Chapter 13 MAR 3023
_______ is the increased value of a product that is created as its ownership is transferred.
Exchange utility
If a company partners with only one retailer per state, this is an example which type of distribution?
Exclusive
Which type of channel variation sells the same product using multiple channel structures?
Dual distribution
Which of the following are true statements about supply chains?
A company's supply chain includes all the companies involved in the flow of providing products to customers; the goal of supply chain management is to integrate all supply chain activities into a seamless process; Supply chain partners could include home delivery partners.
A major shoe manufacturer, which currently uses a multichannel distribution system to make its products available to customers, is considering changing to an omnichannel strategy. Which of the following is true regarding a multichannel system?
A multichannel distribution system can be more expensive due to redundancy and complexity in the firm's distribution system.
Pella Windows is a manufacturer of windows. The company has a range of window styles and finishes that can be customized to meet each customer's needs. The product is relatively complex and must be made-to-order to meet an individual customer's requirements. Which of the following statements is true regarding the factors that affect the channel choice for Pella Windows?
A shorter and more direct distribution channel is preferred.
Which type of channel is a variation of the direct channel that utilizes e-commerce and social media?
Digital
Aligning supply and demand throughout the supply chain by anticipating customer demand and planning production and inventory accordingly describes which process of supply chain management?
Demand management
Suhani works for a grocery meat wholesaler. The company purchases fresh pork and beef products from the farmers who raise the animals. The farmers deliver the meat products to Suhani's company in packages ready to be taken to the grocery store. Which type of utility do the farmers provide to the grocery meat wholesaler?
Form utility
Prairie Farms is a dairy business that offers milk, cheese, butter, ice cream, and other dairy products to grocery and convenience stores. Which type of distribution intensity would be best for Prairie Farms?
Intensive
John Deere is a manufacturer of agriculture equipment. Deere supplies replacement parts to dealerships across the globe. John Deere has begun utilizing technology so it can identify the geographic location of the parts. This information is available to dealerships and is especially useful in reducing equipment downtime. Agriculture equipment owners can have their machines repaired with replacement parts in a shorter amount of time than before the use of the tracking technology. This is an example of a phenomenon referred to as the _______.
Internet of Things
Aditi purchases frozen food items from Schwan's. Her Schwan's account representative delivers the items Aditi has purchased to her home once a week. Aditi enjoys buying Schwan's products because of the convenience. The items stay cold because there is less travel time from the refrigerated truck in her driveway to her home freezer. Which type of utility does Schwan's provide Aditi?
Place utility
Facilitating the joint development and marketing of new offerings among a group of supply chain partner firms describes which process of supply chain management?
Product development and commercialization
A company sells inventory that must always be refrigerated. This is an example of which factor affecting the choice of distribution channel?
Product factors
Sharing a basic framework for how companies in the supply chain will communicate and work together is an example of what level of external integration?
Relationship integration
Manuel loves to grill, so he recently purchased a new gas grill online from Costco. The grill arrived, but unfortunately, it was damaged in shipping. Several aluminum pieces were dented, and the shipping box was noticeably damaged. Manuel contacted Costco, which emailed him a shipping label. He learned that the damaged grill will be sent to a Costco warehouse. Costco will file a claim with UPS and receive reimbursement for the grill since it was insured against damage. Which business process related to supply chain management is highlighted by this example?
Returns management
Which type of channel variation uses another manufacturer's already established channel?
Strategic channel alliance
By relying on customer data, a company discontinues products that aren't in demand before inventories can build up. This is an example of which benefit of supply chain management?
Streamlined product mix
The creation and maintenance of information systems that connect managers across firms in the supply chain is an example of what level of external integration?
Technology and planning integration
supply chain orientation
a system of management practices that are consistent with a "systems thinking" approach
drop and shop
a system used by several retailers that allows customers to bring used products for return or donation at the entrance of the store
Which channel members buy products from producers and distribute them to retailers?
Wholesalers
retailer
a channel intermediary that sells mainly to consumers
strategic channel alliance
a cooperative agreement between business firms to use the other's already established distribution channel
blockchain
a digital ledger in which transactions are made and recorded chronologically and publicly
direct channel
a distribution channel in which producers sell directly to consumers
third-party logistics company (3PL)
a firm that provides functional logistics services to others
order fulfillment process
a highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time
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
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
sales and operations planning (S&OP)
a method companies use to align production with demand by merging tactical and strategic planning methods across functional areas of the business
marketing channel (channel of distribution)
a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer
modular
a standardized form of component parts manufacturing designed so the parts are easily replaced or interchanged
sustainable supply chain management
a supply chain management philosophy that embraces the need for optimizing social and environmental costs in addition to financial costs
demand-supply integration (DSI)
a supply chain operational philosophy focused on integrating the supply-management and demand-generating functions of an organization
Internet of Things (IoT)
a system of interrelated computing devices, mechanical and digital machines, objects, animals, or people that are connected and able to transfer data over a network without overt human effort
Footlocker, a specialty retailer of athletic shoes, works closely with its suppliers. Footlocker seeks to partner with Adidas, Nike, and Under Armour to reduce customer wait times for new products, reduce supply chain complexity, and continuously monitor the best-selling styles for each store location. In other words, Footlocker seeks to implement supply chain _______.
