Chapter 15: Channels and Supply Chain
What is a supply chain?
Supply chain: all the activities associated with the flow and transformation of products from raw materials through to the end customer
Supply management: in its broadcast form, refers to the processes that enable the progress of value from raw material to final customer and back to redesign and final disposition
Operations management: the total set of managerial activities used by an organization to transform resources inputs into products, services, or both
Logistics management: planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers needs and wants
Supply chain management: a set of approaches used to integrate the functions of operations management, logistics management, supply management, and marketing channel management so products are produced and distributed in the right quantities, to the right locations, and at the right time
Issues:
Information technology has created almost seamless distribution processes
Information sharing has reduced costs service has been improved through increasing numbers of innovative goods and increased involvement of firms
Horizontal and Vertical marketing Systems
Vertical channel integration: combining two or more stages of the marketing channel under one management
Vertical marketing system(VMS): a marketing channel managed by a single channel member to achieve efficient, low cost distribution aimed at satisfying target market customers
1. Corporate: combines all stages of the marketing channel, form producers to consumers, under a single owner
Ex: super market chain that owns food processing plant
2. Administered: independent, but a high level of interorgizational management is achieved through informal coordination
Ex: kelloggs cereal
3. Contractual: most popular type, channel members are linked by legal agreements...