Logistics and material flow organization to manage distribution Supply chain

Logistics and material flow organization to manage distribution

Supply chain

• Supply chain ISO 9001:2000.

Supplier (distributor)


organization


consumer

Supply Chain Management

Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible.

Logistic approach to “production - consumption” cycle

Market of suppliers
Market of consumers
provision
Production
Distribution
Material flow
Information and financial flow

When and where need distribution

• Orders are distributed between the various suppliers in the procurement of goods
• distribute goods of storage places for admission to the enterprise
• Inventories are distributed between the different production sites
• distribute material flows in the sales process

The tasks of distribution logistics

• Planning the implementation (realization) process
• Organization of receiving and processing of order
• Choosing the type of packaging, making the decisions of the assembly
• Organization of shipment of products
• Organization of after-sales service

Suppliers and consumers of a material flow generally represent two micrologistical related systems so-called logistics channel, or else - the distribution channel

What is distribution channel?

A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.

Channel Level characterized by the number of intermediaries between suppliers and consumers Zero level channel :

Producer
Consumer

First level channel:

Producer
Retail intermediary
Consumer

Second level channel:

Producer
Wholesale intermediary
Retail intermediary
Consumer

Third level channel:

Producer
Wholesale intermediary
Small –batch intermediary
Retail intermediary
Consumer

What is DRP?

• Managing the flow of materials between firms, warehouses, distribution centers.
• DRP helps manage these material flows.
• Links firms in the supply chain by providing planning records that carry demand information from receiving points to supply points and viceversa.

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