LOGISTICS PRESENTATION

By :-
ADIL
ADEEL
AMIRUL
ANKIT
FAISAL
TILAK
ZUBAIR
Conventional Distribution
Channel
• In Conventional Distribution Channels it is
assumed that each enterprise working in the
channel is separately owned and operated
concern.
• In other words, these are the channels in which
the participants operate on the basis of self-
interest, concerned only with the organization
from where they buy and to whom they sell.
• In this, there are four channel designs such as:-
– Direct: Zero level
– Indirect: one level, two level , multi level
 Conventional Channels for Consumer Products

• Conventional channels are the fragmented networks

where in the manufacturers andthe consumers are
loosely linked by intermediaries in the process of
exchange.
• Conventional channels are of two types:-
– Direct Distribution Channel
– Indirect Distribution Channel
Direct Distribution Channel

• This is the oldest, simplest and shortest type

of distribution channel. Under this channel
the producer directly sells his products to the
ultimate consumers without any middlemen.
• That is why, it is called as direct channeland
zero level distribution channel.

Manufacturer Ultimate Consumer

One – level Channel of
Distribution
• Under this system, manufacturers sell their productto
retailers and retailers sell them in turn to ultimate
consumers.
• The wholesalers and selling agents are totally
eliminated.
• Itis suitable when the products are perishable.
• Manufacturer to wholesaler is also preferredin
distributing industrial goods.
Manufacturer Retailers Consumers

Manufacturer Wholesalers Consumers

Two – level Channel of
Distribution
• There are two middlemen in thischannel, namely,
wholesalers & retailers.
• Under this channel, the manufacturer sells productsin
large quantities to thewholesalers.
• The wholesalers distribute the products toretailers as
per their requirements insmall quantities.
• This channel is suitable most for the products which
have widely scattered markets such as, groceries, drugs,
food items and shoppingproducts.

Manufacturer Wholesalers Retailers Consumers

Multi–level Channel of
Distribution
• This is the longest channel of distribution.
• This channel is mostly used by small scale companies
who cannot afford to develop their own sales force.
• A company with diversified product mix may find it
more appropriate to adopt a variety ofdistributions
channels.
• This channel is used where the wholesalers are
scattered throughout the country and selling agents
undertakes marketing on behalf of themanufacturers.

Manufacturer Selling agents Wholesalers Retailers Consumers

FACTORS AFFECTING CARRIERS AND
SHIPPERS DECISION
 Various examples are – DHL , UPS , FEDEX

 There are two key players : Shippers and Carriers

 Shippers - Shipper is the person or company who is usually the supplier

or owner of commodities shipped. Also called Consignor.
 Carriers - Carrier is a person or company that transports goods or
people for any person or company and that is responsible for any
possible loss of the goods during transport.
FACTORS AFFECTING CARRIERS DECISION
 MARKET DEMAND - The market fluctuates based on supply and demand. If
supply (equipment) is abundant and there is less freight available, rates go
down; if capacity is tight and shipment volumes are greater, prices go up.

 RELATIONSHIP WITH THE SHIPPERS - Many carriers remain loyal to their

shippers during market shifts, especially if the shipper shows a willingness to
adjust and renegotiate rates that more closely reflect market realities. This
enables the carrier to remain profitable, and the shipper does not have to go
to the spot market and potentially pay higher rates.

 TRANSIT TIME - Road = 2-4 days ,Rail = 7 day, Maritime = 10-14 days
FACTORS AFFECTING CARRIERS DECISION
 Cost of Transport - Contributing factors to the cost of each
freight transportation mode include fuel, manpower, accidents,
vehicle and equipment maintenance, regulatory compliance,
accidents, profitability targets, and market share.
THANK YOU