PRODUCT DELIVERY....to facilitate the flow of goods and services from producers to consumers and one of the important factors that can not be ignored.

PRODUCT DELIVERY

....to facilitate the flow of goods and services from producers to consumers and one of the important factors that can not be ignored is to choose the right distribution channel that will be used in the framework of business distribution of goods / services......

Setting up the goods to be sentTerms of goods delivery requirements include provisions on implementation of the consignment of goods that are associated with:

1. destination of goods 2. time delivery of goods 3. freight transport goods

Main attention in the consignment of goods, among others: 1. where the goods must be sent? 2. taken by the buyer or sent by the seller? 3. who should bear the shipping charges? 4. when the goods should be sent?

Time of delivery / delivery of goods can be arranged as follows: 1. directly referred to as the instantaneous prompt 2. at a certain time 3. gradually

Goods ClassificationGoods

“Complex characteristics including package, color, manufacturer and dealer name, obtained by the buyer to satisfy his wants and needs”

From the marketing point of views, the types of goods are divided into:

1 The buyer purpose: Consumption and industrial goods2. Consumption level: durable/non-durable goods and service3. Psychological influence: functional, hedonism, and anxiety goods4. Its characteristics

Consumption goods is divided into:1. Rate of consumption and tangibility

a. Durable goods: concrete goods that can be multiple times such as TV, shoes, car, etc.

b. Supplies goods: concrete goods that only can be used once or coupe of times like meat, soap, fish, rice, etc

c. Service: Jasa, yaitu: the action of process of serving: hair cut, doctor, etc.

The characteristic of goodsThe characteristics of the product can be

used in consideration to buy such as the product’s durability.

Supplies goods such as fresh vegetable or milk will us short chain distribution similar to newspaper and magazine

Goods with bigger volume or heavy equipment is advisable to use short chain distribution or direct distribution.

Payment Characteristics

Goods that need to be spreadPrimary commodities need to spread extensively, vertically or horizontally. The costumers will be more pleased if those commodities can be bought in their neighborhoods.

Goods that doesn’t need extensive spreadingShort chain distribution will be more efficient related with the goods with limited costumers such as musical equipments, TV, radio, etc.

ExpenseGenerally, long chain distribution will create

higher expense which may disturb the sales. Each distribution chain will try to gain profit.

To make the price lower, the company has to have willingness to gain less profit.

Identify the Product Sold to Costumers

As the seller, we have to check order form to find whether errors such as the costumers name or goods specifications in the order invoice

Thus the seller will perform:The product nameThe product’s specificationsThe product amountCheck the product priceCheck the total price paid the costumerGiving signature as the legal verificationGiving invoice for the buyer and making copy for archiving

Product PackagingCreating the company’s image through

packagingGood package may protect the product from

damage, protect its content and weather protection

Appropriate packaging will make delivery process much easier and effective.

Forms of Packaging

Many forms of packaging material can be found in the market these include: Envelopes, pouches, bags, carton, box, bottle, jar, vial, barrel, drum, overwrap, sleeve, blister, strip, and others.

Packaging requirements:1.Physical packaging has to be purposely designed for

convenient, meet legal and economical requirements2.Packaging protects the productWeather and humidity has to be observed in designing

product package. Needs protection from insect and other micro

organism.

3. Packaging can sell productsShowing product identities and distribution

techniques

Packaging MaterialsPackaging materials are focused in the its

material such as paper, paperboard, cellophane, plastic, steel, glass, wood, textile, etc.

The process of delivering productsBefore delivering the product to the customer,

Seller must make a calculation of the price, either by using the arithmetic means of manual or electronic means of calculating total price as results of the calculation must be notified or should Customer sepengetahuan as the buyer

In addition to the calculation of the invoice price of the product is another form of note sales, price lists, receipt and other documents relating to the calculation of product prices.

Pricinga. Flexible pricingthe main point in determining flexible price is the willingness to cut the price in order to maintain its market.

b. Differential PricingPricing based on various expense. Differential pricing for similar products. Thus, the seller will differentiate its products pricing. The costumers demand plays vital role in differential pricing.

c. Mark-up PricingIncreasing the price from variable total or price cost from supplier (super market)

d. Cost plus pricingPricing by increasing the total cost percentage.

e. Target PricingPricing by purposely obtain certain profit.

f. Going rate pricingIn order to maintain market balance, the company determine the price follows market price.

g. Sealed bid pricingThe price will bid in sealed document and the company will chose suppliers wit lowest price and correct requirements.

h. Break Even pricingThe company understands how the product will be sold in certain amount in order to cover production expenses

i. Rate of Return pricingTo reach re-investment as many big companies often perform.

j. Pricing by the supplierThe supplier add marginal price with the price given t costumers in order to cover operational costs.

k. Pricing by producerProducers add production costs and produstion margins.

l. Variable PricingVariable pricing can be used to determine minimal price. Total cost is not necessarily covered.

Break through Pricing

In certain situations, the company will determine momentarily price that sometimes below its production cost using:

a.Popular Brand Loss

Decreasing the price of famous brands in order to attract costumers

b.Special Occasional Pricing

In certain occasion, the company decreasing the price.

c.Wholesale

The price discounted in certain period.

d. Low Rate Cost

The company may offer low rate financial support

e. Warrant and Service AgreementGiving free warranty and offer special services

f. Psychological DiscountGiving big discount by Diskon Psikprior price boost-up

Transactional Recording Method Invoice consists of:a). Product amountb). Product codec). Product named). Contente). Price per unitf). Total priceg). Discounth). Total Price Paid

Sales person dutiesa). Receiving orders from the customersb). Filling invoice form in three copies:

Copy 1. Given to the costumer to be brought to the cashier when purchasingCopy 2. Given to storehouse staffs to prepare product deliveryCopy 3, Recorded as the number of invoice

Cashiera). Receiving sales invoice of copy 1 from the

buyerb). Receiving payment.c). Giving paid invoice as well as cash register

to the buyer

Storehouse staff

a). Receiving invoice number 2b). Preparing the productc). Recording the products quantitiesd). Giving invoice number 2 to the wrapping

staffV

Wrapping staff

a). Receiving the productb). Receiving paid invoice number 2 c). Checking the invoice and the productd). Delivering the product as well as paid invoice

number 2 e). Giving paid invoice number 1 to the accounting staffs

Payment Methoda. PrepaidThe buyer pay first before receiving his order

b. Rembours (cash on delivery / c.o.d )The product will be deliver after the buyer pays the product

c. CashThe product has to be paid in cash

d. CreditThe payment can be finished in given period as leverancier credit/seller credit.

e. Installment The payment can be finished ininstallment

In addition to the calculation of the invoice price of the product is another form of note sales, price lists, receipt and other documents relating to the calculation of product prices.

Procedures in the storage warehouse, the receipt of goods, entry goods to the warehouse and fixed items of expenditure warehouse.

Basically warehouse administration system consists of two recording, namely: a. The system continuously (Perpetual System) b. The periodic system (Periodic System).