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Marketing > Distribution Management (placement) And Retailing > Flashcards

Distribution Management (placement) And Retailing Flashcards

1
Q

What is the aim of distribution?

A

Make right prods available in right quantities at the right time in the right place.

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2
Q

What is a distribution channel?

A

Firms/individuals involved in the flow of goods and services from producer to final consumer

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3
Q

What is a reverse distribution channel?

A

Recycle waste/obsolete products or part-products

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4
Q

What should be examined before distribution channels are selected?

A

Marketing environment
Economy
Laws and regulations

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5
Q

Describe the importance of intermediaries

A

Can be eliminated by companies

Can’t eliminate their functions

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6
Q

Name the channels for CONSUMER goods

A

⛴ PRODUCER➡️ CONSUMER

⛴PRODUCER➡️RETAILER➡️ CONSUMER

⛴ SERVICE PRODUCER➡️ CONSUMER

⛴ SERVICE PRODUCER➡️ AGENT➡️ CONSUMER

⛴ PRODUCER➡️ WHOLESALER ➡️ RETAILER➡️ CONSUMER

⛴ PRODUCER➡️WHOLESALER-AGENT➡️ WHOLESALER➡️RETAILER ↪️ CONSUMER

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7
Q

Name the channels for organisational products

A

⛴ PRODUCER➡️ USER

⛴ PRODUCER➡️ WHOLESALER➡️ USER

⛴PRODUCER➡️ AGENT-WHOLSALER➡️ USER

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8
Q

What is a wholesaler?

A 
A business engaged in selling merchandise to :
🏪 retailers
🏪 industrial users
🏪 commercial users
🏪 institutional users
🏪 professional users
🏪 other wholesalers
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9
Q

What is the function of a wholesaler?

A
  • buy bulk behalf of customers (act as agents)
  • add value to channel through :
    • storage
    • bulk breaking,
    • providing prod ranges
    • assortment to retailers
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10
Q

What are retailers?

A

Business that sells goods and services to public for own use and benefit

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11
Q

What is the function of a retailer?

A
  • carry inventory
  • further bulk breaking
  • merchandise wide range of prods to offer consumers a variety of prods
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12
Q

Name 2 ways to analyse industrial distribution channels

A
  1. The distribution channel for industrial materials

2. The flow of industrial products in the distribution of products

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13
Q

What is the function of end- users in channel for industrial materials

A
  • not regarded as final consumers

- be Manufacturer,producer, processor or reseller.

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14
Q

What type of goods are distributed in the industrial material channel?

A
  • Equipment
  • Installations
  • accessories
  • component parts
  • materials
  • supplies to business services.
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15
Q

What does the 2nd channel focus on

A

Network of intermediaries involved in the processing of raw materials into eventual consumer goods

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16
Q

What does the industrial products channel include?

A
  • producers(farmers)
  • manufacturers(packaged food)
  • processors(ingredients)
  • wholesalers (grocery)
  • distributors (food service)
  • retailers(supermarkets, restaurants )
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17
Q

What is the eventual outcome of the 2nd industrial channel

A

Consumer has wider choice

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18
Q

What is important about the 2nd industrial channel?

A

Every participant add value for measure of effectiveness

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19
Q

What are the 3 dimensions that identify design alternatives

A
  1. No.of levels in a channel
  2. No. Of intermediaries operating @various levels
  3. Types of intermediaries
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20
Q

What is a channel level?

A

Intermediary performs a function to convey market offering closer toward the final user

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21
Q

What is a channel length?

A

No. Of intermediary levels

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22
Q

Name the distribution alternatives available

A
  • Manufacturers sale force

- manufacturer’s representive/industrial suppliers

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23
Q

What does the alternatives need to be evaluated against?

A
  • expected sales and cost
  • control and resources
  • flexibility criteria
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24
Q

What elements the best channel structure

A

design, offers performance effectiveness @ lowest cost possible along marketing function to be executed

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25
Q

Why do marketers, non-profit organisations,service organisations engage in distribution?

