In the western world it is called "inventory distribution and management," according to Japanese theory it constitutes the Kanban. This article will make a brief review of the most important elements that must be taken into account in the factory distribution processes under a marketing approach.
Marketing and modern administration have given great emphasis to the problem of efficiency and effectiveness in the distribution and logistics processes and in-plant management of production processes. Based on philosophies such as the JIT Just in time, the Kanban, or efficient production chains, the processes of physical distribution of products, their handling and quality have become more efficient every day, in the search to reduce costs and offer standards of highest quality.
However, the basic elements in the distribution processes are the same, and a brief review of the basic distribution processes and elements will follow.
Definition:
Distribution is the part of the administration that is responsible for mobilizing the amount of resources necessary (both for production and for sale) of productive inputs or goods (tangible or intangible) in order to cover the logistics needs of companies in the precise times and places.
The physical distribution is the part that is in charge of managing the flows of tangible products for productive purposes and includes all the product management processes from obtaining raw materials to delivering the final product.
DISTRIBUTION An element of the fundamental of the «Japanese miracle», was the correct administration of the physical distribution of products in the industrial renaissance after the Second World War
The physical distribution of a product generally has five fundamental elements:
- The processing of orders: It is the part that is in charge of taking the consumer's information to the production plant in order to make products and services according to the needs of the buyer. Inventory control: It is the part that controls the movement (input and output) of inputs or products to keep track of production or sales flows. Transport: It is the part that is responsible for mobilizing inputs or products for the purposes of production (input), sale (distribution) or final delivery. The handling of materials: It is the part that is in charge of giving a specific treatment to the productive inputs. The storage:It is the art that is in charge of saving the inputs or products for their conservation in order to sell or take advantage of them in the future.
All distribution activities must be coordinated efficiently to increase the competitiveness and responsiveness of companies, generally a failure in the physical handling of products can for the entire production chain, a recent example was a problem that Toyota experienced after the terrorist attacks of September 11 where the lack of air transport for a few days caused the distribution of parts for production to fail and as a consequence the production of some of their models stopped. Although it is not a failure of the company, it demonstrates the importance of efficiently coordinating inventory management with distribution and transportation processes.
A balance must be maintained between the stock of goods, production and transport to avoid failures due to shortages or over-accumulation of products.
Physical distribution and its relationship with marketing:
Delivery and logistics for the client is a fundamental factor, the efficiency in the delivery of products, compliance and competition are factors that relate physical distribution to the sales success of a company.
When a company has high standards of efficiency, it is understood in relation to distribution that:
- Packages are delivered at the time, date, and locations indicated. Companies must deliver products without failure or defect and in the correct packaging. A company must be able to produce all of the products it offers to its customers within the deadlines it offers.
If the company adequately combines its distribution policies with customer service raised to a high quality standard, it will achieve total success in operations.
