2.3.1. Concept and scope
distribution logistics
The concept of distribution logistics
Distribution logistics is a complex of interrelated functions implemented in the process of distributing a material flow between various wholesale buyers, i.e. in progress wholesale goods.
The main goal of distribution logistics is to ensure that the right goods are delivered to the right place, at the right time, at the lowest possible cost.
Unlike marketing, which is concerned with identifying and stimulating demand, distribution logistics is designed to meet the demand generated by marketing at minimal cost. At the same time, it is necessary to proceed from the tasks of meeting the basic needs of the consumer of products, which include the following: timely delivery of goods, the ability to meet the urgent needs of the customer, careful handling of goods during loading and unloading operations, the readiness of the manufacturer to quickly replace defective products and maintain a certain level of inventory.
Application areas of distribution logistics
There are two approaches to defining distribution logistics functions. The first covers a complex of shipment operations finished products from the supplier's warehouse. The second is wider. In this case, it is considered that distribution logistics implements the entire process of circulation of material products, starting from the moment when it leaves the production line until the moment when it enters the consumer's warehouse. It should be borne in mind that distribution tasks are solved at the level of micro- and macrologistics.
At the micro level, the following tasks are solved:
- planning the implementation process;
- selection of product packaging, its packaging and conservation;
- organization of shipment of products;
- control over transportation to the place of consumption and delivery of products to the consumer;
- organization of post-sales service.
At the macro level, the tasks of distribution logistics include:
- choice of material flow distribution scheme;
- formation of distribution channels;
- placement of distribution centers.
2.3.2. Product distribution channels
Distribution channel and its functions
The supplier and consumer of goods are two micrologistics systems interconnected by a logistics channel or a distribution channel.
Distribution channel is a collection of organizations or individuals which take over or help transfer ownership of a particular good or service to another on its way from producer to consumer. Logistics channel an ordered set of different intermediaries that bring the material flow from a particular producer to the consumer.
The use of distribution channels brings certain benefits to the manufacturer, as it ensures the sale of products with the most effective ways, allows you to bring products to target markets, saves distribution costs.
The organizations or individuals that make up the channel perform a number of functions. During the period of conclusion of transactions collection of information necessary to ensure the movement of goods through the channel, taking on the risks associated with the functioning of the channel. During the completion of transactions organization of goods movement (transportation and warehousing), finding and using financial resources to ensure the movement of goods through the channel, taking on the risks associated with the functioning of the channel.
The distribution process itself is carried out by implementing the following types works: processing orders, warehousing products and maintaining inventories, transporting goods to places of consumption.
Order processing includes: receiving an order from the consumer, sending information about the order to the interested departments of the enterprise, making a decision on the production of products. If the goods needed by the consumer are in stock, they are shipped. If there are no goods in the warehouse, an order for their production is transferred to production.
Warehousing. After finishing production process the company is forced to store the goods until they are shipped. This is due to the fact that the cycles of production and consumption rarely coincide.
The company can choose different forms of storage of finished products:
- part of the goods can be stored in the warehouse of the enterprise, part in warehouses in areas of product consumption;
- all manufactured products can be stored in the warehouses of the enterprise;
- the enterprise can rent a place in public warehouses;
- warehouses can be used to store goods long-term storage or transit warehouses.
Maintenance of inventory. For the uninterrupted provision of the consumer with the goods he needs, the manufacturer creates stocks of inventory items that are stored in the warehouses of the enterprise or in areas of consumption. Stocks are maintained at the level stipulated by special regulations.
The final step in the implementation process is transportation goods to the place of consumption and delivery to the consumer on the terms stipulated by the agreement (contract).
Structure of distribution channels
Distribution channels have different structure, which can be characterized by the number of levels that make up the channel.
Channel level this is an intermediary who performs work to bring the product and the owner's right to it closer to the end consumer.
In systems with direct connections, there are no wholesale intermediary firms in the channels. In flexible or layered systems, there are such intermediaries. On fig. 2.3.1 shows examples of channels with different construction schemes.
Rice. 2.3.1. Schemes for constructing distribution channels
When forming a distribution channel, the decision on the structure of the channel is put forward in the first place, i.e. about the number of levels and about the specific composition of the members of the channel. When identifying possible options for distribution channels, it is necessary to determine the type of intermediaries used. Their classification takes into account two features: on whose behalf the intermediary works and at whose expense it conducts its operations.
There are four types of intermediaries.
- Dealers wholesale, less often retail, intermediaries who conduct operations on their own behalf and at their own expense. They purchase the goods under a supply contract, become the owners of the goods after paying for the delivery and sell these goods to consumers.
- Distributors wholesale and retail intermediaries operating on behalf of the manufacturer and at their own expense. The manufacturer grants the distributor the right to sell its products in a certain territory and for a certain time. The distributor does not own the product. Under the contract, he acquires the right to sell it.
- commission agents wholesale and retail intermediaries conducting operations on their own behalf and at the expense of the manufacturer. The commission agent is not the owner of the product. For the services rendered, he is paid a remuneration in the form of a percentage of the transaction amount.
