Principles of Marketing Chapter 13

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

a supply chain operational philosophy focused on integrating the supply-management and demand-generating functions of an organizations

Drop and Shop

a system used by several retailers that allow customers to bring used products for return or donation at the entrance of the store

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 Process

allows companies to prioritize their marketing focus on different customer groups according to each groups long-term value to the company or supply chain

Merchant Wholesaler

an institution that buys goods from manufacturers and results 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 ship them

Supply Chain Agility

an operational strategy focused on creating inventory velocity and operational flexibility simultaneously in the supply chain

Business Processes

bundles of interconnected activity that stretch across firms in the supply chain

Learn It 13.1: Supply Chains and Supply Chain Management

A company's supply chain includes all the companies involved in the upstream and downstream flow of providing products to customers. The supply chain extends from raw material suppliers (the point of origin) to the ultimate customer (the point of consumption). Supply chain partners could include: Raw material suppliers Manufacturing plants Warehousing partners Trucking partners Wholesale distributors Retailers Home delivery partners (such as FedEx or UPS) How Integration Is Accomplished The goal of supply chain management (SCM) is to integrate all the activities performed by supply chain members. Refer to the Supply Chain Integration Strategies table to learn more about this topic. Supply Chain Integration Strategies Effective use of customer sales data Increased communication with supply chain partners Careful selection of supply chain partners Benefits of Supply Chain Integration Lower inventory costs: Partners no longer have to stockpile raw materials and finished product based on guesses about demand. Instead, partners coordinate their activities based on shared demand projections so that all partners can minimize inventory holding costs. Streamlined product mix: Because all activities of the supply chain are driven by customer data, poor selling products can be discontinued before inventories build, and resources can be shifted to new or better selling products. Speed to market: Because activities of the supply chain are coordinated to eliminate bottlenecks, lead times for bringing product to market are reduced. The cumulative result of these benefits is lower costs, happier customers, and higher revenues.

13.6 Marketing Channels and Channel Intermediaries

A marketing channel is the pipeline through which products flow to the consumer. That pipeline usually consists of several interdependent organizations that facilitate the movement of goods through the supply chain—from the point of production to the consumer. The marketing channel is the "downstream" portion of the supply chain that connects a producer with the customer. Supply chain members who move component parts or raw materials to the producer are considered the "upstream" portion of the supply chain. Marketing channels are valuable because they create utility—the power of a good or service to satisfy the wants of customers. Form utility is created when the company converts raw materials into finished goods and services. Soda makers mix just the right amounts of flavoring, sweeteners, and carbonation to deliver appealing drinks. Time utility is created when consumers find goods and services when they want to purchase them. For example, UPS offers Next Day Air delivery so consumers can get products quickly, if needed. Place utility is created when consumers find goods and services where they want to purchase them. For example, Redbox places its kiosks for renting movies and games in high-traffic spots like supermarkets and drugstores. Exchange utility is the increased value of a product that is created as its ownership is transferred. When you buy a TV and take it home, you receive the value that comes from taking ownership of the product. The channel members of the marketing channel can include any or all of the following: Producers: They make the product. Agents or brokers: They market the product to other channel members without taking ownership of the product. Wholesalers: They buy product from producers and distribute to retailers. Retailers: They buy product from either producers or wholesalers and sell directly to consumers. These channel members are also called intermediaries or middlemen. Many different variations in the structure of marketing channels are possible and are covered in the next section. First, let's review a simple example that demonstrates the benefits of these intermediaries. Play the How Marketing Channels Simplify Transactions video to learn more about this topic. Marketing channel intermediaries perform three essential functions that enable goods to flow between producer and consumer. Refer to the Channel Functions Performed by Intermediaries table to learn more about this topic. Channel Functions Performed by Intermediaries Transactional-Communicating with prospective buyers about products Ex- Wholesalers have sales reps who educate retailers on available products. Retailers communicate with customers in-store and through promotional campaigns about available products. Logistical- Purchasing, transportation, storage Ex- Wholesalers typically buy from producers by pallets or truckloads. They then sell to retailers by the pallet or box. Retailers typically buy from producers by pallets or boxes. They then sell individual items to consumers. In both cases, the use of wholesalers and retailers increases the assortment of different products available to consumers. Facilitating- Research and financing Ex- Wholesalers and retailers research consumer needs and producer capabilities and serve as matchmakers between the two. Wholesalers and retailers sometimes provide financing by selling the product but allowing for payment at a later date.

