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Chapter 15: Distribution channels & Supply Chain Management - Coggle…
Chapter 15: Distribution channels & Supply Chain Management
Distribution channels
The individuals and organizations who manage the
flow of product from producers to consumers
Four distribution channels
Marketing intermediaries
An organization that operates between producers
and consumers to help bring the product to market
Dual distribution
Dual distribution involves extending an offering through two or more channels in order to reach customers.
Reverse channels
Channels designed to return goods to their producers
Direct channel
Carries goods directly from a producer to the ultimate user
Functions of Intermediaries
Lowering the cost of logistics
Increasing sales and marketing infrastructure
Facilitating the exchange process
Selecting Distribution Channels
Factors affect the selection
Organizational
Companies with strong financial, management, and
marketing resources need less help from intermediaries
Competitive
Marketers sometimes choose distribution channels to either avoid competitors or compete with competitors head-to-head
Product
Product characteristics guide the selection of the optimal
distribution channel strategy.
Intensity
The number or percentage of intermediaries (usually
retailers) through which a manufacturer distributes its goods in particular market
Intensive distribution
Selective distribution
Exclusive distribution
Market
Products are intended for consumer or business market
end-users.
Components of the Supply Chain
Supply chain
The complete sequence of suppliers and activities that
contribute to the creation and delivery of goods and services
2 directions
Upstream management
The management of raw materials, inbound logistics, and
warehouse and storage facilities
Downstream management
The management of finished product storage, outbound
logistics, marketing and sales, and customer service
Common methods for managing
Radio frequency identification (RFID)
A tiny chip with identification information is
placed on an item; that chip can then be read by a radio frequency scanner from a distance, making tracking easier
Enterprise resource planning (ERP) system
An integrated software package that
consolidates data from among the firm’s units
Key Priorities of Warehousing and Storage
Inventory Control
Companies must maintain enough inventory to meet customer demand without incurring costs for carrying excess inventory
Concepts influence materials
handling
Containerization
The process of combining several unitized loads into a single, well protected load
Unitizing
Or palletizing, combining as many packages as possible into each load that moves within or outside a facility
Warehousing
Products flow through two types of warehouses strorage and distribution
Modes of Transportation
Water Carriers
Two types of transport methods move products over water
Motor Carriers
Trucks haul more than 10.5 billion tons of freight each year
Pipelines
More than 2.5 million miles of pipeline crisscross the United
States transporting energy products
Air freight
The shipment and transfer of goods through an air carrier
Railroads
Control the largest share of the freight business as measured by ton-miles
Intermodal operations
Utilizing a combination of transport modes to
improve customer service and achieve cost advantages
Accomplishing the Priorities of a Supply
Chain
The entire supply chain management process is complex and requires the coordination of countless data points integration of internal systems with partner systems, along with several other strategic planning steps