Chapter 13 Flashcards
Distribution strategy
A plan for delivering the right product to the right person at the right place at the right time.
Channel of distribution
The network of organizations and processes that links producers to consumers.
Physical distribution
The actual, physical movement of products along the distribution pathway.
Direct channel
A distribution process that links the producer and the customer with no intermediaries.
Channel intermediaries
Distribution organizations that facilitate the movement of products from the producer to the consumer.
Retailers
Distributors that sell products directly to the ultimate users, typically in small quantities, that are stored and merchandised on the premises.
Wholesalers
Distributors that buy products from producers and sell them to other businesses or nonfinal users such as hospitals, nonprofits and the government.
Agents/brokers
A party who agrees to represent another party, called the principal.
Supply chain
All organizations, processes and activities involved in the flow of goods from the raw materials to the final consumer.
Supply chain management (SCM)
Planning and coordinating the movement of products along the supply chain, from the raw materials to the final consumers.
Logistics
A subset of supply chain management that focuses largely on the tactics involved in moving products along the supply chain.
Modes of transportation
The various transportation options–such as planes, trains, and railroads–for moving products through the supply chain.
Breakeven analysis
The process of determining the number of units a firm must sell to cover all costs.
Profit margin
The gap between the cost and the price of an items on a per-product basis.
