Chapter 15: Supply Chain & Channel Management

__ is all activities required to get the right product, to the right customer, at the right time.

Place

Place focuses on d____ and l____.

distribution and logistics

Supply Chain Management (SCM) is a set of approaches/techniques firms use to integrate….

suppliers, manufacturers, warehouses, stores, and transportation providers

Supply Chain Management (SCM) is a set of ___ firms use to integrate suppliers, manufacturers, warehouses, stores, and transportation providers.

approaches

Which is more narrow? Supply-Chain CM or Marketing CM?

Marketing

Marketing Channel Management involves … within the supply chain.

building relationships

Channel management =

relationships between partners

____ = operational + logistics + movement/storage

Supply-chain CM

Which P in the marketing mix is often overlooked because it happens behind the scenes?

Place

Even if a company does well in promotion, it will still fail if the product is not…

available when/where to the customer

Key Challenge: Product Placement: Firms must convince wholesalers to…

buy from manufacturers and sell to retailers

Key Challenge: Product Placement: Firms must convince retailers to…

sell directly to consumers

Large retailers have major influence because they control…

access to customers

Large retailers have major influence because ___ depend on them for sales.

suppliers

What is the basic flow Structure of the Supply Chain:

M - W - R - C

t/f: Some firms perform multiple roles where retailers acting as wholesalers or manufacturers sell directly to consumers.

true

Value Added at Each Step

• Suppliers: Provide …

raw materials

Value Added at Each Step

• Manufacturers: …

convert materials to goods

Supply chain decisions are separate from/interconnected with all marketing activities.

interconnected

Distribution Centers are facilities for…

receiving, storing, and sending goods to stores

What are the facilities for receiving, storing, and sending goods to stores?

Distribution Centers

___ Centers are similar to distribution centers but ship directly to customers.

Fulfillment center

Fulfillment centers are similar to distribution centers but send directly to __.

customers

Coordination with Promotion & Advertising: There is a risk of promoting products that are..

out of stock

Coordination with Promotion & Advertising: Marketing campaigns must align with __ levels.

inventory

Coordination with Promotion & Advertising: Marketing campaigns must align with __ availability.

transportation

Just-In-Time (JIT) / Quick Response (QR) is where __ quantities are delivered.

small

Just-In-Time (JIT) / Quick Response (QR) is where small quantities are delivered….

more frequently

Just-In-Time (JIT) / Quick Response (QR) systems ensure products arrive exactly when ___.

needed

Just-In-Time (JIT) / Quick Response (QR) systems ensure products arrive for p___.

production

Does Just-In-Time (JIT) / Quick Response (QR) systems increase or decrease storage costs?

reduce

Does Just-In-Time (JIT) / Quick Response (QR) systems increase or decrease efficiency and responsiveness?

increase

Does Just-In-Time (JIT) / Quick Response (QR) systems work for constant products or seasonal products?

seasonal

t/f: Every step in the supply chain adds both cost and value.

true

t/f: Every step in the supply chain adds both __ and value.

cost

When does a firm need to design supply chain?

1. starting

2. entering

new markets

When designing a supply chain, firms must adapt to … rather than design the “perfect” supply chain.

available opportunities

When designing a supply chain, firms must adapt to available opportunities rather than ...

design the perfect supply chain

All supply chains fall into what three types?

1. direct

2. indirect

3. combination of both

In a direct supply chain structure there is … intermediaries between the buyer and seller.

NONE — Manufacturer → Customer

Who can be the seller in a direct supply chain? (2)

1. manufacturer

2. an individual (C2C)

What are the types of transactions in a direct supply chain structue? (2)

1. B2B

2. B2C

The Direct-to-Consumer (D2C) strategy is where ___ share ___ with customers.

manufacturers share directly

In Direct-to-Consumer (D2C) strategy, the manufacturer must build its own __ capacity.

production

t/f: Direct-to-Consumer (D2C) strategy may create tension with retail partners.

true

In a indirect supply chain structure there is … intermediaries between the buyer and seller.

multiple

“One intermediary: M→ R→ C”

“Two intermediaries: M→ W→ R→ C”

• which type of supply chain structure does this illustrate?

indirect supply chain

t/f: When Indirect Supply Chains are used, manufacturers prefer not to sell directly.

true

t/f: When Indirect Supply Chains are used, dealers act like retailers.

true

When Indirect Supply Chains are used, buyers purchase in small/large quantities.

small

t/f: When Indirect Supply Chains are used, distribution is too costly or complex.

true

Does automobile industries and small retailers use indirect, direct, or a combination for their supply chain structure?

indirect

In less developed economies, wholesalers are less/more common.

more

In less developed economies, large retail chains are less/more common.

less

What is a contractual agreement between the franchisor (owner of brand/system) and the franchisee (local operator)?

Franchising

What does the franchisee receive in franchising? (2)

• brand name

• brand model

What must the franchisee must do in franchising? (3)

• pay lump sum

• pay royalties

• follow rules

Which partner ensures quality control in franchising?

the franchisor

Which partner has responsibility over the supply in franchising?

franchisor

Who earns the royalties in franchising?

franchisor

Who earns the profits AFTER royalties in franchising?

the franchisee

Franchising operates like a ___ marketing system.

vertical

t/f: Firms rarely have full control over supply chain design.

true