- Brokers Intermediaries in concluding transactions, bringing counterparties together. Brokers are not the owners of the products, they do not dispose of the products. They act on the basis of instructions and facilitate the completion of the transaction. Rewarded only for products sold.
After the selection of specific participants in the process of promoting the material flow from the supplier to the consumer is made from a variety of different intermediaries, the logistics channel is transformed into a logistics chain.
2.3.3. Forms of bringing goods to the consumer
A variety of forms of bringing goods to the consumer
The forms of bringing the product to the consumer are determined primarily by the nature of the product itself, the place and conditions of its production, consumption, and the possibilities of transport.
Direct communication through the "door to door" system, in which the goods are delivered from the supplier to the consumer, bypassing warehouses and storage facilities. This form is used when a large batch of products is purchased or unique products are purchased. It allows you to minimize transport costs and the cost of intermediate storage of goods. Direct connections bring effect only when serving closely located consumers.
In the case when consumers are located far from suppliers or in several regions, the delivery of goods through warehouses (centers) of supplier enterprises. Sales agents, accepting an order for the supply of products, send it not to the central sales office, from where it is sent to one of the company's enterprises, but directly to the nearest distribution center.
The next form of bringing goods to consumers is using the services of wholesalers. Suppliers use services wholesalers when selling products for industrial purposes. This form is mainly used to expand sales markets and reduce costs, if necessary, to organize an additional channel for the sale of the same product in different markets, when goods of standard quality are supplied in large quantities, etc.
In recent years, this form of relations between wholesale intermediaries and industrial enterprises, when operations are assigned to the first maintenance consumer-owned equipment. In this case, manufacturers are relieved of the need to have personnel to perform such operations. Industrial equipment, raw materials and semi-finished products can be sold through commodity exchanges, using brokers and agents.
Distribution center location
Choice the best option placement of a distribution center is carried out in the case when there are several consumers of the material flow in the service area.
When choosing a distribution center location option, the following sequence of actions is applied:
- the market conditions are studied and a forecast of the value of the material flow passing through the logistics system is developed;
- a system for supplying goods to consumers is being developed;
- schemes are drawn up for the distribution of material flows inside logistics system;
- the distribution center location option is selected according to the criterion of minimum reduced costs. The given costs are determined by the following formula:
Where W P reduced costs by option;
S E the center's annual operating costs;
C T annual travel expenses;
TO capital investments in the construction of a distribution center;
T payback period of capital investments.
Review questions
- The concept of production logistics.
- Functions of material flow management in production.
- Features of building a funnel-shaped model of a logistics system.
- Order priority rules.
- Comparative characteristics of push and pull systems in material flow management.
- The relationship of organization and management of material flows in production.
- The spatial structure of the logistics system and its determinants.
- The structure of the order fulfillment cycle.
- The concept of the form of organization of material flows.
- The main forms of organization of material flows.
- Material flow management system.
- The concept of distribution logistics.
- Tasks solved by distribution logistics at micro and macro levels.
- The concept and functions of the distribution channel.
- The procedure for determining the location of the distribution center.
♦ other services.
Table 1 - Types of services in different fields of application
|
Service types |
Scope of application |
|
Manufacturing Services |
Engineering, leasing, maintenance (repair) of equipment, etc. |
|
Distribution Services |
Trade, transport, communications |
|
Professional Services |
banks, Insurance companies, financial, consulting and other firms |
|
Consumer (mass services) |
Household and leisure services |
|
Public services |
Television, radio, education, culture |
Let us point out the use in interstate practice of a number developed countries classification based on two related criteria: the type of services and the scope of their application. In this case, typologically similar services are grouped in a certain way (Table 1).
In a number of countries, the classification of services is made on the basis of an industry approach and is associated with historically established business practices and issues state regulation service industries. In this case, as well as in the North American model, based on a number of criteria, there is a list of service activities of the same order or similar in content. Each service is presented in one typological grouping. This list, as a rule, ends with the grouping “other services”, which includes services that are not included in any of the previous units. At the same time, the list of services remains incomplete, open for further replenishment.
A similar scheme for classifying services also operates in Russian business practice, where, on its basis, an all-Russian classifier of services to the population has been developed, and indicators of state statistics are also presented. In this case, the service sector includes the following areas of service activities, which are its most important typological areas:
♦ trade (wholesale and retail);
♦ food and accommodation services (hotels, structures Catering);
♦ transport;
♦ communications and information services;
♦ supply, procurement and storage of material and technical resources;
♦ credit, finance and insurance, real estate transactions;
♦ education, culture and art;
♦ science and scientific service;
♦ healthcare, including physical culture and sports;
♦ household maintenance services (home repair, industrial and household public utilities);
♦ personal services (non-production, household, etc.);
♦ services government controlled;
♦ other services.
Comparison of the Russian and North American service classification models shows that the domestic model is more detailed with respect to some types of services and more weakly reflects other types of services. In particular, it does not present services of a market-commercial type, which in this case have to be included in the “other services” group.
