Supply Chain and Channel Management Ch16 student ppt_slides

1. 16-1
CHAPTER
SUPPLY CHAIN
AND CHANNEL
MANAGEMENT
16

2. 16-2
L E A R N I N G O B J E C T I V E S
Understand the importance of marketing
channels and supply chain management.
Understand the difference between direct
and indirect marketing channels.
Describe how marketing channels are
managed.
Describe the flow of information and
merchandise in the marketing channel.
Supply Chain and Channel Management
LO1
LO2
LO3
LO4

3. 16-3
Supply Chain Management

4. 16-4
Marketing Channels Add Value
Reduce number of
transactions
Increase value for
consumers
More efficient and
effective
http://www.youtube.com/watch?v=NeK5ZjtpO-M

5. 16-5
Marketing Channel Management Affects
Other Aspects of Marketing
Fulfilling delivery promises
Meeting customer expectations
Reliant on an efficient supply chain
Courtesy Zara International, Inc. Courtesy Zara International, Inc.

6. 16-6
Designing Marketing Channels
Manufacturer
Customer
Direct Channel
Manufacturer
Customer
Retailer
Direct Channel
One Intermediary
Manufacturer
Customer
Retailer
Wholesaler
Direct Channel
Two Intermediaries

7. 16-7
Types of Vertical Marketing Systems
Administered
vertical
marketing
system
Corporate
vertical
marketing
system
Contractual
vertical
marketing
system

8. 16-8
Power
Power
Reward Coercive Referent Expertise Information Legitimate

9. 16-9
Managing Marketing Channels and Supply
Chains Through Strategic Relationships
Strategic
Relationships
Mutual Trust
Open
Communications
Common Goals
Interdependence
Credible
Commitments

10. 16-10
CHECK YOURSELF
1. What is the difference between an indirect and
a direct marketing channel?
2. What are the differences among the three
types of vertical marketing systems?
3. How do firms develop strong strategic
partnerships with their marketing channel
partners?

11. 16-11
Making Information Flow
through Marketing Channels

12. 16-12
Data Warehouse
Electronic Data Interchange
Cycle time
Quality of
communications
Easily analyzed
and used
PhotobyCabela’s

13. 16-13
Vendor-Managed Inventory
DH Kong/Plush Studios/Getty Images

14. 16-14
CHECK YOURSELF
1. What are the marketing channel links
associated with each information flow?
2. How do marketing channel members use data
warehouses to make decisions?
3. What is EDI and how is it used?
4. Why do some marketing channels use VMI,
while others do not?

15. 16-15
Making Merchandise Flow
Through Marketing Channels

16. 16-16
The Distribution Center
Shipping to store
Preparing to ship
Getting Merchandise Floor Ready
Storing and Cross-Docking
Receiving and checking using UPC and RFID
Management of inbound transportation
ABC News Segment
on a Walgreens Warehouse

17. 16-17
Inventory Management
Through Just-In-Time Systems
Just-in-time (JIT) Quick response (QR)
Zappos
CourtesyTubularSteel,Inc.

18. 16-18
CHECK YOURSELF
1. How does merchandise flow through a typical
marketing channel?
2. Why have just-in-time supply chain systems
become so popular?