The purchase of artichokes using your VISA card at Kroger’s in Oxford that were grown in Southern California three weeks ago.
TRANSACTIONAL EFFICIENCY N = 20 TE = 90% N = 30 TE= 93% N = 50 TE = 96%
The concept of “channels of distribution” comes from the French word for canal ( a path that takes goods and people from one point to another, and sometimes back)
The concept of channels of distribution is now referred to as a Supply Chain
The term supply chain refers to all the institutions and individuals who participate in, or facilitate the movement of goods, services and related documentation from origin to final destination…and back if necessary.
For example, trace all the possible participants involved in providing you with a can of Pepsi…...
What needs do some of the “intermediaries” fulfill within a supply chain?
Specialization and Division of Labor to gain economies of scale
Discrepancy of quantity
Discrepancy of assortment
Discrepancy of time and space
Provide Contact Efficiency
FUNCTIONS AND ACTIVITIES OF SUPPLY CHAIN MEMBERS
When you think of a supply chain channel, you should think of it as a series of links in a chain, Each is dependent upon the strength of the link before and the link after. Any one weak link ANYWHERE in the chain will cause it to break down and become ineffective and inefficient.
While a manufacturer can eliminate the need to use intermediaries, they cannot eliminate the functions provided by intermediaries!!!
Back at the beginning of our discussion, we mentioned the role of facilitators. Who are these facilitators and what do they do?
Some examples include... Factors Consolidators Business consultants Banks Insurance companies
Now that we have finished this basic introduction to supply chains, we can turn our attention to learning more about the organizations that make up this supply chain and the logistics required to move goods and their documentation.
Receive commissions based upon selling price of goods
Considerable product expertise
Wholesalers, to remain successful in the future, must...
Form strategic alliances
Maximize the use of relevant new technologies
Maintain an appropriate service package
Adapt quickly to anticipated changes in the marketplace
Retailers The third major player in many consumer goods and services supply chains are retailers. They also come in many sizes and shapes, each looking for a niche to best service the needs and wants of their target market(s).