This originality was reflected in the statistical collection "Services in Russia" (M., 2000). It contains data on all areas of service activities indicated in the all-Russian classifier in Russian economy for 1998-1999 Along with this, in the additional section "Indicators of development certain types market services” presents detailed statistical data on new services that have not yet been singled out in separate areas, but for the most part appear in general view in the "other services" group. In this case, the collection contains information about:
♦ intermediary services in real estate transactions;
♦ property valuation services;
♦ information and computer services;
♦ activities of gambling establishments.
IN different countries there are similar, but developed in the service's own practice, groupings of services, which are specified and supplemented in different ways. For example, in some countries, the list of such groupings includes construction, gasification networks, energy systems, etc., while in other countries these infrastructure elements are classified as statistical reporting to non-service industries.
Generally recognized differences between the process of providing services from the production process:
a) participation of the client in the process of providing the service;
b) combining the stages of satisfying the customer's need for a product;
c) services cannot be stored;
d) the demand for services is changeable;
e) intangibility of the service process for the client;
e) it is difficult to assess the quality of the service;
g) it is difficult to assess the effectiveness of the service.
A. Participation of the client in the process of providing the service
In accordance with the definition of a business process79, any activity within it is aimed at the client or consumer of the process. In industrial production, the product passes into the hands of the customer. By definition, a service is a process. When providing a service aimed at customer satisfaction, the customer is forced to be involved in the process. This is the most important difference between service-related processes and production processes (Figure 40).
Thus, when providing a service, the staff is in closer contact with the client than in production, which requires him to have not only professional technological competencies, but also communication skills. As a result, the service is designed taking into account the impact of the process of its provision on the client.
Many companies can achieve success by manipulating the degree of involvement of the client in the business process and his role in it. So, at one time, self-service retail stores entered the markets. In them, compared with the traditional technology of the seller behind the counter, the service area is narrowed and the production area is expanded, in which the client acts as an employee of the trading floor, selecting, sorting, packaging and transporting goods.
Exclusion of the client from the service process allows you to increase the efficiency of the production part of the process. Therefore, in modern business there is a tendency to move the client away from the service process through the introduction of remote or remote service using telecommunications (for example, taking orders via the Internet and e-mail, remote monitoring of the patient's condition, etc.), the use of machines (for example, currency exchange, payment acceptance, etc.).
b. Combining the stages of meeting the need for a product
Another important difference between a service and a production process can be noted. Any business can be considered at the stages of production of the result, its implementation and consumption. For production processes, these stages are separated from each other, since the client as such, carrying out the consumption process, is not a participant in the process of producing the result. In the provision of services, these stages may coincide in time and space, alternate1. Examples of this are given in Table. 9.
Table 9
Examples of a combination of different stages of the production of services An example of an organization Stage of rendering a service production realization consumption Restaurant + + + Atelier + + Shop + + 1 Fel A.V. Decree. op. 128 In the process of consuming most services, in contrast to the consumption of tangible products, customers are directly at the place of their provision: in the office, restaurant hall, in a surgical operating room, in a train compartment, etc. (depending on the industry). IN production area work with the goods is concentrated in the subdivisions of the processing subsystem of the operating system. In the service sector, activities for their provision are present in all divisions. organizational structure, including providing and managing subsystems.
V. Services cannot be stored
Services, being a process of satisfying a customer's need, cannot be stocked or pre-stocked. This limits the flexibility of the service delivery process itself and emphasizes capacity planning. In production, during a period of decline in demand, it is possible to accumulate stocks of finished goods for its sale during periods of growth in demand, and thus maintain a relatively stable level of production capacity utilization and staff employment. This is implemented using the capacity fixation strategy discussed in Section 2.3.7 (see Figure 22).
In the service sector, with rare exceptions, it is necessary to satisfy demand at the moment of its occurrence. Strategies for fixing production capacity and following demand (see Fig. 21 and Fig. 22) can be applied, but operating system models should be used that are different from the models discussed in paragraph 2.2.1 when describing production processes. In all these models (see Fig. 13 - Fig. 16), stocks of goods play a key role, as the names of the models indicate: with a stock at the input and output, with a stock at the output, with a stock at the input, without stocks.
In the absence of the possibility of creating a stock of services, the models for organizing the operating system become 1: 1.
First class service model. 2.
"cheap" service model. 3.
Model of "inefficient service. 1)
The “first class” service model creates an excess capacity resource so that each customer can receive service at the moment of contact (Figure 41). The redundancy of the resource causes periodic downtime of equipment, stagnation of materials, unemployment of personnel. As a result, the cost and price of the service is growing. The name "first-class" service is associated not with the client's assessment of the quality of the service, but with the segment of the expensive services market in which this model is most often used.
rice. 41. First class service model 2)
The "cheap" maintenance model intentionally limits the amount of available production capacity. Customers are forced to stand in line, waiting for service (Fig. 42). This model is successfully used in the market of exclusive services, as well as in the market of the "economy-minus" segment. Insufficient capacities make it possible to reduce the cost base and freely manipulate the price level.
rice. 42. Model of "cheap" service
The model creates the possibility to “store” not the service, but the customers in the queue (including the pre-registration system). The idea of influencing demand is used in order to balance it with available production capacities (see paragraph 2.3.7). This influence can be done by manipulating the length of the queue 130 or by applying a system of discounts or markups during periods of decline or increase in demand.
