Distribution Logistics

Nevroz GÖSTERİCİ

2012. April

College of Dunaújváros Dunaújváros Táncsics M. u. 1/A. F/118/E.

Abstract Aim of the paper is to represent about distribution logistics.Logistics is the managemet of the flow of goods between the point of origin and the point of destination.İntegration of information,transportation,inventory,warehousing,material handling,packaging and often security.Here is an example:In the early morning,a major supermarket’s own truck delivers fresh supplies to replenish those that were sold on the previous day tight to the loading ramp-all pre-picked for ghe retail outlets.At the same time,tje specialty-food retailer next door is buying goods for that particular day from the wholesaler.Distribution logistics adressess these types of deliveries and others as well.In the process,distribution logistics covers much more then the simple shipment of a product from Point A to Point B.( [1] Logistiksysteme | Pfohl 2004)

Figure 1. process of logisticsIntroduction The concept of logistics dates back to antiquity. Nevertheless, real interest toward the subject of logistics arose during World War 2 when large quantities of men and material had to be rapidly deployed around the world. Later on, in 1950s and 1960s the monetary and strategic value of logistics expanded at a rapid rate. Despite the fact that logistics exists in two forms (military and managerial), and both forms are very similar, it is very important to differentiate among the two of them. Military logistics is concerned with movement of goods and people. Managerial logistics concentrates primarily on finished products. Firstly,It could better to see the historical process of logistic. 1940-1960: Establishing phase of logistics1960-1970: Understanding idea of logistics and gain a reputation1970-1980: Interchange age of priorities and models1980-until todays:New age of economic and technical changeImprovement of logistics can be added 3 main phase.a)Desintegration(1960-1980):In this period,we can see that activities of constituent parts of logistics are conducted separately.Some of following operations processing in a institution and partially they were outsourcing. Deman providence Purchansing Requirements planning Production planning Factories’ stocks Warehousing Material processes

Palletization Inventories Ordering process Shipment Customer services Distribution schedulingb)Association(1980-2000):In this period logistical operations come under 2 main concept Materials and supplies management Pyhsical distributionc)Total integration(2000-Nowadays):Still-continuing this process add up desintegration and association gather under one single roof.Globalization,liberalization in world economy and concordantly harmony efforts which force firms increases logictical activities importances and reveal integrated logicstic concept.If I make a group of logistic factors; Warehousing Transportation Stock management İnformation and control Packaging Clearance Customer services

If we analyze cost of logistic activities,we will see that shipment costs stand out.

Logistic Costs RatioShipment costs %50-%65Inventory and material handling %20-%35Business layout design costs(planning and managing of storage and distribution centrals)

%10

Communication and information costs

%5

Distribution Logistics presents a complete and balanced treatment of distribution logistics by covering both applications and the required theoretical background, therefore extending its reach to practitioners and students in a range of disciplines such as management, engineering, mathematics, and statistics. There are some related areas of study for distribution logistics includes;

Supply chain management Network design and transportation Demand forecasting Inventory control in single- and multi-echelon systems Incentives in the supply chain Vehicle routing(İhracatı Geliştirme Etud Merkezi/Lojistik Tarihçesi-History of logistic/Lojistik Elemanları-Factors of logistics)

1.Concept and scope of distribution logisticsDistribution logistics comprises all activities related to the provision of finished

products and merchandise to a customer. The products can be delivereddirectly from the production process or from the trader’s stock located close tothe production site or, possibly, via additional regional distribution warehouses.Like procurement logistics, distribution logistics is a market-linked logisticssystem. It links a company’s production logistics with the customer’sprocurement logistics.In distribution logistics, customer orientation plays a special role because ofthe close link to the customer. Workers in a distribution center frequently havemore contact with the customer than sales representatives do.The tremendous significance of service thinking in distribution logistics arisesfrom this customer orientation. The aim is to constantly search for innovativeways that offer the customer improved logistics solutions. In the process,special requirements are being made as the traditional marketing principle of“produce in a market-focused manner” is being replaced by the future-orientedmarketing principle of “sell first, produce later.” Furthermore, service isincreasingly being provided to the customer in a multi-faceted way based onthe principle of “just for you.” Both trends require a great amount of servicespeed and flexibility.1.1Marketing with a delivery serviceIf the delivery service is considered to be an instrument of marketing strategy,interdependencies with other instruments must be considered. This is becausethe instruments used in marketing strategy have an effect on the customer onlywhen combined with the marketing mix . Information about the currentinterdependencies will be provided in later articles about distribution logistics.In the process, marketing instruments are combined into tools of productstrategy, contract policies or terms & conditions, communications strategy anddistribution strategy.( [1] Logistiksysteme | Pfohl 2004)2.Third Pary LogisticsA third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides service to its customers of outsourced (or "third party") logistics services for part, or all of their supply chain management functions. Third party logistics providers typically specialize in integrated operation, warehousing and transportation services that can be scaled and customized to customers' needs based on market conditions and the demands and delivery service requirements for their products and materials. Often, these services go beyond logistics and included value-added services related to the production or procurement of goods, i.e., services that integrate parts of the supply chain. Then the provider is called third-party supply chain management provider (3PSCM) or supply chain management service provider (SCMSP).(Selecting a Third Party Logistics (3PL) Provider Martin Murray,about.com-http://en.wikipedia.org/wiki/Third-party_logistics)2.1.Types of 3PL ProvidersThird-party logistics providers include freight forwarders, courier companies, as well as other companies integrating & offering subcontracted logistics and transportation services

