Logistics distribution systems

Federal Agency for Education

State educational institution

higher professional education

"St. Petersburg State

University of Engineering and Economics"

Department of Logistics and Transportation Organization

"DISTRIBUTION LOGISTICS"

Option No. 6.2 - 11.6

Completed by a sixth year student

groups No. 7/2241

distance learning

duration of study 5 years 10 months

Faculty of E&U T

specialty: logistics 080506

Record book number 22447/04

NEKLYUDOVA NATALIA NIKOLAEVNA

Checked:

Saint Petersburg

6.2 Cooperation in mediation.

Distribution logistics – This is the management of transportation, warehousing and all logistics operations performed in the process of bringing the material flow to the consumer in accordance with the interests and requirements of the latter, as well as the transfer, storage and processing of relevant information. In general terms, distribution logistics can be considered in the following two aspects:

1) as a study of market needs (marketing);

2) as ways and methods of most fully satisfying these needs through the effective organization of transport, forwarding, warehouse processes, and customer service.

The importance of distribution logistics is determined by the fact that improving work in the field of distribution of goods does not require such large additional capital investments as, for example, mastering the release of a new product, and at the same time ensures high competitiveness of the supplier by reducing costs, reducing order fulfillment time, and adhering to the agreed delivery schedule . Money invested in distribution affects the supplier's position in the market much more than the same funds invested in production. Those. high competitiveness does not depend on the amount of capital investment, but on the ability to properly organize the logistics process. At all stages of movement, the material flow is the subject of labor of participants in the logistics process.

The supplier and consumer of the material flow in the general case represent two micrologistics systems connected by the so-called logistics channel, or otherwise - the distribution channel.

Logistics channel - this is a partially ordered set of different intermediaries that carry out the transfer of material flow from a specific manufacturer to its consumers.

A set is partially ordered until it is done

selection of specific participants in the process of promoting material flow from supplier to consumer. After this, the logistics channel is transformed into a supply chain.

When forming a product distribution channel, the decision on the structure of the channel comes first, i.e., on the number of channel levels and on the specific composition of channel members. When identifying possible options for distribution channels, it is necessary to determine the type of intermediaries used. Intermediaries can be classified according to a combination of two characteristics: (1) on whose behalf the intermediary works and (2) at whose expense the intermediary conducts its operations. As can be seen from Fig. 3, it is possible to distinguish four types of intermediaries (see table).

Types of intermediaries in distribution channels

Dealers - These are wholesale, less often retail, intermediaries who conduct operations on their own behalf and at their own expense. The goods are purchased by them under a supply agreement. Thus, the dealer becomes the owner of the product after full payment for the delivery. The relationship between the manufacturer and the dealer is terminated after all conditions under the supply agreement are met. However, the relationship between the manufacturer and dealers has recently taken on various forms due to the desire of manufacturers to form vertical distribution channels. In this case, dealers become privilege holders, uniting in their hands a number of successive stages of the production and distribution process. In the supply chain, dealers occupy the position closest to end consumers.

There are two types of dealers. Exclusive dealers are the only representatives of the manufacturer in this region and have exclusive rights to sell its products. Dealers cooperating with the manufacturer on a franchise basis are called authorized.

Distributors - wholesale and retail intermediaries conducting operations on behalf of the manufacturer and at their own expense. As a rule, the manufacturer grants the distributor the right to sell its products in a certain territory and for a certain period. Thus, the distributor does not own the products. Under the agreement, they acquire the right to sell products. The distributor can also act on his own behalf. In this case, within the framework of the agreement for the granting of the right to sell, a supply agreement is concluded.

Rice. 1. Example of organizing a distribution channel

In the supply chain, distributors typically occupy a position between the manufacturer and dealers (Figure 1).

Commission agents - These are 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 products sold. The manufacturer (or the principal in this transaction) remains the owner of the product until it is transferred and paid for by the final consumer. The contract for the supply of products is concluded on behalf of the commission agent. Thus, the commission agent is an intermediary only for the principal, and not for the end consumer, whose money is transferred to the account of the commission agent. In this case, the risk of accidental damage and loss of products lies with the consignor. The commission agent is obliged to ensure the safety of the goods. He is responsible for loss or damage to products due to the fault of the commission agent. Remuneration to the commission agent is usually paid in the form of a percentage of the amount of the transaction performed or as the difference between the price set by the principal and the selling price.

Agents - intermediaries acting as a representative or assistant of another person who is principal in relation to him (principal). Typically, agents are legal entities. The agent enters into transactions on behalf and at the expense of the principal. Based on the scope of their powers, agents are divided into two categories. Universal agents perform any legal actions on behalf of the principal. General agents enter into only transactions specified in the power of attorney. For their services, agents receive remuneration both according to tariffs and by agreement with the principal. The most common type of agency fee is a percentage of the amount of the concluded transaction.

Brokers - intermediaries in concluding transactions, bringing together counterparties. Brokers do not own products like dealers or distributors, and do not manage products like distributors, commission agents, or agents. Unlike agents, brokers do not have a contractual relationship with any of the parties to the transaction and act only on the basis of individual instructions. Brokers are remunerated only for products sold. Their income can be formed as a certain percentage of the cost of goods sold or as a fixed fee for each unit of goods sold.

After selecting the types of intermediaries in the distribution channel, it is necessary to determine the number of these intermediaries. Marketing has developed three approaches to solving this problem: intensive distribution, exclusive distribution and selective distribution.

Intensive distribution involves providing stocks of products in as many trading enterprises as possible.

Exclusive distribution involves a deliberately limited number of intermediaries selling these products within the sales territories.

Selective distribution is a cross between intensive and exclusive distribution methods. Selective distribution allows the manufacturer to achieve the required market coverage with greater control and at lower costs than with intensive distribution.

To increase the efficiency of product sales and to save money, organizations often resort to the use of multi-channel product distribution systems.

The presence of a large number of intermediaries in a company's distribution network greatly complicates the adoption of effective decisions for logistics management. The main difficulty lies in coordinating the local goals and objectives of functional groups of intermediaries with the marketing and logistics global (strategic) goals of the company. In addition, it is necessary to take into account that in each functional group of logistics intermediaries, certain market relationships arise, operate and transform, which can be broadly divided into cooperation, conflict and competition .

Cooperation manifests itself in the fact that intermediary firms performing the same or different logistics operations (functions) in distribution combine their efforts to achieve a goal (system of goals) in their market segment. For example, motor transport companies engaged in the transportation of similar types of goods can unite into unions (associations) to implement a unified tariff and investment policy in order to strengthen their position in the transport services market. Another example is logistics cooperation, when a transport company cooperates with a freight forwarder and a company performing cargo handling operations to capture the longest possible section of the product manufacturer’s distribution channel and obtain a stable profit.

A common practice of cooperation is permanent partnerships between trade wholesale and retail intermediaries in vertical distribution networks.

Companies participating in conventional distribution channels often take advantage of mutual specialization and tend to occupy their own niches in the business, so that each offers the other a unique product or service.

Firms operating in conventional distribution channels develop their own capabilities in the logistics services necessary to fulfill their main business mission. Interactions with other channel members are based on the expectation that joint commercial activities will continue as long as they satisfy all parties. As soon as dissatisfaction arises, the parties begin to look for other solutions. Conventional channel members have little commitment to each other and make little effort to collaborate to improve overall supply chain efficiency.

The work of such channels is resumed from transaction to transaction. They account for a significant portion of the total volume of transactions. When organized in this way, firms do not take advantage of the potential benefits of collaboration, prioritizing the preservation of autonomy at the expense of cooperation in order to improve overall efficiency.

Voluntary associations. In voluntary associations, participating firms recognize mutual dependence and take full advantage of cooperation in the supply chain. To organize such a system of connections, each potential participant must be prepared to perform special responsibilities.

All relationships are managed by a firm recognized as a leader. Typically, this is the firm that occupies a leading position in the channel in terms of market share, business size and technical skills. Typically, the leader has the greatest influence among all other participants.

The least typical form of voluntary association is the administrative system. A distinctive feature of such a system is that, as a rule, they are not based on the conscious, formalized interdependence of the parties involved. Typically, the lead firm takes the lead and tries to foster cooperation among trading partners and service providers. Such systems are similar to conventional distribution channels.

When firms require a more transparent and long-term system of communications compared to a typical administrative system, they tend to make their relations with other companies more orderly, formalized. In this case, they talk about partnerships, which over time turn into alliances. In voluntary associations of this type, several participants give up some degree of autonomy in their economic activities and join forces to jointly achieve certain goals. The commitment to collaboration does not usually extend so far that participants agree to change the fundamental principles and practices of their business in response to the needs of their partners. But in any case, the degree of interdependence in a partnership is higher than in an administrative type association.