agility
channel members
all parties in the marketing channel 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 the manufacturer into the hands of the final consumer
customer relationship management (CRM) process
allows companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or supply chain
machine learning (ML)
an application of artificial intelligence that provides systems the ability to automatically learn and improve from experience without being explicitly programmed
merchant wholesaler
an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them
supply chain agility
an operational strategy focused on creating inventory velocity and operational flexibility simultaneously in the supply chain
Kayla is a route delivery driver for Ray's Potato Chips. She has 100 different retail outlets on her route and typically visits each store twice a week to replenish stock. The company uses a computer system that determines the optimum delivery schedule and automatically programs the navigation system Kayla uses for her routes. The computer system also produces an inventory list for each store that the loading team utilizes to place items in Kayla's truck. It's a very efficient system since the items at the back of the truck are delivered to the first store on the route. The computer system is utilizing _______ to determine Kayla's routes and facilitate efficient product loading onto her truck.
artificial intelligence
business processes
bundles of interconnected activities that stretch across firms in the supply chain
automated vehicles
cars, trucks, or other ground transportation modes for which human drivers are not required to take control to safely operate the vehicle
reverse channels
channels that enable customers to return products or components for reuse or remanufacturing
manufacturing flow management process
concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process
Which of the following are examples of omnichannel marketing?
customer can use a mobile app to assist with in-store product research and purchasing; customer can order online and pick-up at the physical store
Graciela is a professional portrait photographer who often orders canvas prints and other custom products from Artsy Couture. Graciela regularly receives e-mail notices from Artsy Couture with special incentives such as 20 percent off her next order. Graciela feels appreciated by Artsy Couture as one of its top customers, and she has developed a sense of loyalty to the company. Graciela's experience with Artsy Couture provides an example of why the _______ business process is important to supply chain managers.
customer relationship management
supply chain analytics
data analyses that support the improved design and management of the supply chain
Alejandro is an account manager with Frito-Lay. He serves a geographic region that includes about 300 customer accounts. Alejandro uses a tablet computer when meeting with store managers so he can input information about anticipated orders directly into Frito-Lay's enterprise resource management software system. This system is also utilized by the various manufacturing plants that produce products so they can accurately plan and forecast the amount of product to be produced. This is an example of _______ integration.
demand-supply
advanced robotics
devices that act largely or partially autonomously, that interact physically with people or their environment, and that are capable of modifying their behavior based on sensor data
Bombas socks are available only through the company's website, www.bombas.com. Bombas is using the _____ channel system to make its products available to consumers.
direct
To maximize margins or keep prices low, a producer with significant resources would likely choose a(n) _______.
direct channel
Amazon has begun using _______, which are unmanned aerial vehicles, to reduce the costs of "final mile" delivery in urban areas.
drones
digital channels
electronic pathways that allow products and related information to flow from producer to consumer
returns management process
enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain
cloud computing
the practice of using remote network servers to store, manage, and process data
Sysco is a food distributor that serves the restaurant, hospitality, and institutional markets. Sysco offers a variety of items and typically offers a net 30-day payment. However, companies that have approved credit may be approved for longer-term financing, up to a 90-day payment of their invoices. Sysco is providing a key channel function as an intermediary known as _______.
facilitating
A large fast food chain has received complaints from customers and environmental interest groups over the company's continued use of plastic and Styrofoam containers. However, the company just launched a social media campaign to publicize its use of solar power to reduce its carbon footprint. This use of marketing techniques to portray the company as environmentally friendly is known as _______.
greenwashing
digital distribution
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
product development and commercialization process
includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms
There are two main types of supply chain integration: _______ and _______.
internal; external
Pranav is the production manager for a Hormel manufacturing facility in Minnesota. The primary product produced is Spam, which is made predominantly of pork. Pranav is responsible for sourcing ingredients such as potato starch, which are needed to produce Spam. He works with Cargill, a supplier of potato starch, and strives to achieve _______ integration to ensure just-in-time inventory and availability of raw materials for each day's production output.
material and service supplier
nontraditional channels
nonphysical channels that facilitate the unique market access of products and services
Daiyu was interested in purchasing a new laptop computer. She did a quick online search at Best Buy's website using her smartphone. She was able to see that her local Best Buy had the product in stock. Daiyu purchased the item and requested it be held at the store for pickup. This is an example of the _______ system.
