PLVMAN

Distribution of commercial products from production to consumption and vice versa. (redistribution = complaint / claim, return, disposal)

(Storage, transport, consignment, sorting, labelling, packaging, diversifying, complementing of commercial products)

Distribution of Remuneration Objects from usage/consumption to production/ utilization. (Means of payment / documents for settlement of receivables / liabilities, fixing and monitoring of due dates, determination of payment terms, price and gross margin)

Distribution of Communications regarding the flow of material and immaterial goods between production, consumption and utilization. (Data transmission / - storage / - link / - consolidation and -interpretation, definition of communication policy / - media, complaint policy)

Zero level Direct
One level Indirect
Two levels Indirect
Multi levels Indirect

Direct / immediate contact betweenmanufacturer and final user (industrial / private) by skipping all trade levels. (direct approach to the final user / you skip all the traders in between)

• Indirect / collateral contact between manufacturer and final user (industrial / private) embracing one commercial level. E.g. subway Trade level / sales intermediary • Dealer between productions • Retailer (Key Accounts/Retail) • Franchise • Sales associations (i.e. for wine) • Banks (non-bank products) • E-Commerce Zalando is a huge trade level!

Indirect / collateral contact between manufacturer and final user (industrial / private) embracing two consecutive intermediate trade levels. Trade levels /intermediaries

• Indirect / collateral contact between manufacturer and final user (industrial / private) embracing more than two consecutive intermediate trade levels. (e.g. agriculture milch goes to the jogurt producer this sells it to the retailer and he sells it to the customer.)

Mono (S&D exclusively operate in one distribution channel)

Dual / Poly S&D exclusively operate in several diffrent distribution channels)

Closed distribution channel (The number of actors is contractually fixed in advanced by market entry restrictions)

Open distribution channel (The number of actors is not limited)

Ubiquitous distribution

Intensive distribution

Selective distribution

Exclusive distribution

• Sales are executed through all objectively eligible (berechtigt) actors in the distribution channel.   (e.g. Bank branch office • Petrol station • Department Store • Kiosk • Takeaway • Cigarettes • Magazines • Soft drinks / Sweets)

Reasonability (angemessen, vernünftig) of expenses trigger the selection of as many actors as possible to execute Sales in the distribution channel.   (e.g. • Handicraft • Mail order company • Trade Corporation subsidiaries • Restaurants • Consumer electronics (i.e. CD‘s) • Agricultural products • Generics)

• Sales are only executed through selected actors in the distribution channel.   (e.g. Pharmacy drugs with a doctors permition can only be sold in pharmacy / Fuel oil can only be sold in fuel stations and this driven trough th procut / Travel agency / Book club / home delivery service / fashion stores abourcramby is a very selective distribution they moved from only selling in America)

Selected actors enjoy a relatively monopoly position (i.e. sales area, product, brand).   (infinity cars only sell in zürich.... but its actually a nissan car... but you optimise your profitability by optimising your exclusivity of the distribution channels. you select a market restriction in channels.) (e.g. • Factory outlet • Car rental • Franchise (i.e. McDonald‘s) • Contractual workshops • Tupperware / Amway • Cars (new car) • Fuel)

hierarchical and process organization

Integration of sales and distribution as a functual subunit of the marketing. Sales is hierarchically subordinated to the marketing.

More power for customers, sales has empowerment to require the C., Sales and Marketing roles are flat but independent.

Zero level:

Sales take place in the premises of the seller, the custoemer travels to the point of sales.

Sales take place in the premises of the customer. The seller adjourns to the point of purchase. (B2B Trade, Home Sales, Pizza)

Sales / Purchase take place face-to-face but through media.

Sales / Purchase take place at a neutral place, both seller and customer adjourn to a third place.

Every sales management activities (planning, organization, deployment, control) are centrally conducted by employed sales institutions / people

Planning, organization and control remain centralized in the company and execution is performed locally by de-centralized employed sales people or local external sales assistants.

Planning, organization, and control remains centralized in the company, the local execution is performed by one or more intermidiate trade levels.

by products (Camera, Batteries, Video)

by areas / regions (Europe, Asia)

by sales channels (Key Account, Back Office)

by customer groups (Wholesaler, Retailer, Mail order, E-Commerce)

-‐ Operating sequences and processes among hierarchical business units -‐ Cooperation and interfaces among hierarchical business units -‐ Communication and information channels among hierarchical business units -‐ Form management of internal communication 

Continuous required processing time optimization of each operation / communication process

Transparency / consistency of each single operation / communication process

Process quality assurance

Continiuous process improvement due to ability to recognize and to implement innovations and tools

Phase 1 -> Process Definition

Phase 2 -> Process Design

Phase 3 -> Process Implementation

Phase 4 -> Process Optimazation