Managing Industrial Product Distribution: Key Elements & Strategies - Essay Sample

Introduction

Industrial product distribution is one of the sectors that mainly dwells on the supply of processed and manufactured goods to the consumers or the target market. Business under the industry has different means of conducting the supply of the products across the market. Some of the core element and procedures involved in the supply chain management includes planning or strategizing, information, source, inventory, location, and mode of transportation and goods rewards. The fundamental elements provide systematic management in the supply chain of industrial products (Stefanou, 1999). In the industrial product distribution, the plan acts as the start point to strategize on how to initiate a supply chain. In the plan, demand, viability, transport mode, cost, and profits are considered hence projecting the necessary means to distribute the products to the market. To some extent, the industry requires to learn about the supply and market trends concerning the evolving competition that exists. Secondly, the cost of production, as well as raw material, becomes a necessity in production as well as supply chain management. With determined, transport mode and location of the market forces, it becomes easy to make substantial marginal profits that propel success.

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The main enablers and drivers of the supply chain within the industrial product distribution sector includes inventories, transportation mode, as well as a pricing mechanism. The industry ventures in facilities that are easily flexible. Such as stores that are adjacent to the location of the target market (Quayle, 2003). Managers of the industry are responsible for ensuring that there is proper quality production with the incorporation of low price raw material necessary for manufacturing. Similarly, the efficiency of the product provides a steady supply of products. Consequently, transportation is one of the supply channels that significantly lead to the effective delivery of the products to the market. It enables consumers to get products at the right time.

In supply chain management, the source ensures that there are effective cost rates that suit the consumer. Regarding the quality of the raw materials, it helps the supplier maintain an excellent reputation for the industry products as well as capturing more market shares. Inventory ensures that there maintenance and supply of raw material, thus, guaranteeing steady production as well as the supply of the products in the market. Also, facilities in the industry ensure that there are proper storage and management of the products adjacently to the customers.

Impact of the Supply Chain Management Decision

The decision on the most industry product distribution in the supply chain management depicts the success of business sales. Through evaluation and assessment of the supply chain management in the internal processes, various conclusions arise that barely show that monitoring and use up to date technology effectively leads to profits and high returns of the sales (Quayle, 2003). The main work involves the production process as well as the coordination of the facilities necessary for storage as well as the acquisition of the quality raw materials.

Regarding inventories, it is the mandate of the supply chain management to ensure that the internal processes such as maintaining sufficient raw material storage as well as quality production through effective labor. In customer service delivery, supply chain management is responsible for ensuring that goods and services reach the buyers at the right time. Also, it is through supply management decision to relocate the distribution stores with an aim to reduce distance and adequately reach the clients. The decision reduces the cost of the product through the reduction of the long chain that is often adopted by middlemen or rather micro retailers. The increase in sales, therefore, ensures the maximization of the profits. It through the production of a quality good and steady supply of the product that consumers gain the trust and reliability of the products. As a result, profit optimization is achieved.

Role of Logistics and Supply Chain Management

Logistic plays a vital and crucial role in supply chain management. It ensures that there is a reliable, steady supply of the product as well as ensuring the smooth running of the product production. It also helps in the management of cost and also the monitoring of resources. Other tasks involve planning, transportation strategies, storage inventory processes as well as customer services. Logistics compiles all aspects of the product distribution by the monitoring processes; it engages insufficient and quality supply of the products. In the 21st century, the flexibility of the products has been effective through the advancement of the industries' logistics, thus creating large market shares across the world (Quayle, 2003). The connectivity and set up of the warehouse in different locations that help the industries distribute its products to different target customers. Shipping becomes easy, and through set up storage, the company ensures that there is a steady supply of the product hence reducing the prices of the product, thus attracting more sales that leads to maximization of the profit.

The productivity of the industry is mainly determined by logistic management. Through coordination and communication that is conducted by the logistic managers ensures that there are adequate transportation and warehouse management that adequately influence the development of the product's reputation and expansion of the market. Logistics also helps in the identification of strategic product demand from which they would get returns. In other words, it ensures that the product meets the needs of the consumer and also ensuring cost-effectiveness among the competing industries.

Techniques of Inventory Management

Some of the relevant techniques that industry product distribution firms need to embrace. They include contingency planning, regular auditing, customer and staff relationships, as well as perfect prediction of the trends in market forces and product qualities. The contingent planning would be an appropriate technique for the industry to predict and forecast the future demands for the consumers (Cigolini, Cozzi & Perona, 2004). The method would assist in coming up with an alternative plan, especially when the first plan seems weak. Similarly, it would be necessary to respond accordingly to the emerging issues along the supply chain. Some activities and obstacles they often come in as a result of unexpected shifts in the market states.

Regular auditing is also another technique that should be embraced in the industry product distribution sector. The auditing process help in the inventory process through which financial management is accounted for, and profit maximization also discussed. Regarding the regular audit, it would be appropriate to monitor and regulate the supply chain while inducing the production efficiency.

Finally, the industry should embrace strategies to analyze market trends while also maintaining a good relationship with customers. The process would merely increase the profitability of the industry, create a dependable supply chain, and induce loyal customers through customer services and steady, reliable product supplies.

References

Stefanou, C., 1999. Supply chain management (SCM) and organizational key factors for the successful implementation of enterprise resource planning (ERP) systems. AMCIS 1999 proceedings, p.276. [Online] Available at https://aisel.aisnet.org/cgi/viewcontent.cgi?article=1633&context=amcis1999

Quayle, M., 2003. A study of supply chain management practice in UK industrial SMEs. Supply Chain Management: An International Journal, 8(1), pp.79-86. [Online] Available at https://doi.org/10.1108/13598540310463387

Cigolini, R., Cozzi, M., and Perona, M., 2004. A new framework for supply chain management: a conceptual model and empirical test. International Journal of Operations & Production Management, 24(1), pp.7-41. [Online] Available at https://doi.org/10.1108/01443570410510979