C H A P T E R SUPPLY CHAIN AND CHANNEL 15 MANAGEMENT · PDF fileSupply Chain and Channel...
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CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Transcript of C H A P T E R SUPPLY CHAIN AND CHANNEL 15 MANAGEMENT · PDF fileSupply Chain and Channel...
C H A P T E R
SUPPLY CHAIN AND CHANNEL MANAGEMENT
15
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
15-2
L E A R N I N G O B J E C T I V E S
Supply Chain and Channel Management
LO1 Define supply chain management
LO2 Recognize the value added by the supply chain.
LO3 Describe the flow of merchandise and the flow of information in the supply chain.
LO4 Describe how supply chains are managed.
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Supply Chain Management
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Supply Chain, Marketing Channels, and Logistics are Related
Marketing channel
Logistics management
Similar but different
Chad Baker/Getty Images
Ryan McVay/Getty Images
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Behind the Scenes at Costco
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Supply Chains Add Value
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Supply Chains Streamline Distribution
Reduce number of transactions
Increase value for consumers
More efficient and effective
FedEx Commercial
©Brand X Pictures/PunchStock
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Supply Chain Management Affects Marketing
Fulfilling delivery promises
Meeting customer expectations
Reliant on an efficient supply chain
Courtesy Zara International, Inc. Courtesy Zara International, Inc.
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1. How does supply chain management add value?
Check Yourself
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Making Information Flow
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Data Warehouse
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Electronic Data Interchange
Cycle time
Quality of communications
Easily analyzed and used
Ph
oto
by
Cab
ela
’s
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Vendor-Managed Inventory
DH Kong/Plush Studios/Getty Images
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Collaborative Planning, Forecasting, and Replenishment
Digital Vision/Getty Images
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Pull and Push Supply Chain
Pull
•Orders based on sales data
•More accurate inventory
•Better when demand is uncertain
Push
•Merchandise allocated based on forecast
•Does not need sophisticated IS system
•Good for steady demand items
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1. What are the various supply chain links associated with each information flow?
2. What is the difference between push and pull supply chains?
Check Yourself
15-18
Making Merchandise Flow
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Bakery with Conscience
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How does Dell’s Merchandise Flow
How does Dell’s Merchandise Flow
Courtesy Dell, Inc.
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Distribution Center versus Direct Store Delivery
What are the advantages of a
distribution center?
Mario Tama/Getty Images
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The Distribution Center
Shipping to store
Preparing to ship
Getting Merchandise Floor Ready
Storing and Cross-Docking
Receiving and checking using UPC and RFID
Management of inbound transportation
ABC News Segment on a Walgreens Warehouse
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Inbound Transportation
• Dispatcher coordinates deliveries
• Manufacturer may pay transportation expenses or retailers may negotiate directly with trucking companies and pay expenses
Steve Cole/Photodisc/Getty Images
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Receiving and Checking
Receiving
Arrival receipt
Checking
Undamaged
Ordered = received
Radio Frequency
Distribution (RFID) Tags
Container computer
chips
David Buffinton/Getty Images
Photo by Scott Olson/Getty Images
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Storing and Cross-Docking
Traditional
Cross-docking
Combinations
Walter Hodges/Digital Vision/Getty Images
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Getting Merchandise Floor-Ready
Ticketing and marking
Increasingly firms are forcing suppliers to ship floor ready
merchandise
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Shipping Merchandise to Stores
• Shipping merchandise to stores is complex for multi-store chains
• Distribution centers use sophisticated routing and scheduling systems
Ryan McVay/Getty Images
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Inventory Management Through Just-In-Time Systems
Just-in-time (JIT) Quick response (QR)
Zappos Website
Co
urt
esy
Tu
bu
lar
Ste
el,
Inc.
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Benefits of JIT Systems
Reduced lead time
Increased product availability and lower inventory investment
James Leynse/Corbis
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1. How does merchandise flow through a typical supply chain?
2. Why have just-in-time supply chain systems become so popular?
Check Yourself
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Managing the Marketing Channel and Supply Chain
Supply chain or channel conflict
Co
urt
esy
Th
e S
tan
ley
Wo
rks
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Managing the Marketing Channel and Supply Chain through Vertical Marketing Systems
Independent or conventional supply chain
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Types of Vertical Marketing Systems
Independent or
conventional supply chain
Administered vertical
marketing system
Contractual vertical
marketing system
Corporate vertical
marketing system
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Managing Marketing Channels and Supply Chains Through Strategic Relationships
Strategic Relationships
Mutual Trust
Open Communications
Common Goals
Interdependence
Credible Commitments
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Relationship of supply chain members
Use
d b
y P
erm
issi
on
of
De
uts
ch I
nc
as A
ge
nt
for
Nat
ion
al F
luid
M
ilk P
roce
sso
r P
rom
oti
on
Bo
ard
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1. What are the differences between the three types of vertical marketing systems?
2. How do firms develop strong strategic partnerships with their supply chain partners?
Check Yourself
