Distribution
activities that make products available to customers
when, where and in the right quantity they want to
purchase them
The Supply Chain
a system of organizations, technology, activities, people,
information, and resources involved in moving a product
from supplier to customer.
(* A Marketing Channel is part of the Supply Chain )
activities include transforming natural resources, raw
materials and components into a finished product
Suppliers
Manufacturer *
Wholesaler *
Retailer *
Customer *
Three main functional flows of the Supply Chain
Physical ( raw materials, components, product)
Information
Financial
Supply Chain Management
coordinates and integrates *key business processes of
supply chain organizations from supplier to manufacturer
to wholesaler to retailer to customer
The *key business processes:
Physical flow
Information flow
Financial flow
Primary Objective
fulfill customer needs by the most efficient
use of Distribution resources
make product available at the right time,
the right place and in the right quantity
Another take:
match demand with supply with minimum
inventory and cost
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