Hertz and Alfredsson (2003) describe four categories of 3PL providers:

Standard 3PL provider : this is the most basic form of a 3PL provider. They would perform activities such as, pick and pack, warehousing, and distribution (business) – the most basic functions of logistics. For a majority of these firms, the 3PL function is not their main activity.

Service developer : this type of 3PL provider will offer their customers advanced value-added services such as: tracking and tracing, cross-docking, specific packaging, or providing a unique security system. A solid IT foundation and a focus on economies of scale and scope will enable this type of 3PL provider to perform these types of tasks.

The customer adapter : this type of 3PL provider comes in at the request of the customer and essentially takes over complete control of the company's logistics activities. The 3PL provider improves the logistics dramatically, but do not develop a new service. The customer base for this type of 3PL provider is typically quite small.

The customer developer : this is the highest level that a 3PL provider can attain with respect to its processes and activities. This occurs when the 3PL provider integrates itself with the customer and takes over their entire logistics function. These providers will have few customers, but will perform extensive and detailed tasks for them.(Hertz and Alfredsson 2003)

2.2.On-Demand TransportationOn-demand transportation is a relatively new term coined by 3PL providers to describe their brokerage, ad-hoc, and "flyer" service offerings. On-demand transportation has become a mandatory capability for today's successful 3PL providers in offering client specific solutions to supply chain needs.

These shipments do not usually move under the "lowest rate wins" scenario and can be very profitable to the 3PL that wins the business. The cost quoted to customers for on-demand services are based on specific circumstances and availability and can differ greatly from normal "published" rates.

On-demand transportation is a niche that continues to grow and evolve within the 3PL industry.

Specific modes of transport that may be subject to the on-demand model include (but are not limited to) the following:

FTL, or Full Truck Load Hotshot (direct, exclusive courier) Next Flight Out, sometimes also referred to as Best Flight Out (commercial airline

shipping) International Expedited(http://en.wikipedia.org/wiki/Third-party_logistics)

3.Outsourcing Distribution:More flexibility less risks

3.1.What is outsourcing?

Nowadays,firms want to focus their core job by this way they want to improve their ability.So it reveal a tendency.That’s mean firms take some help for some organizations from another logistical firms.Firms can set all other activities to the other firms except firms core ability.In this way they both do resource savings,downsizing and they can focus their core business.

A firm can’t be the best in every area.If firm can not shirk some of their function they can leave it to firms which are more exprienced than them.In basic of traditional outsourcing,firm procure raw materials from the outside.But nowadays,they outsource everything except their raw materials.For example,Westinghouse is very well at producing but they realise that there

are well-exprienced company for transportation and they had an agreement with this exprienced logistic company.There is another example for outsourcing.Roll-Royce is the world famous car company in car industry.Once they had a big crisis.In 1991-1992 they lost 150 million dollar(Silver Spur Touring Limuzin).The only way was outsourcing for them and they did it.Now they outsource vehicle body,axle tree etc. otherwise they focus engine,paint,leather etc.