omnichannel
Zion visited the website of B&H Photo, an online retailer with a location in New York City. He was interested in purchasing a new lens for his camera. It was in stock and could be shipped free to his home via FedEx and arrive in two days. Zion's experience with B&H Photo provides an example of how the _______ business process is important to supply chain managers.
order fulfillment
Beauty of a Site is an independent retail store with a single brick-and-mortar location. The company also offers its products on its website and via Amazon.com. Joey, the owner, has been considering _______ the functions of order fulfillment and inventory management to Amazon to create efficiencies and reduce the time necessary to fill orders from her local store. Joey believes placing Amazon in charge of inventory management and order fulfillment for website orders will reduce customer wait times and enhance customer satisfaction.
outsourcing
customer service management process
presents a multicompany, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced
A product can take any of several possible routes to reach the final consumer. The channel where product moves from the _______ to the ______ with no other intermediaries in between is the direct channel.
producer; consumer
Recently, Zari was shopping at her local J. Crew store. She was interested in purchasing a dress, but the store did not have one in her size. The team member assisting Zari offered to check other stores in the area via computer to determine whether another location in the area had the dress in stock in her size. J. Crew team members can offer this service since it utilizes _______ and smart tags to keep track of inventory locations and restocking needs in real time.
radio-frequency identification
RFID
radio-frequency identification; a device that uses radio waves as a means of locating a piece of inventory within a confined geographic space
Enzo enjoys performing routine maintenance on his vehicle. He recently purchased a new alternator at AutoZone. The salesperson told him that after Enzo installed the new alternator, he could return his used alternator and receive $25 for the part. AutoZone would recycle the part and return it to the manufacturer. This is an example of a _______ channel.
reverse
gray marketing channels
secondary channels that are unintended to be used by the producer, and which often flow illegally obtained or counterfeit product toward customers
demand management process
seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchases
Jo Malone is a designer fragrance company. Its perfume and cologne products are available at a limited number of stores including Sephora and Nordstrom. Jo Malone is using a(n) _______ distribution intensity.
selective
supplier relationship management process
supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers
Ansh is a supply chain management specialist with Toyota. He is currently reviewing supplier contracts and is interested in reducing the environmental impact within the supply chain. He is hoping that by sourcing materials closer to manufacturing facilities and reducing air shipments, Toyota's supply chain can be more efficient, cost-effective, and environmentally sound. This is an example of _______.
sustainable supply chain management
Misaki is an account manager with Office Depot who works in the healthcare sector. Recently, Southwest Medical Center selected Office Depot as a preferred supplier. Misaki worked with her technology team to create a Web portal or intranet. The portal enables all departmental staff at the Medical Center who have the authority to order office supplies and receive special pricing. The use of the Web portal provides _______ integration that connects managers across both firms via both hardware and software systems used to exchange information.
technology and planning
M-commerce
the ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services
artificial intelligence (AI)
the computer science area focused on making machines that can simulate human intelligence processes
supply chain
the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function
three-dimensional printing (3DP)
the creation of three-dimensional objects via an additive manufacturing (printing) technology that layers raw material into desired shapes
supply chain traceability
the degree to which a business is able to track a product's development through stages beginning with a raw material state and ending with delivery to the final consumer
form utility
the elements of the composition and appearance of a product that make it desirable
triple bottom line
the financial, social, and environmental effects of a firm's policies and actions that determine its viability as a sustainable organization
time utility
the increase in customer satisfaction gained by making a good or service available at the appropriate time
exchange utility
the increased value of a product that is created as its ownership is transferred
big data
the rapidly collected and difficult-to-process large-scale data sets that have recently emerged and push the limits of current analytical capability
reshoring
the reinstitutionalization of a business process from an outsource location/country back to the original location for the purpose of gaining economic advantage
order cycle time
the time delay between the placement of a customer's order and the customer's receipt of that order
nearshoring
the transfer of an outsourced activity from a distant to a nearby country
digitalization
the use of digital technologies to change a business model and provide new revenue or value
dual or multiple distribution
the use of two or more channels to distribute the same product to target markets
place utility
the usefulness of a good or service as a function of the location at which it is made available
Walmart is tracking a new measure, called the _______, to determine the impact of various initiatives such as using alternative fuels in its trucks, installing solar and passive lighting in retail stores, and reducing waste from shipping containers. Walmart believes it is important to the company's long-term success to continue investing in sustainability programs.
triple bottom line
drones
unmanned aerial vehicles that can be controlled remotely or can fly autonomously when executing a task
greenwashing
when a firm publicly feigns support for environmental or social sustainability but fails to live up to these standards in practice
supply chain integration
when multiple firms or business functions in a supply chain coordinate, their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer
agents and brokers
wholesaling intermediaries who do not take title to a product, but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers
