This chapter discusses marketing channel management and supply chain design. It covers the roles and functions within a supply chain including producers, intermediaries and end customers. The chapter also examines concepts like efficient consumer response (ECR) and how information technologies can help integrate supply chain operations. Retailing and franchising models are reviewed as common management structures. The chapter concludes by looking at how electronic commerce may transform marketing channels in the future.
Multi-commodity ETRM’s are becoming too expensive to implement, and maintain ...CTRM Center
Since ETRM software was first introduced around 20-years ago, developers have continually sought to move from developing solutions designed to support specific commodities such as crude oil, natural gas, and electric power, to building solutions that catered for multiple energy commodities. In part, their objective was to reduce costs – specifically integration costs, but without a doubt, part of the objective was self-serving, as this also allowed them to broaden the appeal of their software to a larger and more lucrative market.
Block Exemption Regulation increases competitiveness of automotive industry. Role of open IT standards such as Block Exemption Regulation gains prominence in the white paper
Multi-commodity ETRM’s are becoming too expensive to implement, and maintain ...CTRM Center
Since ETRM software was first introduced around 20-years ago, developers have continually sought to move from developing solutions designed to support specific commodities such as crude oil, natural gas, and electric power, to building solutions that catered for multiple energy commodities. In part, their objective was to reduce costs – specifically integration costs, but without a doubt, part of the objective was self-serving, as this also allowed them to broaden the appeal of their software to a larger and more lucrative market.
Block Exemption Regulation increases competitiveness of automotive industry. Role of open IT standards such as Block Exemption Regulation gains prominence in the white paper
Understanding purchasing orientation is important for B2B companies and suppliers. The more complex the product/service exchange will result in higher degree of power balance and dependency in supplier relationships.
Motorola Reinvents its Supplier Negotiation Process Using Emptoris and Saves ...Emptoris, Inc
Learn about a Fortune 500 company that reinvented its supplier negotiations and saved $600 million.
For more information, please visit:
Emptoris website: http://www.emptoris.com/
Emptoris blog: http://emptorisinc.blogspot.com/
YouTube channel : http://www.youtube.com/emptoris
What Is Multi Channel Retail?: Benefits, Challenges and ImpactsRizwan Tayabali
Multi-channel retailing is a deceptively easy concept. Simple in terminology, but complex to
explain and even more so to deliver. This paper provides an overview of what it is about, covering the
drivers, benefits, challenges and organizational changes needed to get there.
This presentation by Russian Federation was prepared for the break-out Session 1, “Quantitative Evidence”, in the discussion “Economic Analysis in Merger Investigations” at the 19th OECD Global Forum on Competition on 9 December 2020. More papers and presentations on the topic can be found at http://oe.cd/eami.
This presentation was uploaded with the author’s consent.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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Retailers today are faced with unprecedented challenges ranging from shifting retail formats, overabundance of consumer choice, fast-changing technology, greater focus on quality and price to a tough economic climate. The result is that those who are not constantly innovating run the risk of falling behind. This white paper looks at the top five supply chain challenges that retailers face today and maps out a series of strategies to address these challenges based on research and direct experience in supporting retailers to maintain a competitive advantage in a highly competitive market.
How to Add Agility and Customer Focus to the Healthcare Supply ChainUPS Longitudes
The global pharmaceutical and healthcare industry has
experienced a number of severe shocks to the system in
recent decades. What was once a sector where profits flowed
from ‘blockbuster’ drugs and a customer base willing to
pay premium prices has transformed into a quite different
world as a consequence of competition from generics along
with reduced budgets available to healthcare providers.
Compounding these problems are increasing regulatory
constraints and more challenging logistics requirements as
bio-pharmaceuticals and related products increase the need
for stricter control of temperature and shelf-life as they move
through the supply chain.
As a result there is now a significantly greater focus across
the sector on supply chain management. Previously, when
margins were higher and logistics costs were a relatively
small proportion of total costs, supply chain issues tended
to take a back seat. Now things have changed. Recent
research by UPS® has highlighted that many companies are
finding it difficult to develop supply chain capabilities that
can simultaneously take out costs whilst ensuring regulatory
compliance, track and trace, product security and stricter
temperature and shelf-life control.
