Designing a model for goods procurement and distribution network in Iran

Document Type : Research Paper

Authors

Abstract

In this article we attempt to design a comprehensive model for goods procurement and distribution network (GPDN) in Iran. The emphasis of this model is on improvement of efficiency, productivity, economy of scale and reducing physical distribution cost of goods in the country. Statistical sample has taken from expert and marketing managers of Ministry of Commerce, Ministry of Cooperation, distribution cooperation companies, chamber of cooperation, chain stores, goods distributors and transportation companies. The result shows that the performance of goods distribution system of Iran is not appropriate. Traditional structure of goods distribution channels caused that physical distribution cost is more than 50% of end user price of goods. So distribution system needs a new structure as National Marketing Center (NMC) to branding, smart advertising, integrating distribution network and clustering in the country NMC can manage the new GPDN in association with 6 ministries and cooperation of private sector companies like goods distributors, chain stores, wholesalers and transportation companies. This situation can result to reducing prices, shortening distribution channel, increasing productivity of distribution network and purchasing power of consumers. At the end of article, model of GPDN along with situation, role and communication of different players in this network has been showed.  

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