MKTG 351 Chapter 13 - Supply Chain Management and Marketing Channels
Functions of Supply Chain Management
-Procuring materials -creating finished products -Distributing finished products
inventory control
-how many supplies and goods are needed -keeping track of quantities on hand
functions of business logistics
1. source 2. make 3. deliver
Elements of Supply Chain Management
1. supply chain integration 2. demand supply integration
manufacturers may not want to own channels because:
1. they have limited capital 2. distribution is not their core strength
When there is little or no relationship between channel members, it is called: Arm's-length Cooperative Integrated Exclusive
Arm's-length
Globalization
Businesses develop international influence or start operating on an international scale.
How does demand management serve customers in the most cost-effective manner? By managing inventory through collaborative planning to reduce costs By working with customers to manage their demand By integrating the management of core business process By allowing customers to understand the service provided
By managing inventory through collaborative planning to reduce costs
Intermediaries
Channel members operating between the producer and the consumer
In which of the following do businesses put customers at the center, manage every contact with them, and leverage this to better serve them and increase sales? Customer relationship management Customer service management Product development Supplier relationship management
Customer relationship management
Which of the following has facilitated order processing? Customer relationship management Enterprise resource planning Electronic data interchange Planning schedule management
Electronic data interchange
Electronic Data Interchange (EDI)
Electronic exchange of business documents between a retailer and a vendor
Safety Stock
Extra inventory carried in addition to the expected demand -Reduces stock-outs
selective distribution
Form of distribution achieved by screening dealers to reduce to one in single area
Which of the following is not an element of supply chain management? Supply chain integration Relationship integration Demand-supply integration Increasing demand
Increasing demand
In which of the following, is there a goal for complete synergy between channel members? Arm's-length Cooperative Integrated Intensive
Integrated
arm's-length relationship
Loose relationship between companies that's low in relational investment and trust
Which of the following integrations delivers materials and services to offer better value? Demand-supply integration Technology and planning integration Supply chain integration Material and service supplier integration
Material and service supplier integration
Which of the following is not a type of distribution system? Intensive Selective Exclusive Matrix
Matrix
What is 3PL? Outsourcing an entire logistical function Products are manufactured with the pull system Managing inventory from the supplier to manufacturer The physical movement of products in a supply chain
Outsourcing an entire logistical function
End of life management
Planning for the phase-out of one product and the phase-in of new product
What is customer integration? Improving the ability of partner firms to rely on each other Increasing customer demand by multiple firms coordinating their activities Providing long-lasting value-added offerings to customers Improving the ability to manipulate demand to meet supply
Providing long-lasting value-added offerings to customers
Who do wholesalers sell to? Agents Brokers Retailers Distributors
Retailers
What are the three groups of functions we talked about here? Need, fund, and will Source, make, and deliver Order, confirm, and fulfill Schedule, activity, and deliver
Source, make, and deliver
Which of the following maintains relationships with key suppliers? Customer relationship management Customer service management Product development Supplier relationship management
Supplier relationship management
Outsourcing Logistics Functions
Supplier turns over function of supply chain management to third party.
How are companies protecting themselves in case of a natural calamity? Outsourcing Supply chain security By having one main location By having online distribution
Supply Chain Security
What is business logistics? The physical movement of products through the supply chain The movement of services through the supply chain The coordination of activities The schedule time to complete a deliverable
The physical movement of products through the supply chain
How do intermediaries add value to the customer? They introduce new products They provide supplies to the manufacturers They reduce the number of transactions They increase the number of transactions
They reduce the number of transactions
3PL (Third Party Logistics)
Third party that negotiates and coordinates all logistics services
integrated relationship
Tight relationship between companies with linked processes and high levels of trust
Why would an American company prefer to partner up with a company in Mexico than a company in Singapore? To reduce transportation costs Communication is difficult with Singapore Singapore's technology is not as advanced It's a good idea to keep neighboring countries happy
To reduce transportation costs
What are companies in marketing channels also referred to as? Suppliers Partners Trade members Manufacturers
Trade members
Relationship Integration
Utilizing 2+ companies to develop social connections
order processing
activities between time of order and time product is delivered -accuracy -time efficient
intensive distribution
aimed at having product available in every outlet of target customers
Types of distribution relationships
arm's length cooperative integrated (vertical marketing systems)
wholesaler
business that buys goods in large amounts and resells them to other businesses
supply chain resilience
capability of a supply chain to minimize disruption and to recover
Demand Management
collaborating on planning to reduce costs, while fulfilling demands.
logistics information systems
connects all logistics functions of supply chain
4PLs
consulting organization that assesses a company's logistical needs and provides integrated solutions from 3PL's
Manufacturing Resource Planning
coordinating a firm's material requirements
Supply Chain Management
coordination of activities between companies as unified system
postponement
delay of product modifications for as long as possible in production
Customer Relationship Management (CRM)
designed to optimize profitability and customer satisfaction by focusing on highly defined customer groups
channel conflict
disagreements among marketing channel members on goals, roles, and rewards
direct channel
distribution channel where producers sell directly to consumers
customer integration
enables firms to offer value-added offerings to customers who represent the greatest value
manufacturing flow management process
ensuring firms in supply chain have needed resources to manufacture with flexibility
marketing channel
firms involved in process of making product or service available for consumption
returns management process
firms manage volumes of returned product efficiently while minimizing returns costs -keeps customers happy
wholesaler channel
for low-cost items that are frequently purchased
transportation
goods are moved from one place to another.
electronic distribution
includes any kind of product or service that can be distributed electronically
demand-supply integration (DSI)
integrating supply-management and demand-generating functions
Types of Distribution
intensive, selective, exclusive
retailer
intermediary that sells mainly to consumers
exclusive distribution
limited number of dealers with exclusive right to distribute products in their territories
material and service supplier integration
link seamlessly to outsiders that provide goods and services
Technology and planning integration
maintenance of IT systems that connect managers across firms in supply chain.
distribution resource planning (DRP)
manages replenishment of goods from manufacturer to final consumer
Supply Chain Risk Management
managing risk of any factor that can disrupt supply chain
cooperative relationship
moderate levels of trust and information sharing as needed
warehousing and materials handling
moving inventory in and out of warehouse
customer service management
multi-company, unified response system to the customer whenever concerns are voiced.
product development and commercialization process
multiple firms in the supply chain launch new products -creates competitive edge
sustainable supply chain management
need for optimizing social and environmental costs
Channel Length
number of intermediaries that product has to go through before it reaches final consumer.
distributor
organization that helps another organization sell its goods and services to customers
distribution channel
organizations responsible for flow of products and services from producer to user
pull manufacturing
products are manufactured only as needed -reduces waste -requires responsive delivery system
order fulfillment process
providing on-the-spot service for customer orders -less time = better -reduce inventory costs
sourcing and procurement
reducing cost of materials and supplies with aggressive bargaining
Supply chain security management
reducing risk of intentionally created disruptions in supply chain operations
Offshoring
relocating business processes to lower-cost foreign location
Supply Relationship Management (SRM)
structural support to maintain relationships with suppliers
RFID tags
tell where the product is at any given time
Nearshoring
transfer of an offshored activity from a distant to a nearby country -reduces transportation costs -Canada and Mexico for the U.S.
supply chain integration
when multiple business functions coordinate their activities so they are seamlessly linked
retailer channel
when retailer is large and can buy from manufacturer in large quantities
agents and brokers
wholesaling intermediaries who facilitate its sale from producer to end user by representing the company -agents represent one party -brokers represent multiple sellers