The most important feature of an alliance, as opposed to a partnership, is the willingness of the participants to make changes to the fundamental principles of their business. The purpose of the union, therefore, is the cooperation of participants based on shared resources, aimed at increasing the productivity, quality and competitiveness of the entire logistics channel.

Many companies prefer to consolidate their business ties with documented agreements (contracts). The most typical forms of such contracts in logistics relations are franchises, dealer (representative) agreements, contracts between providers of specialized services and their clients. IN contract systems Cooperation is replaced by legalized mutual obligations. This formalization provides some stability, which is why many firms prefer this form of relationship.

The most common form of voluntary associations on a contract basis is the hiring of transport companies for cargo transportation. Contractual relationships are also common in the warehousing industry. Because many logistics interactions require large capital investments, shareholders of the companies involved and providers of financial resources prefer to rely on formal agreements to hedge against risks. Thus, some features of contractual relations are present in almost all forms of voluntary associations.

Some logistics interactions are too capital intensive to be handled by a single service provider. For this reason, individual firms associated with such relationships sometimes choose to invest in them together. The most durable joint ventures represent such an economic association of several firms, which ultimately led to the formation of a single economic organism. This form is not very typical for logistics, but there are forecasts for its active spread in the future. The most likely scenario for creating a joint venture in logistics: the shipper decides to transfer all logistics functions and capacities to an intermediary or contract service firm. In this case, one natural path for the shipper is to form a partnership with a service firm. This form of economic relations, in the management of which representatives of all involved parties participate, helps reduce risk, especially when it comes to long-term exclusive relationships.

Competition in a market economy takes place at the level of supply chains, and not at the level of individual companies. Trends towards cooperation in the field of logistics are not associated with individual industries. To the same extent, it is already affecting both manufacturing and trading enterprises and logistics operators. Cooperation, as a stage in the formation of the transport and logistics market in Russia, is a form of a constantly developing process of concentration.

11.6. Cost optimization in the finished product distribution system.

Products ready for consumption must be delivered in a timely manner, at minimal cost and without compromising quality, in the required quantity within the specified time frame to those consumers who have shown demand for it. The functional area of ​​logistics related to the distribution of products is called distribution logistics.

Distribution boundaries in domestic economics. science first outlined M.E. Zalmanov, understanding by distribution: product packaging; forwarding; sales management; warehouse storage finished products supplier; warehousing for finished products; transportation to the warehouse - transport facilities for the transportation of finished products.

If we understand logistics as the science of managing economic flow systems, and distribution as a set of commercial, channel and physical distribution of finished products and services, then distribution logistics is the process of managing the commercial, channel and physical distribution of finished products and services in order to meet consumer demand and making a profit.

Distribution logistics is based on the following principles:

Coordination of all processes of product distribution, starting from the initial operations of the commodity producer and ending with consumer service.

Integration of all functions of managing the processes of distribution of finished products and services, from defining goals to control.

Adaptation of commercial, channel and physical distribution to the ever-changing market requirements and, above all, to the needs of customers.

Systematicity as distribution management in its integrity and the interdependence of all elements of sales activities.

Complexity, i.e. solving the entire set of problems related to meeting the effective demand of customers.

Optimality both in the ratio of parts of the system and in the mode of its operation.

Rationality both in the organizational structure and in the management organization.

Distribution logistics organized in accordance with the listed principles has the following properties: emergence, synergy and congruence .

Emergence – the ability to generate a systemic effect from optimal coordination of the activities of all elements of physical distribution.

Synergy consists in the presence of complex functions, the completeness of whose implementation makes it possible to obtain properties of the system that its elements do not possess.

Congruence – proportionality (compliance) of the elements of distribution logistics with each other and with the goals of the system.

The main objectives of distribution logistics are:

Maximizing enterprise profits while better satisfying consumer demand.

Effective use of the enterprise’s production apparatus due to optimal loading of production capacity with consumer orders.

Rational behavior in the market, taking into account its constantly changing conditions.

To solve each of the listed problems and all of them taken together, you must adhere to the rules, which can be summarized as follows:

Results and resources exist only outside of distribution logistics.

Distribution logistics results can be achieved by seizing opportunities rather than solving problems.

Resources should be directed toward exploiting enterprise and market opportunities.

Taking into account the laws of the market and the needs of consumers, by establishing true leadership in the market, high results in distribution logistics can be achieved.

The main problem of distribution logistics is the constant search for a new market niche or new forms of organizing the promotion of goods to the market, since if additional efforts are not made, a tendency towards self-destruction of distribution logistics is likely to emerge.

Distribution logistics, left to its own devices, will always function incorrectly.

To apply the considered rules, an appropriate external environment and internal organization are required, as well as knowledge of methods for effectively organizing distribution logistics. These methods can be divided into two groups: modeling methods And motivation methods :

Modeling methods in distribution logistics have been widely used due to the complexity of sales activities and the need for its logical modeling.

Motivation methods aimed at developing the interest of performers through the formation of incentives. Motivation in general is the process of motivating oneself and others to act in order to achieve personal or organizational goals. All methods of motivation in distribution logistics can be summarized into two groups: material and social-moral.

A necessary condition for the possibility of choosing a distribution channel, as well as optimizing the entire logistics process at the macro level, is the presence of a large number of intermediaries in the market. Optimization of the distribution channel, and then the logistics chain, is possible only if there is a large number of enterprises on the product market that perform the wholesale function.

To optimize distribution activities, it is necessary to take into account the following areas:

Sales promotion,

Carrying out actual transport and distribution activities

Ensuring the company's technological readiness to meet sales needs, including creating technology portfolios;

Carrying out a set of integration measures aimed at adequately responding to sales fluctuations.

Integration allows optimization of distribution, which actively influences fluctuations in market demand.

Integration methods:

Downward integration used when an enterprise acquires ownership of a supplier company material resources(initial raw materials). Thus, it guarantees itself the supply of material resources in conditions of increasing sales volumes and excludes the repurchase of these resources by competitors.

Upward Integration occurs in the event of a decline in sales, when the entire product or entire enterprise is purchased by a potential buyer. This allows the purchased manufacturer to ensure that the required level of sales is maintained. In this case, integration is carried out on the basis of forecast marketing research, when the level of sales has not actually decreased yet, although its downward trend has already been detected.

Horizontal integration is the result of the combination of two or more equally oriented enterprises producing the same products. It leads to improved use of resources that have now become common, to the appropriate distribution of orders, to the implementation of a uniform pricing policy, as well as to an increase in the share of the integrated company in the market.

In progress disintegration Large companies are being disaggregated. This is mainly due to the intervention of government antitrust authorities. At the same time, the previous orientation of enterprises can either remain or change.

The purpose of a physical distribution system is to reduce the costs associated with moving finished products from the point of production to the point of consumption and storing them in accordance with the required level of customer service. The goal of material resource management, which is designed to serve intra-company material flows, is to effectively meet the company's needs for raw materials, materials, semi-finished products, etc. The goals of logistics are related to the coordination of the physical distribution and management of material resources to reduce costs or improve customer service. To achieve these goals, the logistics manager uses three interrelated concepts of the systems approach - total costs, prevention under optimization and financial exchanges.
Total cost concept. In this concept, logistics functions are considered as a whole, and not each separately. Logistics includes the following functions: transportation of products; stockpiling; optimization of inventory placement and suppliers; control of inventories of material resources and finished products; loading and unloading operations; maintenance of information flows, etc.

The essence of the total cost concept is that all costs are considered to be incurred simultaneously to provide the required level of service. When comparing alternative approaches, costs for some functions will increase, for others they will decrease or remain the same. The goal is to find the alternative that has the lowest total cost.

The concept of preventing sub-optimization . Sub-optimization occurs when efforts to improve a particular function do not lead to optimal results. There are many examples of sub-optimization in business. However, there is increasing awareness that the effectiveness of a single function, examined in isolation, may differ from the effectiveness of the function as part of the overall logistics process. It is necessary to search for compromise options for the interaction of all functions so that the system as a whole achieves an optimal cost/effectiveness balance. For example, a low tariff for transporting a ton of cargo may be unacceptable for the system as a whole if the movement of goods is carried out at the expense of speed and, especially, reliability of service or if the selected mode of transport requires special, expensive packaging. Let's look at examples.

