Creating Value Through Supply Chain Management (Chapters 11-12) Flashcards
What is an intermediary? What are different types of wholesaling intermediaries?
A firm or individual who in some way helps move the product to the consumer or business user. Common term is middlemen. There are independent intermediaries, which consist of merchant and merchandise agents/brokers, and manufacturer-owned intermediaries.
What are consumer channels? Why sell via consumer channels?
A direct channel in which a producer sells directly to the customer. (E.g. a baker selling fresh bread to customers). Offers more control over pricing, service and delivery (all elements of transaction). Gets a good idea of trends, needs/complaints of customers and effectiveness of strategies.
What is a B2B distribution channel? What are the two types?
Facilitates the flow of goods from a producer to an organizational or business customer. May be direct or indirect. There are dual/multiple distribution systems and multichannel (hybrid?) marketing.
What is distribution intensity?
The number of intermediaries at each level of the channel. Part of distribution strategy. Business must decide whether to use a conventional or highly integrated system and what the distribution intensity will be.
What is distribution intensity?
The number of intermediaries at each level of the channel. Part of distribution strategy. Business must decide whether to use a conventional or highly integrated system and what the distribution intensity will be.
What are logistics?
Process of using information to design, manage and improve the movement of products through the supply chain.
What is the objective of logistics? What activities does it involve?
Deliver exactly what the customer wants at the right time, in the right place and at the right price. Activities include processing, warehousing ,materials handling, transportation and inventory control.
What is the objective of logistics? What activities does it involve?
Deliver exactly what the customer wants at the right time, in the right place and at the right price. Activities include processing, warehousing ,materials handling, transportation and inventory control.
What is the appropriate goal of logistics?
Customer’s goals are provider’s priorities; decide between low costs and high customer service. Goal not just to deliver what market needs at lowest cost but to provide product at lowest cost possible as long as firm meets delivery requirements.
What is value? What does the value proposition entail?
Value is the function of perceived benefits + perceived costs. People will not buy something if they do not understand why they should pay attention, they only pay attention if they perceive that you have something meaningful or valuable to them. Customers don’t buy a product, they hire it for a job they need done; customer wants to know if the product will satisfy needs sufficiently to justify what they are giving up.