Because of these pressures, a new approach to the design
and management of supply/demand networks in the industry
becomes imperative. In today’s marketplace, there is a need
for supply chains that are cost-effective, efficient and agile.
Companies operating in every industrial sector and in
every market around the world have been confronted in
recent years with significant challenges. These challenges
have come from numerous sources – economic recession,
demographic changes, geo-political upheavals to name but
a few. The healthcare and pharmaceutical industry has been
no exception and has been impacted by major changes in the
competitive and market environment.
This is a financial analysis of the last three quarters of 2012 of the Toyota Company.
It compares the net revenues, operating income and sales of 2012 with 2011.
It gives you also some extra information about the Company.
Understanding purchasing orientation is important for B2B companies and suppliers. The more complex the product/service exchange will result in higher degree of power balance and dependency in supplier relationships.
Motorola Reinvents its Supplier Negotiation Process Using Emptoris and Saves ...Emptoris, Inc
Learn about a Fortune 500 company that reinvented its supplier negotiations and saved $600 million.
For more information, please visit:
Emptoris website: http://www.emptoris.com/
Emptoris blog: http://emptorisinc.blogspot.com/
YouTube channel : http://www.youtube.com/emptoris
What Is Multi Channel Retail?: Benefits, Challenges and ImpactsRizwan Tayabali
Multi-channel retailing is a deceptively easy concept. Simple in terminology, but complex to
explain and even more so to deliver. This paper provides an overview of what it is about, covering the
drivers, benefits, challenges and organizational changes needed to get there.
This presentation by Russian Federation was prepared for the break-out Session 1, “Quantitative Evidence”, in the discussion “Economic Analysis in Merger Investigations” at the 19th OECD Global Forum on Competition on 9 December 2020. More papers and presentations on the topic can be found at http://oe.cd/eami.
This presentation was uploaded with the author’s consent.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
Retailers today are faced with unprecedented challenges ranging from shifting retail formats, overabundance of consumer choice, fast-changing technology, greater focus on quality and price to a tough economic climate. The result is that those who are not constantly innovating run the risk of falling behind. This white paper looks at the top five supply chain challenges that retailers face today and maps out a series of strategies to address these challenges based on research and direct experience in supporting retailers to maintain a competitive advantage in a highly competitive market.
How to Add Agility and Customer Focus to the Healthcare Supply ChainUPS Longitudes
The global pharmaceutical and healthcare industry has
experienced a number of severe shocks to the system in
recent decades. What was once a sector where profits flowed
from ‘blockbuster’ drugs and a customer base willing to
pay premium prices has transformed into a quite different
world as a consequence of competition from generics along
with reduced budgets available to healthcare providers.
Compounding these problems are increasing regulatory
constraints and more challenging logistics requirements as
bio-pharmaceuticals and related products increase the need
for stricter control of temperature and shelf-life as they move
through the supply chain.
As a result there is now a significantly greater focus across
the sector on supply chain management. Previously, when
margins were higher and logistics costs were a relatively
small proportion of total costs, supply chain issues tended
to take a back seat. Now things have changed. Recent
research by UPS® has highlighted that many companies are
finding it difficult to develop supply chain capabilities that
can simultaneously take out costs whilst ensuring regulatory
compliance, track and trace, product security and stricter
temperature and shelf-life control.
Because of these pressures, a new approach to the design
and management of supply/demand networks in the industry
becomes imperative. In today’s marketplace, there is a need
for supply chains that are cost-effective, efficient and agile.
Companies operating in every industrial sector and in
every market around the world have been confronted in
recent years with significant challenges. These challenges
have come from numerous sources – economic recession,
demographic changes, geo-political upheavals to name but
a few. The healthcare and pharmaceutical industry has been
no exception and has been impacted by major changes in the
competitive and market environment.
This is a financial analysis of the last three quarters of 2012 of the Toyota Company.
It compares the net revenues, operating income and sales of 2012 with 2011.