Example 1. The company's warehouse manager decides not to pay warehouse workers overtime for loading vehicles. This decision is aimed at reducing warehouse costs, but may lead to an increase in the company's overall costs, because it leads to disruption of the delivery schedule.
Example 2. The production department strives to minimize unit costs. To achieve this, the production manager plans to organize large-scale production. With the organization of the latter, the cost per unit of production actually decreases, but excess inventory arises.
Financial exchanges concept. Due to the replacement of distribution functions, some costs increase, while others decrease. The result should be a reduction in overall costs.
Example 3. In an effort to provide a high level of customer service, Gillette began using air transport. After investigating the distribution system, it was discovered that the problem was slow order processing. Simplification of the documentation used allowed us to reduce order processing time. Gillette has resumed the use of relatively cheaper road transport while maintaining the achieved level of delivery schedules. As a result of the relative increase in order processing costs and the reduction in transportation costs, overall distribution costs decreased. These basic aspects of logistics, combined in the adoption process management decisions, and form a logistics concept. This concept is not unique because of the functions performed, since each function (product movement, inventory storage, etc.), considered separately or
along with other functions, essentially remains unchanged. The uniqueness of logistics lies in the integration of all these functions into a single whole, in an effort to minimize the total distribution costs for the required level of customer service.

List of used literature:

1. Gadzhinsky A.M. Logistics: Textbook. M.: ICC "Marketing", 1999.

2. Gadzhinsky A.M. Workshop on logistics. M.: ICC "Marketing", 1999.

3. Golikov E.A. Marketing and logistics. M.: Publishing House "Dashkov and K", 1999.

4. Logistics. Textbook / Edited by Anikin B.A. - M.: Infra-M, 2000.

5. Nerush Yu.M. Logistics: Textbook. M.: UNITY, 2001.

6. Workshop on logistics: Textbook / Ed. B.A. Anikina. M.: INFRA-M, 1999.

7. Semenenko A.I., Sergeev V.I. Logistics. Fundamentals of theory: Textbook. St. Petersburg, Publishing House "Soyuz", 2001.

8. Sergeev V.I. Logistics in business: Textbook. M.: INFRA-M, 2001.

b) additional literature:

1. Gordon M.P., Karnaukhov S.B. Logistics of goods distribution. M.: Center for Economics and Marketing, 1998.

2. Inkoter M.S. International rules for the interpretation of trade terms. M.: Prior, 1998.

3. Kolobov A.A., Omelchenko I.N. Fundamentals of industrial logistics: Textbook. M.: Publishing house MSTU, 1998.

The most important functions of distribution logistics are:
in planning, organizing and managing transport and 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;
organizing rational shipment;
delivery management and control over the implementation of transport and movement operations in logistics chains;
planning, organizing and managing logistics services.
Distribution activities require significant costs (expenses) for their implementation. The bulk of these costs are 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, inventories, deliveries, etc. These costs, in their economic content, partially coincide with the costs arising in the production process, but are largely caused by transport and storage costs, costs of packaging and containers, as well as costs associated with the importation of goods and their shipment to consumers, and other components of distribution costs . Total logistics costs at the local level are determined (and planned) based on sales amounts, in value terms 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 marketing and sales methods is:
in subordinating the process of managing material and information flows to the goals and objectives of marketing;
systemic relationship between the distribution process and production and procurement processes (in terms of material flow management);
systemic interconnection of all functions within the distribution itself.

8.2. Distribution logistics tasks

Distribution logistics covers the entire range of tasks for managing material flow in the “supplier-consumer” area, starting 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 are occupied by the tasks of managing material flows, solved in the process of promoting finished products to the consumer.
The solution to emerging problems of distribution logistics at each level is different.

In the process of solving distribution logistics problems, it is necessary to find answers to the following questions:

^ through which channel to bring the products to the consumer;
^ how to package products;
^ what route to send;
^ is a network of warehouses needed on the way from supplier to consumer;
^ what level of service to provide, etc.
Taking into account the specifics of the enterprise and the goals set, problems 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, deciding on packaging, organizing operations immediately preceding shipment;
organizing the shipment of products;
organizing delivery and transportation control;
organization of post-sales service.

At the macro level, the tasks of distribution logistics include:
selection of material flow distribution scheme;
determining the optimal number of distribution centers (warehouses) in the serviced area;
determining the optimal location of the distribution center (warehouse) in the serviced area.
To solve the problems of optimizing distribution, it is necessary to ensure control over all parts of the cargo movement system. When choosing the optimal distribution scheme, you should take into account the entire chain of cargo passage 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 areas of activity for increasing profits are activities related to:
with the creation of a unified transport and warehouse system (fast delivery to the consumer);
economic unification of production and sales;
development of optimal storage and replenishment schemes, etc.

To successfully run a business, an enterprise must resolve the following questions: to what extent the costs associated with reducing the time of goods distribution are compensated by an increase in revenue from increased sales volume; can the enterprise tolerate a decrease in the level of customer service while simultaneously increasing the volume of supplies; how expedient it is to store goods at the place of production or directly at the sales market, etc.

8.3. Functions of supplier distribution logistics and buyer purchasing logistics.

Let's consider the process of managing material flow 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 using the method of distribution logistics, 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 specifies the point at which this flow is managed by the supplier and uses purchasing logistics methods.
The International Chamber of Commerce has developed a system of standard basic conditions for the delivery of goods - Incoterms, which determines this point. In Incoterms, basic terms are grouped into four distinct categories:
— the moment the risk of loss and damage passes from the seller to the buyer;
— the moment at which transportation costs are borne by the seller, and after that by the buyer.

Let's consider the basic terms of delivery.
First group E contains one term EXW - ex works. When including this condition in the purchase and sale agreement, the seller bears minimal risks losses 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 side of the ship), FOB (free op board - free on board). Under free carrier and free on board conditions, the seller pays all costs associated with the goods until loading is completed, and the buyer pays the underlying transportation. In this case, the term “free on board” is used for transportation by sea and river transport, and “free carrier” is used for delivery by any type of transport. If the term “free along side the ship” is used, the seller does not pay for loading. In this group of terms, the risk of loss and damage passes at the point of transfer of goods from the seller to the buyer (Fig. 8.2).

In this case, the terms CFR and CIF are used for transportation by sea and river transport, and the rest - for transportation by any type of transport.
Fourth group D includes the terms: DAF (delivered at frontier) - delivery to the border; DES (delivered ex ship) - delivery from a ship; DEQ (delivered ex quay) - delivery from the quay; DDP (delivered duty paid) - delivery with payment of duty; 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 occurs at an agreed location (Fig. 8.4).

8.4. Logistics channels and distribution chains

The movement of material flows can be considered as movement that comes from various sources - the source of raw materials, production or distribution center. In all cases, the ultimate goal of the movement of material flow is to reach the consumer directly. At all stages of the movement of material flow within logistics, its production consumption occurs. Only at the final stage, which completes the logistics chain, does the material flow enter the sphere of non-productive consumption.
Manufacturing consumption- this is the current use of a 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 non-production enterprises.
The supplier and consumer of the material flow in the general case represent two micrologistics systems connected by the so-called logistics channel, or otherwise - the distribution channel. Logistics channel- this is a partially ordered set of different intermediaries that carry out the transfer of material flow from a specific manufacturer to its consumers.
The set is partially ordered until the choice of specific participants in the process of promoting the material flow from supplier to consumer is made. After this, the logistics channel is transformed into a supply chain. Making a fundamental decision to sell products through an agency firm and, thus, refusing to work directly with the consumer serves as a choice of distribution channel.
The choice of a specific agency company, a specific carrier, a specific insurer, etc. - this is the choice of the supply chain. Logistics chain is a linearly ordered set
participants in the logistics process who carry out logistics operations to bring external material flow from one logistics system to another.
The supplier and consumer are connected 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 different structures. In a logistics system with direct links, distribution channels do not contain any wholesale intermediary firms. In flexible systems, such channels are present, and the ability to select a logistics distribution channel serves as a reserve for increasing the efficiency of logistics processes.

The product can go directly to the end consumer.
The original cost of the goods in in this case will be the smallest, since intermediaries will be excluded from the chain and the cost of the goods will increase only due to the costs of delivering the goods.
A wide range is formed by a wholesaler specializing in in this direction and located in a location 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 the product will be the highest. The most profitable distribution (for the consumer) is directly through the distribution center at the point of consumption.