A

Need to bridge the gap between marketer and consumer

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26
Q

Name the functions and activities performed by intermediaries

A

🌉 Close gaps and provide utility
🌉 Resolve discrepancies
🌉 Reduce transactions
🌉 Synchronise needs, do bulk breaking & re-assort product offerings

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27
Q

Describe the function of ‘close gaps and provide utility’

A

This includes providing utility and bridging gaps

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28
Q

Name the bridging gaps

A

FORM UTILITY:

Quantity gap:

  • bulk breaking
  • storage
  • packaging
  • recycling

ASSORTMENT GAP:

  • accumulation of assortment
  • grading
TIME &TEMPORAL UTILITY:
TIME GAP:
- storage and warehousing
- inventories
- financing 
- Order taking 
- expediting 
PLACE UTILITY:
Spacial gap: 
- transportation 
-materials handling 
- delivery
POSSESSION UTILITY:
Information gap:
- sales promotion
- advertising 
- direct selling
- direct marketing

Ownership gap:

  • buying and selling
  • credit and financing
  • collecting and delivery
  • servicing product adjustments
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29
Q

Name the utilities

A

FORM UTILITY:
Smaller assortment, graded and re-packaged

TIME UTILITY:
In storage,paid for
- waiting to be collected or to be delivered

TEMPORAL CLOSURE:
Supply=demand when they occur @ diff times

PLACE UTILITY:
Delivered to customer

SPACIAL CLOSURE:
Transporting goods from production location to consumption location- provides convenience

POSSESSION UTILITY:
Products received by consumer

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30
Q

What utility advantages does retailers create?

A

Form utility
Time utility
Place utility

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31
Q

What is the significance for the creation of utility?

A
  • adds value to products

- enable consumers to pick and choose what they want

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32
Q

Why is form utility created?

A

Product is changed to fulfil the needs of the customer

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33
Q

Spacial discrepancies in direct channels

A

Spacial discrepency:

  • supply sources geographically dispersed
  • need for physical transportation
  • transportation problem increased due to distant buyers need small product quantities, result need for intermediaries
  • intermediaries transport smaller quantities to solve special discrepancies
  • channel delivers inventory nearer to customer, closes spatial gap between manufacturer and consumer
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34
Q

Describe timing discrepency

A

-goods manufactured in large quantities, retailers order smaller product quantities = timing discrepancy

  • best timing of product flow through:
    ⏱ production scheduling
    ⏱Just-In-Time ordering systems
    ⏱inventory control procedures
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35
Q

Describe temporal discrepancy

A

-customer wants product immediately
-solve this problem by stocking product
- intermediaries:
⏱adjust
⏱process products
⏱ store then until needed

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36
Q

Describe discrepancy of quantity and assortment

A
  • Manufacturers make large quantities of products, where consumers purchase single units
  • intermediaries, categorise product offerings through sorting.

-sorting : create unique and need-satisfying product assortments through:
🏆standardisation- collecting uniform products from alt suppliers and manus. Prods graded to size,quality and weight

🏆 accumulation- assembling standard prods into large quantities for transport

🏆 allocation- providing adequate supply for numerous customers

🏆 Assortment- assembling of specific customer groups into a customised order for specific customer groups

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37
Q

Describe the discrepancy of possession, knowledge/ownership

A
  • intermediaries involved with transfer of ownership of Goods form mAnu to consumers
  • intermediaries provide info about items, temp oratory credit, guarantees or adjustment to complete sale.
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38
Q

Describe intermediaries reduce transactions

A

-more efficient to have intermediaries involved in the distribution of products

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39
Q

Discuss ‘synchronise needs,mod bulk and re-assortment product offerings

A
  • channels make products available,Mayen, where and in sizes and quantities consumers want
  • channels create efficiency by reducing number of transactions for goods to flow from manus to customers
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40
Q

Describe the the different specialised activities

A 
-transactional activities: moving goods through channel such as 
   🚙 buying
   🚙 selling
   🚙 pricing 
   🚙 promoting products 
   🚙 risk taking 
-Physical activities : 
  🚙 warehousing 
  🚙 order-processing 
  🚙 storing 
  🚙sorting 
  🚙 transporting 
  🚙 repairing goods

