AP 10_AA 18 DETERMINAR SISTEMAS DISTRIBUCION-

-DISTRIBUTION SYSTEMS-

Presented by:
BAYRON DONCEL TRUJILLO

Presented to:
PAULO GAITAN
Instructor Virtual

SERVICIO NACIONAL DE APRENDIZAJE SENA

TECNLOGO EN GESTIN LOGSTICA
VALLEDUPAR
2017

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 CONTENIDO

Pg.

INTRODUCTION.......................................................................................................3
1.DISTRIBUTION SYSTEMS....................................................................................4
1.1. General Of Distribution Systems.................................................................4
1.2. Structure of the MANA PAN Distribution System.........................................6
1.2.1. Distribution channels of MANA PAN: these are:....................................7
1.3. MANA PAN Distribution System...................................................................9
2.HOW TO WRITE A SUMMARY............................................................................10
2.1. Reading..........................................................................................................10
2.2. While- Reading...........................................................................................11
2.3. Writing the Paragraph.............................................................................12

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 INTRODUCTION

The physical distribution is the set of actions carried out by companies to bring the
products in perfect condition to the customer, at the time and place established and
at a reasonable cost. It is not to forget that many times the place of production is
not the place of consumption and therefore the channels facilitate the arrival of the
products to the final consumer.

For this reason, in a company, the organization of this service plays a fundamental
role in the commercial area, since it is the person in charge of the sales and
therefore of the distribution of the merchandise. Logistics then becomes one of the
most important factors of competitiveness, since it depends on the success or
failure of marketing.

A good distribution system allows you to increase sales, reduce inventories, lower
costs and satisfy customers. When a company is born and when a new product or
a new line is launched, it is necessary to analyze the channels that allow to bring
the product to the customer.

According to the above, it can be said that channels are the different routes or
routes that companies use to bring their products to the consumer or end user. The
costs of this distribution vary depending on whether the products are perishable or
nonperishable, liquid or solid, small or large, flammable or wicked among others.

The improvisation in the supply system and the absence of controls in the handling
of the merchandise, can bring great losses for the company, reason why the
election of a good distribution channel must be a commercial strategy designed
carefully taking into account which is The product, what quantity is produced, who
is the target audience, at what price will reach the end consumer, such as logistics
infrastructure, what level of information the company has, what control does it have
over products, whether the distribution is regional or national , Financial capacity of
the company, channel costs, market coverage, product control, etc.

The advantages and disadvantages of the production company must be analyzed

very well when choosing a particular channel, which is the most appropriate
depending on the characteristics of the company, what kinds of channels there are
and the number of services it can offer, since the technologies Computer systems
have made possible great advances in the distribution systems, since nowadays
you can know in real time the stocks and inventories, you can know exactly where
a cargo is shipped, you can have satellite shipment tracking etc. All this information

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 that is accessible through the Internet, is revolutionizing the concepts of physical
distribution.

1. DISTRIBUTION SYSTEMS

1.1. General of Distribution Systems

For MANA PAN, the distribution channel chosen by this bakery, is based on all the
individuals that for this case would be its employees and equipment, materials and
supplies, that would be considered all the equipment and other inputs required for
the smooth operation of MANA PAN , Involved in the whole process of transferring
the finished product, packed and packed, from the production area of the factory,
its passage through the storage area or warehouse and finally its transfer to the
retailer to reach the final consumer. But in order to choose a good distribution
channel, MANA PAN took into account the general structure of distribution
channels

Figure 1. General structure of distribution channels.

AGENT WHOLESALER RETAILER

CHANNELAGENTBROKER
SOURCES OF RAW MATERIAL

FINALCONSUMER
FINALCONSUMER
WHOLESALER
RETAILER
PRODUCER
PRODUCER

LONGINDIRECTCHANNE
PROVIDER
PROVIDER

RETAILER

INDIRECTCHANNELSHORT

DIRECTCHANNEL

The previous figure shows the general structure of the distribution channels, which
may be present in all the distribution networks of the companies, which are
employed or made available in the companies to bring the products manufactured
by these companies to their consumer Final, satisfactory and preserving the

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excellent quality of the products. In addition, distribution channels require updates
to evolve and process as a result of changes occurring in the environment.
Therefore, it is important to be clear about the characteristics that involve the
distribution channels, highlighting fact, that it is of vital importance to know the
functions that each of the members of a distribution channel must execute so as to
have detailed all the processes that Involve the application of distribution channels
in the marketing and sale of products manufactured by a company, and thus
efficiently reach the consumer retailers, wholesalers and end. Next shown in figure
2 with the different characteristics of the distribution channels, they include the
functions that their members must perform, showing them sequentially.

Figure 2. Characteristics that identify distribution channels.

