Term
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Definition
a series directed at designing, producing, marketing,delivering,and servicing any
-each step is usually done by a different company and adds value |
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Term
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Definition
| involves the activity that turns raw materials into a product and put it in the hands of the consumer |
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Definition
| the management of flows among firms in a supply chain, includes actual movement of good and sharing of information, goals is to maximize profitability |
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Term
| Supply Chain management: Partners |
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Definition
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Term
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Definition
| when a company contracts a specialists to service their supply chain |
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Term
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Definition
supply products necessary to create a product or goods
*raw material, components parts |
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Definition
| link the company to the customer |
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Definition
| moves the product from the producer to the end user |
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Term
| The importance of distribution: Direct channel |
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Definition
| involves a producer and customer |
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Term
| The importance of distribution: indirect Channel |
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Definition
involves one or more intermediaries
-Firms and individuals that help move product to consumer or business user |
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Term
| Functions of the distribution Channels |
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Definition
ease the flow of goods from puducer to consumer
provide utility
provide logistics functions of the product
create efficiencies
Make purchase easier
manage risk
perform communication and transaction functions-help to share info. |
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Term
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Definition
| Provides time, place and ownership utility |
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Term
| Functions of DC: Create efficiencies |
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Definition
by reducing the number of
-breaking bulk-they purchase large quantities and sell them one or few at a time
-Creating Assortments- or more product variations |
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Term
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Definition
Radical changes in the distribution strategies
-Disintermediation-elimination of traditional intermediaries
-Knowledge management-sharing info. with other supply chain members. |
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Term
| Wholesaling intermediaries |
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Definition
| handle the flow of products from the manufacturer to the retailer. |
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Term
| Independent Intermediaries |
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Definition
| Channel intermediaries that are not controlled by any manufacturer but instead do business with many different manufacturers and customers. |
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Term
| Independent Intermediaries:Merchant Wholesalers |
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Definition
| buy goods from manufacturers and sell to retailers and other B2B customers |
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Term
| Full Service Merchant Wholesalers |
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Definition
| Provides service,delivers, credit,repairs, advertising, and support |
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Term
| Limited Merchant Wholesalers |
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Definition
| Provides fewer more specialized services |
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Term
| Types of limited Merchant Wholesalers |
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Definition
Cash-n-Carry
truck Jobbers
Drop Shippers
rack Jobbers
Mail Order |
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Term
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Definition
| offers low cost merchandise to customers who paying cash and handles on delivery, service customer that are too small for larger wholesalers to notice |
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Definition
| carry products to small business customers |
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Definition
| take the title of the product but not possession |
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Term
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Definition
| provide retail with specialty items and own and maintain racks in stores |
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Term
| Types of Independent intermediaries |
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Definition
Merchant Wholesalers
Merchant Agents/Brokers
Manufacturer-Owned Intermediaries |
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Term
| Independent Intermediaries:Merchant Agents/Brokers |
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Definition
Manufacturer agent/reps.
Selling agents
Commission Merchants
Merchandise brokers |
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Term
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Definition
independent sales person
Carry several non-competing products |
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Term
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Definition
independent marketing department
whole product line or output |
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Term
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Definition
take possession of products but not title
receive product on consignment |
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Term
| Independent Intermediaries:Manufacturer Owned- Intermediaries |
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Definition
Sales branches
Sales offices
Manufacturer show rooms |
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Term
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Definition
| carry inventory and offers sales and service |
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Term
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Definition
| offers selling functions but do not carry inventory |
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Term
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Definition
| product are permanently displayed here |
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Term
| Types of Distribution Channels |
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Definition
Consumer Channels
Business to Business Channels
Dual Distribution System
Hybrid Marketing System |
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Term
| Consumer Channel: Direct Channel |
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Definition
Simplest channel
Lowers costs
When the producer handles distribution it maintains control over pricing, service and delivery all the elements of the transaction |
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Term
| Consumer Channel: indirect Channel |
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Definition
Consumers are familiar with certain retailers or intermediaries
Intermediaries also helps create utility, and transaction efficiencies
* Producer-Retailer-Consumer
-shortest indirect channel
*Producer-Wholesaler-Retailer-Consumer is the most common form of indirect channel |
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Term
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Definition
| facilitate the flow of product production to an organization or business customer direct or indirect |
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Term
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Definition
| a company interacts with more than one type of channels |
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Term
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Definition
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Term
| Steps in Distribution Planning |
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Definition
Develop Distribution objectives
Evaluate environmental influences
Choose a distribution strategy
Develop Distribution tactics |
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Term
| Develop distribution objectives |
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Definition
| influenced by costs, company nature, products, intermediaries environment |
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Term
| Evaluate environmental influences |
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Definition
| looking at the internal and external environment. Consider ability to handle distribution and how competitors distribute. What intermediaries are available. |
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Term
| Choose a distribution strategy |
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Definition
Channel relationships
Conventional Marketing System
Vertical Marketing system
Horizontal Marketing System
Distribution Intensity |
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Term
| Conventional Marketing System |
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Definition
members work independently.