Facilitating activities: ease sale of goods to end users

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41
Q

Name and describe the types of specialists

A
  1. Functional service providers: engaged in day-to-day performance of channel ( moving, modifying, physically handling prod)
  2. Support specialists:
    - firms facilitate overall channel performance by providing essential services.
    - don’t engage in actual selling/logistics
    - transparent to physical path prod follows
    - essential for completion of distribution process
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42
Q

Name and discuss reasons for specialisation

A

-Economic justification :
💵 specialisation & division of labour = low cost to perform specific activity
💵 reduce costs & provide services more efficiently and effectively

  • Risk Involvement: assume more active participation in risks associated with channel
    💵 spread among distribution partners, incentive to perform her standard.
    💵 higher standard➡️higher value offering➡️build loyalty
  • concentration and alliance: fewer specialists more deeply involved involved in business affairs of primary channel intermediaries
  • service specialist leadership: access to up to date tech & logistical ops lead to specialisation opportunities.
  • changing attitudes toward outsourcing:
    💵 refocus managerial talents and resources and outsource non-core bus activities to firms specialise in them.

-availability of resources:
💵resource driven
💵variable expense not different performed internally.
💵resources required different

  • ability to exercise control: IT adequate to maintain control over outsourced service
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43
Q

Describe Assembly,fulfilment and sequencing p

A

⚙Assembly:

  • modify prods, while being processed in channel
  • eco justification on potential benefits of form postponement
  • common tasks: labelling, painting,mixing…
  • transportation and warehouse firms provide value-added services

⚙Fulfilment :

  • handling and arranging for shipment of promotional/point of sale advertising materials
  • process and ship particular types of mercy on behalf of Manu, who,ret
  • typical arrangement physically maintain associated inventory
  • distribution of sales, promo materials ,catalogues, sales force
  • distribute merch posters and other materials

⚙Sequencing:

  • sorting merch into unique configuration to satisfy requirements
  • JIT sequence part shipments into order of assembly usage
  • manufacturing sequencing provided transportation or warehouse firms, that operate specialised equip to perform value added service
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44
Q

What is channel co-operation?

A

Co-ordinated efforts by members whose marketing objectives and strategies complement each other

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45
Q

What is channel conflict?

A

Members cannot agree

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46
Q

What causes conflict?

A
  • Disagreements about common purpose or responsibility for activities
  • antagonistic relationship caused by absence of channel power
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47
Q

Define channel power

A

Ability to exert influence over the other members,me here most powerful is the leader.

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48
Q

Describe Referent power

A

Other members respect, admire and identify with the channel leader

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49
Q

Name the 3 types of conflict

A
  1. Vertical channel conflict
  2. Horizontal channel conflict
  3. Multi-channel conflict
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50
Q

Describe vertical channel conflict

A

Conflict between different levels within the same channel

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51
Q

Describe horizontal channel

A

Conflict between members at the same level within the channel

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52
Q

Describe multi-channel conflict

A

Manufacturer has established two or more channels that sell to the sa,e market

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53
Q

What are channel adjustments?

A

Purposeful modifications to intermediary relationships

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54
Q

When are adjustments needed?

A

Conditions in market-place changes

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55
Q

Discuss the indicators for when redesign is necessary

A
  • change in customer buying patterns
  • movement of prod through its life cycle
  • modifications encouraged by environmental change
  • changes in economic conditions
  • changes in industry and competitive conditions
  • pressure on resellers and manufacturers to recycle packaging material
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56
Q

What CIRCUMSTANCES indicate business needs to redesign its channel?

A
  • development of new prod/entire prod line
  • decision to target existing prods to new consumers,bus markets
  • awareness that signifies changes that have been introduced
57
Q

Briefly describe ethical and legal concerns

A
  • Territorial arrangements: may restrict free trade

- Tying agreements : tie the purchase of one prod to the purchase of another are illegal

58
Q

Why should bus be aware of exclusive dealing arrangements

A

To stop illegal distribution of competitors goods.