Outsourcing means global sourcing.For decreasing material cost,firms make a bargain with another firms which is far from there about 8000 mile.(Richard L. Dalt, Management,2. Edition, Dryden Press, London, 1991, page 611---http://www.msxlabs.org/forum/ekonomi/73392-outsourcing-dis-kaynak-kullanma-kavrami.html#ixzz1sF853RlU)

3.2.Outsourcing Product Distribution

When distribution is not a core competency for your company and you do not have the resources to make it one, outsourcing the function can help your company grow by allowing you to focus on your mission-critical activities. There are two types of outsourcing that are common among start-ups - traditional distribution and drop ship fulfillment.(DSF) Traditional distribution outsourcing involves hiring a third party to store and distribute your products through its national or international distribution network; this party provides the staff, warehouses, distribution center and transportation fleet.The second type of outsourcing, DSF, has grown in parallel with B2C retailing over the Internet. With DSF, a start-up company sells a product, charges the customer, generates a purchase order, and sends the PO to the manufacturer or supplier, who then fulfills the order by shipping the product directly to the customer. Since the start-up never possessed the product, the company does not incur any of the costs associated with storing or purchase the product. Many Internet start-ups have adopted this streamlined business model.

Unfortunately, companies need to be careful when choosing an outsourcing partner. Outsourcing is not a panacea - if your third-party distributor's procedures and performance are not carefully monitored, you risk permanently alienating the customers you have worked so hard to attract.

The key to a successful outsourcing relationship includes understanding the process, specifying objectives, establishing internal procedures for evaluating performance against objectives, and deploying systems that help to manage the function effectively. Watching Costs and Service If the manufacturer or distributor, which may be the same company, fulfills the customer's order correctly, everyone is happy. However, in most cases, there are problems in one or more of these key areas:

· Customer service - Another company may be distributing your products, but ultimately you are responsible for the customer relationship. True, your company does not have direct control over the distribution process, but the customer only cares about receiving the product - not who sent it or how it got there. If something goes wrong, you are responsible and must do what is necessary to correct the situation.

· Shipping costs - Most manufacturers are setup to ship truckloads or pallets of products, not multiple orders of a single product. There are also manufacturers that require you to purchase more products you need, others set ridiculously high prices for the service, and some simply

will not ship the orders. In some cases, start-ups are "kitting" a number of products, not because it adds value for the customer, but because it pushes the dollar value of their order above a threshold where the manufacturer will agree to DSF the products.

· Profitability - Shipping costs directly affect your bottom line. Many start-ups are passing along the manufacturer's shipping costs to their customers, raising the price of their products and putting themselves at a disadvantage in a competitive market. If the start-up does not pass along the entire cost, the shipping expense cuts into the profitability of every transaction.

Getting Automated Help Successfully managing a third-party distributor requires establishing internal monitoring processes and requiring that specific employees are responsible for this function. These employees should also be responsible for developing and deploying computer systems to help automate the management function. Here are five critical requirements for your outsourcing relationship with your distributor:

· Establish measurable standards for distributor performance. · Conduct periodic performance reviews.

· Visit distributor sites to check security procedures (only if the start-up owns the inventory).

· Monitor customer feedback and satisfaction levels. · As sales volume grows, periodically revisit the decision to outsource the distribution function.

The right computer system can improve your ability to manage the distribution function in three areas:

· Communication - To allow you to automate communication with your suppliers and manufacturers, you must establish a back-end system. This means that you should not rely just on basic email, generated by an employee, to track orders. For example, you send the supplier an email to check on a backlogged product, someone then emails you back with a response, and finally you re-key the information into your system - imagine a handful of employees checking 500 products. To be more efficient, you need a system that will scale this function as your volume expands and will use automated email, fax, Web portals and/or EDI to communicate order information.

· Visibility - You must know if a product is available before it is sold, and you cannot know this until you view your supplier's inventory to find out how much product you have been allocated and what is available. To do this, you need an application that provides you with visibility into your supplier's inventory tracking system.

· Track and Trace - Customers want to know the status of their order: When was it shipped, where is it now, and when will I get it? If you want to retain customers, you need to be sure your computer system helps you manage returns, exchanges and refunds efficiently. A consulting organization that specializes in distribution and transportation can help you setup effective internal processes and, if necessary, build and deploy the computer systems you need to manage an outsourced distribution function for maximum benefit. Part of a consultant's value can be in the area of knowledge transfer, educating your organization on

how the distribution and transportation function works at the macro level and helping you set realistic expectations.(Logistics and Supply Chain online magazineAug. 2, 2000) 3.3. Benefits of Outsourcing

Even for small amount of goods,firms’ marketing and distributing network achieve every point of destination.Thus,firms can move more fast to customer in outlet.

