The distribution strategy as stated in class is to get “the right product to the right place at the right time”. These words are much easier said then done. Companies are spending millions of dollars to make sure that they know a close approximation as to how many units will be sold so that they will know how many to produce, and then spend more money on market analysis to know where to sell the product will help them get the highest profit, and then the crucial part would be able to deliver the products on time. To know how many products and where to sell a company would have to do market analysis, but this can be done internally, however the hard part would to delivering the product to certain places within a specific time. Most companies do not have their own shipping system so they have to rely on other companies. Because of this, shipping and delivery times are out of their control. Many incidents may happen during shipping times and delays could happen, which could affect customer view on the company in which a huge loss of revenue could occur, therefore finding a trustworthy, reliable shipping company is hard and worth it.
One example, I can think of right now is my HR textbook. Because the bookstore for obvious reasons, don’t want extra copies of the textbook in the store they decided to order fewer textbooks than they should’ve. So first of all the number of textbook demanded was not accurate. Then for place, they couldn’t have gotten that wrong, since the only place to sell this textbook was at the bookstore. However even after the professor urged them to purchase more textbooks, they only purchased 20 copies when over 80 students needed this textbook. When they finally did a second order after the 20 copies one, everyone was already required to have purchased them online or by some other method. The bookstore was told they would get the shipment before the a certain day, however for some reason the shipment was late due to a lack of miscommunication and now the bookstore is stuck with piles of HR textbooks that hopefully studnets will buy for the next term. This incident clearly demonstrates how the lack of communications between the two parties and how important it is to create a clear, reliable way of communication.