Logistics
It involves the process of implementing and controlling the effective or efficient streaming of goods and services from the original place to the consumer. Another way of defining it is that logistics is the management of goods channel from raw materials to finished products or goods in an organization. It may also be referred to as the supply or provision of a need.
Product distribution to South America
The first thing I will look at is how to meet the demands our customers abroad. This purpose has to be fulfilled while considering the costs that are involved and also the profit to be realized. To ensure good product deliver through effective distribution channels, I have to put in place various strategies to meet my objectives. For efficient distribution, warehouses, good transportation and proper product handling enables the realization of the goals set.
This will also be line with our intensions to expand the market share in South America; thus enabling our company to make more profits than it has done in the past. I made this decision basing on the weaknesses of other companies that have their operations in South America; most of the companies have poor storage facilities which hinder them greatly from satisfying customers’ needs or demands.
The cost of acquiring the warehouse and other facilities inside it is far much less and is well within the cost effectiveness plan, therefore I find it more appropriate for our company and thus to me it is okay if I am allowed to implement it. Finally the reason as to why the plan should be adopted is because this will highly help the company increase the volume of the products shipped to South America per trip and thus the cost of shipment will also be reduced greatly.
Secondly to ensure satisfactory distribution and the success of the marketing objectives, I have put in place measures that will enable our company achieve the above requirements effectively. The first thing is that, the means of transportation ultimately determines the efficiency of distribution methods put in place by the people involved. Therefore for me to achieve good results I have considered a few things that will be of great benefit to our company. I have talked to various companies that usually transport goods to south America, this has resulted into a good deal that will see us deliver our goods to South America at fare costs and reliably.
This will make our company to meet the requirements of our customers and also cut costs of shipment. The company I have talked to has various modes of transport for different products, this means that different products have different treatment in terms of care and delivery method; fragile goods are given extra care. Therefore a company like this will guarantee the good quality of our products and hence enable us increase our market share as well as profits.
Selection of specific intermediaries to develop a channel
A channel is a means through which goods and services are marketed; every channel has its own level of control a logistic manager can apply. A good channel will enable the company have better results both in satisfying the customers and also profit realized. A good channel guarantees cost effectiveness in the long run. For me to ensure that our company meets its goals without straining, I had to make sound decisions about the particular means by which we will channel or distribute our products efficiently (Gorchels, 2004).
This helped me come up with good distribution strategy that would ultimately suit our company’s goals and values. The strategy aims at fulfilling our desire to keep the South American market under our control. Because the company has its interests in foreign countries, external agent channel management would be something to look after. The mode of agency I have put in place has several parts, this include the distributors, wholesalers and finally retailers. For me to manage these groups well their specific functions have to be analyzed clearly. To begin with, I will analyze the roles of my distributors to come up with some key factors that may lead to our success in product distribution (Downing, 1969).
The distributors of my choice here have a role of ensuring that the customers are served satisfactorily beyond doubt. This is to be achieved because I have chosen a team that is well experienced and most important of all they have the necessary facilities that will enable them to achieve the goals. The distributors have to take goods from our warehouses then offer the goods to customers directly without any other obstruction.
The distributors have also to offer after sales services to our customers and this will ultimately boost our efforts to increase our market share. This is because customers will be more contented with the quality of our products and services and also complains from customers may be received in a short period of time. This is due to close monitoring that I will have with my selected distributors. The other factor is that the total price of the product will be reduced by the elimination of many middlemen under a long channel of distribution (Gorchels 2004).
Another system I have put in place is the wholesaler channel which is almost the same as that of the distributor but the only difference would be the chain in between. The wholesalers here will be buying goods from our warehouses and thereafter sell the goods to the retailers who will then sell to the consumers. I chose this mode so as to increase the amount of goods in circulation from the warehouse. This meet the demands of the customers as most of the products will be available locally. The cost of the goods will be checked in effectively as our selected wholesalers will be given some substantial amounts of discounts on the goods they take. The retailers will increase the volume of products at the disposal of customers. This short channel length will be easily managed and any follow up plan can be realized in a short period especially when a problem arises (Downing 1969).
References
Downing, D.G. (1969). Sales management. Chicago: Wiley
Anderson, B. and Fagerhaug, T. (2010). Analysis and Improvement in the Healthcare Sector. Toronto: ASQ Quality Press
Gorchels, L. (2004). The managers guide to distribution channels. Washington, DC: McGraw-Hill Professional
Dent, J. (2011). Distribution Channels. California: Kogan Page Publisher