3) The "inefficient" service model is the most common in business. When using it, in some periods of time there is excess production capacity, in some periods - customers stand in line (Fig. 43). The apparent inefficiency of the model is associated with seasonal fluctuations in the demand for services (by days, weeks, months, seasons), leading to periodic downtime of production facilities or to idle customers in the queue.
queue
rice. 43. Model of "inefficient" service
d. Demand for services is volatile
Any demand is volatile, but the demand for services is characterized by large, complex and rapid fluctuations. The impact of fluctuations in demand for services, and therefore on capacity requirements, is much stronger in service operating systems than in production system. This is due to three reasons1: 1)
services are not subject to storage; 2)
clients are involved in the process of providing services; each of them has different needs, a different level personal experience and may require a different number of contacts; 3)
the duration of the service cycle depends on the behavior of the client. 1)
Due to the fact that services cannot be stored, the quality of service depends largely on fluctuations in demand. When using all models of operation of service operating systems (see Fig. 41 - Fig. 43), attention should be paid to the ability to respond to short-term changes in demand. For example, when working trading floors turn on or off cash register to the service system allows you to adjust the length of customer queues. The ongoing adjustment of the service delivery process requires special staff training. 2)
The participation of the client in the process of providing the service leads to the possibility of deviation of the service time of each client from the recommended one, which causes fluctuations in the loading of production capacities and staff employment. 3)
A variety of factors of an organizational, technical, climatic, demographic, economic, political and other nature can influence the behavior of a client in the course of a service. This affects both short-term and long-term changes in demand, including seasonal fluctuations. All these fluctuations are, in principle, predictable.
When providing services, in order to achieve maximum efficiency of the process, 70% of the production capacity should be used.
This capacity is “sufficient to ensure that the service channels are constantly busy and have enough time for individual customer service, and at the same time allows you to have a certain reserve of capacity so that the management of the service delivery process does not present any special problems for management personnel”80. The specified capacity utilization rate depends on the service sector. Where the degree of uncertainty, the importance of service provision is high, a capacity utilization below 70% is recommended. The provision of services with good predictability of the scope of work or without direct contact with clients makes it possible to plan activities in such a way as to use production capacity closer to 100% mark. These recommendations are consistent with the operation of single-type production operating systems (see 3.1.3).
e. Intangibility of the service process for the client
The material results of any activity are tangible. The process of providing services is characterized by intangibility for the client.
In order to make the service more tangible for the client, when designing the service, attention should be paid to the material, tangible environment of the service: the location of the office, its design, clothing, speech, appearance personnel, smells, etc., which should enable the client to correctly understand what service they are providing.
The intangibility of a service can cause the following problems1: 1.
It is difficult to develop a specification for a service, since clients may have different understandings of the “correctness” of the service. 2.
Achieving a complete understanding of customer needs is important, but very difficult. 3.
It is difficult to assess the quality and efficiency of the service.
e. It is difficult to assess the quality of the service
Due to the intangibility and involvement of the client in the process of providing the service, it is quite difficult to evaluate it for the management of the organization that provides it. The quality of the service is determined by the client, but his perception depends not only on the quality of the developed service process and the quality of the work of the staff. Significant are the qualities of the needs of the client himself, as well as his ability to perceive the service.
The most common methods for assessing the quality of services are questionnaires and interviews with clients. During the survey, customers evaluate each service according to the proposed scales. The purpose of the survey is to obtain information from the company about what factors are most important for consumers of its services.
Since the processes of production and consumption coincide during the provision of a service, the quality of the service cannot be checked in advance, as well as it is impossible to guarantee that the fixation of an error made in the process of the service and its correction will be carried out before the client discovers them. To achieve the required quality of service, the service must be carefully designed, staff trained, and positive customer relationships developed. The situation is complicated by the inherent intangibility of the service and the associated lack of specification of the service.
and. It is difficult to evaluate the effectiveness of the service
The participation of the client in the process of providing the service, the combination of the stages of production and consumption of the service, fluctuations in demand for the service and the inability to use stocks in the performance of the service lead to frequent deviations in the cost of the service from the planned sizes. It is difficult to make an objective assessment of the results of the service based on data obtained from customer surveys. As a result, it is difficult to unambiguously assess the effectiveness of the service.
To ensure the effectiveness of activities in the provision of services, it is often necessary to overestimate its labor intensity. Indeed, the higher the degree of interaction with the consumer, the higher the degree of individualization of the service and the higher the complexity of the process of its provision. At the same time, it is rather problematic to ensure high economic efficiency.
CONTROL QUESTIONS 1.
Which of the differences between the process of providing a service and the production process are of a strategic nature? 2.
What staff skills do you think are most important in providing a service? 3.
What is the difference between the scheme of production and service business processes? 4.
Express your opinion on the possibility, expediency or necessity of manipulating the degree of contact with the client in the process of providing the service. 5.
While a service cannot be stored as a process, it is possible to stock up on the resources or products needed to deliver the service. Is there a contradiction here? What exactly is not subject to storage in the service? 6.
Why are some words in quotation marks in the name of the models of organization of the operating system in the provision of services? What is the convention here? 7.