8.5. Product distribution channels

Distribution channel- is a collection of organizations or individuals that assume or help transfer to other organizations and individuals the ownership of a specific 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 product distribution;
financial savings on product distribution;
sales of products over in effective ways;
ensuring wide availability of goods.
A distribution channel 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 safety of products during delivery. The distribution channel of goods can be characterized by the number of component levels.
The channel level is an intermediary who works to bring the product and ownership of it closer to the end consumer. The length of the channel is determined by the number of intermediate levels between the producer and the consumer.
The distribution channels shown in Fig. 8.8, consist of an independent manufacturer and one or more independent intermediaries. Each channel participant represents a separate enterprise that tries to extract maximum profit. At the same time, none of the channel participants has complete or sufficient control over the activities of the other participants, i.e. All enterprises operate separately and are not organized into a system. Such distribution channels are called horizontal.
Experts also identify vertical distribution channels, consisting of a manufacturer and one or more intermediaries operating as a single system. One of the channel members, as a rule, is the owner of the remaining companies or provides them with certain privileges.

8.6. Distribution channel structure

Under channel structure the number of levels and the specific composition of channel participants is understood. When determining the composition of participants, it is necessary to determine the type of intermediaries.
Intermediaries can be classified according to a combination of two characteristics:
1) on whose behalf the intermediary works;
2) at whose expense the intermediary conducts its operations.
It is possible to distinguish five types of intermediaries.
1. Dealers are wholesale (less often retail) intermediaries who conduct transactions on their own behalf and at their own expense. The goods are purchased by them under a supply agreement, and the dealer becomes the owner of the product.
2. Distributors are 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 certain period. The distributor does not own the products. According to the agreement, he only acquires the right to sell.
3. Commission agents are 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 transferred and paid for by the end consumer.
The supply agreement 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 are intermediaries acting as a representative of another person (principal). For his services, the agent receives remuneration both according to tariffs and according to an agreement with the principal.
5. Brokers are intermediaries in concluding transactions, bringing together counterparties. Unlike agents, brokers do not have a contractual relationship with any of the parties to the transaction.

8.7. Construction of a distribution system

When constructing a logistics distribution system, the following sequence for selecting the optimal distribution option is used:
study of market conditions and determination of strategic goals of the distribution system;
determining the predicted amount of material flow passing through the distribution system;
drawing up a forecast of the required amount of reserves for the system as a whole and in individual sections of the material supply chain;
analysis of the transport network of the service region, drawing up a diagram of material flows within the distribution system;
studying various options distribution system movements;
assessment of logistics costs for each option;
implementation of one of the developed options selected for implementation.
In order to choose one from 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 given costs, i.e. costs reduced to a single measurement. The value of the given costs is determined by the formula

For implementation, the version of the distribution system that ensures the minimum value of the reduced (annual) costs is adopted.
A necessary condition for the possibility of choosing a distribution channel, as well as optimizing the entire logistics process, is the presence of a large number of intermediaries on the market.
The use of intermediary services for many businesses is a necessary condition successful product promotion. To solve the problem of what is more profitable in this case: to use the services of intermediaries or to go to the consumer independently, each enterprise must 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 the own costs of performing any work.
Formally, this relationship can be represented as follows:

Optimization of the distribution channel, and then the distribution chain, is possible only if there is a large number of enterprises on the product market that act as intermediaries.
When considering the concept strategic management costs are divided into three basic elements:
1) value chains;
2) strategic positioning;
3) cost-generating 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 occurring within the enterprise: procurement, administrative expenses, material flow. The key point in the existing mechanism is to obtain maximum income by maximizing the difference between purchases and sales. An integrated logistics approach using value chains focuses on all participants in production and supply chains. From a strategic point of view, distribution chains and associated cost accounting allow us to identify five areas of interaction efficiency:
1) communication with suppliers;
2) communication with consumers;
3) unity of technological connections within one division;
4) connections between departments within the enterprise;
5) connections between enterprises operating in a single logistics network.
The second basic element of the logistics system is strategic positioning. The role of analysis and focus of cost management will depend on which path the enterprise chooses. This could be cost leadership or product differentiation. As a rule, this problem is deeply and comprehensively considered within the framework of strategic management. Let us only note that the chosen strategy will significantly influence the formation of a logistics cost accounting system and the configuration of the information system.
When considering the third element - the cost-generating factor - it must be divided into strategic structural and functional factors.
Strategic structural factors include:
scale of distribution - volumes of investment in various functional areas of the logistics system;
range - vertical and horizontal integration;
experience;
technologies used at each stage of the cost chain;
complexity - breadth of product range.
Functional factors include:
continuous improvement of processes and workforce;
integrated quality management (TQM);
optimal loading of capacities;
effective plant planning;
efficiency of the project or calculation;
Using relationships with suppliers or customers from a cost chain perspective.
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 a critical element of strategic cost management, should be viewed as an end-to-end function that spans the entire value chain from supplier to consumer.

8.8. The relationship between logistics and marketing

Marketing is a scientific direction that contributes to achieving the company's goals through the most complete satisfaction of customer needs, thus, marketing and distribution logistics are closely interrelated. Marketing was in demand due to the difficulties that arose with the sale of goods in an earlier period than logistics, which complements and develops marketing by linking the consumer, transport and supplier into a single system. Marketing monitors and
determines the emerging demand, i.e. answers the questions: what product is needed, where, when, in what quantity and of what quality.
Logistics ensures the physical promotion of in-demand goods to the consumer.
In table 8.1 presents a comparative description of marketing and logistics.

Sales logistics, or distribution logistics, is an integral part of the overall logistics system, ensuring the most efficient organization of distribution of manufactured products. It covers the entire chain of the distribution system: marketing, transportation, warehousing, etc.

The term “distribution”, used in the name of the functional area of ​​logistics being studied, is widely used both in science and in practice.

In logistics, distribution refers to the physical, tangible, material content of this process. Regularities associated with the distribution of property rights are also taken into account here, but they are not the main subject of research and optimization. The main subject of study in distribution logistics is the rationalization of the process of physical distribution of the available stock of materials. How to package products, what route to send them, is a warehouse network needed (if so, which one?), are intermediaries needed - these are approximate problems solved by distribution logistics.

Logistics studies and carries out end-to-end management of material flows, so it is necessary to solve various problems of a distribution nature, that is, to divide something between someone, at all stages. In this case the following are distributed:

• * orders between different suppliers when purchasing goods;
• * cargo at storage locations upon receipt at the enterprise;
• * inventories between different production areas;
• * material flows in the sales process; etc.

In order to outline the boundaries of distribution logistics, it is necessary to consider the diagram of the capital reproduction process, which has three stages (Fig. 6.3).

Material flows become the object of distribution logistics at the stage of distribution and sale of finished products.

The concept of distribution logistics can be easily formed based on general definition logistics concepts. Let us remember that logistics is defined as the science (activity) of end-to-end management of material flows, including:

• 1) bringing the material flow to production;
• 2) managing the flow process within production;
• 3) managing the process of bringing finished products to the consumer.

The specificity of logistics lies in the unification of material flow management in these three areas, as well as within each of them.

Distribution logistics studies the last stage (not in isolation, but in a deep systemic relationship with the previous stages), i.e. it is a science (activity) about planning, control and management of transportation, warehousing and other material and intangible operations performed in the process of delivering finished products to the consumer in accordance with the interests and requirements of the latter, as well as the transfer, storage and processing of relevant information.

The fundamental difference between distribution logistics and traditional sales and distribution is as follows:

• * subordination of the process of managing material and information flows to the goals and objectives of marketing;
• * systemic relationship between the distribution process and production and procurement processes (in terms of material flow management);
• * systemic relationship of all functions within the distribution itself.

The definition of distribution logistics is formulated as follows: distribution logistics is a set of interrelated functions implemented in the process of distributing material flow between various wholesale buyers, i.e. in the process of wholesale sales of goods.

The retail sales process in logistics is usually not considered. The effectiveness of this process mainly depends on factors beyond logistics, for example, on knowledge of the psychology of buyers, the ability to decorate a sales floor, organize advertising, etc. Rational organization of material flows in the retail sales process is, of course, necessary, but here its significance much lower than in earlier stages of material flow.

It is necessary to clarify that the above does not apply to the retail trade process as a whole, which includes both wholesale purchasing and retail sales, but only to retail sales, i.e. to customer service.

The object of study of distribution logistics is the material flow at the stage of movement from supplier to consumer. The subject of study is the rationalization of the process of physical promotion of a product to the consumer.