It gives you also some extra information about the Company.
toyota, swot analysis, toyota india, toyota in india, toyota marketing strategy in india, toyota vs india automakers, presentation in toyota india, toyota vs maruti suzuki....Please like and share it as possible!! want some more ppts contact me @ puskarkandel2012@gmail.com for relevant purposes. BBA students specially :) please comment in the box for suggestions and feedbacks..
A financial analysis for Coca-Cola:
company profile, financial statement, liquidity ratio, current ratio, cash ratio, quick ratio, profitability, efficiency, short term activity, long term activity, solvency, DuPont analysis and historical enterprise value (HEV).
Done By Elie Obeid and Isabelle Khalil
Learning OutcomesBy the end of this chapter, you should.docxSHIVA101531
Learning Outcomes
By the end of this chapter, you should:
•Be able to identify the channel intermediaries, the functions involved in product distribution
systems, and how the sorting process adds value by aligning the product mix with buyers’
preferences.
•Recognize the advantages and costs associated with the use of indirect channels of distribution.
•Be able to identify the basic channel structures common to the distribution systems for both con-
sumer and industrial goods.
•Appreciate the significance of market coverage and distribution density objectives in the planning
of distribution channels and the application of push and pull strategies to promote the movement
of brands through multilevel channels of distribution.
•Recognize the role of vertical marketing systems in channel coordination and control.
•Understand how channel power and conflict impact the nature of relationships between channel
intermediaries.
12
Marketing Channels and
Distribution Decisions
Paul Edmondson/Corbis
fin80083_12_c12_329-360.indd 1 7/31/12 3:37 PM
330
CHAPTER 12Introduction
Introduction
Creating and promoting the right product at the right price is of relatively little value to consumers if they are not able to get their hands on it. The distribution element of the marketing mix focuses on the creation of systems that enable customers to
access and purchase products. To be economically justified, the systems must be both
effective in facilitating product delivery and financially efficient. Distribution channels
provide the paths through which products flow from sellers to ultimate consumers. They
can vary substantially in length and complexity. Many conventional channel strategies
include several cooperating and interconnected intermediaries such as manufacturers’
agents, wholesalers, and retailers. Each channel member receives the item at one price
point and sells it to the next level at a higher price until it is sold to the final consumer.
However, direct sales from producers to final consumers have become increasingly com-
mon in many markets due to the growth of online sales.
Marketing intermediaries within the channels of distribution exist to perform essential
functions. The most basic function is simply to bring products from where they are cre-
ated to where they are demanded. Consequently, the tendency is to think of distribution
channels strictly in terms of the physical transportation of goods. However, many other
types of nontransportation functions need to be performed to efficiently bridge the gap
between buyers and sellers. These include activities ranging from promoting, sorting,
order processing, and inventory management to insurance and financing.
This chapter focuses primarily on marketing-related distributions functions. The tasks
performed by the different types of intermediaries are developed at the outset. Based on
an understanding of the value added by the performance of channel functions, ...
What Is a Marketing Channel of DistributionYou see the results .docxphilipnelson29183
What Is a Marketing Channel of Distribution?
You see the results of distribution every day. You may have purchased Lay’s potato chips at a 7-Eleven convenience store, a book online through Amazon.com, and Levi’s jeans at a Kohl’s department store. Each of these items was brought to you by a marketing channel of distribution, or simply a marketing channel, which consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.
Marketing channels can be compared to a pipeline through which water flows from a source to a terminus. Marketing channels make possible the flow of products and services from a producer, through intermediaries, to a buyer. Intermediaries go by various names (see Figure 15–1) and perform various functions. Some intermediaries purchase items from the seller, store them, and resell them to buyers. For example, Celestial Seasonings produces specialty teas and sells them to food wholesalers. The wholesalers then sell these teas to supermarkets and grocery stores, which, in turn, sell them to consumers. Other intermediaries such as brokers and agents represent sellers but do not actually take title to products—their role is to bring a seller and buyer together. Century 21 real estate agents are examples of this type of intermediary.
Direct Channel
Channel A in Figure 15–4, represented by IBM’s large, mainframe computer business, is a direct channel. Firms using this channel maintain their own salesforce and perform all channel functions. This channel is employed when buyers are large and well defined, the sales effort requires extensive negotiations, and the products are of high unit value and require hands-on expertise in terms of installation or use. Not surprisingly, IBM’s Watson supercomputer, priced at $3 million, is sold and delivered directly to buyers.
