TANAUAN INSTITUTE INC.

J. Gonzales St. City of Tanauan, Batangas

COLLEGE OF BUSINESS

Course Title: DISTRIBUTION MANAGEMENT

Course Code: Prof 4
No. of Credits: 3 units
Teaching Hours :1.5 hours
Professor: Joan Cristine M. Perez MBA

Course Description and Purpose:

Distribution of products and service includes all of the activities that are involved in delivering
a suitable offering to end-customers following the most efficient way. However, in the way of
delivering products and services to the end users, there are some intermediaries or middlemen.
These intermediaries or middlemen are key elements of supply networks. Distribution relates to
selection of those key points or places of supply networks and this forms an important part of
marketing strategy. These supply network points or places means making goods and services
available in the right quantities and qualities at the various locations when customers want them.
Therefore, distribution management reflects strategic marketing aspects. Distribution management is
the systematic management to optimize the efficiency of overall activities of movement of goods from
supplier or manufacturer to point of sale

Course Objective:

MODULE 1: Introduction to Distribution Management

 Definition of Distribution Management and its System
 The Marketing Mix and its Function in Distribution
 The Different Channels of Distribution
 Selling through Direct and Indirect Channel
 The Patterns of Distribution
 Drivers in Distribution Channel
 Multi-Channel Distribution

MODULAR OBJECTIVES

At the end of this module students must be able to:

 Explain the definition of distribution management and its important role in business operation
 Relate marketing mix and its function in the distribution process
 Name the difference between Direct and Indirect Channel
 Discuss what are the patterns of distribution, drivers of distribution and multi-channel
distribution

TO DO LIST
 Write a brief introduction about student’s understanding on the topic
 Reading and understanding topics about distribution channel associated with huge
multinational companies such as P&G and Unilever
 Take the scheduled quiz
 Refer to due dates for the set assignment on the google class room

LECTURES

 MODULE 1 to 3.pptx ( slide 1 to 17 )

ACTIVITIES:

Answer the following questions and submit it to our google class room on the prescribed due date set
on the system.
1. What is a distribution channel? How important is it in company operation?
2. Cite the main difference between an indirect distribution channel and a direct distribution channel.
3. Differentiate Intensive Selective and Exclusive Distribution Intensity and cite companies that falls
under each category
4.Explain what is the role of distribution management system for the marketing mix
5.Enumerate what are the drivers of distribution channel

SUPPLEMENTAL CONTENT:

Introduction to Distribution Management

 https://www.youtube.com/watch?v=cuPnPJCWJwU
What are Distribution Channels?
 https://www.youtube.com/watch?v=ALoo4vrKKUw

MODULE 2: Distribution Management and Marketing Mix

 Distribution Channel and the Listings of its Channel Members
 Patterns of Distribution
 Distribution Channel Strategy
 Steps in designing Channel Strategy

OBJECTIVES

At the end of this module students must be able to:

 Name who are the different channel members and their main function in distribution
system
 Design a distribution strategy
 Identify what are the KPI (Key Performance Indicator) used in evaluating the
performance of the channel member
 List critical success factors to encourage distribution management success for the top
management
TO DO LIST
 Do assignments and tasks set in the google class room
 Make further readings about the topic
 Take the quiz as scheduled
 Watch the presentation assigned for the module topic
 Learning pair exercise

LECTURES

 MODULE 1 to 3.pptx (slide 18 to 41 )

ACTIVITIES

ACTIVITY 1
Listing of channel members include the following:
 C&FAs and CSAs
 Distributors, dealers, stockists, value-added re-sellers •Agents and brokers
 Franchisees
 Electronic channels
 Wholesalers
 Retailers
Get a partner from one of your classmates and create a comparison report about two companies who
have the mentioned channel member, you and your partner must clearly emphasize on how the
channel member contribute on the success of the distribution operation of the company.

ACTIVITY 2

The first bank is a major bank that has an extensive number of branches throughout Australia. One
of the key aspects of their positioning is that they offer great personal service. Select the five most
suitable channels for them.
The second bank is new to Australia. They have no branches and have very little brand awareness
in the market. Their plan is to specialize in offering great value home loans only. Select the five most
suitable channels for them.