The distribution of material flow has long been an essential aspect economic activity, however, it acquired the status of one of the most important functions only relatively recently. In countries with developed market economy in the 1950s - early 1960s. distribution systems developed largely spontaneously. Issues of choosing distribution channels, packaging goods, preparing them for transportation and delivery to the recipient, as well as issues of production and procurement of materials were resolved without taking into account their relationship. Individual subfunctions, which together form the distribution function, were treated as independent management functions. The integrated view of the distribution function developed in the 1960s and early 1970s. During this period, it was understood that the combination of various functions related to the distribution of the produced product into a single management function carries a large potential for increasing efficiency.

The result of an integrated approach to the implementation of various distribution functions was the inclusion of distribution in the structure of functional management of organizations and enterprises.

In trade, an example of the integration of various distribution subfunctions can be the allocation and development of special structures involved in supplying stores. In countries with developed market economies, such distribution structures in the 1970s. began to create and develop large retail chains. Domestic experience is represented by the organization of centralized delivery of goods to stores by forwarding divisions of trade wholesale warehouses.

Problems of distribution logistics. Distribution logistics covers the entire range of tasks for managing material flow in the “supplier-consumer” area, starting 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 share is made up of the tasks of managing material flows, solved in the process of promoting finished products to the consumer.

The composition of the tasks of distribution logistics at the micro and macro levels is different.

At the micro level, i.e. at the enterprise level, logistics poses and solves the following tasks:

• 1) planning the implementation process;
• 2) organization of receipt and processing of the order;
• 3) choosing the type of packaging, deciding on packaging, as well as organizing other operations immediately preceding shipment;
• 4) organization of product shipment;
• 5) organization of delivery and control over transportation;
• 6) organization of post-sales service. At the macro level, the tasks of distribution logistics include:
• 1) selection of a material flow distribution scheme;
• 2) determining the optimal number of distribution centers (warehouses) in the serviced territory;
• 3) determining the optimal location of the distribution center (warehouse) in the serviced area;
• 4) a number of other tasks related to managing the process of material flow through the territory of a district, region, country, etc.

Logistics distribution channels and supply chains. The material flow comes either from a source of raw materials, or from production, or from a distribution center, and goes either to production, or to a distribution center, or to the final consumer (Fig. 6.4).

In all cases, the material flow goes into consumption, which can be productive or non-productive.

Industrial consumption is the current use of a social product for production needs as means and objects of labor.

Non-productive consumption is the current use of a social product for personal consumption and consumption by the population in institutions and enterprises of the non-productive sphere.

At all stages of the movement of material flow within logistics, its production consumption occurs. Only at the final stage, which completes the logistics chain, does the material flow enter the sphere of non-productive consumption.

The logistics chain can also end with production consumption, for example the movement of energy resources. The flow of coal directed from a coal mine is completed when it enters industrial consumption at a thermal power plant or an industrial enterprise. The flow of instruments of labor, for example, machine tools manufactured at a machine-building plant, may end with productive consumption. Industrial consumption also includes the process of transforming material flow in a distribution center. Here, such logistics operations as sorting, packaging, formation of a consignment, storage, assembly, packing, movement, etc. are carried out. The complex of these operations constitutes the production process in the sphere of circulation.

At all stages of movement, the material flow is the subject of labor of participants in the logistics process. At the stage of movement of products for industrial and technical purposes, these can be unprocessed raw materials, semi-finished products, components, etc. At the stage of product distribution, the material flow represents the movement of finished consumer goods.

The supplier and consumer of the material flow in the general case represent two micrologistics systems connected by the so-called logistics channel, or distribution channel.

A logistics channel is a partially ordered set of different intermediaries that carry out the transfer of material flow from a specific manufacturer to its consumers.

The set is partially ordered until the choice of specific participants in the process of promoting the material flow from supplier to consumer is made. After this, the logistics channel is transformed into a supply chain (Fig. 6.5).

Making a fundamental decision to sell products through an agency firm and, thus, refusing to work directly with the consumer is the choice of a distribution channel. The choice of a specific agency company, a specific carrier, a specific insurer, etc. is the choice of a logistics chain.

A logistics chain is a linearly ordered set of participants in the logistics process that carry out logistics operations to bring external material flow from one logistics system to another.

At the macrologistics level, logistics channels and chains are connections between the subsystems of macrologistics systems. Depending on the type of macrologistics system, distribution channels have a different structure. In logistics systems with direct links, distribution channels do not contain any wholesale intermediary firms. In flexible and layered systems such intermediaries exist.

When choosing a distribution channel, the forms of product distribution are determined - transit or warehouse, and the logistics chain - a specific distributor, carrier, insurer, forwarder, banker, etc. In this case, various methods of expert assessments, operations research, etc. are used.

The ability to choose a logistics channel is a significant reserve for increasing the efficiency of logistics processes. Let's consider distribution channels through which goods from final production through a system of distribution centers enter final consumption (Fig. 6.7).

This diagram shows two industries (A and B) producing identical goods. This means that each of the distribution centers can choose a supplier with more favorable delivery terms. In turn, production can choose different distribution channels. For example, from production A, a product can reach the final consumer via one of the following four routes: 8; 1-6; 1-7-5; 2-5.

Obviously, if production A enters the market and independently contacts the end consumer (route 8), then the initial cost of the product will increase only by the amount of costs associated with delivery, since intermediaries (distribution centers) will be excluded from the chain. However, in this case, the consumer will be forced to buy a large quantity of the same product from one supplier, which is most likely unacceptable for him.

The second route (1-6) is inconvenient for the same reasons. Distribution center No. 1 is located at the location where production is concentrated and, as a rule, purchases and sells large quantities of homogeneous goods. This category of intermediaries also does not provide a wide range. A wide range of trade is formed by a wholesaler (distribution center No. 2), located in the place where consumption is concentrated. This intermediary specializes in providing maximum service to the end consumer.

Thus, channel 1-7-5 provides the greatest service to the consumer, but at the same time includes two intermediaries, i.e. the cost of the product will be the highest.

A necessary condition for the possibility of choosing a distribution channel, as well as optimizing the entire logistics process at the macro level, is the presence of a large number of intermediaries in the market. In particular, optimization of the distribution channel, and then the logistics chain, is possible only if there are many enterprises on the product market that perform the wholesale function.

Legal support for economic activity should facilitate the formation and implementation of economic ties, information networks should make possible the rapid exchange of information, financial system- ensure the rapid passage of funds.

Solving the listed problems is also a function of the state, which must create conditions conducive to the development and optimization of material flow distribution systems.

Logistics and marketing. Marketing is a management system that allows you to adapt production to market requirements to ensure profitable sales of goods. The “T1-D1” link is the main one in the chain of the reproduction process, in which goods are in the sphere of marketing attention.

Distribution logistics studies the movement of material flows and manages them in the same area. The difference is that this area is a priority for marketing, and for logistics, distribution is considered as an integral part of the more general process of managing end-to-end material flow.

It should be said that over the past 25 years, the interaction between marketing and logistics has been clearly underestimated. Only in recent years have business circles in Western European countries paid attention to the need to eliminate the state of affairs in which logistics and marketing developed in isolation and were only partially used by entrepreneurs, when certain elements necessary to solve practical problems of the day were snatched from the entire system.

In the middle of the 20th century. the orientation of production towards the release of goods needed on the market and the use of marketing methods for studying demand and influencing demand turned out to be a decisive factor in increasing competitiveness. The task of creating systems that ensure end-to-end management of material flows was not relevant then, firstly, due to the lack of technical capabilities for building such systems in the economy, and secondly, due to the fact that through the use of marketing techniques that were new for that time, it was possible there was a sudden move forward. In today's conditions, this is impossible only on the basis of marketing. The demand identified by marketing must be met in a timely manner through fast and accurate delivery (in the West there is a term “quick response technology”). This “quick response” to emerging demand is possible only with an established logistics system, including its functional area that concerns sales, i.e. distribution logistics.

Historically, having entered the economic arena in more late period, logistics complements and develops marketing, linking the consumer, transport and supplier into a mobile coordinated system with unified equipment and technology.

Marketing monitors and determines the demand that has arisen, that is, it answers questions about what product is needed, where, when, in what quantity and of what quality. Logistics ensures the physical movement of the in-demand commodity mass to the consumer. In addition, logistics integration makes it possible to fulfill the last, sixth condition, i.e., to ensure the supply of the required goods at minimal cost, since the cost of goods passing through the chain will be low only if this chain is logistically organized.

In the second half of the 1980s. Entrepreneurs in developed capitalist countries are faced with the task of revising the entire concept of logistics and maximizing the use of its potential in new conditions. The creation of the internal European market in 1992 with a population of 324 million people, the elimination of customs barriers, and the introduction of common European standards forced us to look for new ways to increase or strengthen our competitiveness.