59
Q

Explain reverse distribution/backward channel

A

When distributors agree to participate in manufacturers recycling efforts

  • critical for ecological goals
  • success of recycling efforts
60
Q

Describe the impact of prod life cycle on distribution

A

🔄 Introductory phase:

  • most difficult
  • hard to get middlemen to carry prod
  • man limit coverage to certain areas

🔄 Growth phase:

  • competitors enter
  • market demand increases
  • distribution strategy broadened to new geo markets
  • intensity increased
  • Increased market penetration, require price/promo concessions

🔄 MATURITY STAGE:
- distribution structures apply pressure for reduced prices, increased margins & similar concessions

  • obj maintaining distribution intensity @ app level by satisfying. Requirements of participants.
  • seek new users and markets,require to altered channels

🔄DECLINE PHASE:

  • difficult to maintain distribution intensity
  • decision regarding app strat
  • some middlemen delete prod, others continues comp is reduced
  • prod may delete prod, others delete marginal middlemen, cut expenses

**End result reduced level of comp @ all channel levels &knew channel arrangements **

61
Q

Describe a pull strategy

A

Attempts to stimulate demand for a prod by promo efforts aimed @ consumer @ industrial user.

62
Q

What is the goal of a pull strategy

A

Build demand @ that level so :Ret,Whole,dist, feel compelled to stock prod in assortments.

63
Q

Describe a push strategy

A

Focuses manufacturers promo efforts on members of distribution channel

64
Q

Define physical distribution

A

Broad range of activities concerned with efficient movement of finished prods from end of production line to the consumer

65
Q

Describe activities of physical distribution

A

🚚 Warehousing and storage:

  • hold merch until demanded by market
  • break bulk
  • important for seasonal prods

🚚 order processing:

  • expedite orders quickly and economically
  • incl act, taking & processing orders, shipping & billing

🚚 Inventory control:

  • number and timing of unit orders
  • expected to manage inventory so ideal levels maintained most of time.

🚚materials handling and materials management:

  • moving inventories of prods
  • materials management procurement of raw materials and parts & movement to point of production

🚚 protective packaging & containerisation:

🚚 Transportaion
- shipment of goods between Manu’s & retailers or retailers & consumers

66
Q

Name the 5 distribution activities of concern

A 
🚛 Transportation 
🚛 warehousing 
🚛 inventory control
🚛 materials handling 
🚛 order processing
67
Q

Describe transportation?

A

-selecting specific mode to physically move prods from Manu, ret,whol to buyer

-5 major modes of transportation are :
🚚
⛴
🚉
✈️
Pipeline transport
68
Q

Describe advantages and disadvantage of transport modes

A

🚉:
ADV:
- long distance @low cost,shipment is large
- best for large,heavy, bulk items.
-Division-in-transit privallage safe useful,provide specialised cars and rates.
-efficient for large amounts of goods,combined with containerisism

DISADVANTAGE:

  • shipment size rises, more attractive to shippers
  • delivery limited to places with tracks
  • slow delivery
  • rough treatment of merch
🚚:
ADV:
- moving goods over short distances 
- flexible
- fewer damages in transit 
-provide effective specialised equip 
-fast
-reliable 
-good rep 
-door to door

DISADVANTAGE:
-🚚 expensive to use

✈️:
ADV:
-fast
- speed
- span great distance
- reliability 
-reach inaccessible areas 
- gentle treatment of merch.

DISADVANTAGE:
-most expensive of all modes

⛴:
ADV:
-inexpensive (lowest cost)
- suitable to easily protected,inexpensive, bulky prods
- good for places do not require fast delivery

DISADVANTAGE:

  • limited to use where ports and waterways are available
  • subject to freezing of canals, ports and rivers in winter
  • not reliable
  • damage goods
Pipeline:
ADV:
- efficient movers
- specialised means of transport (carry specific prods)
- inexpensive once built

DISADVANTAGE:
-deliver only to specific terminals.
-

69
Q

Give the definition for materials management

A

Bring raw materials and supplies to the point of production and moving-in process inventory through the firm.

