DISTRIBUTION MANAGEMENT IN COMPANY X - Polish Journal of Management Studies

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DISTRIBUTION MANAGEMENT IN COMPANY X

Abstracts > Vol 6

DISTRIBUTION MANAGEMENT IN COMPANY X
Wójcik-Mazur A., Wieczorek K.


Abstract:
The subject of this publication is the problem of distribution   management, exemplified by Company X.  The process has been defined by analysing the conditions necessary to satisfy prospects
needs and create the market position of a business entity. The paper focuses on the basic features of distribution system and the character of distribution channels.The assessment of distribution management has been illustrated with an example of Company X. The subjects of interest are: the dynamics of order flow, the delivery readiness rate, and the percentage of specific complaints in the structure of complaints in total between 2009 and 2011. The Pareto chart made it possible to diagnose the main causes of the highest percentage of complaints. As a result of research, the key improvement areas have been identified, the main ones being the functioning of order processing system and completion of deliveries.

Keywords: logistics management, distribution, physical distribution, distribution channel

Introduction

The efficiency of company management determines its market position compared to that of competitors. It requires effective satisfying customers
needs. Logistics is an essential element of company activity in this area. It contributes to its successful functioning by a number of systems including the process of distribution management.
In order to achieve an optimal distribution level, it is necessary to define the needs and expectations of prospects. The key factors are freight shipping time and execution of order, in particular the mode of transport and the number of intermediaries in a particular channel. Logistics management relies in supplying customers with goods in the shortest time possible (on schedule) at low cost and providing them with satisfying customer service. Therefore, the most effective system of distribution of goods is identified with effective shipment and a high level of customer satisfaction. ...

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Summary

Distribution has an extremely important role in operation of any production company. It affects every company
s profits and market share. The effectiveness of distribution means supplying customers with goods of high quality and required quantity, at a fair price, in a prearranged place, at the right time. Therefore, the process of distribution requires many activities consisting in gathering information and passing it on to the right company section, searching interesting offers, trade networking, negotiating and concluding  business  contracts. That is why effectiveness of distribution channels is essential in order to provide final users with goods and products.
The distribution process has a great influence on the level of customer satisfaction. Thus, every company aims at its good management.
The qualitative and quantitative assessment of the distribution system in Company X indicates a steady decrease in effectiveness of distribution management. It has been  noticeable since the moment of dynamics analysis of deliveries and observed a considerable fall between 2010 and 2011.
Delivery readiness, which conditions the right functioning of a company is decreasing steadily, in spite of its satisfactory level at the moment. The ratio of particular complaints to the total number of complaints also contributes to unfavourable  sales forecast.
The Pareto chart clearly indicates three problem areas which result in 60% of complaints. The company ought to focus on the improvement in distribution process, as all of the above factors have a great impact on its workings. Thus, it is the company
s task to generate higher interest for the brand, and consequently to increase the demand for its products, which will then lead to expansion onto other markets. The company should also aim at reducing human errors and those caused by technology failure as well as increase the efficiency of its employees.

ZARZĄDZANIE PROCESEM DYSTRYBUCJI W PRZEDSIĘBIORSTWIE „X”

Streszczenie: Przedmiotem rozważań w niniejszej publikacji jest problematyka zarządzania procesem dystrybucji analizowana z perspektywy przedsiębiorstwa „X”.  Proces ten zdefiniowano poprzez pryzmat zaspokajania potrzeb potencjalnych klientów oraz kreacji pozycji rynkowej podmiotu gospodarczego, koncentrując się na podstawowych cechach systemu dystrybucji oraz specyfice znaczących w tym aspekcie kanałów. Ocenę zarządzania procesem dystrybucji przedstawiono na przykładzie przedsiębiorstwa „X”. Przedmiotem badań była analiza dynamiki liczby zamówień, wskaźnika gotowości dostawczej, jak również wskaźnika udziału poszczególnych grup reklamacji w strukturze reklamacji ogółem przeprowadzona dla okresu badawczego 2009-2011. Implementacja wykresu Pareto-Lorenza umożliwiła diagnozę głównych obszarów generujących największy procent reklamacji. W efekcie prowadzonych badań zdefiniowano kluczowe płaszczyzny wymagające modernizacji w tym w szczególności funkcjonowanie systemu obsługi zamówień jak i trudności z zakresu fizycznego dostarczania produktów oraz kompletacji dostaw.

Słowa kluczowe
: zarządzanie logistyczne, dystrybucja, dystrybucja fizyczna, kanały dystrybucji


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