Product distribution network

Distribution network is an important piece on international negotiations,

because is an entire chain of distribution intermediaries between the supplier
and consumer, and it can define a lot of things on success or fail of a product.
At this time, the globalization process takes nations towards strategic thinking,
after opening markets worldwide any country have access not just to specific
point in his territory but also in any other point in the world. Inside globalization
and international negotiation exist a very important part that permit the
transportation of products worldwide, this vital part in the process is call
distribution network.
A process of interrelated arrangement of people, storage facilities
and transportation systems that moves goods and services from
producers to consumers. A distribution network is the system a
company uses to get products from the manufacturer to the
retailer. A fast and reliable distribution network is essential to a
successful business because customers must be able to get
products and services when they want them. (Investopedia, 2013).

The opportunities are for those who get close to consumers, knowing and
understanding what they want. That is to guide the industry to build and
strengthen customer relationships that create growth for companies. At this
time, society has evolved on new ways of thinking, with more demanding
consumers, knowledgeable and with access to a variety of deals, making
industries and producers pay more attention to things like Quality of service,
cost, Overall control and flexibility. Everything base on what kind of product the
company has. Choosing the correct mode of transportation means a balance
between time and budgetary constraints. In that way, it is important to you, to
understand the nature of your business and which will be the best way to
deliver your product to your customers. Here are some key points that you
should pay attention to, at the time of choosing a correct means of
transportation.

1. Type of load to be transported: ideal transport conditions according to

the same electric organ and legal restrictions.
2. Cost: the value of the product is capable withstanding the average cost
of selected transportation. The logistics costs must not exceed the cost
of the distribution channel.
3. Reliability: check the reliability of the selected channel.
4. Delivery time: it depends on what has been agreed with the customer.
5. Information systems: value through the information that our consumers
and we provide.
6. If your cargo is valuable: it might be necessary to use a vehicle
tracking system so you know exactly where it is.

Having these things in mind, you can choose the best ways to transport your
goods everywhere. Choosing the correct mode of transportation for your
products depends on the size and urgency of your shipment.

By road:
Move your merchandise by road is the economic and convenient way, because
is very flexible mode of transportation. Trucks can go a lot of places even to
remote locations, however not as eco-friendly as other transport systems. Also
may have some delay because of the roads and public order problems.
By rail:
Rail transportation could be a very good option because is speedy, eco-friendly
and without delays, but could be very expensive and inflexible.
By air:
Air transportation is the fastest way to transport products across long distances
however; it has a high environmental impact as well as high costs. Be aware
that air freight is usually charged by kilogram, also you have to pay other fees
like risk surcharges, customs fees, security fees.
By sea:
Transporting goods by sea is very common, especially if they come from other
continents such as Asia. This is relatively inexpensive and is used to transport
large quantities of goods. However, this is not very flexible and their
destinations are the ports of the country of destination, so, it probably needs to
make arrangements to transport products inland.

References:

Counsil of Supply Chain Management Professionals. (2013). Consultado

el 20 de marzo de 2013, en http://cscmp.org/

Investopedia. (2013). Distribution Network. Consultado el 20 de marzo

de
2013,
en
http://www.investopedia.com/terms/d/distributionnetwork.asp

Toro, A. (2004). Distribucin de mercancas. Bogot.

Control del documento

Autor

Nombre

Cargo

Natalia Catalina
Perea

Contratista

Adaptacin

Lina Mara
Franco Arbelez

Pedagoga - Lnea
de produccin

Adaptacin

Ana Mara Mora

Jaramillo

Guionista - Lnea
de produccin

Dependencia
Centro de Gestin
de Mercados,
Logstica y
Tecnologas de la
Informacin
Centro
Agroindustrial
Regional Quindo
Centro
Agroindustrial
Regional Quindo

Fecha
Diciembre
de 2012

Abril de
2013
Abril de
2013