What segments of external customers are targeted by each of the operating system organization models when providing a service? 8.
Is it possible to share different models of organization of operating systems in the provision of services? If yes, which ones? 9.
Explain how you understood that a service is an intangible object?
10. What quality assessment methods can you offer when working with services? 5.3.
types of SERVICES in BUSINESS
As noted in paragraph 2.1, from the point of view of the business operating system, the difference between the economic division of industries into industry and services can be leveled. At the same time, it is customary to talk about services in a different, non-operational sense. So, for example, they distinguish the main (basic) services that consumers receive along with the products (observance of the rules of technology, taking into account the specific requirements of consumers, timely delivery and competitive price)81.
Value-added services are called Additional services that the consumer agrees to pay. They are included in the price of the item. Services of this type are divided into four groups82: 1)
information services; 2)
escort services; 3)
pre-sales services; 4)
after-sales service. 1)
Information support provides the provision of comprehensive information regarding specifications product, its parameters and cost to both internal (for example, employees involved in scientific, technical and design development) and external customers. 2)
Support services are provided by the manufacturer and include expert advice during installation and commissioning of the purchased product. 3)
Pre-sales service includes a set of activities that improve the effectiveness of marketing activities and increase sales (for example, demonstrations of equipment operation, ironing clothes, etc.). 4)
After-sales service allows you to exchange, replace, repair the sold goods, replenish its availability on retail space and so on.
The provision of value-adding services provides a company with two main advantages: a strong competitive position in the market and a positive relationship with the customer83.
Some industries require mandatory communication with external customers. They are classified as services. These are, for example, banking, transport, medical and legal services, trade enterprises, catering enterprises.
In all business organizations there are services provided to internal customers. In the operating system of the company, the units of the processing subsystem are internal clients of the units of the enabling subsystem. The clients of the control subsystem are employees of the entire organization.
In any organization, contacts with internal or external customers can be viewed from an operational point of view as services. At the same time, there is a certain connection between them. Representatives of the processing subsystem of the operating system, being internal clients of the providing subsystem, provide services to external clients (Fig. 44). External
Subdivisions
providing
subsystems
Internal client - subdivisions of the processing subsystem fig. 44. Communication of internal and external clients of the organization
CONTROL questions 1.
What criteria for classifying services can you suggest in addition to those discussed in the manual? 2.
How do pre-sales and after-sales services influence the development of the company's strategic advantages? 3.
Give examples of the strategic importance of information services. 4.
Why does strengthening customer relationships strengthen a company's competitive position in the marketplace? 5.
Explain the relationship between internal and external customers of the organization.
The most important functions of distribution logistics are:
in planning, organizing and managing transport-moving processes in the logistics system in the post-production period;
inventory management;
receiving orders for the supply of products and their efficient processing;
picking, packaging and performing a number of other logistics operations to prepare commodity flows for generation;
organization of rational shipment;
delivery management and control over the implementation of transport and moving operations in logistics chains;
planning, organization and management of logistics services.
Distribution activities require significant costs (expenses) for their implementation. The main part of these costs is associated with the implementation of key logistics operations: warehousing, processing, transportation, forwarding, preparing products for production consumption, collecting, storing, processing and issuing information about orders, stocks, deliveries, etc. These costs are economic content partially coincide with the costs arising in the production process, but to a greater extent are caused by transport and storage costs, the cost of packaging and packaging, as well as the costs associated with the importation of goods and their dispatch to consumers, and other components of distribution costs. The total logistics costs at the local level are determined (and planned) based on the amount of sales, in terms of value per unit mass of finished products intended for sale, or as a percentage of the cost of net products.
The fundamental difference between distribution logistics and traditional methods marketing and sales consists of:
in subordinating the process of managing material and information flows to the goals and objectives of marketing;
system interconnection of the distribution process with the processes of production and procurement (in terms of material flow management);
the systemic interconnection of all functions within the distribution itself.
8.2. Tasks of distribution logistics
Distribution logistics covers the entire range of tasks for managing the material flow in the "supplier - consumer" section, from the moment the implementation task is set and ending with the moment the delivered product leaves the supplier's sphere of attention. At the same time, the main specific gravity occupy the tasks of managing material flows, which are solved in the process of promoting finished products to the consumer.
The solution of emerging problems of distribution logistics at each level is different.
In the process of solving the problems of distribution logistics, it is necessary to find answers to the following questions:
^ through which channel to bring products to the consumer;
^ how to pack products;
^ which route to send;
^ whether a network of warehouses is needed on the way from the supplier to the consumer;
^ what level of service to provide, etc.
Taking into account the specifics of the enterprise and the goals set, the tasks are solved at the micro and macro levels. Enterprise level logistics solves the following problems:
planning the implementation process;
organizing the receipt and processing of orders;
organizing a network of warehouses;
choosing the type of packaging, making a decision on picking, organizing the execution of operations immediately preceding shipment;
organization of shipment of products;
organization of delivery and control of transportation;
organization of after-sales service.
At the macro level, the tasks of distribution logistics include:
choice of material flow distribution scheme;
determination of the optimal number of distribution centers (warehouses) in the service area;
determination of the optimal location of the distribution center (warehouse) in the service area.
