Chapter 15 - Global Distribution and Logistics

Question 1

Channel Structure Performs

Answer 1

• physical movement of goods
• transaction title flows
• information communication flows

Question 2

Channel Design

Answer 2

how products or services move from the producer to the cusomter

determined by the 11 c’s factors (customer, culture, comepttion, company objectives, character, capitalm cost, coverage, control, continuity, communication)

Question 3

11C’s

Customers

Answer 3

focusing on customer needs by understanding …
1. WHAT commodities they buy
2. WHY they buy those commodities
3. WHEN they buy the commodities
4. HOW they buy the commodities

Question 4

11C’s

Culture

Answer 4

considering the existing way things are done in the distribuution world

*it’s about understanding the current channel structure or how products usually move from makers to buyers

Question 5

11C’s

Competition

Answer 5

example: if everyone is used to ordering things online from your competitors, you might need to consider using a similar approach to stay competitive

Question 6

11C’s

Company objectives

Answer 6

the big goals or targets that a business sets for itself

*Example: if the main goal of a company is to reach as many customers as possible, the channel design might focus on widespread distribution

Question 7

11C’s

Character

Answer 7

the distinctive qualities or traits of the distribution channels chosen by a company

*example: a company might choose online sales channels because they offer a convenient and tech-savy charatcer, or they might opt for a traditional retail channel for a personal character

Question 8

11C’s

Cost

Answer 8

the money spent on maintaing a distribution channel once it is set up

Question 9

11C’s

Coverage

Answer 9

how many places a product is available and how well it’s presented in those places

Question 10

11C’s

Control

Answer 10

havingthe power to manage and direct how your products are marked

Question 11

11C’s

Continuity

Answer 11

looking at how committed and long-term the relationship is with foreign distributors

Question 12

11C’s

Communication

Answer 12

Provides the exchange of information that is essential to the functioning of the channel

Question 13

Channel Management

Types of Intermediaries

Answer 13

1. Distributor
2. Agent

Question 14

Types of Intermediaries

Distributor

Answer 14

pruchases the propduct and will therefore excercise more independence than an agency

Question 15

Types of Intermediaries

Agent

Answer 15

Operates on a commission basis

Question 16

International Logistics

Two phases in the movements of materials

Answer 16

1) Materials management
2) Physical distribution

Question 17

Concepts with logistics

System Concept

Answer 17

when dealing with the movement of materials, you have to look at all the activities together because they interact with each other

Question 18

Concepts with logistics

Trade cost concept

Answer 18

minimizes the firm’s overall logistics cost within the entire system

Question 19

Concepts with logistics

Trade-off concept

Answer 19

recognizes the linkages within logsitics systems that results from the ineraction of their component

Question 20

International Transportation issues

Modes of Transporation

Answer 20

• ocean
• air
• pipline
• highway
• rail

Question 21

Choice of transport modes depends on…

Answer 21

1. Transit time
2. Predictability
3. Cost
4. Non-economic factors

Question 22

Inventory carrying costs

Answer 22

expenses of maintaing inventories

Question 23

Order cycle time

Answer 23

total time that passes between the placement of an order and the receipt of the merchandise

Question 24

Customer service levels

Answer 24

responsiveness that inventory policies permit for any given situation