GROUP 5

DISTRIBUTION
AND SUPPLY
CHAIN
STRATEGY
PRESENTATION
by Lorin Amery L. Laqui
 LORIN L. LAQUI

OBJECTIVES

➤ Understand distribution
channel.
➤ Identify the types of
distribution intermediaries.
➤ Define supply chain
management.
 LORIN L. LAQUI.

UNDERSTANDING DISTRIBUTION CHANNEL

A Distribution Channel is a set of people
and business organization involved in
the transfer of the title of a product from
the producer to the ultimate consumers
or to other business users. The channel
of distribution always includes both the
producer of goods and the final
customer in its present form. It includes
the middleman as distributors,
wholesalers, and the retailers.
 LORIN L. LAQUI

VALUE CHAIN

Value Delivery Network

Channel Level

Direct Marketing Channel

Conventional Distribution Channel

 LORIN L. LAQUI

VALUE DELIVERY
NETWORK

A network made up of the

company, suppliers,
distributors and customers
who 'partner' with each other
to improve the performance
of the entire system.
 LORIN L. LAQUI

CHANNEL LEVEL

A layer of intermediaries that

performs some work in
bringing the product and its
ownership closer to the final
buyer.
 LORIN L. LAQUI

DIRECT MARKETING
CHANNEL

A marketing channel that has

no intermediary levels.

For example
Avon and Tupperware
 LORIN L. LAQUI

CONVENTIONAL DISTREBUTION
CHANNEL
A channel consisting of one or
more independent producers,
wholesalers and retailers,
each a separate business
seeking to maximize its own
profits, even at the expense of
profits for the system as a
whole.
 LORIN L. LAAQUI

TYPES OF DISTRIBUTION
CHANNEL

01 02
DIRECT CHANNEL INDIRECT CHANNEL
Direct to the consumer Distribution via retailers

for example Distribution via

online sales wholesalers and retailers
company owned stores
 LORIN L. LAQUI

FUNCTION OF A DISTRIBUTION CHANNEL

Distribution channels can be exemplified by

the number of intermediary levels that
separate the manufacturer from the end
consumer. The choice of a particular
distribution channel is determined by factors
related to market size, buyer behavior and
organization's characteristics.
 LORIN L. LAQUI
INFORMATION

RISK TAKING PROMOTION

CONTACT

DISTRIBUTION
PROMOTION CHANNEL FINANCING
FUNCTIONS

PHYSICAL
PROMOTION
DISTRIBUTION MATCHING

NEGOTIATION
THANK
YOU!

PRESENTED BY
LORIN AMERY L . LAQUI
 GROUP 05

ELEMENTS OF A

DISTRIBUTION
CHANNEL
PRESENTED BY: MHERLYN D. CABRERA
BSBAMM2
THE VARIOUS ELEMENTS OF A
DISTRIBUTION CHANNELS ARE:
01 ORDER PROCESSING