70
Q

Briefly explain ‘Just-In-Time’ analysis systems

A
  • Have supplies arrive when they are needed*
  • frequent delivery of small lot sizes that arrive at the right moment to be placed into production
  • frequent replacement of prods on the retailers shelf-minimising storage costs
71
Q

Discuss international sourcing

A

Reach of business increasing toward truly worldwide markets

72
Q

Describe order processing

A

Procedure to fill customer orders after they have been received by the company.

73
Q

Explain the order process

A

Begins when orders are received

Ends when merch has been shipped and bills sent to customers

74
Q

Define warehousing/distribution centres

A

The holding and housing of goods between the time they are produced and the time they are shipped to the buyer.

Includes the activities that take place from when the goods arrive at the warehouse until they are released for shipment

75
Q

Briefly discuss storage

A
  • Holding and housing goods in inventory, and is necessary because of virtually inevitable discrepancies that occur.
  • can be part of production
76
Q

Describe breaking bulk

A

Converting large shipments of goods into smaller quantities app for consumer needs.

77
Q

What are the two decisions warehousing strategy involves

A
  • determining optimum no.,location and type of warehouse needed
  • calculating proper levels of inventory to be stocked
78
Q

Discuss reasons why bus store goods in warehousing

A
  • irregular production facing regular demand
  • regular production facing irregular demand
  • desire to postpone sale of prod until prices higher
  • desire to have prod ready to move when promo campaign begins
  • need to have inventories handy to meet buyers demands
  • need to ‘age’ a product
  • gain competitive adv.
  • to ease problems
  • deal better with channel members
79
Q

What does inventory control involve?

A

Decisions concerning how large/small inventories should be and how overstocking of inventory can be weighed against costly stock outs

80
Q

Discuss the 3 costs of inventory

A
  • acquisition costs: expense incurred in obtaining stock
  • holding stock: expense incurred to keep stock in warehouse
  • out-of stock costs: losses that occur, consumers demand goods Manu can’t provide
81
Q

What is the Economic order quantity

A

Mathematically determined purchase order size that yields the lowest total order-processing and inventory holding costs

82
Q

What is the inventory holding problem?

A

Trying to balance the goals of minimising costs while satisfy customers.

83
Q

What is the systems concept in physical distribution?

A

Elements in a system are strongly interrelated and interact in their effects on the achievement of a goal.

84
Q

What occurs within a physical distribution

A
  • parts may be thought of separately

- Do NOT operate seperately

85
Q

What is the goal of the physical distribution system?

A

Maximised customer satisfaction at minimum cost

86
Q

What does the total concept involve?

A

* distribution job to be done in terms of all costs and their total on bottom line.*

  • controlling total cost by go using on how the parts of the system can be used to reduce costs.
  • the focus is on the entire range of prods, thus reducing costs

-

87
Q

Describe customer service

A

How rapidly and dependently a firm can deliver what customers want

88
Q

What is the central objective of physical distribution?

A

Keep costs down while keeping the level of service up.

Yet improved services increases costs

89
Q

Describe quality in logistics

A 
Service quality indicators:
😄 damage-free shipments 
😄 correct and error-free invoices
😄 returns are effortlessly handled 
😄 unexpected problems are rapidly resolved
90
Q

Name 3 characteristics that firms excel in service quality

A
  • implement systems for customers to access accurate and timely info
  • resolve customer requests and special requirements
  • ability to make brilliant recoveries
91
Q

Define quality

A

The company’s performance to deliver customer satisfaction

92
Q

What is service quality?

