Distribution

Phileas’ Snake Skin Chips will use a logistics company that can hold, pick and ship their product for a negotiated price.  Having another company such as UPS provide a bundled freight package and take on the cost of moving the product will be easy onboarding getting the Snake Skin Chips to market quickly.

“Thus, UPS does more than just ship packages for its business customers. It develops entire solutions to customers’ transportation and logistics problems. For example, UPS bundles a complete system of services that support Nikon’s consumer products supply chain—including logistics, transportation, freight, and customs brokerage services—into one smooth-running system.” (Pg. 162) Using UPS or a similar vendor will take the work out of trying to piece together a delivery network from scratch; it will eliminate the need for putting together a team for the various functions which UPS already has in place. “Companies often pay too little attention to their distribution channels, sometimes with damaging results. In contrast, many companies have used imaginative distribution systems to gain a competitive advantage.” (Pg. 312)  Phileas’ will even have UPS pick the product from the manufacture and then place the product into the shipping stream while also doing the delivery.  As Phileas’ Snake Skin Chips grows in popularity then the contract with UPS can be modified and UPS can then affect the delivery for the Chip maker instead of working the entire Distribution Channel.