According to the above information, MANA PAN, presents a multichannel

distribution system, which has the following structure.

1.2. Structure of the MANA PAN Distribution System

The bakery MANA PAN, presents two types of distribution of its products:

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Direct Distribution: MANA PAN, has a direct selling point, as it presents within the
company premises, a bakery, for the sale of its products to its customers. This
distribution includes the direct channel of distribution.

See figure of direct distribution on the next page.

Figure 3. Direct Distribution.

Final Consumer

Maker

Indirect Distribution: MANA PAN, has an indirect distribution of its products,

because MANA PAN, the greatest quantity of products sold by this bakery, is made
through the sale of retailers, who sell the products manufactured in MANA PAN, at
final consumer. This distribution system encompasses the indirect distribution
channel.

Figure 4. Indirect distribution.

Maker

Retailer Final Consumer

MANA PAN, in order to choose the type of distribution channel, MANA PAN took
into account the two types of distribution used in this baker. From this, MANA PAN
uses the following distribution channels.

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1.2.1. Distribution channels of MANA PAN: these are:

Direct Channel: MANA PAN, sells its newly manufactured products to the
final consumer, through the direct selling point, as is the bakery of the
factory, in which only the manufacturer participates, which in this case is
MANA PAN and the final consumer. This channel has a zero level. It also
has a direct sale, where MANA PAN, as manufacturer, sells directly to the
consumer, without intermediaries.

Figure 5. Direct distribution channel.

Direct channel or zero level

Maker Consumer

Indirect Channel: MANA PAN, uses this channel to make its sales outside
the direct selling point, and take its products to other customers, who are
distant from the bakery or direct selling point of MANA PAN. Therefore this
channel has a level, thanks to that the products leave the factory, they pass
to the retailers and they are those who sell them to the final consumer. In
turn this channel has several lengths (short, long, traditional), of which the
one chosen by MANA PAN, for the distribution of its products was the short
channel, because MANA PAN has a single type of intermediary, which Are
the retailers or retailers. Since this channel uses as an intermediary the
retailers or retailers is considered as a retail channel and highlighting the
fact that these retailers are small businesses such as the dangon
neighborhood stores and neighboring neighborhoods, as well as the
miscellaneous, the cafeteria of the Stores, institutions or organizations
located in the dangon neighborhood, such as mixed school cafeterias
number 4, the national garden, judicial jail, and successful stores who will
proceed to make a retail or retail to the final consumer.

Figure 6. Indirect distribution channel.

Indirect channel short - channel retailer: one level

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 Maker
Maker Retailer Consumer

Bearing in mind that the area of influence in the sale of MANA PAN products is the
dangon neighborhood, including the residential and commercial area that this
neighborhood encompasses, as well as the neighboring neighborhoods, including
the chain store's shopping area SUCCESS, Judicial jail, undertakers, etc., this
channel is chosen, since it does not have a high number of retailers, but with a
moderate number, which have a high purchasing potential.

It should also be noted that the indirect channel (retail distribution), employed in
MANA PAN, has a sales force that allows it to communicate directly with retailers,
so that they distribute the product to the final consumers. Hence the sale of the
products is retail or retail. This strategy is used by MANA PAN, since it is aware
that consumers in the vast majority depend on a weekly or daily payment, as is the
case of small shopkeepers such as shopkeepers, miscellaneous, informal work
such as selling minutes, food vendors Fast in the dangon neighborhood that are
part of informal employment, which forces them to reduce their transportation costs
to make the product less expensive. In addition, for clients such as commercial
establishments such as SUCCESS, or institutions such as the Valledupar judicial
jail, insistently request that MANA PAN be present at the time of placing orders or
submitting a complaint, claim or return of the product , Therefore the sales force, is
the one indicated to initiate the resolution of the inconveniences with these
companies and institutions, from which the retail channel was used for the
distribution of the products manufactured by MANA PAN. Therefore it can be
concluded that this channel is indirect-retail, with a short length, a single level.

On the other hand, it is also to consider within this retail channel the distribution
strategy used in MANA PAN; Choosing as strategy "STRATEGY OF INTENSIVE
DISTRIBUTION". This strategy tries to place the products manufactured by the
bakery, bakery and biscuit MANA PAN in all possible sales points, so that products
manufactured by MANA PAN, are available to the final consumer, at all points of
sales of the MANA PAN products, both in the dangon neighborhood, neighboring
neighborhoods and commercial area of stores EXITO, judicial jail, mixed school
number 4, undertakers, etc. In this strategy the company tries to boost the sales,
facilitating to the consumer a point of purchase near.

Emphasizing the fact that MANA PAN gives importance to both channels, but of the
two, the one that requires the greatest effort in its application is the retail channel,
hence its great importance for MANA PAN.

