Distribution Management Flashcards

Flashcards for Distribution Management review.

What does distribution network design involve?

Creating a path for goods to reach the end customer while prioritizing customer needs and balancing operational costs.

What elements are focused on within distribution network design to ensure a smooth transition from producer to customer?

Elements like response time, product variety, availability, customer experience, order visibility, and returnability.

What do distribution systems include?

Tracking software platforms that enhance supply chain visibility and traceability.

What are distribution channels?

Routes goods take from producer to customer, varying in complexity.

What is a direct distribution channel?

Producer to customer (e.g., a farmer selling milk directly to locals).

What do indirect distribution channels involve?

Involve intermediaries like retailers, wholesalers, distributors, or agents.

What do direct channels give producers?

More control over pricing and customer experience but may limit reach.

What do indirect channels enhance?

Enhance market reach and provide additional utilities (e.g., retailers ensuring time and place utility).

What are the characteristics of road transportation?

Most flexible and accessible, with consistent speed and low infrastructure investment.

What are the characteristics of rail transportation?

Ideal for bulk transport over long distances, affordable, and environmentally friendly.

What are the characteristics of air transportation?

Fastest mode, suitable for valuable goods over long distances, with minimal infrastructure needs.

What are the characteristics of water transportation?

Most affordable with high carrying capacity, environmentally friendly, and reliable for non-perishable goods.

What are the characteristics of pipeline transportation?

Extremely reliable and safe, cost-effective for specific goods (e.g., oil), and environmentally friendly.

What does inbound distribution focus on?

Focuses on receiving raw materials, parts, or components from suppliers for production.

What does inbound distribution involve?

Procurement, materials management, and storage, often using the just-in-time (JIT) principle to minimize storage needs.

What does outbound distribution involve?

Involves delivering finished goods to customers, initiated by sales orders.

What does outbound distribution focus on?

Customer service, ensuring timely delivery through distribution centers, wholesalers, or retailers.

What activities are included in outbound distribution?

Warehousing, transportation, and distribution requirements planning (DRP), with an emphasis on meeting customer expectations.

What is the diferrence between inbound vs. outbound distribution?

Upstream (supplier to manufacturer), while outbound is downstream (manufacturer to customer).

What is the focus of inbound vs. outbound distribution?

Procurement and production readiness, while outbound prioritizes customer satisfaction and service.

What activities occur in inbound vs. outbound distribution?

Receiving and storing raw materials, while outbound involves distributing finished goods.

Who are the stakeholders in inbound vs. outbound distribution?

Inbound is Suppliers and manufacturers, while outbound is warehouses, retailers, and customers.