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Question : 39
Total: 39
'Best Electronics' started manufacturing washing machines under the brand name 'Amaze'. Once the washing machines were manufactured, packaged, branded, priced and promoted, they had to be made available to the customers at the right place, in the right quantity and at the right time.
'Best Electronics' provided for accurate and speedy processing of orders so that the washing machines reach the customers in time, in the right quantity and specifications. They also ensured that the washing machines are physically made available to the customers. Further, 'Best Electronics' arranged for facilities to store the washing machines at different locations near the market to minimize the charges on transportation.
Explain any three components of physical distribution discussed in the above case.
'Best Electronics' provided for accurate and speedy processing of orders so that the washing machines reach the customers in time, in the right quantity and specifications. They also ensured that the washing machines are physically made available to the customers. Further, 'Best Electronics' arranged for facilities to store the washing machines at different locations near the market to minimize the charges on transportation.
Explain any three components of physical distribution discussed in the above case.
Solution:
Components of Physical Distribution: Following are the components of physical distribution are discussed in the given case study.
(i) Order Processing: Order processing is the first point or in other words, the starting point of the distribution activity. The functions involved in order processing are receiving order, handling the received order, granting of credit for the item ordered, generating invoice, dispatching of order and collecting the bills.
Businesses should be making an effort to reduce the order cycle time which is the time between placing an order by the customer and delivery of the goods at the customer's place.
(ii) Storage and Warehousing: Storage deals with the storing of goods in proper condition till the time it is ordered by the customer. Goods that cannot be generally made available throughout the year need to be stored.
Warehouses act as centres of storage and by providing the functionality it helps businesses meet the demands of customers. Apart from being a source of storage, a warehouse also acts as centres for assembling the goods.
(iii) Transportation: Transportation is a very essential component of physical distribution which plays a crucial role in movement of the stored goods from warehouse to the customers. The process of transporting involves loading and unloading of goods and their movement from one place to another.
Choosing the right transportation mode is utmost important as it determines the retail price of the product. Proper choice of transportation results in smooth movement of goods in proper condition.
The modes of transportation that are adopted by the businesses are road, railways, airways, water transport and pipelines. The choice of the mode of transportation depends on the type of goods being transported, their availability, reliability and the level of safety offered by the mode.
(i) Order Processing: Order processing is the first point or in other words, the starting point of the distribution activity. The functions involved in order processing are receiving order, handling the received order, granting of credit for the item ordered, generating invoice, dispatching of order and collecting the bills.
Businesses should be making an effort to reduce the order cycle time which is the time between placing an order by the customer and delivery of the goods at the customer's place.
(ii) Storage and Warehousing: Storage deals with the storing of goods in proper condition till the time it is ordered by the customer. Goods that cannot be generally made available throughout the year need to be stored.
Warehouses act as centres of storage and by providing the functionality it helps businesses meet the demands of customers. Apart from being a source of storage, a warehouse also acts as centres for assembling the goods.
(iii) Transportation: Transportation is a very essential component of physical distribution which plays a crucial role in movement of the stored goods from warehouse to the customers. The process of transporting involves loading and unloading of goods and their movement from one place to another.
Choosing the right transportation mode is utmost important as it determines the retail price of the product. Proper choice of transportation results in smooth movement of goods in proper condition.
The modes of transportation that are adopted by the businesses are road, railways, airways, water transport and pipelines. The choice of the mode of transportation depends on the type of goods being transported, their availability, reliability and the level of safety offered by the mode.
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