13- 7 Channel Structures

A product can take any of several possible routes to reach the final consumer. Refer to the Marketing Channels for Consumer Products exhibit within this section to learn more about the four most common routes for consumer products. Direct channel Paths- Producer to consumer Why Choose?- To maximize margins or keep purchase prices low Producer has logistics capabilities to serve individual consumers Producer has resources to open company-owned stores Retailer channel Path- Producer to retailer to consumer Why Choose?-Retailers can buy in large quantities and perhaps distribute to stores through their own fulfillment centers Wholesaler channel Path- Producer to wholesaler to retailer to consumer Why Choose?- Retailers buy in smaller quantities, requiring a wholesaler to serve as intermediary Retailers require a large assortment of products, making the use of a wholesaler more efficient Agent/broker channel Path- Producer to sales agent to wholesaler to retailer to consumer Why Choose?- Producer lacks the marketing power to be visible to wholesalers and retailers Direct Channel Example: Apple has the brand awareness and logistical capabilities to sell direct to consumer through their own retail stores. Retailer Channel Example: Toro might sell lawn mowers directly to Home Depot because Home Depot is a retailer who can buy in large quantities and distribute to stores through its own fulfillment centers. Wholesaler Channel Example: A grocery chain like Albertsons carries a large array of products. It's likely that Albertsons buys many products from wholesalers, who specialize in sourcing from an assortment of suppliers. Producers hoping to sell into Albertsons might be directed to one of these wholesalers instead of selling to Albertsons directly. Agent/broker Channel Example: A small cosmetics manufacturer wanting to sell to Walgreens might need to partner with a sales agency. The sales agents can utilize their existing relationships with Walgreens (or Walgreens' wholesaler partners) to give the cosmetics company a chance to earn shelf space in stores. This describes the common channel structures for consumer products. It's worth noting that channel structures for industrial or business products look slightly different. Distribution Channel Variations Rarely does a producer use just one type of channel to move its products. It usually employs several different channels and variations at once. Refer to the Distribution Channel Variations clickable table to learn more about this topic. Click on each channel variation to reveal a description and example for each. Dual Distribution- Selling the same product using multiple channel structures Ex- Nike selling the same model of shoes in its stores and through Walmart Nontraditional Channels- A variation of the direct channel that utilizes communications such as mailed catalogs or television infomercials Ex- Athleta sells product online and in its own stores, but also promotes its apparel through mailed catalogs Strategic Channel alliances- Using another manufacturer's already established channel Ex- Casper mattresses has expanded beyond its consumer direct model by partnering with West Elm, a high-end furniture company with established brick-and mortar stores Reverse Channels- Utilizing channel partners to facilitate returns or recycling Ex- When companies like Best Buy and Walmart offer opportunities to recycle items, they usually give those items to other channel partners to distribute and process Digital Channels- A variation of the direct channel that utilizes e-commerce and social media; This includes m-commerce, which is ecommerce through mobile devices such as phones and tablets Ex- Lyft's distribution model for its service is based on purchases made through a mobile app The choice of marketing channels is often strategic and based on the marketer's product, industry, and target customer. Refer to the Factors Affecting Channel Choice clickable table to learn more about this topic. Click on each factor affecting choice of distribution channel to reveal a consideration and example for each. Factors Affecting Choice of Distribution Channel Market Factors Considerations- Who are the potential customers? How do they buy? Where do they buy? When do they buy? How concentrated is the target market? Ex-Buyers of chewing gum likely buy convenience items at grocery and gas stations, making those ideal distribution points. Buyers of airplanes need to work directly with the producer to negotiate details and prices. Product Factors- How complex or customized is the product? How expensive is the product? How perishable is the product? How rare is the product? ex- Chewing gum is a simple, inexpensive product making it appropriate for longer channels that have more intermediaries.Vegetables are perishable and fragile. This requires a short channel that can handle the products with care and speed. Producer Factors- What are the producer's marketing resources? What are the producer's distribution capabilities? How many products does the producer sell? A large, well-known company is more likely to sell direct to the consumer.A smaller company is more likely to partner with wholesalers and distributors who provide marketing support and distribution capabilities. Timing Factors- s the product being launched in one channel exclusively or multiple channels simultaneously? Will dual distribution suppress overall revenues because these channels compete against each other? Ex- A seller of exclusive fashions might first launch in its direct channel of company stores before later distributing through a retailer like Nordstrom.Movie studios typically want to let a movie finish its theatrical run before offering the movie via streaming, download, or DVD. Levels of Distribution Intensity Marketers also utilize the factors discussed previously to make decisions about distribution intensity. Organizations have three options for distribution intensity: Intensive distribution: A distribution strategy aimed at maximum market coverage by selling in every outlet where potential customers might want to buy. Pepsi sells its drinks in every grocery store, convenience store, and restaurant possible. Selective distribution: A distribution strategy that screens dealers and retailers to eliminate all but a few in any single area. HBO streams Game of Thrones through its own services, Amazon, Apple, and Sony, but does not stream through Netflix. Exclusive distribution: A distribution strategy that entails utilizing only one or a few dealers within a given area. Rolls-Royce automobiles are only available at select dealers in some cities.