This state of affairs requires, from the position of a large manufacturer, strict accounting production and especially distribution costs, since the share of the latter in the total costs of firms is constantly growing. This could lead to a large manufacturer purchasing more and producing less itself. This trend is most clearly manifested in industrial companies, which are characterized by further cooperation in production. Thus, a study by the Swiss banking association showed that currently in the mechanical engineering and metalworking industries of a number of countries Western Europe about 40% of the revenues from the turnover of industrial firms come from purchases from other enterprises and that in the future the share of these purchases will increase.

In a holistic distribution logistics strategy, two fundamental aspects can be distinguished. In a simplified form, they can be presented, firstly, as a study of market needs, which is what marketing actually does, and, secondly, as ways and means of most fully satisfying these needs through a more efficient organization of transport and forwarding services.

Let's look at each of these sides separately.

The development of marketing is associated with the aggravation of the problem of selling products and increasing demands on the divisions of companies involved in sales and logistics. First of all, there is a need to improve sales policy in order to form a market and significantly improve the planning of sales of firms' products. When developing such a policy, sales specialists should focus on the concept of end-to-end logistics, which applies to the entire business and covers production in a broad sense, both horizontally and vertically, and also includes planning, management of subject and information flows from the creation of products to their distributions.

Analyzing this problem more specifically, it should be noted that the main emphasis in planning using logistics methods is on identifying and taking into account consumer and other characteristics of products, as well as determining their dependence on market factors. First of all, this includes competition, market demand, market accessibility and a number of other factors. To successfully promote a product to the market, it is necessary to carry out preparatory research projects, including: planning the volume and range of goods, taking into account the dependence on various factors; checking planning by modeling the company’s sales activities and determining its (planning) reliability; adoption of a sales action plan and use of its indicators for production programs. This analysis is usually carried out by a special analytical group of the sales department of the company or company.

Currently, there is a reasonable opinion that the inclusion of marketing in distribution logistics as its organic component can serve as one of the most effective ways to improve sales activities.

From the point of view of the logistics approach, one should distinguish, firstly, the concept of marketing as general philosophy business, permeating the commercial organization of the activities of all services (primarily sales), and, secondly, the concept of marketing as a functional activity of a specialized service for studying sales markets for manufactured products, developing a pricing policy and drawing up price lists, organizing advertising, etc.

The most important functions of marketing are:

• * market research and identification;
• * differentiation of the market according to the ratio of supply and demand;
• * formalization and provision of advantages of your product in relation to competitors;
• * development of a marketing proposal. The central function of marketing is the development of a marketing proposal for options for specific sales activities of the company. However, before it can be formulated, firms must carry out great job on goods market research.

Market research is one of the main prerequisites for organizing the sale of goods by industrial firms in developed countries. This process has long been identified as an independent area of ​​intra-company activity. The role of market research has especially increased in connection with the orientation of firms towards specific market goods. Manufacturing companies have become more acutely aware of the need for detailed and comprehensive information about the market for their products and all changes in consumer demand. The information received from the sales department employees turned out to be incomplete in order to make qualified decisions on the production of products and their sales.

A sensitive response to the slightest change in market conditions has become a vital necessity. Such a response is possible only if the information flow and all information logistics as a whole operate effectively. If in the past the main attention was paid to the flow of physical processes during the movement of a product, then at present, in conditions of specialization and extensive cooperative ties of enterprises, the production process is unthinkable without fast and reliable information. The use of information as an independent resource has become in recent years one of the foundations of successful entrepreneurial activity. Since the mid-1970s. Industrial firms in the West began to create a special apparatus for studying the market for goods and their consumers. With centralized management of material and technical support for production, market research departments are part of the services involved, as a rule, in marketing. In firms with decentralized management, where various functions enjoy autonomy, market research is carried out at each enterprise or department of the firm.

Currently, the activities of industrial firms in studying the sales market for goods are based not so much on an analysis of the sales of already established production of goods, but on the possibilities of producing and selling new goods. The main task of market research is to determine the need for products and the conditions for their sale, and on this basis, ways to achieve the main goal are analyzed - how to achieve maximum profit. The market research process covers the following main issues: market capacity, product ranges, characteristics of competitors, etc.

First of all, market capacity is usually determined, which is understood as the volume of industrial production of specific types of goods in a country or region, increased by the volume of imports of such goods and reduced by the amount of their exports. At the same time, great importance is attached to the study of the distribution of consumption of a particular product among possible buyers.

An important step in market research is analyzing information about competitors. It must be reliable, timely and, if possible, contain information about the economic and financial situation of competitors, technical and economic characteristics of the new products they are producing and preparing for release, as well as whole line information regarding supply, sales and some other activities of rival firms. Such information usually includes indicators of the quality of the sales service (timeliness and rhythm of deliveries, speed of delivery of goods, their safety, etc.) and commercial data (the number of personnel in the marketing and sales service, the effectiveness of advertising, relationships with consumers of products, etc. ). Only after careful analysis detailed information about competitors, the company decides on the share of its participation in the markets of specific types of goods.

Studying the need for products is not limited to identifying various groups of potential buyers and analyzing the mechanism by which they make decisions on the purchase of goods. The problem here also lies in determining the needs of buyers, and most importantly, their solvency, therefore suppliers of industrial and technical products are also engaged in analysis financial situation consumers.

Firms use information about the technical and economic characteristics of competitors' products when comparing them with their own products to identify advantages or disadvantages and, ultimately, to select a range of products with which to enter the market. For these purposes, an analysis of production efficiency is carried out various types products, within the framework of which the possibilities of its sales and material support for production are clarified, production and distribution costs are calculated, a product release plan is formed, and then product samples are tested under different conditions.

With extensive information about the product market and analytical research about it, firms develop short-term and long-term forecasts. They are used in the internal activities of various services, including production. The results of the forecast are taken into account when planning the material supply of production needs, capital investments, analysis of the economic activities of firms, etc.

A marketing offer is defined as a combination of products offered to the consumer in a particular market segment. It contains both information about products and prices, as well as methods of sales promotion, forms of bringing the product to the consumer. The product offer includes the characteristics of the product, its quality, additional convenience of using the product taking into account the individual characteristics of the consumer, packaging, conditions for repair and maintenance of the product after its purchase, guarantees of consumer properties. Price information is presented by price range, payment terms (for example, installment plans for the buyer), and crediting procedures. Sales promotion techniques are the most difficult part of a marketing proposal. The most common methods of sales promotion are: advertising of existing and new products, expanding the volume and improving the quality of services for customers, in particular after-sales service; conclusion of leasing agreements with subsequent right of purchase; short-term discounts for trading organizations.

When using marketing to improve sales efficiency, two aspects are usually considered. First, an analysis of the cause-and-effect relationship between marketing costs and its results, on the basis of which it is determined how much money should be allocated to a particular area of ​​marketing activity. Secondly, the determination of marketing effectiveness, which is associated with the establishment of performance standards and the process of planning to reduce material and financial costs for these standards without reducing current or expected sales volumes or profits. This analysis allows us to determine the effect of different levels and combinations of marketing costs, as well as the order in which they are distributed across different market segments. To determine marketing costs, it is necessary to have information about the size and directions of market development, market shares, competitors’ reactions, etc.

As a result of the analysis of marketing effectiveness, it is possible to draw conclusions about the efficiency of production as a whole and the company’s behavior strategy in the market. Such conclusions are of great importance in unstable market conditions, i.e., a decline in sales or their growth. The company's strategy may be various forms influence on market conditions.

In conditions of growing sales, the company's management may decide to gain a foothold in the market and, using the situation, take measures to obtain extremely high profits. A successful or less successful choice of strategy does not pose a potential danger to the sustainability of the company, except for the case when, as a result of a production boom, the company may be cut off by competitors from the raw materials or semi-finished products it needs. In this case, the threat to stability can be removed through backward integration (“downward”), that is, the acquisition of supply companies for producers of raw materials.

The conditions for a decline in sales are another matter. Here, in all cases, carefully thought-out measures are required to maintain sales at an acceptable level. This could be forward integration (“upward”), which consists of merging with companies that use products manufactured by the “parent” company. In fact, according to this strategy, firms that purchase the product are acquired, and profit is generated through the redistribution of products at a higher level or final products.

The strategy of using horizontal integration serves to secure a larger market share. It consists of joining firms producing a similar product. However, this kind of integration may encounter resistance from government antimonopoly authorities.

An important place in the economic policy of any large company in Western countries is occupied by the coordination of the development strategy of the technological base of production with the results of sales activities. It allows, based on the analysis of these two key elements and the improvement of production and economic systems, to successfully adapt production to rapidly changing market conditions.

