Distribution networks Flashcards
Activities as flow
Title flow - ownerships rights Negotiation flow Product flow Finance flow Information flow Promotion flow
Two types of activity interdepenece
- Serial interdependence
2. Parallel interdependencies
Opportunities for postponement
- Information technology
- Transport and infrastructure
- Flexible manufacturing facilities and modularization
- Customer demand unique offerings
Resource categories in the 4R-model
Physical:
Facilities
Products
Organizational:
Business units
Business relationships
The dimensions in relationship atmosphere:
Control
Power
Conflict
Control mechanisms in relationship atmosphere
Authoritative control
Contractual control
Normative control
Developing a multichannel, six steg process
- Multichannel objectives
- Understanding touch-points
- Review of industry structure/channel options
- Understand shift in channel usage patterns
- Review of channel economics
- Integrated channel management strategy
Three crucial multi-channel actions
- Create a holistic view across channels
- Design organizational structures and incentives to enable multichannel marketing
- Create metrics that measure the impacts and overall performance of multi-channel
What is causation and effectuation?
Causation: A particular effect (goal) is perceived as given - focus on selecting between means to create this effect
Effectuation: Take a set of means as given and focus on selection effects that can be created by set of means
Name three types of last mile logistics systems
Push-centric system
Pull-centred system
Hybrid system
Factors that influence the design of last-mile logistics
- Consumer geographical density: Consumer/unit area
- Consumer physical convenience
- Consumer time convenience
- Order response time
- Order visibility
- Product retainability
Two types of network dynamics
- Incremental changes
2. Radical changes
Three phases of IDR cycle
- intermediation
- Disintermediation
- Reintermediation
Four discrepancies
- Quantity
- Assortment
- Time
- Space (place)
Why is distribution increasingly important
- Potential for cost reduction
- Potential for increasing revenue
- Changing customer needs
- New technological solutions
Industrial network approach - three network layers:
- Actors
- Activities
- Resources
Key features of DCM
Start with exploring the customers situation and work backward through the chain(s)
Comprehensive integration involves coordination across the entire supply chain
Marketing: Externally focused on value creation
SCM: Inward focus on efficient use of resources
Critical issues in DCM
Ensure that SCM is involved in the marketing planning, customer priority decisions, and is allowed to reject some marketing decisions
Marketing must become more cost driven and less inclined to agree to ‘unprofitable’ sales
Information has an important role to play: information sharing, sharing of understanding, ability to act on the same information
Avoiding conflicting performance measures
Different parts of the customer life cycle (From Differ guest lecture)
- Attract
- Introduce
- Develop
- Retain
- Win-back
Difference between traditional channels and evolving channels
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