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STUDENT'S CORNER-93

The next topic to study is ‘Distribution Planning’.
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 functions smoothly.
Flawless distribution planning promotes customer relationship which is a vital aspect of sustainable business. 

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