Outsourcing

a manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system

Time Utility

the increase in customer satisfaction gained by making a good or service available at the appropriate time

A product can take any of several possible routes to reach the final consumer. The channel where product moves from the producer to the consumer with no other intermediaries in between is the direct channel.

A product can take any of several possible routes to reach the final consumer. The channel where product moves from the producer to the consumer with no other intermediaries in between is the direct channel.

Supply Chain Orientation

A system of management practices that are consistent with a "systems thinking" approach

When a smaller producer lacks the marketing power to be visible to wholesalers and retailers, they would likely choose which distribution channel?

Agent/broker channel

Learn it 13.2 Supply Chain Integration

As companies realize the strategic value of supply chain management, they must adopt a supply chain orientation. This simply means a "systems thinking" approach to supply chains. Supply chain integration is when business processes are seamlessly linked to one another to optimize the supply chain. There are two primary types of integration: Internal: This is integration within the areas of the company. External: This is integration between companies in the supply chain. Internal Supply Chain Integration Companies adopting a supply chain orientation hope to achieve demand-supply integration (DSI). Under the DSI philosophy, the company departments charged with creating customer demand (such as marketing, sales, or research and development) communicate frequently and are synchronized with other company departments charged with fulfilling demand (such as purchasing, manufacturing, and logistics) External Supply Chain Integration In addition to being internally integrated, firms within the supply chain will ideally integrate with each other in a number of ways. There are five levels of external integration, which can be explored in the table. Refer to the External Supply Chain Integration clickable table to learn more about this topic. Click on the level of external integration column to reveal an example. Levels of External Integration External Supply Chain Integration Levels of External IntegrationExamplesRelationship integration: Sharing a basic framework for how the companies will communicate and work together. This is a prerequisite for the other forms of external integration.A bike assembly factory and its wheel supplier establish regular meetings to discuss projected demand, inventory management goals, lead time expectations, and other common interests.Measurement integration: Agreed upon methods of measuring and evaluating the performance of different firms in the supply chain.Technology and planning integration: The creation and maintenance of information technology systems that connect managers across the firms in the supply chain.Material and service supplier integration: Integration with and among the various suppliers and service providers in the supply chain. To reliably achieve this level of integration, the above three forms of integration are ideally in place.Customer integration: The collection and sharing of customer data about demand and preferences that can be transparently shared among supply chain partners. Highly integrated supply chains can achieve lower costs, higher quality, better productivity, higher profits, and higher customer satisfaction.

Learn it 13-8- Omnichannel Versus Multichannel Marketing

As discussed earlier, a producer might use different channels to distribute a product. For example: Apple using multiple distribution channels for selling an iPhone: Apple sells iPhones at apple.com (direct channel) Apple sells iPhones in their Apple retail stores (direct channel) Apple sells iPhones at Best Buy (retailer channel) Apple sells iPhones through mobile service providers such as Verizon (retailer or wholesaler channel) But if we flip our perspective, we find that customers might research and buy products using multiple channels as well. A customer using multiple distribution channels for researching and buying iPhone: Customer researches iPhone at apple.com Customer then researches wireless plans at Verizon.com Customer finally goes to the Apple retail store to purchase and activate a wireless plan The fact that Apple chooses multichannel marketing can provide the consumer a number of options for learning about the product and eventually buying it. But it can also create a disjointed experience for the customer as well. Especially if the customer ultimately wants to return the product or visits a store that is out of stock. Omnichannel marketing is an effort by companies to unify the customer's experience across various marketing channels. Examples include: Retailers enabling online purchase but in-store pickup Retailers enabling online purchase and home delivery, but in-store returns Brick-and-mortar retailers offering a mobile app to assist with in-store product research and purchasing Brick-and-mortar retailers offering in-store purchase of an out-of-stock item that will be shipped directly to the customer's home Omnichannel strategies like this require synchronized integration of the company's marketing, production, and supply chain operations.

Exchange Utility

the increased value of a product that is created as its ownership is transferred

Which of the following are examples of omnichannel marketing? (Select two)

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.

(_____) means presenting a unified response system to customer complaints, questions, or comments while (_______) means prioritizing different customer groups according to each group's long-term value to the company.

Customer service management; customer relationship management

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

Which type of channel is a variation of the direct channel that utilizes e-commerce and social media?

