In this chapter you will learn: Understand why physical distribution (logistics) is such an important part of place and strategic market planning, understand why the physical distribution customer service level is a marketing strategy variable. understand the physical distribution concept and why it requires coordination of storing,...
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Logistics and
Distribution
Trang 2Understanding Physical Distribution
Customer Service Level
0
0
90%
Transporting Cost
Lost Sales
Inventory Cost
Total Cost
of PD
Trang 3Coordinating Logistics Activities
Better Information-EDI
and Internet Chain of Supply
JIT Reducing Conflict
Sharing and Shifting
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Trang 4The Transporting Function
Modes of Transportation
Air
Pipeline
Trang 5The Storing Function
Price Stability
Flexibility
Costs
Specialized Function
Trang 6Comparing Private and Public Warehouses
Adequacy
Control
Fixed Investment
Characteristics
Private
Highly adequate High
Very high
Flexibility Low
Public
May not be convenient Low managerial control
No fixed investment
High
Type of warehouse
Unit Cost High if volume is low Very low if volume is