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*supply chain

moves left to right
all along improvements are made
suppliers-[purchasing-production-distribution]-customer

*marketing channel

move vertically top to bottom
not always improving

marketing channels create utility

time
place
possession
form

pepsi

formed from pepsi bottling group and pepsi americas

dual distribution

"got it covered"

strategic channel alliance

"we have the goods, and need you to help us get em there"

*intensity of market coverage

intensive
selective
exclusive

channel leadership, cooperation, and conflict

Leadership—channel 'captain' with 'power'. Such as WalMart. Or Procter and Gamble
Cooperation—everyone must work together.
Conflict—eliminating intermediaries or when channel members broaden their line.

channel integration

Vertical Channel Integration:
When one channel member purchases another or assumes duties of another.
Vertical Marketing Systems:
All handled by one.
Administered and Contractural

PHYSICAL DISTRIBUTION IN SUPPLY-CHAIN MANAGEMENT

Outsourcing to third party. Perhaps CAT Logistics.

Order processing. Thru EDI.

Inventory Management. See reorder point.

Re-order=(lead time x usage rate) + safety stock.

example of reorder point

Re order point = (10 days x 10 per day) + 30 safety stock.

Re order point = 130 in stock.

just in time

Known as J I T approach. Parts arrive just in time for use.

Used by Chrysler, Dell Computer, Harley-Davidson.

And at Thanksgiving

materials handling

Use of RFID. Radio frequency ids.
http://www.youtube.com/watch?v=XhFuINhTRaA

WAREHOUSING
Public and private warehousing.

LEGAL CONCERNS IN TRANSPORTATION

-Dual distribution. Could break the law when used to put someone out of business.
-Restricted Sales Territories. Coors beer. Each court case is unique.
-Tying Agreements. Many are considered illegal.
-Exclusive Dealing. Depends on size of restriction.
-Refusal to Deal. Each case is unique

retailing

Retailer: purchase products for the purpose of selling them to the ultimate consumer.

Retailing: transactions in which the buyer intends to consume the product through personal, family, or household use.

general merchandise retailers

gmr, department stores, discount stores, convienience stores, supermarkets, superstores, hypermarkets, warehouse clubs, warehouse showrooms

specialty retailers

-Traditional Specialty Retailers: Carry a narrow product mix with deep product lines. They are sometimes called "limited-line retailers
-Category Killers: A very large specialty store concentrating on a major product category and competing on the basis of low prices and product availability
-Off-Price Retailers: Buy manufacturers' seconds, overruns, returns and off-season production runs at below-wholesale prices for resale to consumers at deep discounts

location

neighborhood, community, regional, seperregional, lifestyle, power

direct marketing

direct to consumers
call to action

franchising

arrangement in which a supplier, or franchiser, grants a dealer, or franchisee, the right to sell products in exchange for some type of consideration

franchising advantages

Franchising enables a franchisee to start a business with limited capital and to benefit from the business experience of others
Are generally more successful than independently owned outlets
The franchiser gains fast product distribution through franchise arrangements
The franchiser can dictate many aspects of the business

franchising disadvantages

The franchisee must pay to use the franchiser's name, products and assistance
The franchisee gives up control when entering into a franchise agreement

types of franchises

product
manufacturing
business format

wholesaling

All transactions in which products are bought for resale, for making other products, or for general business operations

Wholesaler
An individual or organization that sells products which are bought for resale, for making other products, or for general business operations

merchant wholesalers

Independently owned businesses that take title to goods, assume risks associated with ownership and generally buy and resell products to other wholesalers, business customers, or retailers

full service wholesalers

Perform the widest possible range of wholesaling functions
Types of Full-Service Wholesalers
-General-Merchandise Wholesalers: Carry a wide product mix but offer limited depth within product lines
-Limited-Line Wholesalers: Carry few product lines but offer an extensive assortment of products within those lines
-Specialty-Line Wholesalers: Offer the narrowest range of products
-Rack Jobbers: Full-service, specialty-line wholesalers that own and maintain display racks in supermarkets, drugstores and discount and variety stores

limited service wholesalers

Provide fewer marketing services than full-service wholesalers and specialize in just a few functions, passing on the rest of the functions to customers or other intermediaries
-Cash-and-Carry Wholesalers: Intermediaries whose customers pay cash and furnish transportation
-Truck Wholesalers: Transport a limited line of products directly to customers for on-the-spot inspection and selection
-Drop Shippers: Take title to goods and negotiate sales but never take actual possession of products
-Mail-Order Wholesalers: Use catalogs instead of sales forces to sell products to retail and business customers

*brokers and agents

Brokers -Intermediaries temporarily employed by buyers or sellers in order to unite buyers and sellers
Agents -Represent either buyers or sellers on a permanent basis

Types of Agents
-Manufacturers' Agents: Independent intermediaries who represent sellers and usually offer customers complete product lines
-Selling Agents: Market either all of a specified product line or a manufacturer's entire output
-Commission Merchants: Receive goods on consignment from local sellers and negotiate sales in large, central markets

Manufacturer's Sales Branches and Offices

Sales Branches
-Manufacturer-owned intermediaries that sell products and provide support to the manufacturer's sales force

Sales Offices
-Manufacturer-owned operations that provide services normally associated with agents

rfid

radio frequency identification

*re order point

re order=lead timexusage rate+safety stock
ex. ro order=10daysx10 per day
reorder=130 in stock

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