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Chapter 14 MKT120 Supply Chain Mgmt.

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Chapter 14 MKT120 Supply Chain Mgmt.

  1. 1. SUPPLY CHAIN MANAGEMENT 14 Mmarketing GREWAL / LEVYMcGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. Learning Objectives LEARNING OBJECTIVES What is supply chain management? How do supply chains add value? How does a supply chain work? How is a supply chain managed? 14-2
  3. 3. Supply Chain Management 14-3
  4. 4. Supply Chain, Marketing Channels, and Logistics are Related 14-4
  5. 5. Supply Chains Add Value 14-5
  6. 6. Supply Chains Streamline Distribution FedEx Commercial 14-6
  7. 7. Supply Chain Management Affects Marketing 14-7
  8. 8. Information Flows 14-8
  9. 9. Data Warehouse 14-9
  10. 10. Electronic Data Interchange 14-10
  11. 11. Pull and Push Supply Chain 14-11
  12. 12. The Distribution Center ABC News Segment on a Walgreens Warehouse 14-12
  13. 13. Inventory Management Through Just-In-Time SystemsJust-in-time (JIT) Quick response (QR) Zappos Website 14-13
  14. 14. Benefits of JIT Systems 14-14
  15. 15. Managing Supply Chains Through Strategic Relationships 14-15
  16. 16. Nicole Miller Nicole Miller Website 14-16
  17. 17. Which of the following is a common activity associated with logistics management?A. demand forecasting.B. inventory control.C. return goods handling.D. order processing.E. all of the above. 14-17
  18. 18. Marketing managers often focus on ____________, while logisticsmanagers focus on _____________, causing conflict when trying to provide value to customers. A. maximizing sales; minimizing costs B. presentation; packaging C. cross-tracking; double accounting D. minimizing costs; maximizing sales E. decentralization; centralization 14-18
  19. 19. Check Yourself1. How does supply chain management add value? 14-19
  20. 20. Check Yourself1. What are the various supply chain links associated with each information flow step?2. What is the difference between push and pull supply chains? 14-20
  21. 21. Making Merchandise Flow 14-21
  22. 22. How does Dell’s Merchandise Flow 14-22
  23. 23. Distribution Centervs. Direct Store Delivery 14-23
  24. 24. Inbound Transportation Dispatcher coordinates deliveries Manufacturer may pay transportation expenses or retailers may negotiate directly with trucking companies and pay expenses 14-24
  25. 25. Receiving and Checking 14-25
  26. 26. Storing and Cross-Docking 14-26
  27. 27. Getting Merchandise Floor-Ready 14-27
  28. 28. Shipping Merchandise to Stores Shipping merchandise to stores is complex for multi-store chains Distribution centers use sophisticated routing and scheduling systems 14-28
  29. 29. RFID tags have dramatically reduced the time and labor associated with:A. the Four Ps.B. promotion and advertising.C. checking and receiving merchandise.D. franchising.E. demand forecasting. 14-29
  30. 30. For a JIT system to be successful, the firm and its vendors need to do all of the following EXCEPT:A. cooperate.B. compete.C. develop EDI systems.D. develop CPFR systems.E. share data. 14-30
  31. 31. Check Yourself1. What happens at each step of the merchandise flow in a typical supply chain?2. Why are just-in-time supply chain systems becoming so popular? 14-31
  32. 32. Managing the Supply Chain Supply chain or channel conflict 14-32
  33. 33. Managing Supply Chains Through Vertical Integration Independent or conventional supply chain 14-33
  34. 34. Types of Vertical Marketing Systems 14-34
  35. 35. Relationship ofsupply chain members 14-35
  36. 36. Check Yourself1. What are the different types of vertical marketing systems?2. How do firms develop strong strategic partnerships with their supply chain partners? 14-36
  37. 37. GlossaryMerchandise cartons that are cross-docked are prepackaged by the vendor for a specific store. Return to slide 14-37
  38. 38. GlossaryManufacturers can ship merchandise either directly to a store or to a distribution center, where it is then shipped to the store. Return to slide 14-38
  39. 39. GlossaryElectronic data interchange (EDI) is the computer- to-computer exchange of business documents from a retailer to a vendor and back. Return to slide 14-39
  40. 40. GlossaryJust-in-time inventory systems are inventory management systems designed to deliver less merchandise on a more frequent basis than traditional inventory systems. Return to slide 14-40
  41. 41. GlossaryRadio frequency identification (RFID) tags are tiny computer chips that automatically transmit to a special scanner all the information about a container’s contents or individual products. Return to slide 14-41
  42. 42. GlossaryA strategic relationship or partnering relationship involves the supply chain members being committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial. Return to slide 14-42
  43. 43. GlossarySupply chain management is a set of approaches and techniques firms employ to integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize system wide costs while satisfying the service levels that their customers require. Return to slide 14-43
  44. 44. GlossaryVendor-managed inventory (VMI) is an approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailer’s inventory levels in each of its stores. Return to slide 14-44