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Definition
| all of the activities necessary to turn raw materials into a good or service |
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Definition
| management of flows among firms in a supply chain to maximize total profitability |
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Definition
| series of firms or individuals that facilitates the movement of a product from producer to final customer |
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Definition
| involves one or more intermediaries |
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Term
| 7 functions of distribution channels |
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Definition
utility: time place, and ownership
logistics functions: phsycial distribute
create efficiences: reduce number of transactions (ex. breaking bulk-purchase large quantities to sell or a few at a time)
handle transporting and storing of goods
make purcahse process easier
provide service after sale
help facilitate communicationa nd transaction |
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Definition
| sharing info with other supply team members (intenet makes more efficient) |
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Term
| full service merchant wholesalers |
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Definition
| handle most of services for customers |
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Term
| limited service mercahnts (do fewer) |
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Definition
cash and carry
truck jobbers
drop shippers
mail order wholesalers
rack jobbers |
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Term
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Definition
| provide low cost products to companies who do not require credit or delivery |
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Term
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Definition
| handle delivery of perishable items |
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Term
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Definition
| take title of merchandise but not position |
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Definition
| over phone and catalog to business |
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Term
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Definition
| provide display units for reseller and maintain these units |
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Term
| Merchandise agents and brokers |
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Definition
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Term
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Definition
| independent salespeople carry several noncompeting products |
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Definition
| carry whole product line or company total output |
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Definition
| receive products on consignment and take possession but not title (sells corn at market for farmer) |
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Term
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Definition
| bring together buyers and sellers for a commission |
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Term
| Manufacturer-Owned Intermediaries: sales branches |
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Definition
| carry inventory sales and support to certain locations |
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Term
Manufacturer-Owned Intermediaries
sales offices |
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Definition
| perform selling function, but odn't carry inventory |
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Term
Manufacturer-Owned Intermediaries
manufacturer showroom |
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Definition
| permanent product display for customer to visit |
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Term
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Definition
| company interacts with more than one type of channel |
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Term
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Definition
| company has added a new channel to service target market |
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Term
| size of channel intermediary determiens who has power |
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Definition
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Term
| 4 steps in distribution planning INSERTGRAPHHERE |
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Definition
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Term
| Step 3: choose distribution strategy |
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Definition
# of channel levels
type of system
-conventional
-vetical
-horizantal
level of distribution intensity |
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Term
| conventional marketing system |
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Definition
| members work independentley (buy and sell from each other |
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Term
| vertical marketing (3 types) |
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Definition
formal cooperation among members
1. administered-members are independenet but voluntarily work together because of power of one member
2. corporate-single copmany owns various channels
3. contractual-members cooperate because of legal responsibility |
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Term
| Horizantal marketing system |
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Definition
| 2 or more companies at the same level agree to work together to get their product to the custoemr |
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Term
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Definition
intensive
exclusive
selective |
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Term
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Definition
| selling through all suitable retailers (good for convenience goods) |
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Term
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Definition
| selling only through a single outlet in a geographic region |
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Definition
| fewer outlets than intensive but more than exclusive (electronics and appliances |
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Term
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Definition
dominant company that has control because of power
1. economic-ability to control resources
2. legit power-have legal authority to call shots
3. reward power-can give or take away profitable products |
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Term
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Definition
1. public-company rents portion
2. private-company owns it
3. distribution centers-store product for short time |
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Term
| 5 functions of logistics SEE GRAPH |
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Definition
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Term
| 6 transportation variables |
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Definition
dependability
cost
speed
accessibility
capability-variety of products handled
traceability-ability to locate |
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Term
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Definition
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Definition
| activity to ensure goods are always available to meet customer demand |
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Definition
radio frequency identification
product tags with tiny chips containing info about content origin and destination |
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Definition
just in time
ensures delivery arrives only when needed (low inventory levels) |
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Term
| Perfect order measurement |
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Definition
| multiplies all error rates in each stop to find where probelms are |
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Term
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Definition
on time delviery
forecast accuracy
value added productivityper employee
returns processed as percentage of revenue
customer order actual cycle time
perfect order measurement |
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