When you finish this chapter, you should: Understand why physical distribution (logistics) is such an important part of Place and marketing strategy planning; understand why the physical distribution customer service level is a key marketing strategy variable; understand the physical distribution concept and why it requires coordination of storing, transporting, and related activities;...
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Distribution
Customer Service
and Logistics
Trang 2Chapter 12 Objectives
1 Understand why physical
distribution (logistics) is such
an important part of Place and
marketing strategy planning.
2 Understand why the physical
distribution customer service
level is a key marketing
strategy variable.
3 Understand the physical
distribution concept and why
it requires coordination of
storing, transporting, and
related activities.
4 See how firms can cooperate and share logistics activities
to improve value to the customer at the end of the channel.
5 Know about the advantages and disadvantages of the various transporting methods.
6 Know how inventory decisions and storing affect marketing strategy.
7 Understand the distribution center concept.
8 Understand the important new terms.
Trang 3Understanding Physical Distribution
Customer Service Level
0
0
90%
Transporting Cost
Lost Sales
Inventory Cost
Total Cost
of PD
Trang 4Coordinating Logistics Activities
Better Information-EDI
and Internet Chain of Supply
JIT Reducing Conflict
Sharing and Shifting
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Trang 5The Transporting Function
Modes of Transportation
Air
Pipeline
Trang 6The Storing Function
Price Stability
Flexibility
Costs
Specialized Function
Trang 7Comparing 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
Trang 8Containerization Piggyback Service Freight Forwarders Storing
Inventory Private Warehouses Public Warehouses Distribution Center JIT
Physical Distribution (PD)
Logistics
Customer Service Level
PD Concept
Total Cost Approach
Chain of Supply
Electronic Data Interchange
Transporting
Pool Car Service
Diversion in Transit
Key Terms