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Define the term LogisticsDefine the term DistributionWhat are the two main activities of distribution?What is Distribution Management?

Question

Define the term Logistics

Define the term Distribution

What are the two main activities of distribution?

What is Distribution Management?

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Solution

  1. Logistics: This term refers to the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption to meet the requirements of customers or corporations. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging.

  2. Distribution: This is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries. It's a key component of the marketing mix, which includes product, price, place (distribution), and promotion.

  3. The two main activities of distribution are: a. Transportation: Moving the goods from the place of production to the place of consumption. b. Warehousing: Storing the goods until they are needed for use.

  4. Distribution Management: This is an overarching term that refers to numerous activities and processes such as packaging, inventory, warehousing, supply chain, and logistics. It involves the steps taken to move and store a product from the supplier stage to a customer stage in the distribution process. It's a critical component to the success of any business that has physical products.

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