marketingGREWAL / LEVYM 14

SUPPLY CHAINMANAGEMENT

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

LEARNING OBJECTIVESLEARNING OBJECTIVES

Learning Objectives

What is supply chain management? How do supply chains add value? How does a supply chain work? How is a supply chain managed?

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Supply Chain Management

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Supply Chain, Marketing Channels, and Logistics are Related

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Supply Chains Add Value

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Supply Chains Streamline Distribution

FedEx Commercial

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Supply Chain Management Affects Marketing

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Information Flows

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Data Warehouse

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Electronic Data Interchange

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Pull and Push Supply Chain

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The Distribution Center

ABC News Segment on a Walgreens Warehouse

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Inventory Management Through Just-In-Time Systems

Just-in-time (JIT)Just-in-time (JIT) Quick response (QR)

Quick response (QR)

Zappos Website

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Benefits of JIT Systems

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Managing Supply Chains Through Strategic Relationships

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Nicole Miller

Nicole Miller Website

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Which of the following is a common activity associated with logistics management?

A. demand forecasting.

B. inventory control.

C. return goods handling.

D. order processing.

E. all of the above.

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Marketing managers often focus on ____________, while logistics managers focus on _____________, causing conflict when

trying to provide value to customers.

A. maximizing sales; minimizing costs

B. presentation; packaging

C. cross-tracking; double accounting

D. minimizing costs; maximizing sales

E. decentralization; centralization

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1. How does supply chain management add value?

Check Yourself

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1. What are the various supply chain links associated with each information flow step?

2. What is the difference between push and pull supply chains?

Check Yourself

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Making Merchandise Flow

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How does Dell’s Merchandise Flow

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Distribution Center vs. Direct Store Delivery

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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

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Receiving and Checking

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Storing and Cross-Docking

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Getting Merchandise Floor-Ready

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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

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RFID tags have dramatically reduced the time and labor associated with:

A. the Four Ps.

B. promotion and advertising.

C. checking and receiving merchandise.

D. franchising.

E. demand forecasting.

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For a JIT system to be successful, the firm and its vendors need to do all of the following EXCEPT:

A. cooperate.

B. compete.

C. develop EDI systems.

D. develop CPFR systems.

E. share data.

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1. What happens at each step of the merchandise flow in a typical supply chain?

2. Why are just-in-time supply chain systems becoming so popular?

Check Yourself

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Managing the Supply Chain

Supply chain or channel conflict

Supply chain or channel conflict

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Managing Supply Chains Through Vertical Integration

Independent or conventional supply chain

Independent or conventional supply chain

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Types of Vertical Marketing Systems

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Relationship of supply chain members

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1. What are the different types of vertical marketing systems?

2. How do firms develop strong strategic partnerships with their supply chain partners?

Check Yourself

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