Typical of the 1980s. instability of pace dynamics economic growth, significant deviations from the predicted values ​​were determined by the diversity and complex interrelations of the company’s development factors. Typically, the main reasons for the instability of the financial situation are rooted in market changes and the inertia of the process of development of the technological base. The last factor, as a rule, is not sufficiently taken into account when analyzing development prospects. If a firm's expected growth in production is based on the introduction of new technologies, a gap often arises between technology development and marketing strategies. In cases where marketing activities do not take into account technological innovations, fundamental errors in management policies are possible.

The solution to this problem is most relevant for the development of companies characterized by a complex range of products and a complex technological base. Among the main problems and components of the process of managing technological production processes, it is necessary to highlight the analysis of changes that occur in the life cycle of products, market conditions, relations between entrepreneurs and employees, methods of state regulation of the economy.

• 1. Material flow management is called production logistics, which considers the processes occurring in the sphere of material production material goods and material services.
• 2 The production process is a set of labor and natural processes aimed at producing goods of a given quality, range and on time.
• 3. The main task of production logistics is to provide production with products required quality on time, continuous movement of objects of labor and continuous employment of jobs.
• 4. There are two concepts of organizing production: logistics and traditional.

The logistics concept includes the following main provisions: rejection of excess inventories; refusal of inflated time for performing basic and transport and warehouse operations; refusal to manufacture series of parts for which there is no customer order; elimination of equipment downtime; mandatory elimination of defects; elimination of irrational intra-factory transportation; transforming suppliers from opposing sides into benevolent partners.

The traditional concept of production organization involves never stopping the main equipment and maintaining a high utilization rate at all costs; produce products in as large batches as possible; have the largest possible supply of material resources “just in case.”

5. Distribution logistics is a set of interrelated functions implemented in the process of distributing material flow between various wholesale buyers, i.e. in the process of wholesale sales of goods.

VII. LOGISTICS

9. Distribution and sales logistics

Definition of distribution logistics, its importance

Distribution logistics – This is the management of transportation, warehousing and all logistics operations performed in the process of bringing the GP to the consumer in accordance with the interests and requirements of the latter, as well as the transfer, storage and processing of relevant information. In general terms, distribution logistics can be considered in the following two aspects:

1) as a study of market needs (marketing);

2) as ways and methods of most fully satisfying these needs through the effective organization of transport, forwarding, warehouse processes, and customer service.

Fundamental difference distribution logistics from the traditional approach to organizing sales and distribution is as follows:
· subordination of the MP management process to the goals and objectives of marketing;
· systemic interconnection of distribution, production and procurement processes;
· systemic interconnection of all functions within the distribution itself.

The importance of distribution logistics is determined by the fact that improving work in the field of distribution of goods does not require such large additional capital investments as, for example, mastering the release of a new product, and at the same time ensures high competitiveness of the supplier by reducing costs, reducing order fulfillment time, and adhering to the agreed delivery schedule . Money invested in distribution affects the supplier's position in the market much more than the same funds invested in production. Those. high competitiveness does not depend on the amount of capital investment, but on the ability to properly organize the logistics process.

Distribution logistics tasks

Distribution logistics tasks :

· at the micro level
- planning the process of selling goods;
- organization of order receipt and processing;
- choosing the type of packaging, making decisions about packaging, organizing operations prior to shipment;
- organization of product shipment;
- organization of delivery and control of transportation;
- organization of post-sales service.

· at the macro level
- selection of a distribution scheme for MP (channel for bringing products to the consumer?);
- determination of the optimal number of distribution centers (warehouses);
- determination of the optimal location of distribution centers (warehouses) in the serviced area, etc.
Horizontal and vertical distribution channels

Logistics channel- this is a partially ordered set of various intermediaries (organizations or individuals) who carry out the transfer of MP from a specific manufacturer to its consumers. After the choice is made specific participants in the process of movement of MPs, the logistics channel is transformed into a supply chain. The use of intermediaries in the distribution of products allows manufacturers to: reduce the amount of work and financial resources for product distribution;

invest saved funds in core production; sell products in more efficient ways; more effectively bring products to target markets. Traditional distribution channels are horizontal

. They consist of an independent manufacturer and one or more independent intermediaries. Each channel member is a separate enterprise striving to ensure maximum profit. The maximum possible profit of an individual channel member may come at the expense of the maximum profitability of the system as a whole, since none of the channel members has complete or sufficient control over the activities of the other members. Vertical distribution channels –These are channels consisting of a manufacturer and one or more intermediaries operating as one unified system. One of the channel participants, as a rule, either is the owner of the other participating companies or provides them with certain privileges. Such a participant can be a manufacturer, wholesale or retail intermediary. Vertical channels arose as means of control

channel behavior

.
They are economical and eliminate duplication of functions performed by channel members.
Types of intermediaries in distribution channels

Intermediaries are classified according to two criteria (Table 9.1):

1) on whose behalf the intermediary works;

On someone else's behalf and at your own expense On your own behalf and at the expense of others On someone else's behalf and at someone else's expenseDealers –these are wholesale (less often retail) intermediaries who conduct transactions from his

name wholesale and retail intermediaries conducting operations on behalf of the manufacturer and at his own expense. As a rule, the manufacturer grants the distributor the right to sell its products in a certain territory and for a certain period. Thus, the distributor does not own the product. Under the agreement, they acquire the right to sell products. The distributor can also act on his own behalf. In this case, within the framework of the agreement for the granting of the right to sell, a supply agreement is concluded. In the supply chain, distributors typically occupy a position between the manufacturer and the dealers.

Commission agents – These are wholesale and retail intermediaries conducting operations from own name and at the expense of the manufacturer. The commission agent is not the owner of the products sold. Manufacturer (or committent in this transaction) remains the owner of the product until its transfer and payment by the end consumer.

The contract for the supply of products is concluded on behalf of the commission agent. The commission agent is obliged to ensure the safety of the goods. Remuneration to the commission agent is usually paid in the form of a percentage of the amount of the transaction performed or as the difference between the price set by the principal and the selling price. Agents – intermediaries acting as a representative or assistant of another person, the main person in relation to him ( principal ). As a rule, agents are legal entities.Agent makes deals from name and for the account of the principal . Based on the scope of their powers, agents are divided into two categories. Universal agents perform any legal actions on behalf of the principal.

General Agents conclude only transactions specified in the power of attorney. For their services, agents receive remuneration both according to tariffs and as a percentage of the amount of the concluded transaction. Brokers – intermediaries in concluding transactions, bringing together counterparties. Brokers are not the owners of the products, as dealers or distributors, and do not dispose of products as distributors, commission agents or agents. Unlike agents, brokers

do not have a contractual relationship with any of the parties

of the concluded transaction and act only on the basis of individual instructions. Brokers are remunerated only for products sold. Their income can be formed as a certain percentage of the cost of goods sold or as a fixed fee for each unit of goods sold. decision making, presented in Fig. 9.1.

Rice. 9.1. Hierarchy of decisions made when choosing a location

When choosing placements, the following factors should be considered:

· Customer location .

· Location of suppliers and materials .

· The attitude of the authorities and their plans . Local authorities can seriously change the attractiveness of a territory by promoting certain specific industries. It is necessary to familiarize yourself with the peculiarities of local legislation and the possibilities of attracting local investments.

· Direct and indirect costs . Using this factor, it is necessary to take into account that low wages in a region may also be accompanied by low productivity or quality and vice versa. In addition, it is necessary to take into account local taxes, social and pension payments, control of company property (for example, through control of a local partner in matters of currency exchange and export of profits abroad).

· Public attitude . Different countries have different attitudes towards methods of ensuring high labor productivity, for example, high turnover and absenteeism may be common, different numbers of workers belonging to trade unions, different attitudes towards the importance of collective or individual achievements at work.

· Site size and configuration . A large number of vehicles servicing input and output flows requires sufficient space for parking, maneuvering, and passage. Their absence can lead to congestion, loss of time and customers. In addition, an office, sanitary facilities, a security post, devices for collecting and processing waste, etc. should be located on the territory of the enterprise.

· Transport accessibility of the area . For example, when locating DCs, preference should be given to areas located on main (main) routes. It is necessary to analyze the provision of the territory with other modes of transport, including public transport, on which the accessibility of the DC depends both for its own staff and for clients.

· Competitors , their number, power, location.

· Expansion potential or making changes.

· Local market situation work force , number of employees, their qualifications and productivity.

· Political stability .

· Natural conditions : climate, terrain, presence and nature of reservoirs, the possibility of natural disasters.

