Answer to Question #231671 in Management for Sukoluhle

Question

Question 1

Explain how you will identify stakeholders in terms of their role in the Distribution process

Question 2

Outline the benefits to an organisation that uses distribution networks

Question 3

Explain the difference between centralised and decentralized demand and supply strategies

Question 4

Name and explain three strategies to optimise the effectiveness of the distribution network

Question 5

Explain the various ownership options in distribution

Question 6

Analyse the difference between distribution channels and distribution networks

Answer 1

#1

Through advertisements. You can use some combination of the media – often free, through various community service arrangements – community meetings, community and organizational newsletters, social media, targeted emails, announcements by leaders at meetings and religious gatherings, and word of mouth to get the word out. You may find people who consider themselves stakeholders whom you haven’t thought about and who can help in the distribution process.

#2

Intermediaries provide a second benefit by bridging the gap between the assortment of goods and services generated by producers and those in demand from consumers.

A third benefit provided by intermediaries is that they help reduce the cost of distribution by making transactions routine.

In terms of efficiency there is an effect of diminishing returns as more intermediaries are added to the channels of distribution

#3

Centralized demand and supply strategy is an information sharing approach where supply chain members forecast based on the downstream member’s demand. The Bullwhip Effect is a demand variance amplification phenomenon: as the demand moves upstream in supply chains, its variability while In a decentralized supply chain, individual units make decisions based on local information. Such a system makes it easy to incentivize players to act in co-operation, making the entire supply chain efficient.

#4

Inventory management and tracking:

Meticulous inventory of your stock in different sales outlets and the subsequent sales data will tell you what your averages are. With that average in hand, you will see which areas are selling your products better, and which areas are not performing up to par. 

Keep track of channel dealers:

By keeping track of your distribution channel and your channel dealers, you can clearly see which areas need improvement, which areas could still expand and which areas you might have to abandon. 

Focus on local markets:

In cases where the sale is great so not much marketing has been put in, remember to never rest on your laurels. Keep saturating your target markets with surveys and promotional surveys as a cover for discreet data mining. Just because you are selling well doesn’t mean everyone is buying. It could be a matter of local population density. That means you have more people to sell to. You have an untapped market, and left it so.

#5

Single Ownership of distribution

Ownership when applied to an industrial enterprise means title to and possession of the assets of the enterprise involved in distribution, the power to determine the policies of operation, and the right to receive and dispose of the proceeds.

Partnership in distribution.

A single owner becomes inadequate as the size of the business enterprise grows. He may not be in a position to do away with all the duties and responsibilities of the grown business. At this stage, the individual owner may wish to associate with him more persons who have either capital to invest, or possess special skill and knowledge to make the existing business still more profitable.

Joint Stock Company:

A joint stock company is an Association of individuals, called shareholders, who join together for profit and agree to supply capital divided into shares that are transferable for carrying on a specific business. Death, insolvency, disablement or lunacy of the shareholders does not affect the joint stock company. A joint stock company consists of more than twenty persons for carrying any business other than the banking business.

#6

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the internet while a distribution network is an interconnected group of storage facilities and transportation systems that receive inventories of goods and then deliver them to customers. It is an intermediate point to get products from the manufacturer to the end customer, either directly or through a retail network.