DISTRIBUTION OF PRODUCTS

Establishing the most appropriate distribution strategies is a major key to success, defined as maximizing sales and profits. Our company will delivered products to our customer within two week from the date of order time. Our distribution strategies can be improved by mapping our products to the end-user. We also will determine the customer’s channel preferences and comparing it with the actual availability, in order to improve our distribution strategies.

DISTRIBUTION CHANNEL

Frequently there may be a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user. Our company uses on of the alternate channel which is selling direct, such as with an outbound salesforce or via mail order, Internet and telephone sales

Distribution channels can thus have a number of levels. Kotler defined the simplest level, that a of direct contact with no intermediaries involved, as the 'zero-level' channel. The next level, the 'one-level' channel, features just one intermediary; in consumer goods a retailer, for industrial goods a distributor. In small markets (such as our company), it is practical to reach the whole market using just one- and zero-level channels.

DELIVERY TERMS

Short summary of the Sales and Delivery terms is provided here for our customer convenience which including:-

Seller
All Items are sold by Construction Tools & Supply.Co. For any questions related to the sales and services, please contact our Customer Services. Within these Sales and Delivery Terms “Seller” refers to Construction Tools & Supply.Co.

Customer
Within these Sales and Delivery Terms “Customer” refers to any person purchasing items from Construction Tools & Supply.Co. The Seller recommends that the legal guardian of said Customer make the purchase instead, if the legal guardian agrees that such a purchase is reasonable.

Items
The Seller offers construction tools and safety equipment Items for sale related to construction projects and for laboratory use. These Items are referred to as “Item” or “Items” within these Sales and Delivery Terms and the full list of Items and their prices is available at http://constructiontoolsupply.blogspot.com/ . More information about the Items can be referred to http://constructiontoolsupply.blogspot.com/

Shipping Costs
Shipping and handling costs will be added to the prices of these Items. The shipping and handling costs are currently RM 3-6 per Item for shipments within the Kuantan district and RM 6-12 per Item for the rest of the country. The exact shipping costs for each Item are available at http://constructiontoolsupply.blogspot.com/
The Seller estimates that shipping will take from 2 to 3 weeks. The delivery time may vary on national deliveries, or depending on stock available. For some Items, the Customer may have a special “no shipping” option. This option is only available to certain Items that being bought with a main tools. In such case, the shipping costs will not be added to the price of the Item. Using this option is voluntary, and will not entitle the Customer to any discount from the price of the Item.

YOUR PRODUCTS TO BE PACKAGED FOR SHIPPING AND FOR DISPLAY

In fact, packaging may be looked at as several different types. For example a transport package or distribution package is the package form used to ship, store, and handle the product or inner packages. Some identify a consumer package as one which is directed toward a consumer or household. Our company has provided an extensive line of packaging products to meet our customers' needs:

1. Stock Box Program - We have over 1,600 SKU's of standard size boxes available for same day pick-up or next day delivery.
2. White Corrugated Stock Boxes typically used where a higher quality presentation appearance is desired by the customer.
3. Brown Corrugated Stock Boxes typically used for standard shipping cartons.
4. Customized Packaging Solutions - We manufacture packaging to our customers' specific dimensional, strength, and graphic requirements.
5. Custom Corrugated Packaging materials designed and manufactured to meet your specifications for shipping, display and in-plant handling, are available upon request. A complete line of corrugated materials, ranging from non-test singlewall to triplewall, as well as plastic corrugated, is available for manufacturing.
6. Custom Foam Packaging is typically required where the product to be packaged is of high value and/or fragile and needs specialized foam cushioning for protection from vibration and temperature variations.
7. ESD Protective Packaging is used when anti-static packaging is needed to protect sensitive product.

THE PACKAGING MEET ALL REGULATORY REQUIREMENTS

In general, many types of symbols for package labelling are nationally and internationally standardized. Thus, for our consumer packaging is the a symbols exist for product certifications, trademarks, proof of purchase, etc. This is because some requirements and symbols exist to communicate aspects of consumer use and safety. Recycling directions, Resin identification code (below), and package environmental claims have special codes and symbols.

Figure 6.1 : With transport packages, standardised symbols are also used to aid in handling constrcution tools to customer in order to fullfill customers need.

PACKAGING APPROPRIATELY CODED, PRICED AND COMPLEMENTARY TO THE PRODUCT

All the packaging will appropriate coded by barcode which consist of name of product, types, number of stock and date.

MINIMUM INVENTORY LEVEL

The minimum inventory are to control limit in a stock control system that indicates at which point a replenishment order should be placed to avoid depleting the safety stock. In this business, minimum inventory are 18 units would be used per week. Actually the demand may fluctuate from period to period. If, therefore the usage per week at anytime goes beyond 18 units per week, the company will be out of stock for some time. Hence, raises the need for providing for some safety stock for example some minimum or buffer as inventory as a cushion against such stock outs.