module 10 Flashcards
Define Supple chain?
A complex logistics network characterized by high levels of coordination and integration among its members.
Define Supply Chain Management?
The process of managing the aspects of the supply chain.
Define Value Network?
An overarching system of formal and informal relationships within which the firm participates to procure, transform, and enhance, and ultimately supply its offerings in final form within a market space.
What are network organizations or Virtual organizations?
Organization that eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.
Channel of distribution:
A system of interdependent relationships among a set of organizations that facilitates the exchange process.
What are the different types of intermediaries?
Middleman Merchant middleman Agent Manufactures’ agent Distributor Wholesaler Jobber Facilitating agent retailer
Direct channel
has no intermediaries and operates strictly from producer to end-user consumer of business user.
Indirect channel
contains one or more intermediary levels, as represented by all the other examples within each exhibit.
physical distribution functions:
Breaking bulk
Accumulating bulk and sorting
Reducing transactions
Transportation and storage
Transcation and communication functions:
Selling, buying and marketing communications
Facilitating functions
Financing
Market research
Risk-taking
Other services
What is disintermediation?
The shortening or collapsing of marketing channels due to the elimination of one or more intermediaries.
What is 3PL or Outsourcing?
Handing over one or more of its core internal functions, such as most or all of its supply chain activities, to other (third-party) companies that are experts in those areas allows the firm to better focus on its core business.
What is a Vertical Marketing System (VMS)
Vertically aligned networks behaving and performing as a unified system.
Contractual VMS:
The binding of otherwise independent entities in the vertical marketing system legally through contractual agreements.
Corporate VMS:
The investment of a channel member in backward or forward vertical integration by buying controlling interests in other intermediaries.
Administered VMS:
When the channel control of a vertical marketing system is determined by the size and power of one of its channel members.
Identify all sources of power in Channels?
coercive reward legitimate: A channel member’s ability to influence other members based on contracts or other formal agreements. referent expert
Expert power:
A channel member’s utilization of its unique competencies and knowledge to influence others in the channel.
Referent power:
A channel member’s ability to influence other members based on respect, admiration, or reverence.
Legitimate power:
A channel member’s ability to influence other members based on contracts or other formal agreements.
What is Distribution Intensity?
The number of intermediaries involved in distributing the product.
type of Distribution intensity
Low-cost, and convenience goods
Outbound logistics:
The process of a product’s movement from production by the manufacturer to purchase by the end-user consumer.
Inbound logistics:
The process of sourcing materials and knowledge inputs from external suppliers to the point at which production begins.
Reverse logistics:
The process of moving goods back to the manufacturer or intermediary after purchase.
What are key logistics aspects of supply chain management as identified in the Essential reading Textbook?
Order processing Warehousing Materials handling Inventory management Transportation
Identify all the legal issues related to distribution
Exclusive dealing, exclusive territories and tying contracts
