CHPTR:7 DISTRIBUTION AND SUPPLY CHAIN STRATEGY

Question 1

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.

Answer 1

Distribution Channels

Question 2

is the process of bringing
the goods produced or services rendered
by the company to the ultimate
consumer.

Answer 2

Distribution

Question 3

TYPESOF DISTRIBUTION CHANNELS

Answer 3

Direct channel
Indirect Channel
Hybrid Chanel

Question 4

DISTRIBUTION ACTIVITIES

Answer 4

Order Processing
Packaging
Warehousing
Transporting
Inventory Control
Customer Service

Question 5

-also known as middlemen, are very essential component of a
company’s distribution channel

Answer 5

Intermediaries

Question 6

-These are individuals or companies that act as representatives for
businesses. They help in connecting buyers and sellers or facilitate deals.

Answer 6

Agents/broker

Question 7

• a third-party intermediary that assists in making a
  transaction but does not take ownership of goods or directly negotiate
  purchases. Example: customs broker assisting with import/export compliance.

Answer 7

Facilitating Agent

Question 8

• responsible for buying goods and services on behalf of a
  business or organization. They act as the organization’s representative in
  procurement activities.

Answer 8

Purchasing Agent

Question 9

• is selling pf commodities to everyone either to a person or
  an organization but not to the final consumers of those goods.

Answer 9

Wholesaling

Question 10

• 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.

Answer 10

WHOLESALER

Question 11

-Purchases goods from manufacturers or suppliers and sells them to
retailers, businesses, or directly to consumers, often with exclusive
rights in a region.

Answer 11

DISTRIBUTORS

Question 12

• is a business or individual that sells goods or services
  directly to end consumers for personal use. Retailers 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.

Answer 12

retailer

Question 13

-are typically categorized based on the number of intermediaries
involved.

Answer 13

LEVELSOF DISTRIBUTION CHANNEL

Question 14

-There are no intermediaries in this channel; the producer sells directly to the end
consumer. Producer → Consumer

Answer 14

ZERO-LEVELCHANNEL

Question 15

Contains one selling intermediary, usually a retailer.
Producer → Retailer → Consumer

Answer 15

ONE-LEVELCHANNEL

Question 16

This channel includes two intermediaries: wholesalers and retailers.
Producer → Wholesaler → Retailer → Consumer

Answer 16

TWO-LEVELCHANNEL

Question 17

This channel involves agents or brokers in addition to wholesalers and
retailers.Producer → Agent/Broker → Wholesaler → Retailer → Consumer

Answer 17

THREE-LEVELCHANNEL

Question 18

These are strategies used by producers to determine the number and types of outlets through
which their products are made available. These are categorized into three main levels based on the
degree of market penetration and availability

Answer 18

LEVELSOF DISTRIBUTION COVERAGE

Question 19

Also known as intensive distribution. Products are made available
through as many outlets as possible to maximize exposure and sales.
Example: Soft drinks (Coca-Cola, Pepsi), snacks (Lays, KitKat), and
toiletries (Colgate, Dove).

Answer 19

MASSCOVERAGE

Question 20

Products are distributed through a limited number of carefully chosen
outlets to maintain a balance between market coverage and brand
control. Example: Laptops (Dell, HP), smartphones (Samsung, Apple),
Mid-range to high-end apparel (Levi’s, Nike).

Answer 20

SELECTIVECOVERAGE

Question 21

Products are distributed through a single or very few
exclusive outlets in a specific geographic area.
Example: Gucci, Louis Vuitton, Rolls-Royce, Tesla,

Answer 21

Exclusive Coverage

Question 22

• Requires
  proper labeling, warranties, and after-sales service.

Answer 22

Fair Trade and Consumer Protection

Question 23

• Requires licenses
  for distributors, wholesalers, and retailers dealing in
  FDA-regulated products.

Answer 23

Distribution of Regulated Goods

Question 24

• Requires proper
  documentation for importers and distributors of foreign
  goods.

Answer 24

Import and Export Regulations

Question 25

- Regulates the digital distribution of goods and services, including online marketplaces.

Answer 25

E-Commerce and Digital Distribution

Question 26

- refers to managing the flow of physical goods and related information from initial souring to final consumption to satisfy customers at a profit.

Answer 26

SUPPLYCHAIN MANAGEMENT

Question 27

The process of sourcing and acquiring raw materials, components, or services required for production.

Answer 27

Procurement

Question 28

Transforming raw materials into finished goods using labor, machinery, and processes.

Answer 28

Product and manufacturing

Question 29

Monitoring and controlling stock levels to meet demand without overstocking or understocking.

Answer 29

Inventory Engagement

Question 30

Storing goods at various stages of the supply chain until they are needed for production or delivery.

Answer 30

Warehousing and storage

Question 31

Managing the movement of goods across the supply chain, from suppliers to customers.

Answer 31

Transportation and Logistics

Question 32

Anticipating customer demand to align supply chain activities with market needs.

Answer 32

Demand,Planning and forecasting

Question 33

Managing the process from receiving customer orders to delivering the products.

Answer 33

Order fulfillment

Question 34

Building and maintaining strong relationships with customers through service and support.

Answer 34

Customer Relationship Management (CRM)

Question 35

Managing the return flow of goods from customers back to the company.

Answer 35

Reverse Logistics