A

Depends on expectations perceived performance

93
Q

Differentiate between speed of service and order cycle consistency

A

Speed of service:

  • elapsed lead time customers expect from a firm
  • customers perception only framework for calibrating Speed of service
  • a measure planned to actual time required to complete order cycle

Order cycle consistency :
- CPOV: the expected time to complete cycle is the measure of consistency

-consistency of service is more important than speed of service

94
Q

Briefly describe aspects of prods that customers

A
  • Lot size :no.Units the channel permits a customer to purchase on one occasion
  • Waiting time: avg time customers of that channel wait for receipt
  • Spatial convenience: degree to which channel makes it easy for customers to purchase prod
  • Prod variety: assortment breadth by channel.
  • service backup: add on service by channel
  • cost: ops and supply chain natural targets in cost reduction efforts
  • After Sales support:
  • prod availability: ability of supplier to provide prods on demand
  • capability: length of time to fill orders, of logistics system adapt to special requirements, avoidance of errors
  • information support: ability of logistics system to support a prod throughout its life cycle.
95
Q

Describe the categories quality

A

Functionality: products with many features/services that provide superior performance, thought as ‘higher quality’

Conformance: degree of purity, weight of the prod,amount of time takes to perform a service.

Reliability: Will prod work for long time without failing

Durability: can withstand adverse conditions.

Safety: prod designed to be safe.

Serviceability: can prod be easily repaired

Aesthetics :does prod appeal to senses

96
Q

Discuss delivery speed

A

Th elapsed time from the receipts of an order to the final delivery.

Strategies for improving delivery speed:

  • streamlining
  • holding stock at key points
  • maintaining excess capacity
  • faster transportation
97
Q

Discuss delivery reliability

A
  • Ability to deliver prods on time*
  • have long lead time yet have high degree of reliability

Measures of reliability:

  • %of orders delivered by promised time
  • avg tardiness of late orders

Important to companies who linked together in a supply chain

98
Q

Discuss accuracy(measure of delivery reliability)

A

Accuracy of quantity shipped

99
Q

Discuss flexibility

A

Mix flexibility: ability to produce wide range of diff prods

Changeover flexibility: being in production of new prod with min delay

Design flexibility: change dean of a prod to accommodate specific customers

Volume flexibility: produce whatever volume customer needs.

100
Q

Discuss customer satisfaction

A
  • level of satisfaction among a company’s customers
  • based on their expectations of, & the perceived experience of, the customer service offered

-discussed in terms of the metrics that are used to measure it

-measures of customer service:
⏱ fill orders within due date (fill rate)
⏱deliver prods within time quoted (on-time deliveries)

101
Q

Discuss inventories

A
  • for raw materials, prods in production process and finished prods
  • warehouses between different levels of supply chain.
  • holding large quantise of stock are costly
  • binding capital prevents investing capital in projects of higher return
  • avoid dead inventory (invent is left, prod no longer on market) (EOL)
  • keep inventory levels at min
  • some prods follow JUST-IN-TIME system -rid of large inventories
102
Q

Discuss flexibility in detail

A

ability to respond to changes in the environment

  • Manu: ability to change the output in response to changes in demand
  • in SC, flexibility of one entity highly dependent on flexibility of upstream entities.
  • overall flexibility of SC depend on flexibility of all entities of a SC
103
Q

Name the term that desires the interrelationship between inventory and flexibility

A

Flexibility buffer

104
Q

What does flexibility buffer mean?

A

A Manu’s flexibility is its ability to respond to changes in demand.

105
Q

Describe the service effectiveness from a macro perspective

A
  • Lot size: con purchase prods in quantity they desire
  • waiting time: length of time for con to gain possession of goods
  • market decentralisation: proximity of goods to buyers and their convenience in buying
  • prod variety : con purchase an assortment of goods that match desires
106
Q

Define Supply chain management

A 
Integration of the logistics requirements of the supplier, distributer & customer into one cohesive process that includes: 
🚚demand planning, 
🚚forecasting, 
🚚materials requisition, 
🚚order processing, 
🚚inventory allocation, 
🚚order fulfilment 
🚚 transportation services
🚚 receiving 
🚚 invoicing and payments
107
Q

Briefly describe another aspect of SCM

A

Management and control of materials, funds and related info in the logistics process from acquisition of raw materials to the delivery of finished prods to end user, as well as reverse distribution.such as:
⚒ repair work and recall
⚒ prod withdrawn
⚒ discarding and recycling of prods

108
Q

Describe materials flow

A

Materials flow downstream from:
Raw materials➡️ manufacturing level (materials become intermediate prods (parts)➡️ assembled to form prods➡️ shipped to distribution centres
➡️ retailers and customers

109
Q

Briefly describe the primary decisions made within supply chain

A

📡 DEVELOPING : new prod development and design, prod innovation/ prod adaption.

