Distribution Chain
Objectives
Describe the links in the chain of distribution
Identify the problems likely to be
encountered in distribution.
Outline Measures to mitigate ( ease)
problems in distribution.
What is a Distribution Chain/ Channel
A distribution channel/chain is a chain of
businesses or intermediaries through which a
good or service passes until it reaches the
end consumer. It can include wholesalers,
retailers, distributors, and even the internet.
Problems Encountered in
Distribution
Relationship between the availability of
airport, harbour and docking facilities and
the efficient distribution of goods.
Delayed shipment, spoilage, misdirection of
goods
Inadequate warehousing facilities
Lack of proper security measures
Industrial unrest and ineffective
communication
Measures to Mitigate(ease)
Problems
Government intervention
Communication network including internet
Insurance
Selecting the most appropriate channel of
distribution based on product
Use handling services with good reputation
Careful labeling and documentation
Avoid holding large stock
Employing security company, use security
cameras
Transportation/ Objectives
Define transportation
Identify factors to consider in selecting
method of transport
Distinguish between multimodal and
intermodal transport
Discuss the methods/modes of transportation
Identify documents used in transport
Explain the role of transport in marketing
Explain the importance of transportation in
domestic, regional and foreign trade.
Transportation
Transportation is the movement of
property/goods or people from one location to
another through different means.
Factors to consider in selecting
transportation
The nature of the goods ( perishables need
refrigerator, eggs, chemical)
Speed( perishable require fast means)
Cost ( cheaper not necessarily the best)
Size and weight ( heavy, bulky –ship, jewelry
diamond-air)
Reputation of the carrier ( quick efficient)
Intermodal Transport
Intermodal – is the movement of cargo from
origin to destination by several modes of
transport where each of these modes have a
different transport provider or entity
responsible, each with its own independent
contract.. Multiple carriers contracted to
fulfill a single journey.
Inter modal transport Example
Multimodal Transport
Multimodal – is the movement of cargo from
origin to destination by several modes of
transport where each of these modes have a
different transport provider or entity
responsible, but under a single contract.. A
Single carrier contracted to fulfill a single
journey..
Multimodal transport example
Modes of Transport
SEA
Air
Modes of Transport ( Continues)
Marine ( cruise and cargo)
Pipeline ( water, oil)
Container
Digital delivery
Documents used in transport
Import licenses
Bill of lading
Airway bills
Role of Transport in Marketing
To fast track . Sourcing of commodities
To ensure security of supply.
Importance of transport in domestic, regional and foreign trade
A good and effective mode of transport
means growth and profitability for
businesses. Raw materials and equipment
needs to get to the producers, workers to
work, goods to consumers and customers
to the point of sale (POS) efficiently.