Year 1999 Transportation
1980 GDP $2.88 trillion Logistics Cost $451 billion
15.7% of GDP Trans. Cost $214 billion
2007 GDP $13.84 trillion Logistics Cost $1398billion
Center
Retailer
Customer
Support for Direct Delivery
SUPPLIER
E
M
NETWORK
A
T
E
INTEGRATED ENTERPRISE
N
DISTRIBUTIVE
D
NETWORK
C
R
Procurement
Distribution
O
I
N
A
S
L
U
S
Manufacturing
M
E
R
S
Capacity, Information, Core Competencies, Capital and Human Resources
Manufacturing Support
Procurement
Suppliers
Information Flow
1-12
Market Distribution Operating Concerns
Market Distribution:
Activities related to providing customer service. Requires performing order receipt and processing, deploying inventories, storage and handling, and outbound transportation within a supply chain. Includes the responsibility to coordinate with marketing planning in such areas as pricing, promotional support, customer service levels, delivery standards, handling return merchandise, and life-cycle support. The primary market distribution objective is to assist in revenue generation by providing strategically desired customer service levels at the lowest total cost.