Different supply chains in practice

some manufacturer may hire salepeople directly熱炒店裡的酒促小姐...商場的車促

Some let retailers manage salespeople

WHY?

salespeople need put their Efforts to promote the product

the effort is costly ,,no one wants to work for free

the efforts are hidden, and without monitoring most of time

pay commissions to the salespeople

the salesperson's payroll is based on the sales outcome

the outcome is uncertain

diligent or lazy偷懶?

market condition is bad bad 市況差?

and market condition is hidden to the manufacturer

high sales comes from efforts or good market condition ?

rewarded or purnished by luck? will he work hard?

Efforts and market condition are hidden information......

the retailer is closer the salespeople and market condition and know more about he or it !

讓熱炒店當Retailer

reduce the Asymertry information !

What if the retailers just play the role as reseller and manage their salespeople....

what is the informational impact?

their care about the demand forecasting capability

Doing better in forecasting means more capable in solvering the screening problem(salespern's hidden information) and moral hazard problem (in hidden action)

In estmating the market condition....

the salesperson is the best

the retailer is second best

the manufacturer is the worst

forecasting accuracy is costly and affect the performance of the supply chains M-R-S

最豬頭的不是每次猜大小都錯的那個人

MARKET DEMAND comes from market condition*salesperson's efforts