Indirect Channel
Channels B, C, and D in Figure 15–4 are indirect channels with one or more intermediaries between the producer and the industrial user. In Channel B, an industrial distributor performs a variety of marketing channel functions, including selling, stocking, delivering a full product assortment, and financing. In many Page 412ways, industrial distributors are like wholesalers in consumer channels. Caterpillar uses industrial distributors to sell its construction and mining equipment in over 180 countries. In addition to selling, Caterpillar distributors stock 40,000 to 50,000 parts and service equipment using highly trained technicians.
Channel C introduces a second intermediary, an agent, who serves primarily as the independent selling arm of producers and represents a producer to industrial users. For example, Stake Fastener Company, a producer of industrial fasteners, has an agent call on industrial users rather than employing its own salesforce.
Channel D is the longest channel and includes both agents and industrial distributors. For instance, Harkman Electric.
Future market and business models the road ahead gaining momentum from energ...Power System Operation
No-one can predict the future but it is important that companies take a clear view
on the ways in which their marketplace is likely to evolve and their company’s
place in the various different possible scenarios.
This is a research project by Aditya Dasgupta for the purpose of Training & Development. All information has been produced by secondary research and does not claim copyright.
Total Package Project Associates | +91 97699 47764 | aditya@totalpackageprojects | startupdoc.tumblr.com
Volume 5 (19) Issue 2 2014 21 New Approaches to S.docxlillie234567
Volume 5 (19) Issue 2 2014
21
New Approaches to Supply Chain Management Concept.
Logistics Integration of "Hub and Spoke" Model
Gheorghe MINCULETE
Polixenia OLAR
“Carol I” National Defense University, Romania
[email protected]
Abstract
In the current modern trade, the integration of economic affairs from design to
completion is an important priority, which determines all economic options of companies
to focus on satisfying the needs of consumers and users to their loyalty.
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a
customer’s request. The supply chain not only includes the manufacturer and suppliers,
but also transporters, warehouses, retailers, and customers themselves.
Within each organization, such as a manufacturer, the supply chain includes all
functions involved in receiving and filling a customer’s request. These functions include,
but are not limited to, new product development, marketing, operations, distribution,
finance, and customer service.
This article stresses the essential aspects of supply chain management in modern
economics affairs, which are integrating under the functional aspect of the "hub and
spoke" model.
Keywords: supply chain management, hub and spoke model, hub and spoke
system, hub and spoke network, e-commerce
JEL Classification: L11, L22
1. Introduction
The management of the supply-delivery chain aims to intensify the processes that
take place from the level of the suppliers of raw materials to that of the end customers. The
aim is to increase the added value and to improve the use of resources and the efficiency of
costs by bringing the required product at the indicated time and place with minimum
manipulations and without delays.
A supply chain means a flow of goods, services, money and information through
different situations (Tan, 2001). These units are legally independent companies, factories
or offices far from each other, geographically speaking, or organizational entities that have
the autonomy to take decisions regarding the information systems.
The concept of management of the supply-delivery chain is closely connected to
Michael Porter's idea (1985), which expresses it as a chain of values based on the
processual vision on organizations. According to this idea, an organization can be seen as a
Valahian Journal of Economic Studies
22
subsystem composed of sub-systems, each of them with inputs, transformation
(conversion) processes and outputs.
Having in mind the logistic field, the management of the supply-delivery chain is
very important, because it covers the aspects that study the flows of materials and
information, the acquisitions and sales from an operative point of view, such as the
transports, orders and packing, but also aspects of a strategic nature, such as the
competition. Although there is a large number of definitions on the management of the
supply chain, th.
Volume 5 (19) Issue 2 2014 21 New Approaches to S.docxjessiehampson
Volume 5 (19) Issue 2 2014
21
New Approaches to Supply Chain Management Concept.
