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Supply chainmanagement
15
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Supply chain
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Insourcing
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Hewlett Packard’s Supply Chain
Channel Functions
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Time, place, and ownership utility
Provide logistics, physical distribution
Up efficiency by reducing number of transactions
Break bulk
Create assortments
Channel Functions
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Transport and store goods
Facilitate purchase process
Repair and maintenance services
Provide communication and transaction functions
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Channels Reduce Transactions
Communication function
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Internet distribution
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Wholesaling intermediaries
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
MerchantMerchant wholesalers wholesalersFull-serviceFull-service
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MerchantMerchant wholesalers wholesalersLimited-serviceLimited-service
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Cash and carry Truck jobbers Drop shippers
Mail-order Rack jobbers
Rack jobbers
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Merchandise agents
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Manufacturers’ reps
Selling agents
Commission merchants
Merchandise brokers
Manufacturer ownedManufacturer owned intermediaries
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Sales branches
Sales offices
Showrooms
Dual distribution systems
Hybrid marketing systems
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Consumer channels B2B channels
Channel Types
Consumer channels
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B2B channels
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Direct distribution
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Distribution and the Marketing Mix
Price levels
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Product positioning
Nature of the product
Slotting fees
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Distribution PlanningDEVELOP DISTRIBUTION
OBJECTIVES
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EVALUATE ENVIRONMENTAL
INFLUENCES
CHOOSE DISTRIBUTION STRATEGY
DEVELOP DISTRIBUTION TACTICS
Channel Strategies
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Conventional
PRODUCER
WHOLESALER
RETAILER
CONSUMER
Vertical Marketing System
RETAILER
WHOLESALER
PRODUCER
CONSUMER
Vertical marketing system
ADMINISTERED VMS
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CORPORATE VMS
CONTRACTUAL VMS
RETAILER CO-OP
FRANCHISE ORGANIZATION
Distribution Intensity
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Number of Outlets
EXCLUSIVE SELECTIVE INTENSIVE
Few Many
Intensive distribution
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Selective distribution
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Exclusive distribution
Channel Captain
ECONOMIC
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LEGITIMATE
REWARD/COERCIVE
Channel control based on type of power
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LogisticsLogistics PURCHASING
MANUFACTURING
STORAGE
TRANSPORTATION
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Logistics functions
ORDER PROCESSING
WAREHOUSING
MATERIALS HANDLING
TRANSPORTATION
INVENTORY CONTROL
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Transportation Attributes
Transportation Attributes
DEPENDABILITY
COST
DELIVERY TIME
# LOCATIONS SERVED
VARIETY OF PRODUCTS
TRACEABILITY
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Transportation modes
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Inventory Control
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mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2012 Pearson Education, Inc. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall
