Distribution Channel is the chain of businesses or intermediaries through which a good or service

passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers,
distributors and even the internet. Channels are broken into direct and indirect forms, with a
"direct" channel allowing the consumer to buy the good from the manufacturer and an "indirect"
channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered
"shorter" than "indirect" ones.
The Distribution Channel
Distribution is also a very important component of Logistics & Supply chain management.
Distribution in supply chain management refers to the distribution of a good from one business to
another. It can be factory to supplier, supplier to retailer, or retailer to end customer. It is defined
as a chain of intermediaries; each passing the product down the chain to the next organization,
before it finally reaches the consumer or end-user. This process is known as the 'distribution chain'
or the 'channel.' Each of the elements in these chains will have their own specific needs, which the
producer must take into account, along with those of the all-important end-user.
Channels

A number of alternate 'channels' of distribution may be available:

 Distributor, who sells to retailers,

 Retailer (also called dealer or reseller), who sells to end customers
 Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alice from producer to consumer
in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may
sell their services (typically rooms) directly or through travel agents, tour operators, airlines,
tourist boards, centralized reservation systems, etc. process of transfer the products or services
from Producer to Customer or end user.

There have also been some innovations in the distribution of services. For example, there has
been an increase in franchising and in rental services - the latter offering anything from
televisions through tools. There has also been some evidence of service integration, with services
linking together, particularly in the travel and tourism sectors. For example, links now exist
between airlines, hotels and car rental services. In addition, there has been a significant increase
in retail outlets for the service sector. Outlets such as estate agencies and building society offices
are crowding out traditional grocers from major shopping areas.

Market factors
An important market factor is "buyer behavior"; how do buyer's want to purchase the product?
Do they prefer to buy from retailers, locally, via mail order or perhaps over the Internet? Another
important factor is buyer needs for product information, installation and servicing. Which
channels are best served to provide the customer with the information they need before buying?
Does the product need specific technical assistance either to install or service a product?
Intermediaries are often best placed to provide servicing rather than the original producer - for
example in the case of motor cars.

The willingness of channel intermediaries to market product is also a factor. Retailers in particular
invest heavily in properties, shop fitting etc. They may decide not to support a particular product
if it requires too much investment (e.g. training, display equipment, warehousing).

Another important factor is intermediary cost. Intermediaries typically charge a "mark-

up" or "commission" for participating in the channel. This might be deemed unacceptably high
for the ultimate producer business.

Producer factors
A key question is whether the producer have the resources to perform the functions of the channel?
For example a producer may not have the resources to recruit, train and equip a sales team. If so,
the only option may be to use agents and/or other distributors.

Another factor is the extent to which producers want to maintain control over how, to whom and
at what price a product is sold. If a manufacturer sells via a retailer, they effective lose control over
the final consumer price, since the retailer sets the price and any relevant discounts or promotional
offers. Similarly, there is no guarantee for a producer that their product/(s) are actually been
stocked by the retailer. Direct distribution gives a producer much more control over these issues.
 Logistics is called by the many names, including the following:
 Business logistics

 Distribution

 Logistical management

 Supply chain management

 Supply management

KEY LOGISTICS ACTIVITIES

Outlined below are the key activities required to facilitate the flow of a product from point
of origin to point of consumption. All of these activities, listed below, may be considered part of
the overall logistics process.
 Customer service
 Demand forecasting/planning
 Inventory management
 Logistics communication
 Material handling
 Order processing
 Packaging
 Plant and warehouse site selection
 Procurement
 Return goods handling
 Traffic and transportation
 Warehousing and storage

While all organization may not explicitly consider these activities to be part of logistics
activities, each activity affects the logistics process.

OBJECTIVES OF THE STUDY

1. To understand the logistics management.

 2. To study the role of infrastructure in logistics management.

3. To study various documents maintained while transportation of goods.

4. To study manpower used and material handling in loading and

unloading of trucks.
5. To study various costs involved in logistics and steps to reduce those

costs.
6. To study the booking and delivery process maintained in organization.

7. To study the importance of warehousing in logistics.

8. To know the potential for logistics industry in fourth coming years.

Books Referred:
 “FUNDAMENTALS OF LOGISTICS MANAGEMENT”

By D.M. Lambert, J.R.Stock, Lisa M. Ellram

 “SUPPLY CHAIN MANAGENENT”

By B.S.Sahay
 “LOGISTICS AND SUPPLY CHAIN MANAGEMENT”

By G. Raghuram, N. Rangraj.

HTTPS://WWW.FLYJACLOGISTICS.COM/

 www.google.co.in

 www.logisticsfocus.com
By the help of project, we came to know about the channel of coke . How the
retailers of COKE get product and complication of channel.

"As I enter the world of work a new chapter of my life opens up the curiosity and anticipation of
what to expect is very high, both on this day and for the whole of the training. Lots of questions
are swirling through my head on this day, but after a short time it is clear to me that they are not
necessary. Training sessions and seminars allow us to learn a lot about FLYJAC LOGISTICS and
get a good insight into the varied company structure and culture. Group work and team seminars
help the trainees to get to know one another and to form a community. Now we are also a part of
FLYJAC LOGISTICS. Work, and deployment into the individual training departments gives a lot
of pleasure. In each department there is great acceptance. As a trainee I am fully integrated into
the daily flow of work and everyone is always ready to help and support us in any queries that
come up. I can take on responsibility, I am supported and they show confidence in me and that is
all about FLYJAC LOGISTICS.

During the basic training, which in the first year happens in the training workshop, I got to know
the most important knowledge required for my training profession. I’ve always enjoyed new
experiences and bringing creative ideas into my own training. Later we were deployed in ones and
twos into various departments, of which there are a great many at FLYJAC LOGISTICS. In the
departments we were given responsible tasks, which I’m proud to say that we have successfully
completed. Along with the training school and the departments, further more comprehensive
subjects are passed on to us in courses and training. At FLYJAC LOGISTICS I had the feeling of
belongingness right from the start. The social support and the working climate are very good. I get
a lot of pleasure from working in a Practical profession, since due to the knowledge I have gained,
I feel a bit more independent."