There is a factor that should not be used when solving the placement problem, – manager's personal preferences . Sometimes managers choose an area where they grew up or once vacationed. This choice is not a priori bad, but it often becomes so because... its main drawback is low reliability due to the lack of an objective location analysis.

The problem of determining the number of warehouses in the serviced territory

The most important element of drugs is the warehouse network through which MP is distributed. The construction of this network has a significant impact on the costs that arise in the process of bringing the product to the consumer, and therefore on the final cost of the product sold. So, if there is a single warehouse (Fig. 9.2, a), transportation costs for delivering goods to consumers will be very high. In the case of five warehouses (Fig. 9.2, c), transport costs for goods supply will be minimal, but other types of costs will increase, namely: the costs of delivering goods to warehouses; to manage this entire distribution system. There is a possibility that the additional costs in this case will exceed the benefits obtained from reducing the mileage of vehicles delivering goods to consumers.

Perhaps an option with two warehouses may be acceptable (Fig. 9.2, b).

Rice. 9.3. Dependence of total costs on the number of warehouses

Production logistics Managing production procedures, or operational management,

as it is commonly called in the West, represents a key logistics function. From a logistics perspective, the task of operational management is to manage material flows at the stages of processing objects of labor into finished products. At the same time, the problems of volume scheduling, minimizing the level of material resources, reducing the duration of the production cycle, etc. are solved. The following functions of logistics in the field of production are distinguished:

♦planning and dispatching production based on the forecast of demand for finished products and existing consumer orders;

♦development of production schedules for departments of the enterprise;

♦development of product launch and release schedules agreed with supply and sales services;

♦establishing standards for work in progress and monitoring their compliance;

♦operational production management and organization of production tasks;

♦control over the quantity and quality of finished products;

To solve logistics problems, it is necessary to organize production in accordance with the following principles:

♦ rhythmicity, coordinated work of all production
structures;

♦ continuity of technological processes;

♦ organizing work with minimal labor intensity;

♦ ensuring flexibility of production structures;

♦ ensuring planning.

The main modern methods for solving these problems are:

1) streamlining the movement of objects of labor in production. The orderly movement of products in production is achieved through standardization and unification of technological route maps for the passage of objects of labor;

2) synchronization of production cycles. Synchronization is necessary to minimize the loss of working time and equipment downtime, as well as to sharply reduce work in progress due to a reduction in the time of inter-operational and inter-shop holding of inventories.

Sales logistics, or distribution logistics, - an integral part of logistics, ensuring the most efficient organization of distribution of manufactured products. It covers the entire chain of the distribution system - warehousing, transportation, sales. In the holistic marketing strategy of a company’s products (works, services), two fundamental aspects can be distinguished.

Firstly, this is the study of market needs, which is what marketing actually does, and secondly, these are methods to most fully satisfy these needs by organizing a distribution network.

The main goal of a logistics distribution system is to deliver goods to the right place and in right time. The following functions of logistics in the field of sales are distinguished:

Strategic, current and operational sales planning;

Selection of distribution channels for finished products;

Rationing stocks of finished products and organizing their storage;

Development of transportation (release) plans for finished products and organization of their implementation;

Organizing the operation of our own distribution network;

Concluding supply contracts with customers and monitoring their implementation;

Participation in the development of plans and schedules for the launch and release of finished products;

Development of cost estimates for sales and monitoring of its compliance.

Unlike marketing, which is engaged in identifying and stimulating demand, logistics is designed to satisfy the demand generated by marketing at minimal cost. Obviously, the solution to the problem of organizing distribution channels plays a role in this main role. Distribution channel- is a collection of organizations or individuals who take over or help transfer to another the ownership of a particular good or service along the path from producer to consumer. Or in other words, a distribution channel is the path through which goods move from the producer to the consumer. The selected channels directly affect the speed, time, efficiency of movement and safety of products when they are delivered from the manufacturer to the end consumer. In this case, organizations or individuals perform a number of important functions:

1) conduct research to collect information necessary for planning the distribution of products and services;

2) stimulate sales by creating and disseminating information about products;

3) establish contacts with potential buyers;

4) adapt the product to the requirements of customers;

5) conduct negotiations with potential consumers of products;

6) organize the distribution of goods (transportation and warehousing);

7) finance the movement of goods through the distribution channel;

8) accept risks associated with the operation of the channel.

All or part of these functions can be taken over by the manufacturer. At the same time, producer costs increase. Due to the specialization of intermediary organizations, they often perform the listed distribution functions more efficiently. To cover their costs, intermediaries charge the manufacturer an additional fee. The question of who should perform the various functions of a distribution channel is a question of relative efficiency . When an opportunity arises to perform functions more effectively, the distribution channel is rebuilt.

Traditional distribution channels consist of an independent manufacturer and one or more independent intermediaries (Figure 17.4). Each member of the distribution channel is a separate enterprise seeking to ensure maximum profit. The maximum possible profit of an individual participant may come at the expense of the maximum profitability of the system as a whole. Since none of the channel participants has complete or sufficient control over the activities of the other participants, such distribution channels are called horizontal.

Rice. 5.3.1. Product distribution channels

Vertical distribution channels - These are channels consisting of a manufacturer and one or more intermediaries operating as a single system. Such a member could be manufacturer, wholesaler or retail intermediary. Vertical channels are economical and eliminate duplication of functions performed by channel participants.

When identifying possible options for distribution channels, it is necessary to determine the type of intermediaries used. Intermediaries can be classified according to a combination of two characteristics: a) on whose behalf the intermediary works; b) at whose expense the intermediary conducts its operations (Table 5.3.2.).

Classification of intermediaries

1) Dealers- wholesale, less often retail intermediaries who conduct transactions on their own behalf and at their own expense. The goods are purchased by them under a supply agreement. Thus, the dealer becomes the owner of the product after full payment for the delivery. However, the relationship between the manufacturer and dealers in Lately take on various forms due to the desire of manufacturers to form vertical distribution channels. In this case, dealers become privilege holders. By combining in their hands a number of successive stages of the production and distribution process, dealers occupy a position in the supply chain that is closest to end consumers. There are two types of dealers. Exclusive dealers are the only representatives of the manufacturer in this region and have exclusive rights to sell its products. Dealers cooperating with the manufacturer on a franchise basis are called authorized.

2) Distributors- wholesale and retail intermediaries conducting operations on behalf of the manufacturer and at their own expense. Typically, the manufacturer grants the distributor the right to sell its products in a certain territory for a certain period. Thus, the distributor does not own the product. The distributor can also act on his own behalf. In this case, within the framework of the agreement for the granting of the right to sell, a supply agreement is concluded. In the supply chain, distributors typically occupy a position between the manufacturer and the dealers.

3) 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 products sold. The manufacturer (or the principal in this transaction) remains the owner of the product until it is transferred and paid for by the final consumer. The contract for the supply of products is concluded on behalf of the commission agent. Thus, the commission agent is an intermediary only for the principal, and not for the end consumer, whose money is transferred to the account of the commission agent. In this case, the risk of accidental damage and loss of products lies with the consignor. The commission agent is obliged to ensure the safety of the goods. He is responsible for loss or damage to products due to his own fault. Remuneration to the commission agent is usually paid in the form of a percentage of the amount of the transaction performed or as the difference between the price set by the principal and the selling price.

4) Agents- intermediaries acting as a representative or assistant of another person principal in relation to him ( principal). The agent enters into transactions on behalf, on behalf and at the expense of the principal. For their services, agents receive remuneration according to tariffs or in the form of a percentage of the amount of the transaction performed.

5) Brokers- intermediaries in concluding transactions, bringing counterparties together. Brokers do not own products like dealers or distributors, and do not dispose of products like commission agents or agents. Brokers carry out only individual orders. Their income is formed as a certain percentage of the transaction or a fixed cost of the transaction performed.

After choosing the type of intermediary in the distribution channel, you need to decide on the number of these intermediaries. Three approaches have been developed in marketing to solve this problem - intensive, exclusive and selective distribution.

Intensive distribution involves providing stocks of products in as many trading enterprises as possible.

Exclusive distribution characterized by a deliberately limited number of intermediaries.

Selective distribution implies a wide market coverage while at the same time a strict approach to the selection of intermediaries selling products.

To improve sales efficiency, firms resort to multi-channel product distribution systems. A very popular form of bringing goods to consumers in most Western companies is direct delivery of goods, bypassing warehouses using the door-to-door system, i.e. the JIT system in the distribution sector. This allows us to minimize transport costs and costs for intermediate storage of goods.