02 INVENTORY MANAGEMENT

03 MATERIALS HANDLING

04 WAREHOUSING

05 TRANSPORTATION
CUSTOMER SERVICE
Customer service is a predefined standard of
customer satisfaction, which a retailer plans
to provide to its customers. Without defining
and setting 'standards of customer service',
retailers cannot achieve competitive
advantage over their competitors.
01
ORDER PROCESSING
Alternatively known as order fulfillment is
the handling of customer orders within
the distribution center (may be
warehouse, retail store itself) involving
the keying of customer and order details
into the computer system in order to
produce the invoices for picking.
02
INVENTORY MANAGEMENT
It includes money invested in inventory,
wear and tear and posible obsolescence
of the goods with the passage of time. In
a retail organization, where finance
executives seek inventory minimization,
marketing executives advocate large
inventories to prevent stock outs.
03
MATERIALS HANDLING
Implies the movement of goods inside
the retail organization, warehouses and
retail stores/outlets. In case of chain
stores, the raw materials, finished goods
etc move from a common warehouse to
various store locations.
04
WAREHOUSING
It involves all the activities required in
storage of goods between the time these are
procured and the time these are transported
to the customer upon receipt of order. This
function basically involves receiving the
merchandise, breaking bulk storing and
loading for delivery to customers as per their
details
05
TRANSPORTATION
enables channel members like producers,
wholesalen and retailers to make goods
and services available at the customers'
place of purchase or at his doorstep.
Quick and timely delivery, security of
goods during transis and proper handling
results in customer satisfaction
ADVANTAGE OF A
DISTRIBUTION CHANNEL
➡️ Cost and time saving
➡️ Mass delivery is much easier
➡️ Targeting an audience
➡️ Connecting with a demographic
➡️ It doesn't really cost that much
➡️ Collecting customer data
➡️ There are options available which allow for rapid
distribution.
➡️ Distribution channels still offer some level of end
user knowledge.
➡️ No customers feel left out when distribution
channels are used appropriately.
➡️ Distribution channels don't cost much to get
started.
➡️ Specialization of the regional process creates
better overall effectiveness.
DISADVANTAGE OF A
DISTRIBUTION CHANNEL
➡️ Revenue loss
➡️ Loss of Communication Control
➡️ Loss of Product Importance
➡️ The ability to interact with the end user is
completely eliminated
➡️ Some distribution channels can be extremely
complex.
➡️ Distribution channels may require multiple
intermediaries.
➡️There's very little flexibility within this structure
➡️Different intermediaries may have different goals
that they wish to accomplish
➡️There will always be some loss of control over the
selling environment in every region.
THANK'S FOR
LISTENING
Types of Distribution
Intermediaries
By Joshua L. Valdenor
 These intermediaries, such as middlemen
(wholesalers, retailers, agents, and brokers),
distributors, or financial intermediaries, typically
enter into longer-term commitments with the
producer and make up what is known as the
marketing channel, or the channel of distribution.
1.
The two important groups are the wholesalers and
retailers. They take the position of the product and
handle the distribution until it reaches the
consumers. They plan and execute these essential
functions of assorting and storing the product before
it is shifted to the customers.
Are firms or people that offer products/services
directly to consumers. Sari-sari stores and
supermarkets are some popular and common
examples of retailers.
 Wholesaling refers to the practice of firms of
purchasing products in bulk from big suppliers and
manufacturers to sell them to retailers. Wholesalers
are the people in charge of purchasing products from
suppliers and selling them to retailers.
 These are organizations or persons who do not
actually own the product of the producer or title. They
are middlemen who arrange the transfer of title form
producer to the consumers. They are the Real Estate
Brokers, Real Estate Salesman, Insurance Agents,
Travel Agents and others.
These are sales intermediaries who share willingness
to hold stock. Usually, distributors are linked to a
single supplier for each line carried. For example, in
the car industry, Ford has a network of distributors
(or dealer) that provide showroom (salesmen) as
costs associated with the running of the dealership.
Levels of Distribution
Channels
By Joshua L. Valdenor
 A zero level channel, commonly known as direct
marketing channel has no intermediary levels. In this
channel the framework manufacturer sells
merchandise directly to customers. An example of a
zero level channel would be a factory outlet store.
Many service providers like holiday companies, also
market direct to consumers, bypassing a traditional
retail intermediary - the travel agent.
A one level channel contains one selling intermediary.
In consumer markets, this is usually a retailer.
 A two level channel encompasses two intermediary
levels - a wholesaler and a retailer. A wholesaler
typically buys and stores large quantities of
merchandise from various manufacturers and then
breaks into the bulk deliveries to supply retailers with
smaller quantities. For small retailers with limited
financial resources and order quantities, the use of
wholesalers makes economic sense
A third level channel, as the name implies ecompasses
three intermediary levels a wholesaler, a retailer and a
jobber. In the poultry industry, products like A third
level channel, as the name implies, encompasses three
intermediary mutton, chicken, eggs etc. are first sold
to wholesalers; he then sells it to jobbers, who sell to
small and unorganized retailers.
 LEVELS OF
DISTRIBUTION
COVERAGE
Presented by : Bontia, Rob Jalen C.
 DISTRIBUTION COVERAGE IS MEASURED IN
TERMS OF THE INTENSITY OF PRODUCT
AVAILABILITY. FOR THE MOST PART,
DISTRIBUTION COVERAGE DECISIONS ARE OF
MOST CONCERN TO CONSUMER PRODUCTS
COMPANIES, THOUGH THERE ARE MANY
INDUSTRIAL PRODUCTS THAT ALSO MUST
DECIDE HOW MUCH COVERAGE TO GIVE ITS
PRODUCTS.
 THREE MAIN LEVELS OF
DISTRIBUTION COVERAGE:
1. Mass Coverage
strategy (also known as intensive distribution) attempts to
distribute products widely in nearly all locations in which that
type of product is sold. This level of distribution is only feasible
for relatively low-priced products that appeal to very large
target markets.
 THREE MAIN LEVELS OF
DISTRIBUTION COVERAGE:
2. Selective Coverage
Under selective coverage, the marketer deliberately seeks to
limit the locations in which this type of product is sold. To the
non-marketer it may seem strange for an organization to not
want to distribute their product in every possible location.
 THREE MAIN LEVELS OF
DISTRIBUTION COVERAGE:
3. Exclusive Coverage
Some high-end products target very narrow markets having a
relatively small number of customers. These customers are
often characterized as "discriminating" in their taste for
products and seek to satisfy some of their needs with high-
quality, though expensive products.
 ISSUES IN
ESTABLISHING
DISTRIBUTION
CHANNELS
 THE KEY FACTORS TO CONSIDER WHEN
DESIGNING A DISTRIBUTION STRATEGY ARE
INTO THREE MAIN CATEGORIES:

