Microsoft Power Point - Distribution Systems

8/8/2019 Microsoft Power Point - Distribution Systems

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Promotion

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Physical

Distribution

Financing

Risk Taking


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Corporate VMSCommon Ownership at DifferentLevels of the Channel (e.g., Sears)

Contractual VMS

High

Contractual Agreements AmongChannel Members (e.g., ACE Hardware)

Administered VMSLeadership is Assumed by One or

a Few Dominant Members (e.g., Kraft)

Control

Low

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Two or moreTwo or more A single firm sets upA single firm sets up

HorizontalMarketing System

Hybrid MarketingHybrid Marketing

SystemSystem

compan es a onecompan es a one

channel level joinchannel level jointogether to follow atogether to follow anew marketingnew marketing

opportunity.opportunity.Example: Banks inExample: Banks ingrocery storesgrocery stores

two or moretwo or moremarketing channelsmarketing channelsto reach one orto reach one ormore customermore customer

segments.segments.Example: RetailersExample: Retailersand catalogsand catalogs

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)franchising(

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multichannel

outsourcing

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distribution(

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)selective

distribution(

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Intensive distribution

Exclusive distribution

Selective distribution

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When it decided to sell its familiar containers at retail through Target stores,Tupperware avoided conflicts with its army of in-home sales consultants byinviting them into the stores to demonstrate the products.

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FactorFactorFactorFactor TraditionalTraditionalTraditionalTraditional

Contrasts Between aContrasts Between aContrasts Between aContrasts Between aContrasts Between aContrasts Between aContrasts Between aContrasts Between aTraditional Logistics System and Supply Chain Based SystemTraditional Logistics System and Supply Chain Based SystemTraditional Logistics System and Supply Chain Based SystemTraditional Logistics System and Supply Chain Based SystemTraditional Logistics System and Supply Chain Based SystemTraditional Logistics System and Supply Chain Based SystemTraditional Logistics System and Supply Chain Based SystemTraditional Logistics System and Supply Chain Based System

Supply Chain Mgmt. SystemSupply Chain Mgmt. SystemSupply Chain Mgmt. SystemSupply Chain Mgmt. System


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Inventory Management

Total Cost Approach

Time HorizonInformation Sharing and

Monitoring

Logistics System

Independent Effort

Minimize Firm Costs

Short-TermLimited to Needs of

Current Transaction

Joint Effort to ReduceChannel Inventories

Channel-Wide Cost

Efficiencies

Long-TermContinuous Effort to

Gather and Monitor

Compatibility of Corporate

Philosophies

Channel Leadership

Sharing of Risks and

Rewards

Inventory Flow

Not Relevant

Not Needed

Each Channel Member

on Their Own

Warehouse Mentality

Storage Safety Stocks

Important for Major Initiatives

Required for

Coordination and Focus

Risks and Rewards Shared

over Long-range

Distribution Center

Orientation-JIT, Quick

Response, Cross Docking78


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Documents

Microsoft Power Point - Distribution Systems