Direct channels Direct channels Indirect channels

Enable transactions
Mobile managers (who
Branches through third-party retail
visit the customer)
stores

Personal Banker (staff

Utilize mortgage/loan
Phone  (a call center) who directly look after
brokers
customers)

Phone  (an automated Utilize investment

Direct mail
system) advisers/financial planners

Get referrals from real

Internet banking Email estate agents and
accountants

Generate sales/referrals
ATM’s Mobile phone messages via independent internet
sites
 

QUESTIONS
Using the table above answer the following questions, support your answer with explanation.
1. What are the most suitable distribution channels for each bank?
2.Is your selection of channels relatively similar or different between the two banks?
3.Therefore, what role does ‘place’ (distribution channels) play in a firm’s overall strategy and
marketing mix

SUPPLEMENTAL CONTENT

 Distribution via wholesaler and retailer https://www.youtube.com/watch?

v=ALoo4vrKKUw&t=118s
 The Nature and importance of marketing channel members and how they add value
https://www.youtube.com/watch?v=dbbTGerzIkI
 Distribution Channel Marketing Strategy – Case Study (Starbucks)
https://www.youtube.com/watch?v=80N8cBp2LvU

MODULE 3: Managing Marketing Channel and Designing Channel System

 Definition of Marketing Channels from the perspective of different marketing gurus
 Objectives of Marketing Channel
 Importance of Marketing Channel
 Functions of Marketing Channel
 Steps Involved in Designing Channel System
 Motivating Channel Members

OBJECTIVES

At the end of this module students must be able to:

 List different marketing gurus who had given different meaning to what marketing
channel is
 Understand what are the main objectives of the marketing channel
 List the importance and function of marketing channel
 State what are the effective steps in designing a channel system
 Explain how can company select an effective channel member
 Design effective channel member training
 List factors that motivate channel member

TO DO LIST
 Read passage about Dell Company at the end of the ppt presentation
 Do assignments and tasks set in the google class room
 Take the quiz as scheduled
 Watch the presentation assigned for the module topic
 Learning pair exercise

LECTURES

MODULE 1 to 3.pptx (slide 42- 71)

ACTIVITIES

ACTIVITY 1

Answer the following questions and submit it to our google class room on the prescribed due date set
on the system.
 Discuss how the set objective by the company affects the performance of their channel
members
 How important is marketing channel in terms of how business function or performs
 What are the steps involved in designing channel system, discuss and explain? Cite an
example by using an existing company.
 What are the factors a company should consider in selecting channel member, following the
two conditions :1. If the intermediaries are sales agent and 2 If the intermediaries are
department store and want exclusive distribution?

ACTIVITY 2

To motivate channel members, the following power could be executed

1. Coercive 2. Reward 3. Expert 4. Legitimate 5. Referent
Make a research about an existing multinational company showing how do they use this power to
motivate their channel members

SUPPLEMENTAL CONTENT

Designing and Managing Integrated Marketing Channel

https://www.youtube.com/watch?v=3WnhXdwW6GY
Designing the Distribution Channel
https://www.youtube.com/watch?v=8WZx94dHf7s
Managing marketing channel
https://www.youtube.com/watch?v=C8hP99GDC0U

MODULE IV: Guide to Plan in Supply Chain Management

 Inventory and Supply Chain
 Reasons for Holding Inventory
 Different Types of Inventory
 Reducing Inventory
 Demand and Supply Planning
 Level of Demand
 Frequency of Demand
 Patterns of Demand
 Distinct Phases of Product Life Cycle
 Forecasting Method
 Time Series Method
 Demand Planning Improvements
 Forecast Accuracy
 Forecast Error
 Models of Order Cycle Management
 Economic Order Quantity
 Sales & Operations Planning
 Customer Service Improvement through S&OP and Planning Horizon

OBJECTIVES
 Define what is inventory and supply chain
 Understand the reasons for holding an inventory
 Differentiate types of inventory
 Explain the ways on how company could reduce inventory
 Understand demand and supply planning concepts
 Solve mathematical inventory patter using different methods such as forecasting and time
series method
 Explain the difference between Forecast Accuracy and Forecast Error and compute values
using the prescribed formula and equation
 Calculate for EOQ
 Understand the importance of Sales and Operations Planning and the proper way of
conducting it in a company setting
 Relate customer service improvement to Sales and operations planning

TO DO LIST

 Do assignments and tasks set in the google class room

 Take the quiz as scheduled
 Watch the presentation assigned for the module topic
 Computation and problem solving (board work activity)

LECTURES

..\..\DISTRIBUTION MANAGMENT\MODULE IV.pptx (SLIDE 1-84)

ACTIVITIES

Activity 1
1.Submit your output before the prescribed due date set in our google class room.
2.Put in mind that this is graded and you have to answer the questions in your best ability
3. Refrain from copying your answer from your classmates, and solve the following problems based
on how you understand the given module
4.Compute for the following problems make sure that you will include a complete solution for each
mathematical problem. You may attach a picture of your hand written computation on this set of
questions
1) Time Series Method
The past data for the demand of the product is given below
MONTH DEMAND (UNITS)
January 450
February 550
March 600
April 630
May 760
June 840
July 920

A) If five month moving average is used to forecast the next month’s demand compute the forecast
for the month of August 2020.
B) Compute a weighted three month moving average for August 2020 where the weights are 0.8 for
the current month, 0.5 and 0.4 for the succeeding months respectively.
C) Find the exponential smoothing forecast for the month of August 2020 taking alpha as 0.50
2) Compute the Forecast Accuracy and Forecast Error to complete the table.
Week # Sales Forecast Sales Actual Forecast Error Forecast Accuracy
1 450 500
2 510 600
3 215 300
4 100 120
5 310 200
6 400 320
7 120 220
8 235 300
9 450 350
10 440 660