To solve the problems of optimizing distribution, it is necessary to ensure control over all links in the system of cargo movement. When choosing the optimal scheme of goods distribution, one should take into account the entire chain of passage of cargo to the final consumer: minimum delivery times, maximum level of service, maximum level of profit, minimum costs.
The main indicator of successful activity is the profit received, and the main activities for increasing profits are activities related to:
with the creation of a unified transport and storage system ( Fast shipping to the consumer)
economic unification of production and marketing;
development of optimal storage and replenishment schemes, etc.
To run a successful business, an enterprise must solve the following questions: to what extent the costs associated with reducing the time of goods distribution are offset by an increase in revenue from increased sales; whether the enterprise can afford a decrease in the level of customer service while increasing the volume of deliveries; how expedient it is to store goods at the place of production or directly on the sales market, etc.
8.3. Distribution logistics functions of the supplier and purchasing logistics of the buyer.
Consider the process of material flow management in the area between two enterprises, one of which is a supplier of goods, and the other is a wholesale buyer. From the position of the first enterprise, material flow management should be carried out by the distribution logistics method, and from the position of the second, the same flow is managed by purchasing logistics methods.
This contradiction is resolved in the sales contract, which indicates the moment until which this flow is managed by the supplier, and procurement logistics methods are used.
International chamber of commerce developed a system of standard basic terms of delivery of goods - Incoterms, which determines this moment. In Incoterms, basic terms are grouped into four distinct categories:
- the moment of transfer of risk of loss and damage from the seller to the buyer;
- the moment up to which the seller bears the transportation costs, and after - the buyer.
Consider the basic terms of delivery.
First group E contains one term EXW - ex works. When this condition is included in the contract of sale, the seller bears minimal risks of loss and minimal transportation costs, since he provides the goods to the buyer on his own territory (factory warehouse) (Fig. 8.1).
Second group F includes the terms FCA (free carrierat - free carrier), FAS (free alongside - free along the ship), FOB (free op board - free on board). Under free carrier and free on board terms, the seller pays all costs associated with the goods until loading is completed, and the buyer pays the main transportation. At the same time, the term "free board" is used for transportation by sea and river transport, and "free carrier" - for delivery by any mode of transport. In the case of using the term "free along the ship" the seller does not pay for loading. In this group of terms, the risk of loss and damage passes at the place of transfer of goods from the seller to the buyer (Fig. 8.2).
At the same time, the terms CFR and CIF are used for transportation by sea and river transport, and the rest - for transportation by any means of transport.
Fourth group D includes the terms: DAF (delivered at frontier) - delivery to the border; DES (delivered ex ship) - delivery from the ship; DEQ (delivered ex quay) - delivery from the berth; DDP (delivered duty paid) - delivery with duty paid; DDU (delivered duty unpaid) - delivery without payment of duty. The first term means that the transfer of risks and the distribution of costs between the seller and the buyer takes place at the agreed place (Fig. 8.4).
8.4. Logistics channels and distribution chains
The movement of material flows can be viewed as movement that comes from various sources - a source of raw materials, production or a distribution center. In all cases final goal movement of the material flow - receipt directly to the consumer. At all stages of the movement of the material flow within logistics, its production consumption takes place. Only on final stage, completing the logistics chain, the material flow falls into the sphere of non-productive consumption.
Industrial consumption- this is the current use of the social product for production needs as means and objects of labor.
Non-productive consumption- this is the current use of the social product for personal consumption and consumption of the population in institutions and enterprises in the non-productive sphere.
The supplier and consumer of the material flow in the general case are two micrologistics systems connected by the so-called logistics channel, or in other words, the distribution channel. Logistics channel- this is a partially ordered set of various intermediaries that bring the material flow from a particular producer to its consumers.
The set is partially ordered until the choice of specific participants in the process of moving the material flow from the supplier to the consumer is made. After that, the logistics channel is transformed into a logistics chain. Making a fundamental decision to sell products through an agency firm and, thus, refusing to work directly with the consumer, serve as a choice of distribution channel.
The choice of a specific agency firm, a specific carrier, a specific insurer, etc. is the choice of supply chain. Logistics chain is a linearly ordered set
participants in the logistics process, carrying out logistics operations to bring the external material flow from one logistics system to another.
The supplier and consumer are linked by a distribution channel.
After specific participants in the product promotion process (from supplier to consumer) are selected from many different intermediaries, the distribution channel can be called a distribution chain.
Distribution channels have a different structure. In a direct link logistics system, the distribution channels do not contain any wholesalers. In flexible systems, such channels are present, and the ability to choose a logistics distribution channel serves as a reserve for increasing the efficiency of logistics processes.
The goods can go directly to the final consumer.
The initial cost of the goods in this case will be the smallest, since intermediaries will be excluded from the chain and the cost of the goods will increase only for the costs of delivering the goods.
A wide assortment is formed by a wholesaler specializing in this direction and located in a place where consumption is concentrated. This intermediary specializes in providing maximum service to the end consumer. The distribution channel through two wholesalers (at the place of production and at the place of consumption) will provide the greatest service to the consumer, but at the same time the cost of goods will be the highest. The most profitable distribution (for the consumer) is directly through the distribution center at the place of consumption.