Decreasing stocking costs. In the market shipment and transportation costs are so high.Firms can economise costs

than they can face their fields of activity. Shipment costs can decrease with logistic service providers’ high volume capacity and

leading ability. Stock level can be minimized. Saving manpower. Some situation like losts,accidents and thieves can be assigned to logistic firms. Firms can reach worldwide abilities and new technology

There are some facts can effect firms for using(or not use) 3PL;

1. Centralization2. Risk and control3. Expenditure and service activities4. Information technology5. Relationships

TransportationTransport or transportation is the movement of people, animals and goods from one location to another. Modes of transport include air, rail, road, water,cable, pipeline, and space. The field can be divided into infrastructure, vehicles, and operations. Transport is important since it enables trade between peoples, which in turn establishes civilizations.

Transport infrastructure consists of the fixed installations necessary for transport, and may be roads, railways, airways, waterways, canals and pipelines, and terminals such as airports, railway stations, bus stations, warehouses, trucking terminals, refueling depots (including fueling docks and fuel stations), andseaports. Terminals may be used both for interchange of passengers and cargo and for maintenance.

Vehicles traveling on these networks may include automobiles, bicycles, buses, trains, trucks, people, helicopters, and aircraft. Operations deal with the way the vehicles are operated, and the procedures set for this purpose including financing, legalities and policies. In the transport industry, operations and ownership of infrastructure can be either public or private, depending on the country and mode(http://en.wikipedia.org/wiki/Transport)

Distribution CentreA distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be redistributed to retailers, to wholesalers, or directly to consumers. A distribution center is a principal part, the order processing element, of the entire order fulfillment process.

Distribution centers are usually thought of as being demand driven. A distribution center can also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break center, and a package handling center. The name by which the distribution center is known is commonly based on the purpose of the operation. For example a "retail distribution center" normally distributes goods to retail stores, an "order fulfillment center" commonly distributes goods directly to consumers, and a cross-dock facility stores little or no product but distributes goods to other destinations.

Distribution centers are the foundation of a supply network, as they allow a single location to stock a vast number of products. Some organizations operate both retail distribution and direct-to-consumer out of a single facility, sharing space, equipment, labor resources, and inventory as applicable.

A typical retail distribution network operates with centers set up throughout a commercial market, with each center serving a number of stores. Large distribution centers for companies such as Wal-Mart serve 50–125 stores. Suppliers ship truckloads of products to the distribution center, which stores the product until needed by the retail location and ships the proper quantity.

Since a large retailer might sell tens of thousands of products from thousands of vendors, it would be impossibly inefficient to ship each product directly from each vendor to each store. Many retailers own and run their own distribution networks, while smaller retailers may outsource this function to dedicated logistics firms that coordinate the distribution of products for a number of companies. A distribution center can be co-located at a logistics center.

Storage locations and storage containersGoods (products) arrive and are stored in a distribution center in varying types of storage locations and containers suited to the product characteristics and the amount of product to be transported or stored. These types of locations and containers have specific industry-accepted names. Specialized pieces of equipment (material handling equipment, or MHE) are used to handle the various types of containers. The following is a list of some of the names and characteristics of common storage containers:

Intermodal containers (shipping containers) are used for the efficient transportation of goods. Standards specify the volume and dimensions of containers to facilitate efficient handling.

Pallets are one of the most commonly used means to store and move product in a distribution center. There are many specialized devices (material handling equipment or MHE) used to handle pallets - see forklift truck,pallet jack,pallet inverter and unit load automated storage and retrieval systems (ASRS). Pallets are stored on the floor, may be stacked, and may be stored in pallet ranking.

Gaylords are large single boxes usually connected or attached to a pallet.

Cases and Cartons are boxes usually containing many items. In distribution centers there is a generally accepted distinction made between the terms "carton" and "case", although both are boxes. Goods are received and stored in cartons, while goods are shipped in cases. A stored carton is called a case once it has been picked or pulled for shipment.

Totes are reusable containers used to hold and transport goods.

