1. DISTRIBUTION DECISION
By: Dr. Vidya Hattangadi

2. Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers.
Physical distribution refers to the process of delivering products to the marketing channels and consumers. It takes care of functions such as transpiration, warehousing and inventory management. Physical distribution is the set of activities concerned with efficient movement of finished goods from the end of the production operation to the consumer. Physical distribution takes place within numerous wholesaling and retailing distribution channels.

3. Marketing logistics covers physical distribution plus party of the task of marketing channels, such as facilitate selling, provide distribution efficiency, break the bulk, and look after part of physical distribution, sub distribution, stock holding, and transforming static stock into operational stock.
Supply Chain Management refers to the physical distribution and marketing logistics. It encompasses material management task as well. It refers to the entire business chain starting from procurement of inputs, inbound logistics, conversion of inputs into products, physical distribution i.e. outbound logistics, which takes the end product to the actual consumer.

4. Functions of physical distribution:
Planning the entire distribution
In-plant warehousing
Transportation
Field warehousing
Receiving
Handling
Secondary transportation, secondary handling
Inventory management at each level
Order processing
Accounting
Communication

5. Functions of Transportation:
Assessing the requirements at each stage
Choosing transpiration mix
Deciding the routing
Preparing Operation plans
Implementation
Review
Cost controlling

6. Functions of warehousing
Confer place and time utility to the products
To reduce transportation need wherever possible
To add competitive advantage
Balance demand and supply
Become a stimulant for demand

7. Functions of Inventory
Establish relationship between inventory purpose and inventory level
Inventory should be maintained at finest level because Optimum inventory is compromise between cost and service.

8. Elements of inventory cost:
Interest on capital locked in the inventory, warehouse rent, staff salaries, insurance, rates and taxes, stationary, postage charges, administrative cost, handling, loading and stacking cost, damages if any, order processing cost & Record keeping cost.

9. Functions of Marketing Channels
Supply products with suitable assortment
Provide salesmanship
Help in price mechanism
Look after part of physical distribution and financing
Assist merchandising
Provide market intelligence
Act as change agent
Take care of flows involved in distribution

10. Types of Marketing Channels
Sole-selling agent
Marketer
C&F Agents
Redistribution stockiest
Semi-wholesaler
Retailer
Broker
Franchiser
Authorized representative
Commission agent
Jobbers