 | Term | Definition |
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Breaking bulk |
Dividing large quantities of goods into smaller lots in order to meet the needs or buyers. |
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Channel Intermediaries |
Firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. |
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Channel leader |
A firm at one level of distribution that takes a leadership role, establishing operating norms and processes based on its power relative to other channel members. Such AS Walmart or Sears forcing manufacturers or distributors to use their ERP (IOS) system. |
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Channel levels |
The number of distinct categories of intermediaries that populate a channel of distribution (manufacturer-->wholesaler-->retailer-->consumer = 4 levels). |
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Channel of distribution |
The series of firms or individuals that facilitates the movement of a product from the producer to the final customer. |
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Conventional marketing system |
A multi-level distribution channel in which channel members work independently of one another. |
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Creating assortments |
Intermediaries have the ability to provide (group and ship together) a variety of products in one location to meet the needs of buyers. |
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Disintermediation |
The elimination of some layers of the channel or distribution in order to cut costs and improve the efficiency of the channel. E-commerce systems can do this. |
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Enterprise resource planning (ERP) system |
A software system that integrates information from across the entire company, including finance, order fulfillment, manufacturing, and transportation and then facilitates sharing of the data throughout the firm. |
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Exclusive distribution |
Selling a product only through a single outlet in a particular region (to give the perception of exclusiveness). |
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Facilitating functions |
Functions of channel intermediaries that make the purchase process easier for customers and manufacturers, for example extending credit, breaking bulk, creating assortments. |
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Horizontal marketing system |
An arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose. For example retailers grouping together to buy products in bulk from manufacturers. |
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Independent intermediaries |
Channel intermediaries that are not controlled by any manufacturer but instead do business do business with many different customers. |
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Insourcing |
A practice in which a company contracts with a |
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Intensive distribution |
Selling a product through all suitable wholesalers or retailers that are willing to stock and sell the product. Create a wide availability of your product. |
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Inventory control |
Activities to ensure that products are always available to meet customer’s demands. |
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Just in time (JIT) |
Inventory management and purchasing processes that manufactures and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed. |
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Knowledge management (KM) |
A comprehensive approach to collecting, storing, and retrieving a firm’s information assets. Vertical marketing systems use KM systems to share information. |
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Logistics |
The actual work involved in executing the flow of materials through the supply chain. Logistics includes the process of designing, managing, and improving the movement of products through the supply chain. Logistics includes purchasing, manufacturing, storage, and transport. |
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Materials handling |
The moving of products into, within, and out of warehouses. |
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Merchandise agents or brokers |
Channel intermediaries that provide services in exchange for commissions but never take title (ownership) to the product. |
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Merchant wholesalers |
Intermediaries that buy goods from manufacturers (take title to them) and sell to retailers and other business-to-business customers. |
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Order processing |
The series of activities that occurs between the time an order comes into the organization and the time a product goes out the door. |
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Physical distribution |
The activities used to move finished goods from manufacturers to final customers, including other processing, warehousing, materials handling, transportation, and inventory control. |
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Radio frequency identification (RFID) |
Product tags with tiny chips containing information about the item’s content, origin, and destination. |
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Selective distribution |
Distribution using fewer retail outlets than intensive distribution but more than exclusive (1 store in town carries the product) distribution. |
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Supply chain |
All the activities necessary to turn raw materials into a good or service and put it in to the hands of the consumer or business customer. Supply chains usually are made up many different businesses (diff materials providers, materials processors, etc) |
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Supply chain management |
The management of flows among firms in the supply chain to maximize total profitability. People use ERP software (or similar) to do this |
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Take title |
To accept legal ownership of a product and assume the accompanying rights and responsibilities or ownership. |
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Transportation |
The mode by which products move among channel members. (trucks, trains, planes, etc.) |
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Value chain |
A theoretical explanation of the series of activities involved in designing, producing, marketing, delivering, and supporting any product. Each link in the chain has the potential to either add or remove value from the product the customer eventually buys. Logistics activities do the actual work of the value chain. |
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Vertical marketing system |
A channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels. For example a retailer may buy all the output from a manufacturer. |
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Warehousing |
Storing goods in anticipation of sale or transfer to another member of the channel of distribution. Retailer, wholesalers, or manufacturers do this. The goal is to reduce the amount of product sitting around, and keep it flowing toward consumers. |
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Wholesaling intermediaries |
Firms that handle to flow of products from the manufacturer to the retailer or business user. |
| Add or remove terms from this set |