📡 PLANNING: determining quality of final prod, designing/ adapting manuf process

📡 SOURCING: choosing suppliers, locating suppliers, how much raw materials to order, designing transportation channels

📡 PRODUCTION: location of production plants, whether to make, buy lease production facilities, plant and tools,deciding capacity of prod plants, decisions about manuf prods according quality specifications and market focus (low cost leader)

📡 INVENTORY: how much invent of raw materials, intermediate prods, semi-finished, finished prods to hold (safety stock.) whether company should follow a JIT approach, how much to order, when to order.

📡 TRANSPORTATION LOGISTICS : best way to get the prod to the customer (road, rail, air), mode of transport, shipment size, location of distribution centres to keep customer services high and costs low.

110
Q

Describe objectives of supply chain manager

A

💡 increase comm along all nodes of supply chain, create uninterrupted flow of materials and prods

💡decrease inventory, still maintaining high customer service levels

💡reduce supplier base & develop supplier relationship to reduce costs

💡standardise parts to reduce amount of inventory to be carried to fulfil customer orders,within acceptable time.

111
Q

What principles are needed to ensure supply chain is effectively managed?

A

💎 communication
💎 flexibility
💎 customer service
💎 inventories

112
Q

What is the responsibility of supply chain

A

Cover all activities associated with the flow and transformation of goods, from raw materials to end user as well as the associated info flows that enhance supply chain relationships

113
Q

What is an easy way to improve SCM system?

A

Share data through good-two way comm between suppliers and producers or resellers such as retailers.

114
Q

Describe the term value adding

A

Added benefit a service or prod provides

115
Q

What is non-value adding

A

An activity performed by a company that do not enhance the value of the prod produced.

116
Q

Discuss ‘Reducing variability’

A
  • refers to uncertainty in supply chain
  • to reduce variability, to increase visibility
  • will better a manage supply chain, pass on cost savings to cons
117
Q

Discuss supply chain visibility

A
  • increase comm among diff nodes in SC
  • better understand what is happening in SC
  • increase visibility, variability is reduced which improve overall operations
118
Q

Discuss ‘Warehouse management system’

A
  • determines best place to store inventory
  • most efficient sequence of picking invent from warehouse
  • best method of packing invent for shipment in containers and packaging such as : efficient carton size
- benefits incl: 
🏚 reducing order turnaround times 
🏚 higher invent accuracy 
🏚 increased order fill rates 
🏚 improved shipment accuracy
119
Q

What is the purpose of the value chain

A

Tool can be used to identify how more customer value can be created in the distribution channel

120
Q

Name the 9 value creating stages

A

🎨 inbound logistics : the sequence of bringing materials into the bus
(transport and warehousing)

🎨 operations: modifying and adapting materials (production process)

🎨 outbound logistics: sending goods out.(delivery, transport,wareh)

🎨 marketing and sales: branding,positioning,promotion,selling

🎨service: after sales service, repairs and maintenance

🎨 procurement activities: supply ing various inputs for each primary activity

🎨 technology development : source of comp advantage

🎨 HR management

🎨 firm infrastructure: overhead of general management, planning, finance and accounting

121
Q

Describe the primary activities of value creating stage

A

🎨 Inbound logistics : goods received from comp suppliers. Stored until needed for production. Goods moved around bus.

🎨 operations: goods are manufactured. Individual operations inc service in hotel rooms

🎨 outbound logistics : goods are now finished. Be sent along supply chain to W,R,C

🎨 marketing and sales: prepare offering to meet needs. Focus on marketing comms

🎨 Servicing : all areas of service, after sales service, training

122
Q

Explain support activities of value creating stages

A

🎨 procurement : purchasing of goods, services, materials. Aim secure lowest possible price of highest possible quality. Responsible for outsourcing and e-purchasing

🎨 Technology development: need to innovate to reduce costs and protect and sustain comp advantage. Incl - production tech, lean manu

🎨 HR management : employees expensive and vital resource. Activities incl recruitment and selection, training and development
Mission and objectives are driving force.

