Distribution plan

A distribution plan is a strategy for getting a product or service to customers. It outlines the methods and channels that a company will use to make its offerings available to buyers. This can include things like manufacturing and warehousing, logistics and transportation, and sales and marketing efforts. A distribution plan is often a key component of a company's overall business plan and can play a major role in determining its success.

Distribution plan template

A distribution plan template is a document that provides a framework for creating a distribution plan for a business. It typically includes sections for outlining the company's distribution goals and objectives, identifying target markets and customers, describing the products or services to be distributed, and outlining the specific methods and channels that will be used to make the offerings available to buyers. Some common elements of a distribution plan template include:

• Executive Summary: A brief overview of the distribution plan, including the company's goals and objectives.
• Market Analysis: A description of the target market and customers, including information on demographics, purchasing behaviors, and market size.
• Product or Service Description: A detailed description of the products or services to be distributed, including features and benefits.
• Distribution Channels: A description of the specific methods and channels that will be used to make the offerings available to buyers, such as retail stores, online marketplaces, or direct sales.
• Sales and Marketing Plan: A plan for promoting and selling the products or services, including information on advertising, promotions, and sales strategies.
• Implementation and Operations Plan: A plan for implementing the distribution plan, including information on logistics and transportation, warehousing and inventory management, and customer service.
• Financial Projections: Financial projections including sales, expenses, and profits.

Please note that this is a general template and it may vary depending on the nature of business and the type of distribution plan.

Distribution planning in supply chain management

Distribution planning in supply chain management refers to the process of determining the most efficient and cost-effective ways to move products or services from the point of origin to the point of consumption. This includes identifying the most appropriate distribution channels, such as retail stores, online marketplaces, or direct sales, as well as determining the most efficient logistics and transportation methods.

In distribution planning, companies consider factors such as the cost of transportation, the lead time for delivery, inventory management, and customer service. The goal is to find the right balance between speed, cost, and service level.

Distribution planning is closely linked to production planning and inventory management, as it is important for companies to have a clear understanding of their production schedules and inventory levels in order to effectively plan for distribution. Distribution planning also involves coordination with other departments such as sales and marketing, customer service, and logistics.

Some of the key components of distribution planning in supply chain management include:

• Network Design: Determining the most efficient distribution network, including the location of warehouses and distribution centers, and the use of transportation modes such as trucking, rail, or air.
• Inventory Management: Determining the right inventory levels to maintain in order to meet customer demand while minimizing the cost of holding inventory.
• Transportation Planning: Determining the most cost-effective methods for getting products or services to customers, such as using third-party logistics providers or owning and operating a fleet of delivery vehicles.
• Customer Service: Providing customers with timely and accurate information about their orders, and quickly resolving any issues that may arise.

In summary, distribution planning is an important aspect of supply chain management, as it helps companies to effectively move products or services from the point of origin to the point of consumption, while minimizing costs and maximizing customer satisfaction.

Distribution plan — recommended articles

Logistic process — Added value (logistics) — Functions of logistics — Central procurement — Stock management — Optimization of transport — Retail strategy — Construction supply chain — Distribution logistics subsystem

References

• Khator, S. K., & Leung, L. C. (1997). Power distribution planning: A review of models and issues. IEEE Transactions on Power Systems, 12(3), 1151-1159.
• Fahimnia, B., Farahani, R. Z., Marian, R., & Luong, L. (2013). A review and critique on integrated production-distribution planning models and techniques. Journal of Manufacturing Systems, 32(1), 1-19.
• Chandra, P., & Fisher, M. L. (1994). Coordination of production and distribution planning. European journal of operational research, 72(3), 503-517.