1. Marketing Decision Issues

2. Infrastructure Issues
3. Channel Relationship
THANK
YOU
INFRASTRUCTURE
ISSUES IN
CHANNELS

by Maria Alona Fernandez

 INFRASTRUCTURE ISSUES
IN CHANNELS
The marketer's desire to establish a distribution
channel is often complicated by what options are
available to them within a market. While in the
planning stages the marketer has an idea of how the
distribution plan should be executed, the
organization may find that certain parts of the
distribution channel may not be what they
expected. 1
 RELATIONSHIP ISSUES IN
CHANNELS
An appropriate distribution strategy takes
into account not only in marketing
decisions, but also considers how
relationships within the channel of
distribution impact the marketer's product.
In this section, we examine three such 2
issues:
 CHANNEL POWER
A channel can be made up of many parties each
adding value to the product purchased by
customers. However, some parties within the
channel may carry greater weight than others. In
marketing terms, this is called channel power,
which refers to the influence one party within a
channel has over other channel members. 3
 1. BACKEND OR PRODUCT
POWER
Occurs when a product manufacturer or service
provider markets a brand that has a high level of
customer demand. The marketer of the brand is
often in a power position since other channel
members have little choice but to carry the brand
or risk losing customers.
4
 2. MIDDLE OR WHOLESALE
POWER
Occurs when an intermediary, such as a
wholesaler, services a large number of smaller
retailers with products obtained from a large
number of manufacturers.

4
 3. FRONT OR RETAILER
POWER
As the name suggests, the power in this situation rests
with the retailer who can command major concessions
from their suppliers. This type of power is most
prevalent when the retailer commands a significant
percentage of sales in the market they serve and others
in the channel are dependent on the sales generated by
the retailer.
4
 CHANNEL CONFLICT
In an effort to increase product sales,
marketers are often attracted by the
notion that sales can grow if the marketer
expands distribution by adding led by the
resellers.
4
 NEED FOR LONG-TERM
Commitments Channel decisions have
long-term consequences for marketers
since efforts to establish new relationships
can take an extensive period of time, while
ending existing relationships can prove
difficult. 4
THANK YOU!!
Deciding for the distribution
channels

