Marketing Channels and Supply Chain Management

1
Marketing Channels and
Supply Chain Management
CHAPTER 12
2
Marketing Channels
LOI
Marketing Channel

• A set of interdependent organizations that ease
  the transfer of ownership as products move from
  producer to business user or consumer.

3
Marketing Channels
LOI
Supply Chain

• The connected chain of all the business entities,
  both internal and external to the company, that
  perform or support the logistics function.

4
Marketing Channel Functions
LOI
5
Specialization and Division of Labor

• Creates greater efficiency
• Provides lower costs
• Achieves economies of scale
• Aids producers who lack resources to market
  directly
• Builds good relationships with customers

LOI
6
Channel Intermediaries
LO2
7
Channel Intermediaries
LO2
8
Factors Suggesting Type of Wholesaling
Intermediary to Use
LO2
9
Factors Suggesting Type of Wholesaling
Intermediary to Use
LO2
10
Channel Functions Performed by Intermediaries
LO2
11
Logistics
LO2
12
REVIEW LEARNING OUTCOMEChannel Intermediaries
and Functions
LO2
13
Channel Structures
LO3
Describe the channel structures for consumer
and business products and discuss alternative
channel arrangements
14
Channels for Consumer Products
LO3
A distribution channel in which producers sell
directly to consumers.
15
Channels for Consumer Products
LO3
16
Channels for Business Products
LO3
17
Business-to-Business Exchanges on the Internet
LO3
18
Alternative Channel Arrangements
LO3
19
Supply Chain Management
LO4
20
Role of Supply Chain Management
LO4
21
Responsibilities of Supply Chain Managers
LO4
22
The Supply Chain Process
LO4
23
Benefits of Supply Chain Management
LO4
24
Channel Strategy Decisions
LO5
25
Market Factors
LO5
26
Product Factors
LO5
27
Producer Factors
LO5
28
Levels of Distribution Intensity
LO5
29
Levels of Distribution Intensity
LO5
30
Social Dimensions of Channels
LO6
31
Channel Power, Control, and Leadership
LO6
32
Channel Conflict and Partnering
LO6
33
Channel Conflict
LO6

• Conflicts may occur if channel members
• Have conflicting goals
• Fail to fulfill expectations of other channel
  members
• Have ideological differences
• Have different perceptions of reality

34
Channel Partnering
LO6
35
Logistical Components of the Supply Chain
LO7
36
Sourcing and Procurement
LO7
The Role of Purchasing

• Plan purchasing strategies
• Develop specifications
• Select suppliers
• Negotiate price and service levels
• Reduce costs

37
Production Scheduling
LO7
38
Just-in-Time Manufacturing
LO7
39
Benefits of JIT
LO7

• Reduces raw material inventories
• Shortens lead times
• Creates better supplier relationships
• Reduces production and storeroom costs
• Reduces paperwork

40
JIT Requirements
LO7
41
Order Processing
LO7
42
Order Processing
LO7
43
Order Processing
LO7
44
Inventory Replenishment Example
LO7
45
Materials Handling Functions
LO7
46
Transportation
LO7
47
Transportation Mode Choice

• Cost
• Transit time
• Reliability
• Capability
• Accessibility
• Traceability

LO7
48
Criteria for RankingModes of Transportation
LO7
49
Trends in Supply Chain Management
LO8
50
Advanced Computer Technology
LO8

• Automatic identification systems
• Bar coding
• Radio frequency technology
• Communications technology
• Supply chain software systems

51
Outsourcing Logistics Functions
Outsourcing Benefits

• Reduce inventories
• Locate stock at fewer plants and distribution
  centers
• Provide same or better levels of service

LO8