Term
| Define: Distribution channel |
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Definition
| The institutions that transfer ownership of and move goods from the point of production to the point of consumption |
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Term
| Define: logistics management |
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Definition
| The integration of two or more activities for the purpose of planning, implementing, and controlling the efficient flow of raw materials |
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Term
| Name (3) types of distribution channel structures and (2) ways to choose them |
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Definition
1. Direct distribution: manufacturers deal directly with consumers
2. Indirect distribution: one or more intermediaries work with the manufacturer to provide goods and services to consumers (push strategy vs. pull strategy)
3. Multichannel distribution: using a combination of both direct and indirect distribution channels
Ways to choose:
1. Customer expectations
2. Channel member characteristics |
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Term
| Name (3) types of distribution intensities |
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Definition
1. Intensive distribution: designed to get products into as many outlets as possible
2. Exclusive distribution: granting exclusive rights to sell to one or very few retail customers so no other customers can sell a particular brand
3. Selective distribution: uses few selected customers in a territory (in between intensive and exclusive) |
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Term
| Name (3) ways to manage channels through vertical marketing systems |
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Definition
1. Administered vertical marketing system: no common ownership and no contractual relationships, but the dominant member controls the channel relationship
2. Contractual vertical marketing relationship: independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination and to reduce conflict
3. Corporate vertical marketing system: parent company has complete control and can dictate the priorities and objectives of the supply chain |
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Term
| What is EDI and how is is it transmitted over the internet between vendors and retailers? |
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Definition
EDI - Electronic data interchange: computer to computer exchange of business documents
1. Intranet: a secure communication system contained within one company
2. Extranet: a collaborative network that uses internet technology to link businesses with their suppliers, customers, or other businesses |
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Term
| Name (4) things a strategic relationship must have in order to succeed |
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Definition
1. Mutual trust
2. Open communication
3. Common goals
4. Credible commitments |
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Term
| Name the (6) steps or ways to make merchandise flow smoothly |
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Definition
1. Inbound transportation (time slots)
2. Receiving and checking (recording receipts, checking goods)
3. Storing and cross-docking: 3 types:
- Traditional: warehouse where merchandise is unloaded from trucks and placed on shelves for storage
- Cross-docking: vendors ship merchandise prepackaged in the quantity required for each store
- Combinations: combine the above
4. Getting merchandise floor ready
5. Shipping merchandise to stores
6. Inventory management through just-in-time systems |
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