Transcript 15 - bs210

CHAPTER
SUPPLY CHAIN
AND CHANNEL
MANAGEMENT
McGraw-Hill/Irwin
15
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Supply Chain and Channel Management
LEARNING OBJECTIVES
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.
15-2
Zara
Royalty-Free/CORBIS
Zara
Royalty-Free/CORBIS
Customers
Zara Website
15-3
Supply Chain Management
15-4
Supply Chain, Marketing Channels,
and Logistics are Related
Marketing channel
Logistics
management
Chad Baker/Getty Images
Similar but
different
Ryan McVay/Getty Images
15-5
Behind the Scenes at Costco
15-6
Supply Chains Add Value
15-7
Supply Chains Streamline Distribution
Reduce number
of transactions
Increase value
for consumers
More efficient
and effective
©Brand X Pictures/PunchStock
FedEx Commercial
15-8
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.
15-9
Check Yourself
1.
How does supply chain management
add value?
15-10
Making Information Flow
15-11
Data Warehouse
15-12
Electronic Data Interchange
Photo by Cabela’s
Cycle time
Easily analyzed
and used
Quality of
communications
15-13
Vendor-Managed Inventory
DH Kong/Plush Studios/Getty Images
15-14
Collaborative Planning,
Forecasting, and Replenishment
Digital Vision/Getty Images
15-15
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
15-16
Check Yourself
1.
What are the various supply chain links
associated with each information flow?
2.
What is the difference between push
and pull supply chains?
15-17
Making Merchandise Flow
15-18
Bakery with Conscience
15-19
How does Dell’s Merchandise Flow
How does Dell’s
Merchandise Flow
Courtesy Dell, Inc.
15-20
Distribution Center
versus Direct Store Delivery
What are the
advantages of a
distribution center?
Mario Tama/Getty Images
15-21
The Distribution Center
Management of inbound transportation
Receiving and checking using UPC and RFID
Storing and Cross-Docking
Getting Merchandise Floor Ready
Preparing to ship
Shipping to store
ABC News Segment on a Walgreens Warehouse
15-22
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
15-23
Receiving and Checking
Receiving
Arrival
receipt
Checking
Undamaged
Radio
Frequency
Distribution
(RFID) Tags
Container
computer
chips
David Buffinton/Getty Images
Ordered =
received
Photo by Scott Olson/Getty Images
15-24
Storing and Cross-Docking
Traditional
Cross-docking
Combinations
Walter Hodges/Digital Vision/Getty Images
15-25
Getting Merchandise Floor-Ready
Ticketing and marking
Increasingly firms are forcing
suppliers to ship floor ready
merchandise
15-26
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
15-27
Courtesy Tubular Steel, Inc.
Inventory Management
Through Just-In-Time Systems
Just-in-time (JIT)
Quick response (QR)
Zappos Website
15-28
Benefits of JIT Systems
Reduced lead time
James Leynse/Corbis
Increased product
availability and lower
inventory investment
15-29
Check Yourself
1.
How does merchandise flow
through a typical supply chain?
2.
Why have just-in-time supply chain
systems become so popular?
15-30
Courtesy The Stanley Works
Managing the Marketing Channel
and Supply Chain
Supply chain or channel conflict
15-31
Managing the Marketing Channel and Supply
Chain through Vertical Marketing Systems
Independent or conventional supply chain
15-32
Types of Vertical Marketing Systems
Independent
or
conventional
supply chain
Administered
vertical
marketing
system
Contractual
vertical
marketing
system
Corporate
vertical
marketing
system
15-33
Managing Marketing Channels and Supply
Chains Through Strategic Relationships
Common Goals
Open
Communications
Mutual Trust
Interdependence
Strategic
Relationships
Credible
Commitments
15-34
Used by Permission of Deutsch Inc as Agent for National Fluid
Milk Processor Promotion Board
Relationship of supply chain members
15-35
Check Yourself
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?
15-36