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Channels of Channels of DDistributionistributionAndi Wijayanto, S.Sos., M.Si

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PENGERTIANPENGERTIAN Physical distribution channel is the term used

to describe the method and means by which a product or a group of products are physically transferred, or distributed, from their point of production to the point at which they are made available to the final customer.

Saluran Distribusi diartikan sebagai suatu jalur yang dilalui oleh arus barang-barang dari produsen ke perantara dan pemakai akhir (David A. Revzan)

Organisasi dalam dan luar perusahaan yang terdiri atas agen, dealer, pedagang besar dan pengecer, yang melaluinya sebuah komoditi, produk atau jasa dipasarkan (American Marketing Association).

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Jenis dan Struktur Saluran Distribusi Jenis dan Struktur Saluran Distribusi FisikFisik

Alternative distribution channels for consumer products to retail outlets

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Generic ChannelsGeneric Channels Of DistributionOf Distribution

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The Alternative ChannelsThe Alternative Channels:: Manufacturer Direct To Retail Store.

The manufacturer or supplier delivers direct from the production point to the retail store. As a general rule, this channel is only used when full vehicle loads are being delivered.

Manufacturer Via Manufacturer's Distribution Operation To Retail Store. The manufacturer or supplier holds its products in a finished goods warehouse, a central distribution centre (CDC) or a series of regional distribution centres (RDCs). The products are trunked (line-hauled) in large vehicles to the sites, where they are stored and then broken down into individual orders that are delivered to retail stores on the supplier's retail delivery vehicles.

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The Alternative ChannelsThe Alternative Channels:: Manufacturer Via Retailer Distribution Centre to

Retail Store. Manufacturers supplying their products to National Distribution Centres (NDCs), which are sites run by the retail organizations. The retailers then deliver full vehicle loads of all the different manufacturers products to their own stores. Most retailers now use third parties to run these final delivery operations.

Manufacturer to Wholesaler to Retail Shop. Wholesalers acted as the intermediaries in distribution chains, providing the link between the manufacturer and the small retailers' shops.

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The Alternative ChannelsThe Alternative Channels:: Manufacturer to cash-and-carry wholesaler to retail

shop. These are usually built around a wholesale organization and consist of small independent shops collecting their orders from regional wholesalers, rather than having them delivered. The increase in cash-and-carry facilities has arisen as many suppliers will not deliver direct to small shops because the order quantities are very small.

Manufacturer via third-party distribution service to retail shop. A number of companies have developed a particular expertise in warehousing and distribution. These companies consist of those offering general distribution services as well as those that concentrate on providing a 'specialist' service for one type of product or for one client company.

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The Alternative ChannelsThe Alternative Channels:: Manufacturer via small parcels carrier to retail shop.

Very similar to the previous physical distribution channel, these companies provide a 'specialist‘ distribution service where the 'product' is any small parcel. The competition generated by these companies has been quite fierce.

Manufacturer via broker to retail shop. A broker is similar to a wholesaler in that it acts as intermediary between manufacturer and retailer. Its role is different, however, because it is often more concerned with the marketing of a series of products, and not really with their physical distribution. Thus, a broker may use third-party distributors, or it may have its own warehouse and delivery system. The broker can provide an alternative physical distribution channel.

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Additional Channels Additional Channels For Industrial ProductsFor Industrial Products

Mail order. Goods are ordered by catalogue, and delivered to the home by post or parcels carrier. The physical distribution channel is thus from manufacturer to mail order house as a conventional trunking (line-haul) operation, and then to the consumer's home by post or parcels carrier, bypassing the retail store.

Factory direct to home. It can occur by direct selling methods, often as a result of newspaper advertising. It is also commonly used for one-off products that are specially made and do not need to be stocked in a warehouse to provide a particular level of service to the customer.

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Additional Channels Additional Channels For Industrial ProductsFor Industrial Products Internet and shopping from home.

Initial physical distribution channels were similar to those used by mail order operations - by post and parcels carrier. The move to internet shopping for grocery products has led to the introduction of specialist home delivery distribution operations. These are almost all run by third-party companies. In addition, it is now possible to distribute some products, such as music, software and films, directly, computer to computer.

Factory to factory/business to business. The factory-to-factory or business-to-business channel is an extremely important one, as it includes all of the movement of industrial products, of which there are very many. This may cover raw materials, components, part-assembled products, etc. Options vary according to the type and size of product and order, may range from full loads to small parcels, and may be undertaken by the manufacturers themselves or by a third party.

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The Main Differences The Main Differences Among Among Channel Structures Channel Structures Are:Are:

The types of intermediaries (as shown above);

the number of levels of intermediaries (how many companies handle the product);

the intensity of distribution at each level (ie: are all or just selective intermediaries used at the different levels?).

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Channel SelectionChannel SelectionNormally be considered by a company in the course of its distribution planning process to ensure that the most appropriate channel structure is developed:

To make the product readily available to the market consumers at which it is aimed. The most important factor here is to ensure that the product is represented in the right type of outlet or retail store. Having identified the correct marketplace for the goods, the company must make certain that the appropriate physical distribution channel is selected to achieve this objective.

