CHAPTER 7 - DISTRIBUTION AND SUPPLYCHAIN STRATEGY 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 Channels
3 TYPES OF DISTRIBUTION CHANNELS
DIRECT CHANNELS
INDIRECTS CHANNELS
HYBRID CHANNELS
Involves intermediaries between the producer and the consumer.
Example: Wholesalers, Distributors, Retailers
INDIRECT CHANNELS
Combines direct and indirect channels.
Example: A company selling
products both through its website and through retailers.
HYBRID CHANNELS
Involves no intermediaries; the producer sells directly to the consumer.
Example: Direct sales, door-to-door selling, factory outlets
DIRECT CHANNELS
Regarded as the input to customer service satisfaction. It consists 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, & conveys messages about products to the customers.
PACKAGING
___ is holding & preserving products from the time of their production until their sale. ___ is a much broader concept that includes storage & other functions like assembling, breaking the volume, shipping based on need, arranging
product for reshipping, logistics and so on.
STORAGE and WAREHOUSING
____The movement of goods, people, or services from one place to another
using various modes such as land, sea, air, or rail. ____ are those companies that offer transportation facilities to others.
TRANSPORTATION and CARRIERS
The processes and techniques used to manage and regulate the stock of goods in a business, ensuring.the right amount of inventory is available at the right time and place
INVENTORY CONTROL
The support and assistance provided by a business to its customers before, during, and after purchasing its products or services. It directly impacts customer satisfaction, loyalty, and overall business success.
CUSTOMER SERVICE
Intermediaries, also known as ___, are
very essential component of a company’s distribution channel.
middlemen
These are individuals or companies that act as representatives for businesses. They help in connecting buyers and sellers or facilitate deals.
AGENTS/BROKERS
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
is selling pf commodities to
everyone either to a person or an organization but not to the final consumers of those goods.
WHOLESALING
— 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.
— act as intermediaries in the supply chain
WHOLESALER
Purchases goods from manufacturers or suppliers and sells them to retailers, businesses, or directly to consumers, often with exclusive rights in a region.
DISTRIBUTORS
is a business or individual that sells
goods or services directly to end consumers for personal use.
RETAILER
These are strategies used by producers to determine the number and types of outlets through which their products are made available.
LEVELS OF DISTRIBUTION COVERAGE
Also known as intensive distribution. Products are made available through as many outlets as possible to maximize exposure and sales.
MASSCOVERAGE
Products are distributed
through a limited number of carefully chosen outlets to maintain a balance between market coverage and brand control.
SELECTIVE COVERAGE
Products are distributed through a single or very few exclusive outlets in a specific geographic area.
EXCLUSIVE COVERAGE
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, and execute supply chain activities from the point of production to the point of sale.
FUNCTIONS OF SUPPLY CHAIN MANAGEMENT
The process of sourcing and acquiring raw materials, components, or services required for production.
PROCUREMENT
Transforming raw materials into
finished goods using labor, machinery,
and processes
PRODUCTION & MANUFACTURING
Monitoring and controlling stock levels
to meet demand without overstocking
or understocking.
INVENTORY MANAGEMENT
Storing goods at various stages of the
supply chain until they are needed for
production or delivery.
WAREHOUSING AND STORAGE
Managing the movement of goods
across the supply chain, from suppliers
to customers.
TRANSPORTATION AND LOGISTICS
Anticipating customer demand to align supply chain activities with market needs.
DEMAND PLANNING AND FORECASTING
Managing the process from receiving customer orders to delivering the products.
ORDER FULFILLMENT
Building and maintaining strong relationships with customers through service and support.
CUSTOMER RELATIONSHIP
MANAGEMENT (CRM)
Managing the return flow of goods from customers back to the company.
REVERSE LOGISTICS
