CHAPTER 7 Flashcards
DISTRIBUTION AND SUPPLY CHAIN STRATEGY (25 cards)
is the process of bringing
the goods produced or services rendered
by the company to the ultimate
consumer.
Distribution
refer to the pathways or
routes through which goods or services flow
from producers to consumers. It ensure that
products reach the right customers efficiently and
at the right time.
Distribution Channels
3 TYPES OF DISTRIBUTION CHANNELS
DIRECT CHANNELS
INDIRECT CHANNELS
HYBRID CHANNELS
6 DISTRIBUTION ACTIVITIES
ORDER PROCESSING
PACKAGING
WAREHOUSING
TRANSPORTATION
INVENTORY CONTROL
CUSTOMER SERVICE
is holding & preserving
products from the time of their
production until their sale.
STORAGE
is a much broader
concept that includes storage & other
functions like assembling, breaking
the volume, shipping based on need,
arranging product for reshipping,
logistics and so on.
WAREHOUSING
The movement of goods,
people, or services from
one place to another using
various modes such as
land, sea, air, or rail.
TRANSPORTATION
are those
companies that offer
transportation facilities to
others.
CARRIERS
The processes and
techniques used to manage
and regulate the stock of
goods in a business, ensuring
the right amount of inventory is
available at the right time and
place. It focuses on minimizing
costs while meeting customer
demand and avoiding
overstock or stockouts.
INVENTORY CONTROL
The support and assistance
provided by a business to its
customers before, during, and
after purchasing its products or
services. It directly impacts
customer satisfaction, loyalty,
and overall business success.
CUSTOMER SERVICE
, also known as middlemen, are very essential component of a
company’s distribution channel
Intermediaries
- responsible for buying goods and services on behalf of a
business or organization. They act as the organization’s representative in
procurement activities.
Purchasing Agent
- a third-party intermediary that assists in making a
transaction but does not take ownership of goods or directly negotiate
purchases. Example: customs broker assisting with import/export compliance.
Facilitating Agent
is selling pf commodities to everyone either to a person or
an organization but not to the final consumers of those goods.
WHOLESALING
LEVELS OF DISTRIBUTION COVERAGE
MASS COVERAGE
SELECTIVE COVERAGE
EXCLUSIVE COVERAGE
Also known as intensive distribution. Products are made available
through as many outlets as possible to maximize exposure and sales.
Example: Soft drinks (Coca-Cola, Pepsi), snacks (Lays, KitKat), and
toiletries (Colgate, Dove).
MASS COVERAGE
Products are distributed through a limited number of carefully chosen
outlets to maintain a balance between market coverage and brand
control. Example: Laptops (Dell, HP), smartphones (Samsung, Apple),
Mid-range to high-end apparel (Levi’s, Nike).
SELECTIVE COVERAGE
Products are distributed through a single or very few
exclusive outlets in a specific geographic area.
Example: Gucci, Louis Vuitton, Rolls-Royce, Tesla,
EXCLUSIVE COVERAGE
refers to
managing the flow of physical goods and
related information from initial souring to
final consumption to satisfy customers at
a profit.
—– is to design, plan, manage, and execute supply
chain activities from the point of production to the point of sale.
Supply chain management
9 FUNCTIONS OF SUPPLY CHAIN MANAGEMENT
PROCUREMENT
PRODUCTION & MANUFACTURING
INVENTORY MANAGEMENT
WAREHOUSING AND STORAGE
TRANSPORTATION AND LOGISTICS
DEMAND PLANNING AND FORECASTING
ORDER FULFILLMENT
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
REVERSE LOGISTICS
The process of sourcing and acquiring raw
materials, components, or services required for
production.
PROCUREMENT
Transforming raw materials into finished goods using labor,
machinery, and processes.
PRODUCTION & MANUFACTURING
Monitoring and controlling stock levels to meet
demand without overstocking or under stocking.
INVENTORY MANAGEMENT
Building and maintaining strong relationships with
customers through service and support.
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
