WAREHOUSE AND DISTRIBUTION

1
WAREHOUSE AND DISTRIBUTION

• UNIT 2
• TOPIC 2

2
WAREHOUSING

• Finished goods need to be stored until they are
  sent to customers.
• This can be CENTRALISED or DECENTRALISED.

3
A GOOD WAREHOUSE

• On the ground floor.
• Goods moved most frequently should be easily
  accessible.
• Should have stock rotation system in place.
• Use of specialist equipment (e.g. forklifts) can
  mean stock is moved efficiently.

4
DISTRIBUTION MIX

• Aim of distribution is to get the right goods, in
  the right quantity to the right place.
• Have to choose the correct Channel of
  Distribution.

5

• The Channel chosen is dependent on
• Image wanted for the product.
• The product itself.
• Capability of the firm to use certain methods.
• Legal restrictions
• Finance
• Reliability of other businesses (e.g. delivery
  company)

6
METHODS OF TRANSPORT

• Road
• Most frequently used method.
• Vehicles are equipped to carry certain goods,
  e.g. refrigerated.
• Good motorways and road systems exist in the UK.
• Relatively cheap
• Allows for door to door delivery.

7

• RAIL
• Rail can carry heavy goods than road e.g. coal.
• Doesnt get held up by congestion and is more
  environmentally friendly.
• Faster than road
• However, no door to door delivery, road is needed
  eventually.

8

• AIR
• Accounts for a low proportion of freight.
• Good for transporting overseas
• It is relatively expensive.

9

• SEA
• Useful for exporting and importing bulky
  materials e.g. coal, petrol
• However, can take a long time.