Summary of Distribution Management Policy---Supply Chain Management

Name:  Lina Oktavia

Class :  D3 MTU A

NIM  :  223115026

In principle, distribution management policies can be grouped into seven categories:

•       Structure of Distribution Channels
• ·         Distribution Scope
• ·         Multiple Distribution Channels
• ·         Modification of Distribution Channels
• ·         Distribution strategy
• ·         Control of Distribution Channels
• ·         Conflict management in distribution channels

Structure of Distribution Channels

There are four methods that can be selected in order to determine the structure of alternative distribution channels, namely:

q  Postponement Speculation Theory

q  Goods Approach

q   Financial Approach

q   Other Considerations

Distribution Scope

The goal is to serve the market with minimal costs but can create the image of the product accordance with the expectations.

There are three kinds of distribution coverage are: Exclusive distribution, Intensive distribution, Selective distribution

Multiple Distribution Channels

Multiple distribution channels is using more than one distribution channel to serve multiple customer segments. The goal is to get optimal access to each segment.

There are two types of multiple distribution channels, namely: Complementary channels & Competitive channel

o   Complementary channels

The goal is to reach market segments that can not be served by existing distribution channels.

o   Competitive Channel

The purpose of this strategy is to increase sales by selling products of other companies.

Distribution Strategy

Distribution planning related to sales force fleet, delivery, logistics costs, administrative and other divisions within the company. Tactics to win the battle of distribution:

Þ     Offensive strategy

Þ     Frontal Attack

Þ     Flanking Attack

Þ     Enrichment attack

Þ     Bypass Attack

Þ     Guerrilla Attack

Control of Distribution Channels

Conventional marketing channels typically consist from manufacturers, distributors, wholesalers, and retailers.

Control agents can be done by evaluating the performance of an agency such as the achievement of targets, the salesperson's ability and other aspects.

Conflict management in distribution channels

Things that need to be taken to avoid a conflict between the principal agent is

Þ     Create a policy standard for the agency in writing

Þ     Communicate each policy

Þ     Involve agents in making a program or in the determination of the target

Conflict is the conflict can be divided into two that are vertical and horizontal conflicts