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 1.3. MANA PAN Distribution System

Taking into account the above information, MANA PAN has a multichannel
distribution system, because it establishes two or more marketing channels to
reach one or more customer segments that are located in the area of the dangon
neighborhood, neighboring neighborhoods and area Commercial, as well as
institutions or organizations located there.

Within this distribution system are two channels: direct and indirect; Highlighting
the fact that the direct channel is aimed at the small buyer, such as the people who
live around the bakery that is considered as a point of sale MANA PAN, as well as
people who transit through the bakery, for this type of customers are Offers all the
products to be made in MANA PAN, such as bakery, pastry and biscuit products.

In the indirect channel, two customer segments are handled: the retail customer
that purchases daily and the retail customer that purchase monthly.

This retail customer, who buys daily, is comprised of shopkeepers, casual vendors
selling minutes, fast-food street vendors, cafeterias of various institutions or
organizations located in the dangon neighborhood, such as mixed school
cafeterias number four and National garden For this type of customers, they are
offered bakery products, which can be stored at room temperature and are packed
in individual bags.

Retail customers who buy weekly are cafeteria judicial jail, cafeteria stores
successes and coffee shop funeral companies. For this type of customers, they are
offered bakery and biscuit products that can be stored at room temperature and
are packed in individual bags.

Below is the graph of the MANA PAN distribution system.

MANA PAN MULTICANAL DISTRIBUTION SYSTEM

DIRECT CHANNEL INDIRECT CHANNEL

CONSUMER SEGMENT 2
CONSUMER SEGMENT 2
CONSUMER SEGMENT 3

Maker Maker
Maker
Sales force with Indirect sale
Direct intensive selling 9 Indirect sale
sale Final Final
strategy Retailer The Daily Sales force with Final
Consumer Consumer
Shopping: Retailers who buy
intensive selling Consumer
strategy weekly
 2. HOW TO WRITE A SUMMARY

2.1. Reading

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2.2. While- Reading

Read the text again and complete the chart with its information.

1. What is the title?

Material Handling: A better view

2. What is the subtitle about?

It is about the benefit to Christie Visual technologies to develop space storage and retrieval
systems.

3. How many paragraphs are there in the text?

3 paragraphs

4. What did the company to do in the first paragraph?

For Christie Visual Technologies company, it is helpful to apply a new storage and retrieval
system.

5. What were the problems in the company in the first paragraph?

The company needed to expand the material handling system in manufacturing,
particularly height and storage capacity, as well as not having a space for expansion;
Which limited its growth.

6. What did Christie do to solve the problem in the company?

Installed the Shuttle VLM Vertical Lift Module system, form Kardex Remstar. For storage
and retrieval

7. What did Christies solution solve?

Helped to solve problems that the company had in the handling of a system of storage and
recovery in the manufacture.

8. What did Christie offer to other companies in the second paragraph?

Gives other companies access to visual screen solutions for business, entertainment and
medical use. It includes solutions for the cinema, large audience environments, control
rooms, business presentations, training facilities, 3D and virtual reality, simulation,
education, media and government.

9. What did the new technology include?

ISO certifications, high technology facilities, qualified personnel and production plant with
storage chain and recovery of effective spaces

10. Where is the companys facility?

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It allows the company to save up to 70 percent in the storage space in the handling of
materials in its manufacture.

11. What measures does the companys facility have?

Doubles storage capacity and reduces labor requirement by half.

12. What certifications does the company have?

The company has the certifications ISO 9001: 2000 and ISO 14001.

13. What is the manufacturing process based on?

The Kaizen Lean manufacturing philosophy

14. What is the conclusion of the text?

Visual Technologies Chistie, to solve its problems of material handling in the manufacture,
has implemented systems known as Shuttle VLM (Shuttle Vertical Lift Module); Which
helps you save floor space up to 70 percent, reduces the use of labor by half and doubles
its storage capacity. Such a system is based on the Kaizen Lean Manufacturing
philosophy, which applies the 5S methodology, and continuous improvement processes

2.3. Writing the Paragraph

After completing all the questions, write the summary of the text. Organize the sentences
in the chart.

Management of materials of the company Visual Technologies Christie. - The

Storage Systems of the company

Visual Technologies Christie had problems in his operability presented problems in the
handling of materials in the manufacture. However it solved them, with the installation of
Shuttle system - VLM (Vertical lift module). This gave him the opportunity to improve the
requirements in height, capacity, space limit; Which helped it recover 70 percent of its floor,
double storage capacity, and reduce the use of labor by half. This system is from Kardex
Remstar, it applies the Kaizen Lean Manufacturing philosophy and the 5S methodology.

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