Posted in Operations and Supply Chain Terms, Total Reads: 832
Definition: Distribution Planning
Distribution Planning is a systematic approach to ensure that the process encompassing the delivery of goods to different distribution centres is done properly keeping in mind which goods are to be supplied in what quantity at what location in the desired time. It is done keeping in mind the demand trends over the years accounting for seasonal variations and also the anticipated demand according to this year’s prediction. If distribution planning is done correctly, it increases efficiency. All goods shortages are minimized as demand is accounted for during the time of distribution and costs of ordering, transporting and holding goods is also reduced considerably. If correct distribution is done, the major advantage is that inventory can also be kept under control in the desired level.
For example: Distribution planning of Frooti should be done properly keeping in mind the demand for the product throughout the year, both peak season and off season and also knowing which regions are the major consumers of the product as distribution frequency in those regions need to be more.