To enhance the prospect of sales being made. This can be achieved in a number of ways. The most appropriate factors for each product or type of retail store will be reflected in the choice of channel. The general aims are to get good positions and displays in the store, and to gain the active support of the retail salesperson, if necessary. The product should be 'visible, accessible and attractively displayed'. Channel choice is affected by this objective in a number of ways:- Does the deliverer arrange the merchandise in the shop?- Are special displays used?- Does the product need to be demonstrated or explained?- Is there a special promotion of the product?

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CHANNEL SELECTIONCHANNEL SELECTION

To achieve co-operation with regard to any relevant distribution factors. These factors may be from the supplier's or the receiver's point of view, and include minimum order sizes, unit load types, product handling characteristics, materials handling aids, delivery access (eg vehicle size) and delivery time constraints, etc.

To achieve a given level of service. Once again, from both the supplier's and the customer's viewpoints, a specified level of service should be established, measured and maintained. The customer normally sees this as crucial, and relative performance in achieving service level requirements is often used to compare suppliers and may be the basis for subsequent buying decisions.

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CHANNEL SELECTIONCHANNEL SELECTION To minimize logistics and total costs. Clearly,

costs are very important, as they are reflected in the final price of the product. The selected channel will reflect a certain cost, and this cost must be assessed in relation to the type of product offered and the level of service required.

To receive fast and accurate feedback of information. A good flow of relevant information is essential for the provision and maintenance of an efficient distribution service. It will include sales trends, inventory levels, damage reports, service levels, cost monitoring, etc.

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Types Of Third-party Distribution Types Of Third-party Distribution OperationOperation Dedicated (or exclusive) distribution operation. This is where a

complete distribution operation is provided by a third-party company. The third party undertakes to provide the customer with all its distribution requirements, exclusively, on a national or regional basis. The resources used will include warehouses, distribution centres, transport fleets, managers, etc. These are obviously confined to very large companies.

Multi-user (or shared-user) distribution operation. Similar to dedicated operations, the principal difference being that a small group of client companies is catered for, rather than just a single client. One of the characteristics of this type of service is that ideally the clients are all manufacturers or suppliers of goods and their products are all delivered to the same or similar customers, for example grocery products to grocery stores, supermarkets, catering establishments, etc. These are also known as shared user operations. The advantage of this approach is that expensive distribution costs are shared between the clients, so all parties enjoy the benefits.

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Types Of Third-party Distribution Types Of Third-party Distribution OperationOperation Specialist distribution operation. These

distribution operations are used for the storage and movement of products that require special facilities or services, and the distribution operation run by the third-party company is especially tailored to suit these needs. There are several examples, such as frozen food and hanging garment distribution.

Regional multi-client distribution operation. These operations are provided for any number of clients and for most product types. They are usually provided by a 'general' third-party distributor that has probably started as a very small operation and grown into a regional operation concentrated in a specific small geographic area.

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Types Of Third-party Distribution Types Of Third-party Distribution OperationOperation

National multi-client distribution operation. Similar to the previous one, a service being provided for any number of clients and product types. The main difference relates to the size of the operation. This is nationwide, and would include a trunking (line-haul) operation between the companies' sites, so that if necessary a client company can have a delivery service to anywhere in the country.

Satellite or cross-docking operation. These are operations where the operator is not involved in the storage of any products, but is only providing a collect, break-bulk and delivery service. Thus, no unordered stocks are held, although some minor stockholding may occur for a limited number of product lines.

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Types Of Third-party Distribution Types Of Third-party Distribution OperationOperation

Joint venture. A limited number of operations have been set up whereby a third-party operator and a client company form a separate distribution company called a joint venture. This may occur where a company with its own distribution operation has some underutilized resources. It will then link up with a third-party operator and offer the services on a wider basis. This has occurred in the hanging goods and the high-tech sectors.

International distribution operations. These may be dedicated but are most likely to be multi-user, enabling a client to achieve international movements between sites and delivery to final customers over a broad international area.

Occasional use. Many companies use third-party services on an occasional basis or as an aid to support their own-account operations. There are a number of reasons why a company might do this: to cover seasonal peaks in demand; to cover weekly demand peaks; for non-standard products that don't fit easily into their own operation (very small or very large products); to deliver to peripheral geographic areas where there is only limited demand for their products; or for non-standard operations (returns, collections, etc).

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KEY DRIVERS FOR THIRD-PARTY KEY DRIVERS FOR THIRD-PARTY DISTRIBUTIONDISTRIBUTION Cost (capital cost, operating cost, Economies of scale,

cost lag or cushion effect, change-over costs) Service (greater flexibility) Organizational (concentrate on their core business, oss of

control over, the delivery operation, loss of control over the company’s logistical variables, lack the experience, service levels are poorer, balance of power is shifted, loss of distribution and logistics expertise, problem trying to co-ordinate third-party delivery service with a client company’s sales service, loss of direct influence at the point of delivery, brand integrity, the confidentiality of information, cultural incompatibility)

Physical factors (greater flexibility, solve any industrial relations problems, drop characteristics of some products, Vehicle characteristics, Basic delivery systems may be incompatible, Some products may be incompatible)

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REFERENSIREFERENSI

Alan Rushton, Phil Croucher, & Peter Baker. 2006. The Handbook Of Logistics And Distribution Management. Kogan Page, Ltd.

Kodrat, David Sukardi. 2009. Manajemen Distribusi Berbasis Teori dan Praktek. Yogyakarta: Graha Ilmu.

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