By Jhonald Bagamasbad
1.Product
2.Market
3.Middlemen
4.Company
5.Marketing environment
6.Competitors
7.Customer characteristics
8.Channel Compensation
Thank you!
 MARKETING
ENVIRONMENT
By Jan Aaron Rivera
 MARKETING
ENVIRONMENT
During Recession or depression, shorter and
cheaper chanel is preferred during prosperity,
we have a wider choice of channel
alternatives.
 COMPETITORS
Marketers closely watch the channels
used by rival.
CUSTOMER
CHARACTERISTICS
This refers to geographical distribution,
frequency of purchase, average quantity of
purchase and numbers of prospective
customers.
 CHANNEL
COMPENSATION
This Involves cost-benefit analysis. Major
elements of distribution cost apart from channel
compensation are transporting, warehousing,
storage insurance, material handling
distribution personnel's compensation and
interest on inventory carried at different selling
points.
DISTRIBUTION CHANNEL
STRATEGY
are designed to maximize the sales of products
as they enter a market.

UNDERSTANDING DEMAND
Moving inventory and purchasing distribution
channels is an investment for retailers.
MARKETING IN ADVANCE

Pushing marketing activities ahead of orders is

strategic distribution channel used to test
demand, while preventing mismanagement of
orders.
 MULTIPLE CHANNEL
STRATEGIES
A multiple distribution channel strategy works
for retailers with diverse products lines.
Diversifying distribution channels reduces the
risk associated with an single channel.
SALES AND DISTRIBUTION
CHANNELS
Sales model and distribution channels are
interconnected. The ability to source and sell
will alwasy will be tied together.
SUPPLY MANAGEMENT PROCESS

by Alexandria Golden
SUPPLY MANAGEMENT PROCESS

The supply chain management process is composed of

four main parts: poduct portfolio management, demand
management, S&OP, and supply management.
1 DEMAND MANAGE
DEMAND MANAGEMENT CONSISTS OF THREE PARTS: DEMAND PLANNING, MERCHANDISE PLANNING, AND TRADE
PROMOTION PLANNING.

DEMAND PLANNING IS THE PROCESS OF FORECASTING DEMAND TO MAKE SURE PRODUCTS CAN BE RELIABLY
DELIVERED. EFFECTIVE DEMAND PLANNING CAN IMPROVE THE ACCURACY OF REVENUE FORECASTS, ALIGN
INVENTORY LEVELS WITH PEAKS AND TROUGHS IN DEMAND, AND ENHANCE PROFITABILITY FOR A
PARTICULAR CHANNEL OR PRODUCT.

MERCHANDISE PLANNING IS A SYSTEMATIC APPROACH TO PLANNING, BUYING, AND SELLING MERCHANDISE

TO MAXIMIZE THE RETURN ON INVESTMENT (ROI) WHILE SIMULTANEOUSLY MAKING MERCHANDISE
AVAILABLE AT THE PLACES, TIMES, PRICES, AND QUANTITIES THAT THE MARKET DEMANDS.

TRADE PROMOTION PLANNING IS A MARKETING TECHNIQUE TO INCREASE DEMAND FOR PRODUCTS IN

RETAIL STORES BASED ON SPECIAL PRICING, DISPLAY FIXTURES, DEMONSTRATIONS, VALUE-ADDED BONUSES,
NO-OBLIGATION GIFTS, AND OTHER PROMOTIONS. TRADE PROMOTIONS HELP DRIVE SHORT-TERM CONSUMER
DEMAND FOR PRODUCTS NORMALLY SOLD IN RETAIL ENVIRONMENTS.
2 SUPPLY MANAGEMENT

Supply management is made up of five areas:

supply planning, production planning, inventory
planning, capacity planning, and distribution
planning.
• Supply planning determines how best to fulfill the requirements created
from the demand plan. The objective is to balance supply and demand in a
manner that achieves the financial and service objectives of the enterprise.