Digital

Which of the following are examples of trends in the digitalization of supply chains? (Select three)

Digitized supply chain traceability Internet-connected transportation equipment Robotics and automation

Which type of channel variation sells the same product using multiple channel structures?

Dual distribution

Sales and Operations Planning

a method companies use to align production with demand by merging tactical and strategic planning methods across functional areas of the business

Which of the following are examples of supply chain integration strategies? (Select three)

Effective use of customer sales data Increased communication with supply chain partners Careful selection of supply chain partners

_______ is the increased value of a product that is created as its ownership is transferred.

Exchange utility

There are two main types of supply chain integration:

Internal and External

Ensuring that firms in the supply chain can manage production with flexibility and efficiency describes which process of supply chain management?

Manufacturing flow management

Omnichannel marketing is an effort by companies to unify the customer's experience across various marketing channels .

Omnichannel marketing is an effort by companies to unify the customer's experience across various marketing channels .

Marketing Channel

a set of interdependent organizations that uses the transfer of ownership as products move from producer to business user or consumer

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

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

Which channel members buy products directly from producers or wholesalers and sell directly to consumers?

Retailers

Which type of channel variation utilizes channel partners to facilitate returns or recycling?

Reverse

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

Offshoring

the outsourcing of a business process from one country to another for the purpose of gaining economic advantage

Learn It 13.5- The Digitalization of the Supply Chain

Supply chains are changing due to technological advances and business trends. A key driver of these changes is the increasing use of digital technologies, also called digitalization. Digital technologies improve supply chain management in many ways. Refer to the Supply Chain Trends table to learn more about this topic. Supply Chain Trends Sensor-based tracking for products- By tagging products with sensors, supply chain managers can automatically know where all goods are in the supply chain. Internet-connected transportation equipment- Shipping containers, cargo vessels, and trucks can be connected to the Internet to automatically relay real-time information about their location. This is just one example of 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 Supply chain analytics- Computers can gather data from all points in the supply chain and assist in decision-making related to demand projections, optimal shipping methods, the best locations for inventory, and more. By using artificial intelligence (AI)-the computer science area focused on making machines that can simulate human intelligence processes and machine learning (ML)- an application of artificial intelligence that provides systems the ability to automatically learn and improve from experience without being explicitly programmed, many of these decisions can be made without direct intervention from the supply chain manager. Robotics and automation- Robotics can improve efficiency on the factory floor, in warehouses, and at shipping terminals. Vehicle automation—whether it be cars, trucks, or drones—can also improve delivery efficiency and cut costs. Certain objects can be printed on location instead of being produced on an assembly line and shipped down the supply chain. This cuts costs and dramatically improves efficiency, especially for low-volume or highly customized products.

Learn it 13.4- Sustainable Supply Chain Management

Sustainable supply chain managementinvolves the integration and balancing of environmental, social, and economic thinking into all phases of the supply chain management process. Companies who prioritize for sustainability in their supply chain often measure themselves using the triple bottom line, which includes measures of economic success, environmental impact, and social well-being. Sustainability activities within the supply chain can include: Environmentally friendly materials sourcing LEGO is actively working to make more brick pieces from plant-based materials instead of plastic.* Designing products to minimize social and environmental impact Apple's MacBook Air is made from 100% recycled aluminum.* End-of-life product management that includes easy recycling or disposal

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

Which of the following best describes the demand-supply integration (DSI) philosophy?

The company departments charged with creating customer demand communicate frequently with company departments charged with fulfilling demand.

Which of the following are true statements about supply chains? (Select three)

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 company's supply chain includes all the companies involved in the flow of providing products to customers.