Packaging

Packaging is the science, art, and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to theprocess of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells.In many countries it is fully integrated into government, business, institutional, industrial, and personal use.Consumer Goods DeliveryMost consumer goods are delivered from a point of production (factory or farm) through one or more points of storage (warehouses) to a point of sale (retail store), where the consumer buys the good and is responsible for its transportation to point of consumption. There are many variations on this model for specific types of goods and modes of sale. Products sold via catalogue or the Internet may be delivered directly from the manufacturer or warehouse to the consumer's home, or to an automated delivery booth. Small manufacturers may deliver their products directly to retail stores without warehousing. Some manufacturers maintain factory outlets which serve as both warehouse and retail store, selling products directly to consumers at wholesale prices (although many retail stores falsely advertise as factory outlets). Building, construction, landscaping and like materials are generally delivered to the consumer by a contractor as part of another service. Some highly perishable or hazardous goods, such as radioisotopes used in medical imaging, are delivered directly from manufacturer to consumer. Home delivery is often available for fast food and other convenience products, e.g. pizza delivery. Sometimes home delivery of supermarket goods is possible. A milk float is a small battery electric vehicle (BEV), specifically designed for the delivery of fresh milk.

Delivery VehiclesVehicles are often specialized to deliver different types of goods. On land, semi-trailers are outfitted with various trailers such as box trailers, flatbeds, car carriers, tanks and other specialized trailers, while railroad trains include similarly specialized cars. Armored cars, dump trucks and concrete mixersare examples of vehicles specialized for delivery of specific types of goods. On the sea, merchant ships come in various forms, such as cargo ships, oil tankers and fishing boats. Freight aircraft are used to deliver cargo.(http://en.wikipedia.org/wiki/Distribution_center)

1.Logistics for Customer SatisfactionBefore ending this topic I want to explain something about customer satisfaction related with Logistics.

The term logistics is often misintrepreted to mean transportation. In fact, the scope of logistics goes well beyond transportation. Logistics forms the system that ensures the delivery of the product in the entire supply pipeline. This includes transportation, packaging, storage and handling methods, and information flow. The impact of logistics in the ability of a company to satisfy its customers cannot be overstated. All other efforts at modernization within a company would not bear fruit until the logistics system is carefully designed to facilitate the smooth and efficient flow of goods in the system.

1.1The value of LogisticsMaterial handling and storage are typically labelled as "non-value adding" activities. While one can appreciate the motivation behind such labeling as one directed towards waste

reduction, it can lead to is an erroneous assumption that all material handling and storage can be avoided. While manufacturing processes provide "form utility", logistics related activities provide "time and place" utility to a product. The challenge is to provide the time and place utility at a competitive cost. If a company can achieve this goal, it will gain a significant competitive advantage in the marketplace.

1.2Pull vs. Push Systems There are two basic approaches of bringing the product to its final destination, i.e., the customer. In a Push system (See Figure 1), products are pushed from the manufacturing plants to distribution points based on a sales forecast. The second approach is the Pull system (See Figure 2) which requires that the product be pulled from the plants based on actual demand.

In a Push system, since all the product is deployed based on the sales forecast for each region, an inaccurate sales forecast incurs several severe penalties which include:

• Increased safety stock• Larger Distribution Centers/Godowns• Higher stock transfer rates

The pre-order deployment of product increases safety stock. Since there is greater uncertainty associated with forecasts, which are often little better than educated guesses, the system must provide for variations in the demand in a particular region serviced by the particular godown. In addition the system must provide for errors in the overall forecast for the country as a whole. These concerns lead to the carrying of larger safety stocks, which necessitate larger godowns.

The irony in the concept of safety stocks is that although sufficient stocks may exist in the system, the product mix demanded in a particular region may not exist in the regional godown. This necessitates inter-godown transfer of goods. The result is an increase in the transportation costs system-wide, in addition to handling and shipping costs, information costs, product loss and damage, and poor customer service. The more points of distribution in the system, the greater the penalties incurred for unpredictable order fluctuations.

The goal of any logistics system is to maintain or improve customer service. In the Push mode of operation, the penalties of higher safety stock, larger godowns, and inter-godown transfer are not the only penalties. Stock rotation becomes more difficult to maintain. Handling of all products at each godown involves unloading, staging, storing, picking, staging and loading for shipment. All these activities involve an element of cost. In addition, there is a potential for product damage each time a product is handled.

