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    AMR Assignment

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    Sayed Faisal
    This logistics presentation discusses conventional distribution channels and factors affecting carriers and shippers' decisions. It describes different types of conventional distribution channels including direct, one-level, two-level, and multi-level channels. It also outlines factors carriers consider when making decisions like market demand, relationship with shippers, and transit time. Shippers and carriers are the two key players, with carriers responsible for transporting goods and considering operating costs.

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    AMR Assignment

    Uploaded by

    Sayed Faisal
    36 views19 pages
    This logistics presentation discusses conventional distribution channels and factors affecting carriers and shippers' decisions. It describes different types of conventional distribution channels including direct, one-level, two-level, and multi-level channels. It also outlines factors carriers consider when making decisions like market demand, relationship with shippers, and transit time. Shippers and carriers are the two key players, with carriers responsible for transporting goods and considering operating costs.

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    This logistics presentation discusses conventional distribution channels and factors affecting carriers and shippers' decisions. It describes different types of conventional distribution channels including direct, one-level, two-level, and multi-level channels. It also outlines factors carriers consider when making decisions like market demand, relationship with shippers, and transit time. Shippers and carriers are the two key players, with carriers responsible for transporting goods and considering operating costs.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    36 views19 pages

    AMR Assignment

    Uploaded by

    Sayed Faisal
    This logistics presentation discusses conventional distribution channels and factors affecting carriers and shippers' decisions. It describes different types of conventional distribution channels including direct, one-level, two-level, and multi-level channels. It also outlines factors carriers consider when making decisions like market demand, relationship with shippers, and transit time. Shippers and carriers are the two key players, with carriers responsible for transporting goods and considering operating costs.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 19

    LOGISTICS PRESENTATION

    By :-
    ADIL
    ADEEL
    AMIRUL
    ANKIT
    FAISAL
    TILAK
    ZUBAIR
    Conventional Distribution
    Channel
    • In Conventional Distribution Channels it is
    assumed that each enterprise working in the
    channel is separately owned and operated
    concern.
    • In other words, these are the channels in which
    the participants operate on the basis of self-
    interest, concerned only with the organization
    from where they buy and to whom they sell.
    • In this, there are four channel designs such as:-
    – Direct: Zero level
    – Indirect: one level, two level , multi level
    Conventional Channels for Consumer Products

    • Conventional channels are the fragmented networks


    where in the manufacturers andthe consumers are
    loosely linked by intermediaries in the process of
    exchange.
    • Conventional channels are of two types:-
    – Direct Distribution Channel
    – Indirect Distribution Channel
    Direct Distribution Channel

    • This is the oldest, simplest and shortest type


    of distribution channel. Under this channel
    the producer directly sells his products to the
    ultimate consumers without any middlemen.
    • That is why, it is called as direct channeland
    zero level distribution channel.

    Manufacturer Ultimate Consumer


    One – level Channel of
    Distribution
    • Under this system, manufacturers sell their productto
    retailers and retailers sell them in turn to ultimate
    consumers.
    • The wholesalers and selling agents are totally
    eliminated.
    • Itis suitable when the products are perishable.
    • Manufacturer to wholesaler is also preferredin
    distributing industrial goods.
    Manufacturer Retailers Consumers

    Manufacturer Wholesalers Consumers


    Two – level Channel of
    Distribution
    • There are two middlemen in thischannel, namely,
    wholesalers & retailers.
    • Under this channel, the manufacturer sells productsin
    large quantities to thewholesalers.
    • The wholesalers distribute the products toretailers as
    per their requirements insmall quantities.
    • This channel is suitable most for the products which
    have widely scattered markets such as, groceries, drugs,
    food items and shoppingproducts.

    Manufacturer Wholesalers Retailers Consumers


    Multi–level Channel of
    Distribution
    • This is the longest channel of distribution.
    • This channel is mostly used by small scale companies
    who cannot afford to develop their own sales force.
    • A company with diversified product mix may find it
    more appropriate to adopt a variety ofdistributions
    channels.
    • This channel is used where the wholesalers are
    scattered throughout the country and selling agents
    undertakes marketing on behalf of themanufacturers.

    Manufacturer Selling agents Wholesalers Retailers Consumers


    FACTORS AFFECTING CARRIERS AND
    SHIPPERS DECISION
     Various examples are – DHL , UPS , FEDEX

     There are two key players : Shippers and Carriers

     Shippers - Shipper is the person or company who is usually the supplier


    or owner of commodities shipped. Also called Consignor.
     Carriers - Carrier is a person or company that transports goods or
    people for any person or company and that is responsible for any
    possible loss of the goods during transport.
    FACTORS AFFECTING CARRIERS DECISION
     MARKET DEMAND - The market fluctuates based on supply and demand. If
    supply (equipment) is abundant and there is less freight available, rates go
    down; if capacity is tight and shipment volumes are greater, prices go up.

     RELATIONSHIP WITH THE SHIPPERS - Many carriers remain loyal to their


    shippers during market shifts, especially if the shipper shows a willingness to
    adjust and renegotiate rates that more closely reflect market realities. This
    enables the carrier to remain profitable, and the shipper does not have to go
    to the spot market and potentially pay higher rates.

     TRANSIT TIME - Road = 2-4 days ,Rail = 7 day, Maritime = 10-14 days
    FACTORS AFFECTING CARRIERS DECISION
     Cost of Transport - Contributing factors to the cost of each
    freight transportation mode include fuel, manpower, accidents,
    vehicle and equipment maintenance, regulatory compliance,
    accidents, profitability targets, and market share.
    THANK YOU

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