Week 8: Distribution... Final

“Some companies state their logistics objective as providing maximum customer service at the least cost. Unfortunately, no logistics system can both maximize customer service and minimize distribution costs. Maximum customer service implies rapid delivery, large inventories, flexible assortments, liberal returns policies, and other services—all of which raise distribution costs. In contrast, minimum distribution costs imply slower delivery, smaller inventories, and larger shipping lots—which represent a lower level of overall customer service.” (Marketing: An Introduction. Armstrong/Kotler pg. 330) Our main distribution location is base out of west Las Vegas Nv. with a few small locations through out the U.S. The reason for the smaller ports is to meet the demands for the larger cities and the special events that we work with though out the year. Here at 'LIVE" we distribute to night clubs, liquor stores, major city airports, and specialty end grocery stores.  Over time we have built close relationships with a few non profit organizations and work out a deal where they do not sale any other vodka during there events and fund raisers and in return we sponsor them with items just as 'LIVE" ice bends and trash dispensers with our logo on them. We also have a similar relationship with other "party" groups as Palm Springs, White Party, and Las Vegas, New York Matinee Party. So not only do we distribute our vodka we also offer the distribution of display items and special services   " Many producers and wholesalers like to develop exclusive channels for their products. When the seller allows only certain outlets to carry its products, this strategy is called exclusive distribution. When the seller requires that these dealers not handle competitors’ products, its strategy is called exclusive dealing. Both parties can benefit from exclusive arrangements: The seller obtains more loyal and dependable outlets, and the dealers obtain a steady source of supply and stronger seller support" (Marketing: An Introduction. Armstrong/Kotler pg.328)