TYPES OF DISTRIBUTION MODEL 8-Feb-2017

KEY MESSAGES  Distribution includes all activities undertaken by the supply source, alone or in cooperation, with the end state that the final finished products or services are in possession of consumers.

 The distribution consists of the following major components: ­ Distribution channels or marketing channels, which together form a distribution network; ­  Logistics or physical distribution

 In order to effectively achieve, distribution of goods requires an amount of activities and operational processes related to transit of goods from supply source to consumer, the best conditions, using existing distribution channels and logistics system.

 One of the essential functions of a distribution is performing acts of sale, through which, with the actual movement of goods, their change of ownership takes place, that the successive transfer of ownership from supply source to consumer. This is an itinerary in the economic cycle of goods, called the distribution channel.

TYPES OF DISTRIBUTION MODEL •  Direct Invoicing

•  National Distributor

•  3rd Party Logistics Provider

•  Hybrid

Factory 3P Co-Man

Modern Trade

Visayas DC Mindanao DC Luzon DC

RM/PM Supplier

General Trade

Direct Servicing Key SC Process In-Scope

Master Data Y

Demand  Planning Y

Supply Planning Y

Order to Cash Y

Warehousing and Distribution Y

VAS (Value-Added Services) Y

Reverse Logistics Y

Inventory Management Y

Importation Y

Supply Source

Modern Trade

VisMin DC Luzon DC

General Trade

National Distributor

Thru National Distributor

Key SC Process In-Scope Master Data Demand  Planning Y

Supply Planning Y

Order to Cash Warehousing and Distribution VAS (Value-Added Services) Reverse Logistics Inventory Management Importation Y

Supply Source

Modern Trade

VisMin DC Luzon DC

General Trade

3PL Provider (Logistics)

Thru 3rd Party Logistics Provider

Key SC Process In-Scope Master Data Y

Demand  Planning Y

Supply Planning Y

Order to Cash Y

Warehousing and Distribution VAS (Value-Added Services) Reverse Logistics Inventory Management Y

Importation Y

Supply Source

Modern Trade

3PL National

Distributor

General Trade

Hybrid Servicing

Drugstore Channel

Key SC Process In-Scope Master Data Y

Demand  Planning Y

Supply Planning Y

Order to Cash Y

Warehousing and Distribution Y

VAS (Value-Added Services) Reverse Logistics Inventory Management Y

Importation Y

IN SUMMARY Key SC Process Direct Nat’l Dist 3PL Hybrid

Master Data Y Y Y

Demand  Planning Y Y Y Y

Supply Planning Y Y Y Y

Order to Cash Y Y Y

Warehousing and Distribution Y

VAS (Value-Added Services) Y

Reverse Logistics Y

Inventory Management Y Y Y

Importation Y Y Y Y

KEY APPROACH TO KNOW THE OPTIMAL DISTRIBUTION MODEL •  Understand current & projected trade structure

•  Outlet Classification & Mapping

•  Measuring Distribution Performance

•  Channel Strategy

•  Channel Attractiveness

•  Coverage Strategy

•  Pricing Strategy

•  Competitor Analysis

•  Supply Strategy