L&M: Distribution Strategies and Strategic Alliances Flashcards
What are two advantages and disadvantages of direct shipment?
Ad
- Lead time reduced
- Cost of distribution center avoided
Dis
- Transportation costs increase
- No risk pooling effect
What is the cross-docking strategy?
Distribution centers serve as transfer points for inventory however not inventory is held there
What are six considerations for choosing between central and local facilities?
- Overhead
- Safety stock
- Lead time
- Economies of scale
- Transportation costs
- Service level
What is customer search?
Implies that if a dealer knows that its competitors do not keep enough inventory, this dealer will raise its inventory to satisfy both of its own demand and demand of customers from competitor
What is the Nash equilibrium?
States that if two competitors are making decisions, Nash equilibrium is reached if they have both made a decision and neither can improve his expected profit by changing their order amount if the other dealer does not change his order amount
What are two techniques to increase search levels?
- Marketing strategies
2. Information technology initiatives to increase communication
What are four strategies to ensure business function is completed?
- Acquisition
- Internal activities
- Strategic alliances
- Arm’s-length transactions
What are core strengths?
Specific talents that differentiate the company from its competitors and give it an advantage in the eyes of the its customers
What are three advantages and two disadvantages of third party logistics?
Ad
- Provision of technological flexibility
- Focus on core strengths
- Provision of other flexibilities
Dis
- Loss of control form outsourcing function
- Makes not sense if you outsource core competency
What are three types of retailer-supplier partnerships?
- Quick response strategy
- Continuous replenishment strategy
- Vendor-managed inventory
What are the requirements for a retailer-supplier partnerships?
- Advanced information systems
- Top management commitment
- Partner needs to develop trust
What is float?
Float is the time which retailers have to pay for goods
What is distributors integration?
- Used to meet specialized technical requests of customers, by stern requests to distributors what are best suited
- DI can create a large pool of inventory across the whole distributor network to raise service levels and lower inventory costs
- Distributors can be skeptical as they can feel like they are prodding part of their expertise in inventory to less skilled partners