Logistics Integration of "Hub and Spoke" Model
Gheorghe MINCULETE
Polixenia OLAR
“Carol I” National Defense University, Romania
[email protected]
Abstract
In the current modern trade, the integration of economic affairs from design to
completion is an important priority, which determines all economic options of companies
to focus on satisfying the needs of consumers and users to their loyalty.
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a
customer’s request. The supply chain not only includes the manufacturer and suppliers,
but also transporters, warehouses, retailers, and customers themselves.
Within each organization, such as a manufacturer, the supply chain includes all
functions involved in receiving and filling a customer’s request. These functions include,
but are not limited to, new product development, marketing, operations, distribution,
finance, and customer service.
This article stresses the essential aspects of supply chain management in modern
economics affairs, which are integrating under the functional aspect of the "hub and
spoke" model.
Keywords: supply chain management, hub and spoke model, hub and spoke
system, hub and spoke network, e-commerce
JEL Classification: L11, L22
1. Introduction
The management of the supply-delivery chain aims to intensify the processes that
take place from the level of the suppliers of raw materials to that of the end customers. The
aim is to increase the added value and to improve the use of resources and the efficiency of
costs by bringing the required product at the indicated time and place with minimum
manipulations and without delays.
A supply chain means a flow of goods, services, money and information through
different situations (Tan, 2001). These units are legally independent companies, factories
or offices far from each other, geographically speaking, or organizational entities that have
the autonomy to take decisions regarding the information systems.
The concept of management of the supply-delivery chain is closely connected to
Michael Porter's idea (1985), which expresses it as a chain of values based on the
processual vision on organizations. According to this idea, an organization can be seen as a
Valahian Journal of Economic Studies
22
subsystem composed of sub-systems, each of them with inputs, transformation
(conversion) processes and outputs.
Having in mind the logistic field, the management of the supply-delivery chain is
very important, because it covers the aspects that study the flows of materials and
information, the acquisitions and sales from an operative point of view, such as the
transports, orders and packing, but also aspects of a strategic nature, such as the
competition. Although there is a large number of definitions on the management of the
supply chain, th ...
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Memorandum Of Association Constitution of Company.pptseri bangash
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
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Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
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What are the main advantages of using HR recruiter services.pdf
Chapter of marketing
1. CHAPTER 11
MARKETING-CHANNEL MANAGEMENT
CHAPTER OBJECTIVES
1. To consider the part that supply chains play in delivering value to the
end customer.
2. To identify the factors that determine the structure of a supply chain.
3. To discuss the role of the intermediary within the supply chain and
roles that intermediaries may perform in different supply chains.
4. To examine the management issues associated with a particular type
of intermediary activity (retailing) and with a particular management
structure (franchising).
CHAPTER SUMMARY
The chapter begins by looking at the delivery of value to the end-user in a
given supply chain. It then looks at supply-chain management functions
and the roles that need to be fulfilled in the marketing channel. The
operation of supply chains are then investigated and the recent
development of Efficient Consumer Response (ECR) is discussed. This
is followed by a look at supply chain design and the decisions involved in
choosing a partner from both the retailers’ and manufacturers’ point of
view. Finally, issues in retailing and franchising are discussed and the
chapter ends with a look to the future.
ANNOTATED LECTURE OUTLINE
Point 1 - Introduction.
A marketing channel is ‘an organized network of agencies and
institutions which, in combination, perform all the activities required to
link producers with users to accomplish the marketing task’ (Bennett
1988). This channel must be designed such that it delivers a level of
value to the customer that creates a sustainable competitive advantage for
the supply chain. This ‘value’ can take many forms depending upon the
requirements of the customer. The relationship between the value of the
2. product and the shopping experience is particularly important and the
skill of the value chain is in the positioning of the total offer in a
profitable way.
Point 2 - Supply-chain management functions.
The supply chain in made up of an array of interdependent functions
which form a flow of activities (see Figure 11.2 pp247).
Point 3 - Roles in the marketing channel.
There are a number of roles in the channel that have to be fulfilled and
each type of channel will fulfil them in different ways. Firstly, there are a
number of specific gaps between production and consumption that need
to filled, specifically, time, space, quantity and variety. Secondly,
intermediaries perform various functions in order to bridge these gaps.
Point 4 - The operation of supply chains.
