LO 15-1 Understand the importance of marketing channels and supply chain management.
LO 15-2 Understand the difference between direct and indirect marketing channels.
LO 15-3 Describe how marketing channels are managed.
LO 15-4 Describe the flow of information and merchandise in the marketing channel.
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supply chain and channel managementfifteenCopyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. LEARNING OBJECTIVESLO 15-1 Understand the importance of marketing channels and supply chain management.LO 15-2 Understand the difference between direct and indirect marketing channels.LO 15-3 Describe how marketing channels are managed.LO 15-4 Describe the flow of information and merchandise in the marketing channel.Supply Chain ManagementMarketing Channels Add Value©Brand X Pictures/PunchStockFedEx commercial with John MoschittaDesigning Marketing ChannelsManufacturerCustomerDirect ChannelManufacturerCustomerRetailerDirect ChannelOne IntermediaryManufacturerCustomerRetailerWholesalerDirect ChannelTwo IntermediariesManaging the Marketing Channel and Supply ChainManufacturerRetailer 3Retailer 2Retailer 1Horizontal ConflictHorizontal ConflictManaging the Marketing Channel and Supply Chain through Vertical Marketing SystemsIndependent or conventional supply chainIndependent marketingchannelVertical marketingchannelTypes of Vertical Marketing SystemsPowerManaging Marketing Channels and Supply Chains Through Strategic RelationshipsWhat are the differences between an indirect and a direct marketing channel?What are the differences among the three types of vertical marketing systems?How do firms develop strong strategic partnerships with their marketing channel partners?Making Information Flowthrough Marketing ChannelsData WarehouseElectronic Data InterchangePhoto by Cabela’sVendor-Managed InventoryDH Kong/Plush Studios/Getty ImagesPull and Push Supply ChainWhat are the marketing channel links associated with each information flow?How do marketing channel members use data warehouses to make decisions?What is EDI and how is it used?Why do some marketing channels use VMI, while others do not?What is the difference between a push and pull marketing channel?Making Merchandise Flow Through Marketing ChannelsThe Distribution CenterInbound TransportationDispatcher coordinates deliveriesManufacturer may pay transportation expenses or retailers may negotiate directly with trucking companies and pay expensesSteve Cole/Photodisc/Getty ImagesThe Distribution CenterReceiving and CheckingDavid Buffinton/Getty ImagesPhoto by Scott Olson/Getty ImagesThe Distribution CenterStoring and Cross-DockingWalter Hodges/Digital Vision/Getty ImagesThe Distribution CenterGetting Merchandise Floor-ReadyTicketing and markingIncreasingly firms are forcing suppliers to ship floor ready merchandiseThe Distribution CenterShipping Merchandise to StoresShipping merchandise to stores is complex for multi-store chainsDistribution centers use sophisticated routing and scheduling systemsRyan McVay/Getty ImagesThe Distribution CenterInventory Management Through Just-In-Time SystemsJust-in-time (JIT)Quick response (QR)Zappos WebsiteCourtesy Tubular Steel, Inc.How does merchandise flow through a typical marketing channel?Why have just-in-time supply chain systems become so popular?Merchandise cartons that are cross-docked are prepackaged by the vendor for a specific store. GlossaryManufacturers can ship merchandise either directly to a store or to a distribution center, where it is then shipped to the store. GlossaryElectronic data interchange (EDI) is the computer-to-computer exchange of business documents from a retailer to a vendor and back.GlossaryJust-in-time inventory systems are inventory management systems designed to deliver less merchandise on a more frequent basis than traditional inventory systems.GlossaryRadio frequency identification (RFID) tags are tiny computer chips that automatically transmit to a special scanner all the information about a container’s contents or individual products.GlossaryA strategic relationship or partnering relationship involves the supply chain members being committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial. GlossarySupply chain management is a set of approaches and techniques firms employ to integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize system wide costs while satisfying the service levels that their customers require.GlossaryVendor-managed inventory (VMI) is an approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailer’s inventory levels in each of its stores.Glossary