Learn It 13.3- The Key Processes of Supply Chain Management

When integrating a supply chain, there are eight key business processes that some or all of the supply chain partners will work together on to reduce costs, shorten lead times, and demonstrate agility. Supply Chain Processes Customer Relationship Management Prioritizing different customer groups according to each group's long-term value to the company Ex- Petco utilizes CRM to retain its most loyal customers by offering two-hour delivery for online purchases and subscription delivery services for foods and medicines. This requires that Petco closely coordinate with the supply chain partner who provides shipping services. Customer Service Management- Presenting a unified response system to customer complaints, questions, or comments Ex- Via a cloud-based CRM application, Activision can monitor social media sites for conversations that relate to the company's products, and then respond to the conversations right away. This requires that Activision and its cloud-based CRM provider closely coordinate to ensure the CRM application is functioning properly. Demand Management- Aligning supply and demand throughout the supply chain by anticipating customer demand and planning production and inventory accordingly Ex-Walmart can use vast amounts of historical data to project the demand for inflatable pools in the summer months. This requires that Walmart share these projections with supply chain partners so all supply chain partners can plan ahead. Order Fulfillment- Generating, filling, delivering, and providing on-the-spot service for customer orders Ex-FedEx Fulfillment, a subsidiary of FedEx Corporation, was created to help small and medium-sized companies fulfill orders from multiple channels with streamlined efficiency. Instead of small companies having to handle order fulfillment themselves, they can partner with FedEx - who is able to handle fulfillment faster and at a lower cost. Manufacturing Flow Management- Ensuring that firms in the supply chain can manufacture with flexibility and efficiency Ex- Boeing has created manufacturing agility by building its aircraft subsystems to be modular, such that a cockpit instrument panel can be used in (for instance) both the 737 airliner and the KC-46 tanker. By using redundant systems across different models, the company can quickly switch from producing one type of aircraft to another. This lowers production costs. Supplier Relationship Management- Supporting manufacturing flow management by identifying and maintaining close relationships with highly valued suppliers Ex-Apple partners with Foxconn for production of millions of iPhones. To accomplish this, Apple also coordinates with Foxconn's suppliers to ensure the supply chain is prepared to speed up or slow down production based on customer demand or new product launches. Product Development and Commercialization- Facilitating the joint development and marketing of new offerings among a group of supply chain partner firms Ex-Boeing involved a team of suppliers early in the development phase of its 787 Dreamliner aircraft, prompting a shift to lighter composite materials for the fuselage's outer shell. The lighter material makes the aircraft substantially cheaper to operate on long-haul flights. Returns Management- Managing volumes of returned product efficiently while minimizing returns-related costs Ex-Many retailers, such as Nordstrom and Trader Joe's, have implemented generous return policies to develop loyalty with their customer base. While this policy could potentially lead to slightly higher returns, it's easily offset by the efficiency of the returns process. This allows employees to spend less time processing returns and more time serving customers.

Which channel members buy products from producers and distribute them to retailers?

Wholesalers

Retailer

a channel intermediary that sells mainly to consumers

Fourth-Party Logistics Company

a consulting-based organization that assesses another's entire logistical service needs and provides integrated solutions,often drawing on multiple 3PLs for actual service

Strategic Channel Alliance

a cooperative agreement between business firms to use the other's already established distribution channel

Direct Channel

a distribution channel in which producers sell directly to consumers

Electronic Distribution

a distribution technique that includes any kind or product or service that can be distributed electronically, whether over traditional forms

Third-Party Logistics Company

a firm that provides functional logistics services to others

Selective Distribution

a form of distribution achieved by screening dealers to eliminate al but a few in any single area

Intensive Distribution

a form of distribution aimed at having a product available in every outlet where target customers might want to buy it

Exclusive Distribution

a form of distribution that establishes on or a few dealers within a given area

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 sources to the point of consumption, resulting in enhanced customer and economic value

Reverse Channel

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 more products through a multistage production process

Public-Private Partnerships

critical to the satisfaction of both company and societal interests and provide a mechanism by which very large-scale problems or opportunities can be addressed

Supply Chain Analytics

data analyses that support the improved design and management of the supply chain

The supply chain trend that uses blockchain technology that maps the paths of raw materials, component parts, and finished goods through the global network is called ______.

digitized supply chain traceability

To maximize margins or keep prices low, a producer with significant resources would likely choose a(n) _______.

direct channel

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

Sustainable supply chain management involves the integration and balancing of (_____) ,(_____), and and economic thinking into all phases of the supply chain management process.

environmental; social

Cloud Computing

the practice of using remote network servers to store, manage, and process data

Big Data

the rapidly collected and difficult to process large scale datasets that have recently emerged and which push the limits of current analytical capability

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 caring partner firms

Nontraditional Channels

non-physical channels that facilitate the unique market access of products and services

Customer Service Management Process

presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voided

Which channel member makes the product?

producers

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 purchasing behaviors

Computers that can gather data and assist in decision-making are an example of _______.

supply chain analytics

Supplier Relationship Management Process

supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers

Shipping containers that can automatically relay real-time data about their location is an example of _______.

the Internet of Things

M-Commerce

the ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services

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

the creation of three-dimensional objects via an additive manufacturing technology that layers raw material into desired shapes

Form Utility

the element of the composition and appearance of a product that make it desirable

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 offshore activity from a distant to a nearby country

Dual Distribution

the use of two or more channels to distributes the same product to target markets

Place Utility

the usefulness of a good or service as a function of the location at which is made available

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 producer to end user by representing retailers, wholesalers, or manufacturers