🎨 Firm infrastructure : driven by Corporate / strategic planning. Incl management info system

123
Q

What is a manufacturers responsible for under a value-chain concept?

A
  • examine its incremental costs and performance to look for improvements
  • estimate competitors cost and performance as benchmarks
124
Q

What is the aim of the value-chain concept?

A
  • Identify those stages where Manu able to perform certain activities better or cheaper than its competitors.
  • where competitive advantage is achieved.
125
Q

What does a firms success depend on?

A
  • how well each department performs on an individual basis

- how well activities of various departments are co-ordinated.

126
Q

Briefly explain the 4 core business processes

A

🎈product development process : activities involved in IDENTIFYING, RESEARCHING, DEVELOPING, TEST MARKETING NEW PRODS as quickly as possible. Best quality with reasonable cost parameters

🎈inventory management process: warehousing, sorting, storage and activities involved in developing, managing right invent levels of raw materials,semi-finished mat and finished goods. So adequate supplies are available.

🎈Order-to-payment processes : involved receiving orders, approving them, shipping goods on time and collecting payment. Incl record keeping and credit control.

🎈customer service processes: customer call centres, activities involved in making easier for cons to reach right parties with comp to obtain service, answers and solutions to prob.

127
Q

Name the 4 characteristics of services are important for distribution channels

A

📦 INTANGIBILITY
📦 INSEPARABILITY OF PRODUCTION AND CONSUMPTION
📦 PERISHABILITY
📦 HETEROGENEITY

128
Q

What are the 2 implications that the characteristics have for service channels?

A
  1. Services are INTANGIBLE, production occurs simultaneously with consumption, little need for logistical functions.

Services can’t be stored, warehoused or stocked

  1. Lack of merchant intermediaries in service channels. Service channels direct from service provider to user.
129
Q

Name tangible actions that are directed at people’s bodies

A 
🏥
✈️🚘🚊
💅🏾
🏋🏽
🍔🍟🍕🍺
💇🏽
130
Q

Name tangible actions directed at goods/material possessions

A 
☀️ freight transport (✈️⛴🚊🚘)
️️️️️️️☀️ equipment repair and maintenance 
☀️ cleaning 
☀️ laundry and dry-cleaning 
☀️ veterinary care
131
Q

Name intangible actions directed at people’s minds

A 
📚📓📖🖊📝
 Broadcasting (📺📻 )
Info services 
🎞📽🎭
Museum 
Leisure (⛺️🏔)
132
Q

Intangible actions directed at untangle assets

A 
👍🏾 banking
👍🏾 legal services 
👍🏾accounting 
👍🏾 securities 
👍🏾insurance
133
Q

Name the components of international distribution channel

A 
Overseas franchisor 
                 ⬇️
      Local manufacturer 
                 ⬇️
       Local wholesaler 
                 ⬇️
         Local retailer 
                 ⬇️
           Consumer
134
Q

What is franchising?

A

Practice of using another firms successful bus format and trademark.

135
Q

List the advantages of franchising

A

🗼 facilitate the flow of critical market info between franchisee and franchisor so preferences, complaints speedily reflected

🗼provides needed investment incentive by making substantial sales,services

🗼opportunities to empower members of disadvantaged communities to own successful bus formats

🗼 side-stepping state-controlled distribution systems

136
Q

Define vertical marketing system

A

A distribution channel arrangement in which the channel operates as an integrative system with joint objectives instead of the traditional channel where all intermediaries work for themselves.

137
Q

List the 3 types of vertical marketing systems

A
  1. Corporate systems
  2. Contractual systems
  3. Administered strategic alliance
138
Q

Describe corporate systems

A
  • characterised by total ownership
  • single firm owns and operates 2 or more consecutive levels of the distribution channel
  • ownership connects 2 or more channel memebers
139
Q

What is distribution decision making?

A

Identifying characteristics of product/service & different target markets

Marketing (6 decks)

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