CHAPT 7 Flashcards
is the process of bringing the goods produced or services rendered by the company to the ultimate consumer.
distribution
refer to the pathways or routes through which goods or services flow from producers to consumers. It ensure that products reach the right customers efficiently and at the right time.
distribution channel
what are the types of distribution channel
direct, indirect, hybrid channels
Involves no intermediaries; the producer sells directly to the consumer. Example: Direct sales, door-to-door selling, factory outlets Involves intermediaries between the producer and the consumer
direct channels
involves intermidiaries between the producer and the consumer
indirect channels
combines direct and indirect channels
hybrid channels
what are the types of distribution activities
order processing
packaging
warehousing
transportation
inventory control
customer service
Regarded as the input to customer service satisfaction. It consist of receiving, recording, filling, and assembling of products for shipping
order processing
an essential function to do in supply chain management. it shields products from breakages, helps in well organized distribution, and conveys messages about products to the customers
packaging
is holding and preserving products from time of their productiona until their sale
storage
is much broader concept that includes storage and other functions like assembling, breaking the volume, shipping based on need, arranging product for reshipping, logistics and so on.
warehousing
the movement of goods, people, or services from one place or another using various models such as land, sea, air, or rail
transportation
are those companies that offer transfortation facilities to other
carriers
the processes and techniques used to manage and regulate the stock of goods in business, ensuring the right amount of inventory is avilable at the right time and place. it fpoccuses on minimizing costs while meeting customer demand and avoiding overstock or stockouts.
inventory control
support and assistance provided by the business to its consumer before, during, and after purchasing its products or services. it directly impacts custromer satisfaction, loyalty, and overall business success.
customer services
also known as middlemen, are very essential component of a
company’s distribution channel
intermidiaries
TYPES OF DISTRIBUTION INTERMEDIRIES
agent or brokers
wholesalers
distributors
retailers
These are individuals or companies that act as representatives for businesses. They help in connecting buyers and sellers or facilitate deals.
agents or brokers
is a business or individual that purchases goods in bulk directly from manufacturers or distributors and resells them, usually in smaller quantities, to retailers, other businesses, or institutions.
wholesalers
act as intermediaries in the supply chain, bridging the gap between producers and the final point of sale
WHOLESALERS
is selling pf commodities to everyone either to a person or an organization but not to the final consumers of those goods.
wholesaling
responsible for buying goods and services on behalf of a business or organization. They act as the organization’s representative in procurement activities.
purchasing agent
a third-party intermediary that assists in making a transaction but does not take ownership of goods or directly negotiate purchases.
facilitating agent
two types of agents or brokers
purchasing agent
facilitating agent
Purchases goods from manufacturers or suppliers and sells them to retailers, businesses, or directly to consumers, often with exclusive rights in a region.
distributors
A company that buys bulk electronics from manufacturers and sells them in large quantities to electronics retailers.
wholesaler
A company that buys smartphones from a manufacturer and has exclusive rights to sell those smartphones to retail stores and even directly to businesses in a specific country or region. The _______ might also provide marketing support, warranty services, and product training to the retailers.
distributor
is a business or individual that sells goods or services directly to end consumers for personal use. ______ typically buy goods from wholesalers, distributors, or manufacturers and sell them in smaller quantities, often in a physical store, online, or both. They are the final step in the supply chain before the product reaches the consumer.
retailers
There are no intermediaries in this channel; the producer sells directly to the end consumer. Producer → Consumer
zero level channel
levels of distribution channels
zero level channel
one levelk channel
two level channel
three level channel
Contains one selling intermediary, usually a retailer. Producer → Retailer → Consumer
one level channel
This channel includes two intermediaries: wholesalers and retailers.Producer → Wholesaler → Retailer → Consumer
two level channel
This channel involves agents or brokers in addition to wholesalers and retailers.Producer → Agent/Broker → Wholesaler → Retailer → Consumer
three level channel
levels of distribution coverage
mass coverage
selective coverage
exclusive coverage
Also known as intensive distribution. Products are made available through as many outlets as possible to maximize exposure and sales.
mass coverage
government regulation and policies
fair trade and consumer protection
distribution of regulated goods
import and export regulations
ecommerce and digital distribution
Products are distributed through a limited number of carefully chosen outlets to maintain a balance between market coverage and bra ndcontrol.
selective coverage
Products are distributed through a single or very few exclusive outlets in a specific geographic area
exclusive coverage
Requires
proper labeling, warranties, and after-sales service.
fair trade and consumer protection
Requires licenses
for distributors, wholesalers, and retailers dealing in
FDA-regulated products.
distribution of regulated goods
Requires proper
documentation for importers and distributors of foreign
goods.
import and export regulations
Regulates the
digital distribution of goods and services, including online
marketplaces.
e commerce and digital distribution
the process of sourcing and acquiring raw materials, components, or services required for production
procurement
refers to managing the flow of physical goods and related information from initial souring to final consumption to satisfy customers at a profit.
supply chain management
The main goal of supply chain management is to
design
plan
manage
execute supply
transforming raw materials into finished goods using labor, machinery, and processes
production and manufacturing
monitoring and controlling stock levels to meet demand without overstocking or understocking
inventory management`
sorting goods at various stages of the supply chain until they are needed for production or delivery
warehousing and storage
fuctions of supply chain management
procurement
production and manufacturing
inventory management
warehousing and storage
transportation and logistics
demand planning and forecasting
order fulfillment
customer relationship management
reverse logistics
managing the movement of goods across the supply chain from suppliers to customers
transportation and logistics
anticipating customers demand to align supply chain activities with market needs
demand planning and forecasting
managing processes from receiving customer orders to delivering the products
order fulfillment
building and maintaining strong relationships with customers through service and support
customer relationship management
Managing the return flow of goods from customers
back to the company
reverse logistics
