Product Distribution Network

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Product distribution network

Distribution network is an important piece on international negotiations,

because is an entire chain of distribution intermediaries between the supplierand consumer, and it can define a lot of things on success or fail of a product.

At this time, the globalization process takes nations towards strategic thinking,

after opening markets worldwide any country have access not just to specific

point in his territory but also in any other point in the world. Inside globalization

and international negotiation exist a very important part that permit the

transportation of products worldwide, this vital part in the process is call

“distribution network”.

A process of interrelated arrangement of people, storage facilities

and transportation systems that moves goods and services from

producers to consumers. A distribution network is the system a

company uses to get products from the manufacturer to the

retailer. A fast and reliable distribution network is essential to a

successful business because customers must be able to get

products and services when they want them. (Investopedia, 2013).



The opportunities are for those who get close to consumers, knowing and

understanding what they want. That is to guide the industry to build and

strengthen customer relationships that create growth for companies. At this

time, society has evolved on new ways of thinking, with more demanding

consumers, knowledgeable and with access to a variety of deals, making

industries and producers pay more attention to things like Quality of service,

cost, Overall control and flexibility. Everything base on what kind of product the

company has. Choosing the correct mode of transportation means a balance

between time and budgetary constraints. In that way, it is important to you, to

understand the nature of your business and which will be the best way to

deliver your product to your customers. Here are some key points that you

should pay attention to, at the time of choosing a correct means of

transportation.

1. Type of load to be transported: ideal transport conditions according to

the same electric organ and legal restrictions.

2. Cost: the value of the product is capable withstanding the average cost

of selected transportation. The logistics costs must not exceed the cost

of the distribution channel.

3. Reliability: check the reliability of the selected channel.

4. Delivery time: it depends on what has been agreed with the customer.

5. Information systems: value through the information that our consumers

and we provide.

6. If your cargo is valuable: it might be necessary to use a vehicletracking system so you know exactly where it is.

Having these things in mind, you can choose the best ways to transport your

goods everywhere. Choosing the correct mode of transportation for your

products depends on the size and urgency of your shipment.



By road:

Move your merchandise by road is the economic and convenient way, because

is very flexible mode of transportation. Trucks can go a lot of places even toremote locations, however not as eco-friendly as other transport systems. Also

may have some delay because of the roads and public order problems.

By rail:

Rail transportation could be a very good option because is speedy, eco-friendlyand without delays, but could be very expensive and inflexible.

By air:

Air transportation is the fastest way to transport products across long distanceshowever; it has a high environmental impact as well as high costs. Be aware

that air freight is usually charged by kilogram, also you have to pay other fees

like risk surcharges, customs fees, security fees.

By sea:

Transporting goods by sea is very common, especially if they come from other

continents such as Asia. This is relatively inexpensive and is used to transport

large quantities of goods. However, this is not very flexible and their

destinations are the ports of the country of destination, so, it probably needs tomake arrangements to transport products inland.



References:

Counsil of Supply Chain Management Professionals. (2013). Consultadoel 20 de marzo de 2013, en http://cscmp.org/

Investopedia. (2013). Distribution Network. Consultado el 20 de marzo

de 2013, en http://www.investopedia.com/terms/d/distribution-

network.asp

Toro, A. (2004). Distribución de mercancías. Bogotá.

Control del documento

Nombre Cargo Dependencia Fecha

AutorNatalia Catalina

PereaContratista

Centro de Gestión

de Mercados,Logística y

Tecnologías de laInformación

Diciembrede 2012

AdaptaciónLina María

Franco Arbeláez

Pedagoga - Línea

de producción

Centro Agroindustrial

Regional Quindío

Abril de2013

Adaptación Ana María Mora

JaramilloGuionista - Línea

de producción

Centro Agroindustrial

Regional Quindío

Abril de2013

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Product Distribution Network