Transcript chap015p

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Chapter
15
Wholesaling and Logistics Management
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McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
After studying this chapter
you should be able to:
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Understand wholesaling and describe the three
basic categories of wholesalers.
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Identify and discuss the roles of different types of
full-service and limited-function wholesalers.
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Explain differences among the functions of agents,
brokers, and commission merchants.
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Understand the differences between manufacturers’
sales branches and offices.
After studying this chapter
you should be able to:
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Appreciate how slow growth rates and globalization
will affect wholesaling in the future.
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Define logistics management and explain its key
role in marketing.
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Understand logistics activities.
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Discuss how some of the key ethical and legal
issues affect logistics.
Wholesaling and Logistics
Management
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Wholesalers:
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Logistics Management:
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Intermediaries in the marketing channel that
sell to customers other than individual or
house hold consumers.
The planning, implementing, and movement
of goods, services, and related information
from point of origin to point of consumption.
Wholesaling
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Wholesaling:
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All marketing activities
associated with selling
products to purchasers
that resell the
products, use them to
make another product,
or use them to conduct
business activities.
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Value-Added
Resellers (VARS):
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Sell to small and
medium-sized
business customers.
Types of Wholesalers
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Merchant Wholesalers
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Are also called “Distributors” and can be:
Full-service wholesalers
 Limited-function wholesalers
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More then 375,000 merchant
wholesalers are based in the U.S.!
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Full-Service Wholesalers
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TYPES:
General Merchandise
Wholesalers
 Limited-line Wholesalers
 Specialty-line Wholesalers
 Rack Jobbers
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Limited-Function Wholesalers
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TYPES:
Truck Jobbers
 Drop Shippers
 Cash-and-Carry Wholesalers
 Catalog Wholesalers
 Wholesale Clubs
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Agents, Brokers, and
Commission Merchants
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Agents:
Manufacturers’ agents, also called
“manufacturers’ representatives” or “reps”
 Auction Houses
 Import Agents
 Export Agents
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Almost 48,000 agent, broker, and
commission merchant organizations
operate at the wholesale level!
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Agents, Brokers, and
Commission Merchants
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Brokers
Commission Merchants
Manufacturers’ Sales Branches and
Offices
Development in Wholesaling
Globalization
Building Relationships
Slow Growth
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Logistics Management
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Logistics Management:
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Managing the movement of goods,
services, and related information
from point of origin to point of
consumption.
Importance of Logistics to Marketing
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Customer Expectations of Suppliers’ Logistics
Systems:
 Timely pickups for outgoing orders.
 On-time delivery.
 Prompt claim settlement for lost or damaged goods.
 Accurate invoicing.
 Interactive Website for tracking & customer service.
 Well-trained drivers and customer support staff.
 Process for analyzing and correcting service failures.
 Centralized, accessible customer service.
 Good communication with customers.
 Responsiveness form all supplier departments.
Key Activities in Logistics
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Warehousing:
 Private Warehouses
 Public Warehouses
 Distribution Centers
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Materials Handling:
 Bar Coding
 RFID
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Inventory Control:
 JIT
 QR
 SCM
 EDI
Order Processing
The objective is to ensure that customers:
Get what they order
When they want it
Are properly billed
Have appropriate support for
product use or instillation
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Transporting
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Railroads carry
approximately 40 percent of
all U.S. freight.
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Trucks can deliver almost
anywhere, particularly
important for customers that
lack a rail siding.
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Air Freight is tops in speed
but highest in transportation
cost.
Transporting
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Pipelines transport chemicals,
gases, liquefied fossil fuels, and
petroleum products.
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Water is a good, low-cost
alternative for large quantities of
bulky products that must be
shipped long distances.
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Intermodal involves the use of two
or more modes of transportation.
Ethical and Legal Issues in Logistics
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Deregulation
Ethical Issues
Safety Issues
Shippers have a responsibility to protect
their employees and the general public
from unsafe practices and materials!
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