chap12 Distribution Customer Service and Logis.ppt

1、Chapter 12,Distribution Customer Service and Logistics,Understand why logistics (physical distribution) 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 di

2、stribution concept and why the coordination of storing, transporting, and related activities is so important. See how firms can cooperate and share logistics activities that will provide added value to their customers.,At the end of this presentation, you should be able to:,Know about the advantages

3、 and disadvantages of various transportation methods. Know how inventory and storage decisions affect marketing strategy. Understand the distribution center concept.,At the end of this presentation, you should be able to:,Marketing Strategy Planning Process,Marketing Strategy Planning for Place (Exh

4、ibit 12-1),Physical Distribution Gets It to Customers,Physical Distribution Customer Service,Trade-Offs of Costs, Service and Sales (Exhibit 12-2),Physical Distribution Concept Focuses on the Whole Distribution System, 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin,Physical Distribution Custome

5、r Service Level,The Total Cost Approach,A Cost Comparison of Alternative Systems (Exhibit 12-4),A manufacturer of accessories for personal computers evaluates all the alternative systems combining order processing, transportation, inventory management, and storage. If the total cost approach is foll

6、owed, which physical distribution system should the manufacturer select? The one that maximizes customer service at the highest total cost. The one that maximizes customer service at the lowest total cost. The one that meets the customer service requirement at the lowest total cost. The one that mee

7、ts the customer service requirement and minimizes transportation cost. The one that maximizes customer service and minimizes the cost of each individual component of physical distribution.,Checking Your Knowledge,Shifting and Sharing,JIT,Conflict Handling,Supply Chain,Coordinating Logistics Activiti

8、es,Electronic Data Interchange,Continuously Updated Information Systems,Areas WhereComputersHelp PD Service,Better Information Helps Coordinate PD,Ethical Issues May Arise, 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin,Physical Distribution (PD) Concept,The Transporting Function Adds Value to

9、a Marketing Strategy (Exhibit 12-5),Which Transporting Alternative Is Best? (Exhibit 12-6),Water Transportation,Airfreight Is Expensive but Fast and Growing,Interactive Exercise: Transportation Modes,The best transportation alternative for shipping chickens from farms in West Virginia to processing

10、plants in Maryland would be: air. truck. rail. water. none of the above.,Checking Your Knowledge,Achieves Production Economies of Scale,Keeps Prices Steady,Needed When Production Doesnt Match Consumption,Builds Channel Flexibility,The Storing Function and Marketing Strategy,Cost of inventory becomin

11、g obsolete,Cost of damage while in inventory,Cost of storage facilities,Interest expense besides, it might be needed someday.” “Inventory and storage costs should be minimized, regardless of the impact on customer service.” “The cost of stockouts always exceeds the cost of carrying inventory.” “Alwa

12、ys have a large safety stock of inventory to eliminate the possibility of stockouts.” “Have enough inventory on hand to meet the expected level of customer service required, but dont carry too much.”,Checking Your Knowledge,Understand why logistics (physical distribution) is such an important part o

13、f 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 the coordination of storing, transporting, and related activities is so important. See how firms can coo

14、perate and share logistics activities that will provide added value to their customers.,You should now be able to:,Know about the advantages and disadvantages of various transportation methods. Know how inventory and storage decisions affect marketing strategy. Understand the distribution center concept.,You should now be able to:,Logistics Physical distribution Customer service level Physi