Logistics Management

Channels Management/Logistics and

Supply Channel Management

How Does All This Stuff Fit Together

• Overcoming the barriers between production and consumption

• What are the functions? _______________ ______________________________________________________________________

• What about the intermediaries? __________ ______________________________________________________________________

Why Do Channels of Distribution Exists?

• What IS the definition of a channel of distribution?

• What costs can the intermediaries reduce?

• What factors influence the channel structure?

• What are the reasons for an uneconomical channel?

What IS A Channel Of Distribution?

• ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Why Do Channels Exist?

• Increase the efficiency of marketing process• Provide adjustment to assortment by sorting

and assorting• Make operations routine• Facilitate the search process for the buyer• __________________________________• __________________________________

Costs That Can Be Reduced Thru An Effective Channel (your turn)

• ___________________________________

• ___________________________________

• ___________________________________

• ___________________________________

• ___________________________________

• ___________________________________

• ___________________________________

Reasons For Uneconomical Channels

• Reseller Solidarity

• Entrepreneurial Values

• Organizational Culture

• Firm’s Channel Position

• Market Reaction

• ___________________________________

• ___________________________________

Transition From PD To Supply Chain Management

• The initial era of physical distribution

• Integrated logistics management

• Supply Chain Characteristics: _________ _______________________________________________________________________________________________________________________________________________________________________________

What Has Forced This Change In Thinking?

• The Marketplace

• Changing Structure Relationships

• Globalization of Business

• ___________________________________

• ___________________________________

• ___________________________________

• ___________________________________

Strategic Changes In The Supply Chain...

• Speed/Time Issues

• Quality Issues

• Asset Productivity

• Reengineering the company

• Customer Satisfaction

• __________________________________

• __________________________________

Logistics Role Within The Firm

• “Logistics is the process of planing, implementing and controlling the effective flow of raw materials, in process goods and finished goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements”

Same Functions Just Another Name

• Physical Distribution

• Distribution

• Distribution Engineering

• Business Logistics

• Marketing Logistics

• Distribution Logistics

• Materials Management

• Material Logistics• Logistics• Quick Response• ECR• Supply Chain

Management• Industrial Logistics

Logistics Management Functions

• Customer Service• Order Processing• Distribution

Communications• Inventory Control• Demand Forecasting• Transportation

Management

• Warehouse Site Selection

• Material Handling• Procurement• Part Support• Packaging • Salvage• Returns Goods

Handling

The Total Cost Concept

• Customer Service Costs

• Transportation Costs

• Warehouse Costs

• Order Processing Costs

• Inventory Costs

• Lot Quantity Costs

Marketing Mix Factors That Effect Logistics

• Nature Of The Market• Nature Of The Product• Stages Of Product Life• Price• Funds Available For Distribution Function• Push vs Pull Strategy• ___________________________________• ___________________________________

Logistics Challenges

• Integration Into Strategic Planning

• Using Logistics As A Competitive Weapon

• Distribution Accounting

• Need For Broad Based Management Skills

• Expansion of Global Activities

• Development of Strategic Alliances

• Keeping Up With Technology

How Do We Know If We Are Doing A Good Job?

• Elements of Logistics Audit• Internal Audit Issues: _________________

______________________________________________________________________

• External Audit Issues: _________________ ______________________________________________________________________