8.5. Product distribution channels
Distribution channel- is a set of organizations or individuals that assume or help to transfer to other organizations and individuals the ownership of a particular product or service on the way from producer to consumer.
The use of distribution channels brings certain benefits to manufacturers:
reduction in the volume of work on the distribution of products;
financial savings for the distribution of products;
selling products in more efficient ways;
ensuring the wide availability of goods.
The channel of distribution is the path along which goods move from the producer to the consumer. The selected channels directly affect the speed, time, efficiency of movement and the safety of products during delivery. The distribution channel of goods can be characterized by the number of constituent levels.
The channel level is the intermediary that does the work of bringing the product and ownership closer to the end consumer. The length of the channel is determined by the number of intermediate levels between the producer and the consumer.
Distribution channels shown in fig. 8.8 consist of an independent manufacturer and one or more independent resellers. Each channel member represents a separate enterprise that is trying to extract the maximum profit. At the same time, none of the channel participants has full or sufficient control over the activities of the other participants, i.e. all enterprises operate separately and are not organized in a system. Such distribution channels are called horizontal.
Specialists also identify vertical distribution channels, consisting of a manufacturer and one or more intermediaries, acting as a single system. One of the members of the channel, as a rule, is the owner of other companies or provides them with certain privileges.
8.6. Distribution channel structure
Under channel structure refers to the number of levels and the specific composition of the channel participants. When determining the composition of participants, it is necessary to determine the type of intermediaries.
Classification of intermediaries can be carried out according to a combination of two features:
1) on whose behalf the intermediary works;
2) at whose expense the intermediary conducts its operations.
Five types of intermediaries can be distinguished.
1. Dealers are wholesale (rarely retail) intermediaries who conduct operations on their own behalf and at their own expense. The goods are purchased by them under a supply contract, and the dealer becomes the owner of the product.
2. Distributors - wholesale and retail intermediaries acting on behalf of the manufacturer, but at their own expense. The manufacturer grants the distributor the right to sell its products in a certain territory for a period of certain period. The distributor does not own the product. Under the contract, they acquire only the right to sell.
3. Commissioners - intermediaries who act on their own behalf and at the expense of the manufacturer. The manufacturer remains the owner of the product until it is handed over and paid for by the end consumer.
The supply contract with the buyer is concluded on behalf of the commission agent. But at the same time, the risk of accidental damage to the goods lies with the manufacturer, to whom the commission agent is responsible.
4. Agents - intermediaries acting as a representative of another person (principal). For his services, the agent receives remuneration both at tariffs and by agreement with the principal.
5. Brokers - intermediaries in the conclusion of transactions, bringing counterparties together. Unlike agents, brokers are not in a contractual relationship with any of the parties to the transaction.
8.7. Building a distribution system
When building a logistics distribution system, the following sequence of choosing the optimal distribution option is used:
studying the market situation and determining the strategic goals of the distribution system;
determining the predicted value of the material flow passing through the distribution system;
forecasting the required amount of reserves for the system as a whole and for individual sections of the material-carrying chain;
analysis of the transport network of the service region, drawing up a diagram of material flows within the distribution system;
study of various options for the movement of the distribution system;
assessment of logistics costs for each option;
implementation of one of the developed options selected for implementation.
In order to choose one of the many options, it is necessary to establish a selection criterion, and then evaluate each of the options according to this criterion. Such a criterion, as a rule, is the minimum of the reduced costs, i.e. costs reduced to a single measurement. The value of the reduced costs is determined by the formula
For implementation, the variant of the distribution system is adopted that provides the minimum value of the reduced (annual) costs.
A necessary condition for the possibility of choosing a distribution channel, as well as optimizing the entire logistics process, is the presence on the market of a large number of intermediaries.
The use of intermediary services for many businesses is necessary condition successful product promotion. To solve the problem, which is more profitable in this case: to use the services of intermediaries or independently go to the consumer, it is necessary for each enterprise independently, i.e. all the pros and cons of a particular distribution system should be taken into account. The services of an intermediary are in demand if their cost is lower than their own costs for the performance of any work.
In a formal form, this ratio can be represented as follows:
Optimization of the distribution channel, and then the distribution chain, is possible only if there are a large number of enterprises on the product market that perform the function of an intermediary.
When considering the concept strategic management Costs are divided into three basic elements:
1) value chains;
2) strategic positioning;
3) cost factors.
At the stage of considering the value chain, it is necessary to identify the main areas of distribution. The process of organizing management accounting focuses on the processes taking place within the enterprise: procurement, administrative costs, material movement. The key point in the existing mechanism is to maximize income by maximizing the difference between purchases and sales. An integrated logistics approach using value chains is aimed at all participants in value chains. From a strategic point of view, distribution chains and related cost accounting distinguish five areas of interaction effectiveness:
1) communication with suppliers;
2) communication with consumers;
3) the unity of technological connections within one unit;
4) communications between divisions within the enterprise;
5) communications between enterprises operating in a single logistics network.
