Outcome # 3 Flashcards
distribution channels add value
Each participant add value i.e component manufacturer// parts and materials Transportation retailer
distribution centre
A facility for the receipt, storage, and redistribution of goods to company stores or customers; may be operated by retailers, manufacturers, or distribution specialists.
Functions performed by intermediaries
tx functional Buying Risk taking Promotion Selling
Logistical function
Physical distribution
Risk taking
Facilitating Function
Gathering information
Financing
Channel conflicts
Results when supply chain members are not in agreement about their goals, roles, or rewards.
Independent distribution
Manf., Retail, whos want to satisfy own profits
no controls over the others
Vertical mktg system
A supply chain in which the members act as a unified system; there are three types: administrated, contractual, and corporate.
administered vertical marketing system
A supply chain system in which there is no common ownership and no contractual relationship, but the dominant channel member controls the channel relationship.
contractual vertical marketing system
A system in which independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination and to reduce conflict.
corporate vertical marketing system
A system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain; it may own facilities such as manufacturing plants, warehouse facilities, retail outlets, and design studios.
strategic relationship (partnering relationship)
A supply chain relationship that the members are committed to maintaining long-term, mutually beneficial; requires mutual trust, open communication, common goals, and credible commitments.
