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