• Production planning addresses the production and manufacturing

modules within a company. It considers the resource allocation of
employees, materials, and of production capacity.

Production/supply planning consists of:

Supplier management and collaboration
Demand and supply balancing
Production scheduling
 Inventory planning determines the optimal quantity and timing of
inventory to align it with sales and production needs..

Capacity planning determines the production staff and equipment

needed to meet demand for products.

Distribution planning and network planning oversees the movement of

goods from a supplier or manufacturer to the point of sale. Distribution
management is an overarching term that refers to processes such as
packaging, inventory, warehousing, supply chain and logistics.
3. Sales and Operations Planning (S&OP)
Sales and operations planning (S&OP) is a monthly integrated business
management process that empowers leadership to focus on key supply
chain drivers, including sales, marketing, demand management,
production, inventory management, and new product introduction.
4. Product portfolio management

Product portfolio management is the process from creating a product idea

creation to market introduction. of creating an idea for a product and
following through on it until the product is introduced to the market. A
company must have an exit strategy for its product when it reaches the end
of its profitable life or in case the product doesn't sell well.
Product portfolio management includes:
New product introduction
End-of-life planning
Cannibalization planning
Commercialization and ramp planning
Contribution margin analysis
Portfolio management
Brand, portfolio, and platform planning
 December 17, 2025
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 Introduction

Supply chain models

oriented to efficiency

Agenda Supply chain models that

are oriented to
responsiveness

Multiple supply
chains or
multifaceted
supply chains
 Supply Management
Models

Supply management models are frameworks and

methodologies used to plan, organize, and control
the flow of goods and services from origin to
consumption. They provide a structured approach to
managing the entire supply chain, encompassing
activities like sourcing, procurement, logistics, and
inventory management.
An organization's supply chain strategy is shaped
by four key elements, including:

• The industry framework

• Your unique value proposition
• Internal supply chain processes
• Managerial focus
There are six main supply chain models that
almost all business adopt. These can be group into
main categories:

• Supply chain models that are oriented to efficiency

• Supply chain models that are oriented to
responsiveness
 Supply chain models oriented to efficiency

In industries where value proposition is oriented to metrics such

as high relevance of asset utilization, low cost, and total cost, the
end-to-end effiency is given high priority. Examples of such
industries include steel, cement, paper, lowcost fashion, and
commodity manufacturing in general. Three supply chain models
fall under this category:
• The "efficient" supply chain model
This model is best suited to industries that exist in highly competitive markets with
several producers, and customers who may not readily appreciate their different value
propositions.

• The "fast" supply chain model

This supply chain model is best suited for companies that manufacture trendy products
with short lifecycles. Consumers are mostly concerned with how fast the manufacturer
updates their products portfolios to keep up with fashion trends.

• The "continuous-flow" model

This model is ideal for industries with high demand stability. The manufacturing processes
in a continuous -flow model are designed to generate a regular cadence of product and
information flow.
 Supply chain oriented to responsiveness

In industries that are characterized by high demand uncertainty

and where market mediation costs are the top priority, supply
chain models thar are oriented to responsiveness are usually
employed. These include:
• The "agile" supply chain model
The agile supply chain model is ideal for companies that manufacture
products under unique specifications by their customers. This model is mostly used
in industries characterizec 1 by unpredictable demand.

• The "custom-configured" model

This model is ideal where products with multiple and potentially unlimited product
configuration are required. It features a high degree of correlation between asset cost and
the total cost.

• The "flexible" supply chain model

This supply chain model is best suited for industries that are characterized by
high demand peaks followed by extended periods of low demand.This model is
characterized by high adaptability with the capability to reconfigure internal
manufacturing processes so as to meet specific customer needs or solve customer
problems.
 Multiple supply chains or multifaceted supply chains

Many organizations tend to prefer their supply chains to have the

capabilities of the six supply chain models. In practice,however,it's
more intuitive to develop parallel supply chains within the same
organization with each model focused on serving a particular
market segment or niche.
THANK
YOU!!!