Supply chains need to operate in an integrated way to form an integrated
system that operates as a team. However, some areas of conflict can arise
that need to be resolved. Conflict cannot be totally eliminated but there
should be a policy of conflict minimization and a move towards
partnership style arrangements. One potential source of conflict is the
role played by power which is heavily influenced by the level of
dependency between the channel members. Five different power bases
have been identified. Power should be used in a constructive not
destructive way in order to achieve channel efficiency and effectiveness.
The development of supply-chain partnerships and relationship
management is seen as central to the overall administration of the
channel.
Point 5 - Efficient consumer response (ECR).
ECR is ‘ a total system to eliminate all activities that do not give value to
the end consumers and to encourage all those that do’ (Mitchell 1997). It
focuses on fourteen improvement concepts in three strands: category
management, product replenishment and enabling technologies (Figure
11.6 pp254). ECR is facilitated by electronic data interchange systems
3. (EDI) which is linked to electronic funds transfer (EFT) which generates
payments. Activity-based costing is used to identify what is spent in the
various areas with a view to questioning expenditure and thus a
continuous process of improvement should occur.
Point 6 - Designing supply chains.
In the design of supply channels a key question is not what activities are
to be performed but who is to perform them. Responsibility can shift
from one party to another depending upon the nature of the product
market. A distinction can be made between the actors with ownership or
transaction roles in the channel and the use of third-party logistics
companies.
Point 7 - Choosing partners.
This decision needs to be looked at from both sides and a number of key
issues need to be examined. From the manufacturer’s point of view three
areas that need addressing specifically are market coverage and
distribution intensity; channel control; and flexibility. In addition, there
are several important issues that can help a manufacturer to assess the
relative merits of potential partners.
Point 8 - Retailing.
The position of the retailer in the supply-chain, being the closest to the
final consumer, gives it some distinctive characteristics that need to be
understood and are directly related to their positioning strategy.
Point 9 - Franchising.
Another key management system that has been one of the most popular
mechanisms for expanding the distribution network is franchising. The
nature of the franchise relationship can be viewed from two extremes
4. either as a managed outlet of a larger business or as an independent
business in its own right.
Point 10 - The future.
The biggest development in channel management in the future lies in the
use of electronic commerce and traditional intermediaries will either
disappear or reinvent themselves and a number of anticipated impacts
will arise from the new channels.
Point 11 - Conclusion.
The aim of the supply chain is to provide the consumer with an offer that
they will value above any other. This value is created by the offering and
the gaps that are bridged in delivering it. These functions are performed
by various combinations of actors including third-party logistics
companies. Many changes have occurred recently mainly as a result of
developments in IT and marketing channels will continue to be dynamic
and rapidly changing.
Answers to the discussion questions:-
1. Students should be able to identify a number of other retail formats to
those given in Box 11.3, e.g. hypermarkets, town centre supermarkets,
and even market stalls! These can be looked at in terms of the
products offered and the price and what the consumer is looking for.
2. It means that this area of specialization can be bought under the
control of the manufacturer rather than given to an intermediary. One
of the main reasons for the emergence of shorter channels are the
developments in technology.
3. The role is likely to be different as the issues linked to the distribution
of a manufacturer’s brand are different to that of the retail brand
although, in some cases, the two brands may be manufactured by the
same company.
4. Here the focus should be on the benefits of relationship management
and partnership building and the value added benefits of EDI and EFT
both to the channel and consumers.
5. 5. This question revolves around the shopping experience and customer
requirements. Students should be able to suggest a number of
products that do not lend themselves to being bought electronically
and the reasons behind this, including any cultural shifts that may be
required.
MINI CASE
ARTHUR AND COMPANY
KEY ISSUES FOR DISCUSSION:-
1. By selling only direct to wholesalers, the market is already fairly
saturated with the two competitors’ products. In addition, they have a
limited range but their product is superior to the competition
2. Selling direct is a very good alternative providing they have the
expertize to fulfil all the channel functions themselves. However the
limited range may go against them but they will be in direct contact
with the customer which will help future product development.
)T WOULD BE POSSIBLE TO IMITATE THE COMPETITION