Marketing Chapter 10 Supply Chain and Logistics

Warehousing functions

- storage - movement (receiving, put-away, picking, shipping) - production

Transportation Management

: must consider the costs and timing of each • Rail (most damage) • Motor (primarily used) • Air (most expensive/most efficient/intermodal) • Water (cheap/slow/intermodal) • Pipeline (limited intermodal) • Cyberspace

Logistics 7 Rs

Getting the right product to the right customer in the right quantity, in the right condition, at the right place, at the right time, and at the right cost

Obsolete Inventory

can no longer be sold

Supply Chain Management

coordination of production, inventory, location, and transportation among the participants in a supply chain

Upstream flow

financial resources and information

Inbound logistics

goods and raw materials moving from suppliers to ur company

Materials Management

inbound movement and storage of materials in preparation for manufacturing

Distribution channels or marketing channels

intermediaries, such as wholesalers, distributors, and retailers, through which the flow of products travel

Direct store delivery

manufacturer ships to stores

Outbound logistics

movement of FG from ur company to customers

Supply chain network

network of companies made up of many suppliers, selling to many immediate customers

Supply Chain

network of org. that are involved, through upstream and downstream linkages - flows of products and services, financial resources, and info

Seasonal Stock

only sold at certain times of year

3 PL or Third Party logistics

outsourcing of logistics activities, any

Sourcing

processes required to purchase G&S

Anticipative Stock

produced or purchased when an event is expected to affect availability

Downstream flow

products going down to consumers

Omnichannels

purchase goods through retail or online stores

Logistics

refers to activities that occur within the boundaries of a SINGLE org. - enables supply chain to run smoothly - plans, implements, and controls the flow of G&S and info between the point of origin and the final customer

Regionalization

sourcing components or building manufacturing plants through the world and using each region to supply its own geographic customers

Inventory Carrying Costs

storage and handling expenses, property taxes and insurance, damage to or obsolescence of the good

Pipeline inventory

transity between supplier and consumer

Safety stock and anticipatory stock

used to buffer short-term variations in demand and order lead times

Cyclical Inventory

used to meet average demand

Intermodal Transport

uses multiple types of transportation for the same shipment

Vertical Integration

when a company controls 2 or more stages of production or distribution normally operated by separate companies

Lead time

The time it takes from the placement of an order to the delivery of the goods

Half the product is ready, and you are waiting on customer orders to finish

Push-Pull Strategy (Hybrid)

We are waiting for the order, then we will produce - No economies of scale - Flexible

Pull Strategy (Responsive)

Inventory is ready, and you are waiting for the order. - Based on sales forecast - Can achieve economies of scale (good for cost reduction)

Push strategy (Speculation)

Accessibility

The carrier's ability to provide service from the source of shipment

Distribution Center (DC)

The manufacturer produced the G&S