Chapter 15 Flashcards
Place
The availability of the product to the customer at the desired time and location
Supply Chain
All the activities necessary to turn raw materials into a good or service and put it in the hands of the consumer or business consumer
Supply Chain Management
The management of flows among firms in the supply chain to maximize total profitability
Channel intermediaries
Firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user
Breaking Bulk
Dividing larger quantities of goods into smaller lots in order to meet the needs of buyers
Disintermediation
The elimination of some layers of the channel of distribution in order to cut costs and improve the efficiency of the channel
Distribution strategy
Conventional marketing system
Vertical marketing system
Horizontal marketing system
Conventional
A multiple-level distribution channel in which channel members work independently of one another
Vertical
A channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels
Horizontal
An arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose
Logistics
The process of designing, managing, and improving the movement of products through the supply chain
Transportation
The mode by which products move among channel members
Inventory control
Activities to ensure that goods are always available to meet customers’ demand
Order processing
The series of activities that occurs between the time an order comes into the organization and the time a product goes out the door
Warehousing
Storing goods in anticipation of sale or transfer to another member of the channel of distribution
