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42 Cards in this Set
- Front
- Back
Supply chain
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all activiies necessary to turn raw materials into a good or service and put it in the hands of the consumer
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Supply chain management
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manage flows among firms in the supply chain
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Insourcing
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a company contracts with a specialist to handle all or part of its supply chain operations
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Channel of distribution
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series of firms or individuals that facilitiates the movement of a product from producer to final custonmers
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Why are middleman essential?
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they break bulk and so have less transactions (transaction costs)
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What functions do the producers have to do in distribution channel
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logistics, efficiency, facilitating
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Channel intermediaries
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firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. (middleman)
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Breaking bulk
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dividing larger quantities of goods into smaller lots to meet needs of buyers
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Creating assortments
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provides a variety of products in one location to meet needs of buyers
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Facilitating functions
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functions of channel intermediaries that make the purcahse process easier for customers and manufacturers
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Disintermediation (of the channel of distribution)
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elimination of some layers in the channel of distribution to cut costs and improve efficiency
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Knowledge management
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approach to collecting, organizing, storing and retrieving a firm's information assets
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Online distribution piracy
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theft of unauthorized re purposing of intellectual property via the internet
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Logistics
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process of designing, managing, and improving movements of products through supply chain. (incl. purchasing, manufacturing, storage, transport)
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Physical distribution
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move finished goods from manufacturers to final customers, including order processing, warehousing, marials handling, transportation, and inventory contorl
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Order processing
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series of activities that occurs between time and order come to organization and time a product goes out the door
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Enterprise resource planning (ERP) systems
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software system where info from across entire company, including finance, order fulfillment, manufacturing, and transportation and then facilitates sharing of data through firm
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Warehousing
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storing goods in anticipation of sale or transfer to another member of channel of distribution
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Materials handling
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moving of products into and out of warehouses
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Transportation
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mode by which products move among channel members
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Inventory control
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activities to ensure that goods are always available to meet customer demands
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Radio frequency identification (RFID)
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product tags with tiny chips containing info on itme's content origin and destination
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Just in time (JIT)
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inventory managment and puchasing process where manufacturers and resellers use to reduce inventory to very low levels to ensure the delivieries arrive only when needed
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Wholesaling intermediaries
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firms the handle flow of products form manufacturer to retailer or business user
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Independent intermediaries
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channel intermediaries not controlled by any manufacturer but isntead to do business with many different menufacturers and many customers
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Merchant wholesalers
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Intermediaries that buy from manufacturers (take title ) and sell to retailers and other b2b
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Take title
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accept legal ownership of a product (rights & responsibility)
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Merchandise agents or brokers
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channel intermediaries that provide services in exchange for commision but never take title of the product
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Does MLM make sense?
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no, instead of selling product they are actually just recruiting agents
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Channel Levels
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number of categories of intermediaries that populate a channel of distribution
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Hybrid Marketing System
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system that uses a number of different channels and communication methods to serve a target market
eg. using direct (nike store, nike site) indirect(, walmart,) |
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Channel Width and the 3 types
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Number of retail points. Intensive (convenience), Selective (shopping), Exlcusive (specialty)
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What factors determine channel width?
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company, customers, competition
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Channel Length
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number of levels in supply chain
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Steps in Ditribution Planning (4)
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1. Develop distribution objectives
2. evaluate internal and external envirnmental influences 3. choose distribution strategy 4. develop distribution tactices |
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Conventional marketing system
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multi-level distribution channel where each member works independently
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Vertical marketing system
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formal cooperation b/t levels of manufacture, wholesale, and retail
eg. Macy's owns their network of distribution centers and retail stores |
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Horizontal marketing system
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channel of distribution with 2 or more firms at same channel level work together
eg. ameriacan airlines has a number of alliances like JAL, British Airways |
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Intensive distribution
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selling a product though all suitable wholesales or retailers willing to stock and sell the product
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Exclusive distribution
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selling a product only thorough a single outlet in a region
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Selective distribution
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distribution using fewer outlets than intensive distribution but mroe than exclusive distribution
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Channel leader
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firm at one level of distribution takes a leadership role and establishes operating norms based on its power relative to other channel members
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