Distribution Planning or Distribution Requirement Planning is an
important business tool that takes care of delivery of goods to the right
customers. It has to take care of details like which goods are to be sent and
in what quantities and at which locations. If any one of the above mentioned
details is wrong or has been miscalculated, the entire process ends up in waste
of time, energy, money thereby adding to the expenses of the company. In other words, the distribution planning
minimizes wastages of sorts thus reducing the costs of ordering, transporting
and also holding goods.
In the business administration which is another name almost for supply
chain , distribution planning provides lots of benefits like effectively
guiding inventory control which keeps in
stock goods required for transportation for the right period of time. Distribution planning thus facilitates
effective time-phased distribution. It also involves market analysis like
anticipated demands through seasons.
Correct and efficient distribution fetches definite advantages to the
company like proper inventory control. We have already seen the necessity of
inventory control which fundamentally keeps the business on the right track
with not much of unsettling hiccups.
Distribution planning ensures that the customers get what they want
and how much they want and when they want.
Dispatch of goods not just then required, arrival of required goods but
late, delivery of goods not in right quantity—these lapses reflect
mismanagement of business impacting the commercial interests of the company
very negatively. If such lapses continue even for a short period, brand image
is corroded and business dwindles at fast pace, possibly facing extinction.
Efficient distribution planning maximizes customer service and
minimizes cost. It minimizes the utilization of warehouse space and facilities.
With effective communication of relevant details, each individual supply centre
receives required commodities in right volume and at right time. Supply chain
Flawless distribution planning promotes customer relationship which is
a vital aspect of sustainable business.