There are some positive aspects of a Push system as well. These are:

• Small plant warehouses• Potential for higher customer service• Lower transportation costs

Since the majority of the product is stored at the godowns, the plant needs to maintain a low inventory of finished goods. This allows the plant to utilize its space for production and eliminate the need for a full warehouse staff. If the forecast is accurate, the Push system provides the potential for higher customer service by having the product ready for delivery directly to the customer/retailer. Finally, by having the products deployed in the godowns, the plants have the capability of shipping full truckloads and thereby reducing the system-wide transportation costs.A Push system works best when sales are consistent, the product variety is small, and there are a few regionsl distribution points.(Indian Institute of Materials Management- http://www.iimm.org/knowledge_bank/1_logistics-for-customer-satisfaction.htm)Distribution Systems Before settling for a distribution system the marketer has too keep in mind various factors affecting distribution system (like marketing decision and relationship issues).  The following distribution designs are available to the marketer for his distribution system:

1. Direct Distribution Systems2. Indirect Distribution Systems3. Multi-Channel or Hybrid Distribution Systems

1. Direct Distribution Systems

In direct distribution system the marketer reaches the target consumer directly without the use of any intermediary. The distribution chain is small and no other party can take ownership of the product being distributed. The direct distribution system can be further sub-divided on the basis of the methods of communication that takes place during sale between marketer and consumer. These methods are:

Direct Marketing Systems

In this system the consumer buys the product based on information gained from impersonal contact with the marketer like by visiting the marketer's website or ordering from the marketer's catalog. Or he buys based on information gathered through some personal communication with a

customer service personnel who is not a salesperson and can be reached through a toll-free number.

Direct Retail System

In this type of system the marketer operates his own retail stores. A perfect example of this system is Starbucks.

Personal Selling Systems

In this system the distribution of the product is carried forward by people whose main responsibility is creating and managing sales (for instance a salesperson). He persuades the buyers into placing an order. This order may not be handled by the salesperson but through websites or toll-free telephone numbers. The sales person plays a vital role here in generating sales.

Assisted Marketing System

In this form of distribution system the marketer handles the distribution of his product and helps it reach directly to the end user. However he needs assistance from others to spread awareness about his product among the customers. An example of assisted marketing system is e-bay, here the buyers and sellers are brought together for a fee. Agents and brokers can also be included in this category.

2. Indirect Distribution System

In indirect distribution system the marketer includes intermediaries or other members in his distribution chain. These resellers make sure the product reaches the end user, while performing their duties they take complete ownership of the product. However the reseller may sell products on a consignment basis wherein the reseller pays for the product only when the product is sold. The resellers may be expected to take up a few responsibilities to help boost the sales of the product. 

Indirect methods include the following: Single-Party Selling System

In this system the marketer involves another party to sell and distribute his product to the end user. An example of single-party selling can be when the product is sold through large store-based retail chains or through online retailers. In this case the distribution system is also referred to as trade selling system.

Multiple-Party Selling System

In multiple-party selling system the distributor involves two or more reseller in the distribution process before the product reaches the end user. This is most likely to happen when a wholesaler buys the product from the manufacturer and then sells it to the retailer.

3. Multi-Channel (Hybrid) Distribution System

A marketer is said to be using a multi-channel or hybrid distribution system when he utilizes more than one distribution design. As we have studied earlier in the example of Starbucks, multiple distribution designs are put to use in the distribution of

its product. It uses a direct retail system when it sells its products in company-owned stores, a direct marketing system by selling via direct mail and single party selling system is put to use when its products are sold through grocery stores. Apart from these other distribution systems are also put to use.

Multi-Channel distribution system is advantageous as it expands the distribution system and more customers can be reached. The possible disadvantage again is channel conflict of which the marketer should always be cautious.( http://www.tutorsonnet.com/marketing_homework_help/distribution/distribution_systems_assignment_help_tutoring.htm)

REFERENCES(All references include of this date:10.04.2012)http://www.msxlabs.org/forum/ekonomi/73392-outsourcing-dis-kaynak-kullanma-kavrami.htmlhttp://www.biymed.com/pages/makaleler/makale41.htmhttp://en.wikipedia.org/wiki/TransportThe Handbook of Logistics and Distribution Management ( http://www.amazon.com/Introduction-Distribution-Logistics-Statistics- Practice/dp/0471750441 ) http://en.wikipedia.org/wiki/Third-party_logisticshttp://www.ihracat112.com/lojistik.htm

http://www.dhl-discoverlogistics.com/cms/en/course/processes/distribution_logistics/definition.jsphttp://www.dersizlesene.com/Aof-3-Sinif-Pazarlama-Yonetimi-ders-notlari-video/Pazarlama-Kanallari-ve-Fiziksel-Dagitim-690.html http://en.wikipedia.org/wiki/Distribution_centerhttp://www.iimm.org/knowledge_bank/1_logistics-for-customer-satisfaction.htm