A situation that occurs when one marketing channel member intentionally affects another member's behavior.
Channel Captain (Leader)
A member of a marketing channel that exercises authority and power over the activities of other channel members.
All parties in the marketing channel that negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer.
Channel Partnering (Channel Co-operation)
The joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage
The capacity of a particular marketing channel member to control or influence the behavior of other channel members.
Discrepancy of Assortment
The lack of all the items a customer needs to receive full satisfaction from a product or products.
Discrepancy of Quantity
The difference between the amount of product produced and the amount an end user wants to buy.
Distribution Resource Planning (DRP)
An inventory control system that manages the replenishment of goods from the manufacturer to the final consumer.
Dual Distribution (Multiple Distribution)
The use of two or more channels to distribute the same product to target markets.
Electronic Data Interchange (EDI)
Information technology that replaces the paper documents that usually accompany business transactions, such as purchase orders and invoices, with electronic transmission of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission.
A distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals.
A form of distribution that establishes one or a few dealers within a given area.
A form of distribution aimed at having a product available in every outlet where target customers might want to buy it.
Inventory Control System
A method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's demand.
A process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line.
The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.
A channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer.
Supply Chain Management
A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.
The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function
Supply Chain Team
An entire group of individuals who orchestrate the movement of goods, services, and information from the source to the consumer.
A situation that occurs when a product is produced but a customer is not ready to buy it.
Intermediaries, Resellers and Middlemen
Interchangeable terms for these channel members who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from manufacturer into the hands of the final customer.
Logistics Information System
Information technology that integrates and links all of the logistics functions of the supply chain.
Marketing Channels (Channel of Distribution)
A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.
Mass Customization (Build to Order)
A production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications.
Materials Requirement Planning
An inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer.
Outsourcing (Contract Logistics)
A manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing.
A form of distribution achieved by screening dealers to eliminate all but a few in any single area.
The difference between the location of a producer and the location of widely scattered markets.
Strategic Channel Alliance
A cooperative agreement between business firms to use the other's already established distribution channel.