimum
Level
Service
Level
Transportation Management Requirement (Transportation)
• Assessment of transportation requirement
• Choosing the mix of transportation modes
• Decide the routing
• Develop Operational Plans
• Implement/Review
• Control Transportation Costs
Redistributio Super
n Stockist Stockist
Consumers Retailers
SubRetailer
Consumers
T
Competitive
Advantage
Competitor Centeredness
Low High
Customer Low Self Centered Competitor
Centerednes Company Centered
s Company
High Customer Market
Centered Oriented
Company Company
Competitive Strategist
The purpose of CS is to build a competitive advantage for the following: CA is
also called as Competitive Edge and Differential Advantage. CA can be a
really called a CA only when it is a SDA (Sustainable Differential Advantage).
CA is an advantage gained over rivals in delivery value to the customers
higher than rivals. Value can be delivered in 2 ways:
a. Offering pdt at a lower price (quality is same)
b. Offering higher quality product that justifies a higher price (preferred
way)
The first method is good only when you reduce the prices (like value pricing
method). Simple price reduction methods may lead to promotion war, ego
war, destruction wars, etc. Second method is preferred very few competitors
will not fight on increasing the quality of the product. That is why we need to
differentiate ourselves and get away from the competition.
•
Disruptive competition – How do they play
Examples: Maruti Udyog took mkt share from Hindustan Motors when they
entered india
Canon – Xerox.
Market Follower
They are runner-up firms who believes in defending its mkt share and does
not want to increate it at the expense of others.
Examples: Cars in Hatch back segment
Market Nichers
A Niche is a small segment in a broad market. A Mkt Nicher is a small player
in a large mkt who selects and enters into a small niche which is ignored by
other players in the market
Competitive