PROJECT MODELS OF DEVELOPING THE DISTRIBUTIVE CHANNELS AND NETWORKS - Scientific conference
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Рік заснування видання - 2011

PROJECT MODELS OF DEVELOPING THE DISTRIBUTIVE CHANNELS AND NETWORKS

16.11.2022 23:23

[1. Information systems and technologies]

Author: Elmar Ahundov, Master student at Department for Information-Computing Systems and Control, West Ukrainian National University, Ternopil


The role of Distribution Channels is to create a clear, logical and efficient path of a product from the producer to the consumer that is fast and offers a wide reach for the product. The distribution channels outline a clear path with which the product, will take, therefore making it easy for you to market and sell the product easily. The distribution network is the physical aspect of how the product will actually be moved, this includes things like transport systems, storage and shipping. A clear and well-established transport system of the product will provide reliability and speed. When storage of the product is established, it offers security, safety and convenience offered by its location and can also offer flexibility if you control the storage facilities. When transport systems are functioning, we can offer a reliable timeline for the delivery of goods. After all these factors come together, we will have maximum efficiency use of resources available to us and to also to benefit from economies of scale, therefore enabling us to have low cost and fast distribution of goods with all the resources operating at optimum level. 

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer, and an "indirect" channel allowing the consumer to buy the good from a wholesaler or retailer. Conversely, it is also used to describe the pathway that payments make from the end consumer to the original vendor. Distribution channels can be short or long, and depend on the number of intermediaries required to deliver a product or service. Areas of focus for a distribution channel: producer, wholesaler, retailer, consumer.

There are three main types of channels, all of which include a combination of a producer, wholesaler, retailer and end consumer.

The first channel is the longest in that it includes all four, from producer to the end consumer. A product or service is sold by the producer to a wholesaler then the wholesaler in turn sales it to a retailer. The retailer, in turn, sells the product to the end consumer. This is a long channel but it is sometimes required by law as in the sale of alcohol in the United States

The second channel is one where the producer sells directly to a retailer, who then sells the producer's product to the end consumer. This second channel contains only one intermediary. 

The third and final channel is a direct-to-consumer model where the producer sells its product directly to the end consumer. Amazon, using its own platform to sell Kindles to its customers, is an example of a direct model, which is the shortest distribution channel possible.

Sometimes, goods and services are passed to consumers through multiple channels, a combination of short and long. This increases the number of ways in which a consumer can find a good can increase sales, it can also increase the complexity of distribution management in addition, the longer the distribution channel, this could reduce the profit due to the intermediary charges and also if the chain of accountability in not managed properly we cannot ensure that the product reaches the consumer in the quality state that we want, so even though more people will get the product the cost of managing and quality control will significantly increase the cost to the extent where it doesn’t make economic sense to deploy the use of multiple distribution channels. In some cases, it is therefore more advisable to develop a single channel to pass the goods especially in a small startup organization that is still trying to establish goodwill with the consumers to ensure a simple channel that is ease to manage is used. As the company grows big, we could begin to use multiple channels because on a larger scale with a highly developed reputation and experience in the field and through the use of information systems we can effectively use multiple channels. 

A distribution network is an interrelated arrangement of people, storage facilities and transportation systems that moves goods and services from producers to consumers. A distribution network is the system a company uses to get products from the manufacturer to the retailer. A fast and reliable distribution network is essential to a successful business because customers must be able to get products and services when they want them. Areas of focus for a distribution network: physical distribution, rail transport, road transport, water transport, air transport, warehousing.

Life Cycle models provide the structure needed for a project. Without one, it would be difficult to control its direction and implement effective strategies. With each model, any project will be given realistic and tailor-made information based on the project itself, which may change as the project progresses. As such, expectations will be set and unwanted surprises can be avoided. It will also be easier to detect problems and errors during each phase and thus, it will be less difficult to find a way to prevent or resolve them.

Additionally, there will also be limited occasions for failure because each model prevents a project to go through the next phase without successfully passing the previous phase. Although projects may differ for companies, they still utilize the same models.

The idea of cost management to provide project and contractors to complete the project within the given budget. The plan cost management is a document that is used to classify the measures used to manage processes and costs throughout the life cycle of the project. This includes the cost approach in tracking payments, analysis of variance, and the cost of the contractor oversight and reconciliation process of the state budget, accounting, project management and cost. In addition, the plan includes who is responsible for tracking costs, deviations will be considered, and the cost of follow-up and understanding of the condition and value of project management processes. The plan also describes management tool costs, which will be used.

Project Team is a group of individuals assembled to perform activities that contribute toward achieving a common task related goal. Many project managers will put together a project team consisting of skilled workers from the same or different function areas to work on an important project. And when putting it together one can use the following: Necessary experience and knowledge/technical skills, Problem-solving ability, Availability, Technological expertise, Credibility, Political connections, Ambition, initiative, and energy. The project team will consist of at least 10 members and will be using a matrix organization, team members from each organization continue to report to their functional management throughout the duration of the project. The project manager is responsible for communicating with functional managers on the progress and performance of each project resource. 

Project risk is an uncertain event or condition that if it occurs, affects at least one goal of the project. Risk Management focuses on identifying and assessing the risks of the project and manages these risks in order to minimize the impact of the presentation on the project. There is no risk-free project, because there are an infinite number of events have a negative impact on the project. Risk management is not to avoid risk of, but to identify access and manage risk. Studied the risk management practices are hundreds of projects in various industries.

The aim of the Communication is designed to capture as will be managed throughout the project life cycle. The plan describes the communication occurring between the planned and regular communication with all stakeholder safety systems, security systems such as project team members, project sponsors, Office of Systems Integration (OSI) management, supervising agencies, and interface partners. 

This plan also includes plans to written and oral communications, the responses unsolicited request for information, the frequency of the planned communication, and responsible person(s) subject to reporting. The communication plan is an integral part of the overall Project Management Plan, and will be used to guide the security system project. The communications section sets out the activities, processes and procedures used to treat this communication plan.

The communications plan will identify the communication procedures used to manage the project. The plan is a formal communication element. Other communication channels exist in the informal level and enhance their discussion in this plan. This plan is not intended to restrict, but to enhance communication practices. 

The anticipated model uses the Evolutionary delivery model; each is connected to the data center. An additional advantage is in powering sensors by a server via informational network channel. Ensured that the client's necessities are met, the project is finished on time and within budget and that everyone else is doing their job effectively.

This was obtained by using techniques from project management to implement the above project in a systematic approach by making the best use of limited resources while achieving program goals. 

The approach can be successfully used for planning and executing projects implementation of different kind of Distribution Networks and Channels

References

1. C. C. Bozarth, R. B. Handfield. Introduction to Operations and Supply Chain Management, Upper Sadle River, New Jersey: Pearson Education, Inc., 2006.

2. D. Parker, A. Mobey, Action Research to Explore Perceptions of Risk in Project Management. International Journal of Productivity and Performance Management 53, no. 1, pp. 18–32, 2004.

3. D. I. Cleland, R. Gareis. Global Project Management Handbook. McGraw-Hill Professional, 2006.

4. M. Z. Hackman, C. E. Johnson. Leadership: A Communication Perspective, Fifth ed., Long Grove, Illinois, 2009.

5. G. Cattani, S. Ferriani, L. Frederiksen, T. Florian. Project-Based Organizing and Strategic Management. Advances in Strategic Management, Vol 28, Emerald, 2011.



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