-not very common today |
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Term
| Vertical Marketing System (VMS) |
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Definition
formal cooperation amongst channel members. Members are unified systems working together.
-administered VMS
-corporate VMS
-Contractual VMS
-Retailer Cooperative
-Franchise Organization |
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Term
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Definition
| dominate member lead the channel. Could be an manufacturer or retailer |
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Term
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Definition
| The company own production and distribution |
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Term
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Definition
| Individual companies join through contracts |
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Term
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Definition
| a group of retailers who establish a wholesaling operations to enable them to compete against larger companies |
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Term
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Definition
| franchiser is linking stages in the product distribution process. |
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Term
| Horizontal Marketing System |
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Definition
| two or more companies at the same channel level agree to work together to get the product to the consumer is their goal |
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Term
| Distribution Intensity:Intensive Distribution |
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Definition
| Selling through all suitable resellers ex. milk, pop |
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Term
| Distribution Intensity:Exclusive Distribution |
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Definition
often selling through a single outlet in a region
ex. piano |
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Term
| Distribution Intensity:Selective Distribution |
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Definition
fewer outlets than intensive, but more than exclusive.
ex. electronics |
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Term
| Develop distribution tactics |
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Definition
Selecting Channel Partners
Managing the Channel |
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Term
| Selecting Channel Partners |
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Definition
| very important these are long term commitments. |
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Term
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Definition
| Channel Leader/captain -dominate company who controls the channel able to do this because of some type of power |
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Term
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Definition
Economic-controls resources
Legitimate- Has legal authority
Reward/Coercive-company use exclusive distribution and can give or take profitable products. |
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Term
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Definition
| affects pricing, product and its positioning |
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Term
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Definition
the process relating to the movement of products through the supply chain
designing, managing, and improving the movement of products
-purchasing
-manufacturers
-storage
-transport |
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Term
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Definition
| activities that move product for manufacturers to final customers |
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Term
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Definition
Order Processing
Warehousing
Material handling
Transportation
Inventory Control |
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Term
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Definition
| activities between receiving an order and shipping a product |
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Term
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Definition
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Term
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Definition
| a company rent a portion of a warehouse |
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Term
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Definition
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Term
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Definition
| hold of product for a short period of time |
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Term
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Definition
| moving a product into, within, out of warehouses |
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Term
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Definition
| how we move product among channel members |
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Term
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Definition
| Railroads, Water,Trucks,Air,Pipelines,Internet, |
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Term
| Intermodial modes of transportation |
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Definition
a combination of modes
-Fishyback
-Piggyback
-trainship |
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Term
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Definition
| carry heavier and bulkier items longer distant |
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Term
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Definition
| carry large products especially international |
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Term
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Definition
| short hauls offering flexibility in location |
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Term
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Definition
high value low bulk items.
fastest and most expensive form of transportation |
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Term
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Definition
| carry petroleum and other chemicals |
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Term
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Definition
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Term
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Definition
| water and trucks combined |
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Term
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Definition
| Trucks and railroads combined |
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Term
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Definition
| Water and railroads combined |
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Term
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Definition
| Activities to ensure that goods are always available to meet customer demands |
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Term
| Types of Inventory Control system |
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Definition
Radio Frequency Identification (RFID)
Just in time (JIT) |
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Term
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Definition
| Product tags with tiny chips containing information about the items content, origin, and destination |
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Term
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Definition
| Inventory management and purchasing processes that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed. |
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