Introduction
A distribution model refers to a design of infrastructure that provides a smooth and efficient flow of logistics activities in and out of the entire organization. Modeling can be used to improve planning in distribution networks especially in a logistic management firm. It provides direction and course of action that managers should follow to ensure successful achievement of distribution objectives which range from effective delivery to steady supply. (Stanley 1991.p373)
Main body
Effective distribution channel will provide clients with opportunity to get important information about the company and make appropriate choices concerning their needs. Designing an efficient distribution network requires a lot of careful analysis including paying attention to critical logistic requirements like strategic places for locating warehouses and technical distribution equipment. Optimal network models may approve to be cost effective since they physical show the flow of production across the organizational supply chain and can aid in designing optimum distribution channels. (Alan 2000.p562)
A multi-client organization capitalizes on effective distribution channels to respond to market needs faster than their rivals. Production is defined as the creation of goods and services to satisfy human wants. The goods produced can only be useful to consumers when they are made available at the right time, place, and form. This is the responsibility of an effective distribution channel. In a competitive market environment organizations must look for unique ways of survival, this includes leadership styles, differentiation, or becoming market oriented. (Stanley 1991.p373)
Effective distribution model can provide competitive advantage for a firm and ensure its performance despite pressures from the industry. It is only important that managers make concrete decisions and be responsible for the outcome or end results. The purpose of this paper is to explain how modeling can be used in planning distribution networks. (Alan 2000.p562)As we have said that modeling entails defining the distribution infrastructure it is therefore important to note the following:
Zara Logistics (Global distribution Design)
We have talked about Value chain in many instances. The essence of a good global distribution design is to achieve value in the entire process. In this particular channel we need to pay attention to external environmental factors that include the intensity of competition, the nature of the market niche in question, geographical representation and ethnic and cultural diversities.
Distribution Strategy/technique
The first step is to lock all the domestic and international potential suppliers to the company, ensure that all are strongly linked to the channel. Liaise with already established distribution centers where possible and ensure that there is no gap between consumers and the company.
Information required
You will require information about existing competitors, the predominant products and services. Cultural and ethnic diversity data is also very important in determining the behavior and lifestyle. Whether the company will have achieved its desired objective or not would be determined by reviewing the entire channel to establish the degree to which it achieves value in the entire process. The purpose of distribution is to add value by creating place, time, and possession utilities.
Location
Modeling can be used to describe the locality that a business wants to or should serve. Most prosperous organizations capitalize on market segmentation. Once a business has identified a market niche then what follows is the design of flow of goods from the producer to the consumer. This is where a distribution model comes in; this may help an organization in establishing supply chain. (Ronald et al 2003.p303)
Resources
Modeling will define the nature and type of resources required in the distribution chain. For instance an entrepreneur will be able to determine the number of personnel required within a line function in the distribution. Transport facilities that are necessary and the frequency that match the needs of a client, the quantity of goods that a channel can accommodate. All these are important for planning. (Ronald et al 2003.p303)
Cost
Modeling will guide the business in identifying the cost associated with a distribution channel. As has been suggested optimal model will result into large cost savings and therefore is highly recommended. This is because it will evaluate the organization in totality and compare the costs of locating a warehouse near or far away the production centre. Carefully executed modeling process will also aid in marketing decisions by directing the business to various market niches. (John et al 1985.p400)
Conclusion
The main purpose of distribution is to ensure that goods reach the final consumer. The firm should ensure that distribution channel is not too long that may distort the value of products or services. Long distribution channels are enriched by middlemen who may exploit clients for their own interest so organizations should have optimal distribution models that will champion the value that they purport to be adding.
References
Alan R,John o,Phil O 2000, The Handbook of Logistics and Distribution Management, Kogan Page Publishers,pp.408-571
John et al 1985, Modern logistics management, John Wiley and Sons, pp.325-430
Ronald et al 2003, Dynamic social network modeling and analyzing, National academic press, PP.213-379
Stanley 1991,New Perspectives on International Marketing, Routledge, pp.201-374