Second base element The logistics system serves as a strategic positioning. The role of analysis and direction of cost management will depend on which path the enterprise chooses. It can be cost leadership or product differentiation. As a rule, this problem is deeply and comprehensively considered within the framework of strategic management. We only note that the chosen strategy will significantly affect the formation of a logistics cost accounting system and the configuration of the information system.
When considering the third element - the cost factor - it must be divided into strategic structural and functional factors.
Strategic structural factors include:
scale of distribution - the volume of investments in various functional areas of the logistics system;
range - vertical and horizontal integration;
experience;
technologies used at each stage of the cost chain;
complexity - the breadth of the product range.
Functional factors include:
continuous improvement of processes and labor resources;
integrated quality management (TQM);
optimal capacity loading;
effective planning of the enterprise;
the effectiveness of the project or calculation;
use of links with suppliers or customers from the point of view of the cost chain.
The activation of each of these factors or their groups can have a significant impact on the magnitude and dynamics of costs. A special and priority role belongs to one of the noted functional factors - quality.
Quality as an essential element of strategic cost management should be seen as a cross-cutting function that covers the entire value chain from supplier to consumer.
8.8. Relationship between logistics and marketing
Marketing - scientific direction, which contributes to the achievement of the company's goals through the most complete satisfaction of customer needs, thus, marketing and distribution logistics are closely interconnected. Marketing was in demand in practice due to the difficulties encountered with the sale of goods in an earlier period than logistics, which complements and develops marketing, linking the consumer, transport and supplier in single system Marketing tracks and
determines the demand that has arisen, i.e. answers the questions: what product is needed, where, when, in what quantity and what quality.
Logistics provides the physical promotion of the demanded product to the consumer.
In table. 8.1 presented Comparative characteristics marketing and logistics.
An important theoretical and practical problem in the analysis of service activities is the question of structuring the service sector, as well as the classification of services and service activities. Below we will touch upon some aspects of their classification division.
The development of classification criteria is aimed at identifying and selecting the most important typological features of services and service activities that can help in their division into constituent units (directions, varieties, groups). It is important that these qualities are not random or insignificant, but reflect the essential properties of the service, making it possible to form the most important typological units on the basis of a multitude of real services. For example, such a criterion as “the degree of mass character” makes it possible to subdivide all services into two types: mass and non-mass. In turn, among non-mass services based on different criteria a number of additional group-forming units can be distinguished (elite, exclusive services, etc.).
The development of classification criteria is of no small importance, because in different countries there are many sometimes difficultly comparable approaches to the creation of classification schemes, which makes it extremely difficult to analyze service activities even in one country. The classification criteria can be especially numerous in scientific analysis. Indeed, researchers often develop classification criteria for solving purely theoretical problems, not always taking into account practical requirements that facilitate the grouping of service activities.
The practice of intra-industry relations in the service sector, as well as state and interstate relations, require the use of generally accepted classification approaches and schemes that could be relatively easy to operate in the process of economic relations.
It is especially important to agree on the division of services according to content and functional criteria, i.e. according to the most significant features of service activities related to the nature of work, the scope of services, their purpose, etc. This is not an easy task, because in modern world new types of services are constantly multiplying; services are becoming more and more complex in nature and functionality.
Two aspects should be seen in the fact that different national classification models are used in different countries of the world. On the one hand, these models make it possible to display various, sometimes hidden, non-obvious characteristics of service activities, thereby demonstrating a wide range of adaptive capabilities of a modern service in relation to a changing world. On the other hand, disparate models make it difficult comparative analysis service industries on an international scale.
The task of developing common criteria and classification schemes for services remains an unresolved problem in the world. Most often, work on classification is carried out in certain countries on the basis of the established traditions of collecting state statistics or solving problems facing society in a particular situation. As an example, consider the service classification model adopted at North American Continent, which, of course, reflects the historical practice of developing service activities in the United States and Canada. This model is based on content-functional criteria and includes the following major areas of service activity, which can be considered its most important areas *:
♦ transport (railway, aviation, freight, road transport, etc.);
♦ communications (telephone, telegraph, radio, etc.);
♦ public utility services (electricity, water and gas supply, etc.);
♦ mass activities (wholesale and retail);
♦ financing, insurance, including work with real estate;
♦ direct service (hotels, services of a personal nature, consultations on the organization of mass entrepreneurship, car repair, repair of various items, movie rental, entertainment and recreation, etc.);
♦ other types of service.
In world practice, ways are being sought to overcome the difficulties associated with discrepancies and incompatibility of classification schemes of analysis adopted in different regions and countries of the world. Thus, there is an appeal to the analysis of services that in developed countries taken into account by statistical authorities, which allows the use of comparable statistical data on these services for comparative study. These are the services:
♦ business services;
♦ communication services;
♦ construction and engineering services;
♦ distribution services;
♦ general educational services;
♦ Financial services, including insurance;
♦ health services and social services;
♦ tourism and travel; services in the field of leisure organization;
♦ other services.
Let us point out the use in the interstate practice of a number of developed countries of a classification based on two interconnected criteria: the type of services and the scope of their application.
table 2Types of services in different fields of application
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