3) Compute for EOQ

Given: (2.) ave order costs is 50
(1.) ave order costs is 40 annual demand is 7,500
annual demand is 4,500 unit cost per item is 30
unit cost per item is 10 ave holding costs is 55 %
ave holding costs is 25 %
4. Calculate for the following: average safety stock holding, average cycle stock investment, average
inventory cost
GIVEN: GIVEN:
(A). Quantity ordered 200 (A) Average daily demand: 400
Price: Php 4 000 Supplier Uncertainty 2 days
Ordered twice a year Forecast Error :85
(B) Quantity ordered 500 Service Level factor :96%
Price: Php 10 000 Lead Time :4 days
Ordered 4 times a year
5. Calculate for the safety stock (15PTS)

ACTIVITY 2
Answer the following questions

1.In your own point of view based on what have you learned, why is it important for a company to
hold an inventory? You may further explain your answer by including an example on how a specific
company apply the concept of inventory.

2.There are different type of inventory discussed in our module, give at least three examples existing
in a certain company of each type that was mentioned. Explain why does it belong to that category

3. Giving your own example, discuss how a certain product of a company undergo the distinct phases
of the product life cycle.

4. What is the difference of qualitative and quantitative forecasting and how do you apply it in doing a
research for a certain company? Cite a specific scenario explaining it

5. What is the importance of sales and operations planning process in a company’s decision making
process

SUPPLEMENTAL CONTENT

Benefits of holding an inventory for a firm

https://www.youtube.com/watch?v=7IyrTpX1BVE
Inventory Cost and EOQ
https://www.youtube.com/watch?v=Y2c5grAd5N8
Sales and Operations Planning Basics
https://www.youtube.com/watch?v=fei1_8mvmVo
MODULE V: Integrated Logistics and Supply Chain
 The Logistics Concepts
 Planning for Logistics
 Globalization and Integration
 Competitive Advantage through Logistics
 Customer Service Logistics
 The Importance of Customer Service
 The Components of Customer Service
 Two Conceptual Models of Service Quality
 Developing Customer Service Policy
 Key Issues and Challenges in Logistics and Supply Chain Management
 Manufacturing and Supply Chain

OBJECTIVES

TO DO LIST

 Do assignments and tasks set in the google class room

 Take the quiz as scheduled
 Further reading and case study

LECTURES

..\..\DISTRIBUTION MANAGMENT\MODULE V.pptx

ACTIVITIES

Answer the following questions

1. Discuss and explain the Total Logistics Concept and how could it be applied in a
company setting, make use of an existing company to elaborate your discussion

2. Types of trade off analysis has been discussed in this Chapter, make a research
about how these different types are being used in different local or international
companies. Discuss how trade off analysis differs in each company. You must compare
at least 2 companies for each type
.
3.Based on the video discussion we have in this Chapter, discuss the difference
between Supply Chain and Logistics

4. What are the different functions of logistics and the areas of logistics management
that contribute to an integrated approach in logistics?
5. Based on your understanding, what is the difference between customer service and
customer experience? Explain it by using any company or establishment you’d been to
and elaborate as well how did you derived good and customer service and customer
experience

SUPPLEMENTAL CONTENT

Additional Reading and Reference

..\..\DISTRIBUTION MANAGMENT\The_handbook_of_Logistics_and_Distributi.pdf

MODULE VI Planning for Logistics

 Planning frameworks of logistics
 Logistics Process
 Supply chain Segmentation
 Logistics Network Planning
 Logistics Management and Organization
 Manufacturing Logistics

OBJECTIVES
TO DO LIST
LECTURES
ACTIVITIES
SUPPLEMENTAL CONTENT

MODULE VII PROCUREMENT AND INVENTORY DECISION

 Basic Inventory Planning and Management
 Inventory and Supply Chain
 Procurement and Supply

OBJECTIVES
TO DO LIST
LECTURES
ACTIVITIES
SUPPLEMENTAL CONTENT

MODULE VIII WAREHOUSE AND STORAGE

 Principles of Warehousing
 Storage and Handling System ( Palletized and Non Palletized )
 Order Picking and Packing
 Receiving and Dispatch
 Warehouse Design
 Warehouse Management Information
OBJECTIVES
TO DO LIST
LECTURES
ACTIVITIES
SUPPLEMENTAL CONTENT

MODULE IX Freight Transport

 International Logistics Modal Choice
 Maritime Transport
 Air Transport
 Rail and Intermodal Transport
 Road Freight Transport

OBJECTIVES
TO DO LIST
LECTURES
ACTIVITIES
SUPPLEMENTAL CONTENT