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CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

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Page 1: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

CHAPTER

SUPPLY CHAIN AND CHANNEL MANAGEMENT

15

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Page 2: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-2

LEARNING OBJECTIVES

Supply Chain and Channel Management

LO1Define supply chain managementLO2Recognize the value added by the

supply chain.LO3Describe the flow of merchandise

and the flow of information in the supply chain.

LO4Describe how supply chains are managed.

Page 3: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-3

Zara

Zara Website

Royalty-Free/CORBIS Royalty-Free/CORBIS

Page 4: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-4

Supply Chain Management

Page 5: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-5

Supply Chain, Marketing Channels, and Logistics are Related

Chad Baker/Getty Images

Ryan McVay/Getty Images

Page 6: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-6

Behind the Scenes at Costco

Page 7: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-7

Supply Chains Add Value

Page 8: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-8

Supply Chains Streamline Distribution

FedEx Commercial

©Brand X Pictures/PunchStock

Page 9: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-9

Supply Chain Management Affects Marketing

Courtesy Zara International, Inc. Courtesy Zara International, Inc.

Page 10: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-10

1. How does supply chain management add value?

Check Yourself

Page 11: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-11

Making Information Flow

Page 12: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-12

Data Warehouse

Page 13: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-13

Electronic Data Interchange

Ph

oto

by C

ab

ela

’s

Page 14: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-14

Vendor-Managed Inventory

DH Kong/Plush Studios/Getty Images

Page 15: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-15

Collaborative Planning, Forecasting, and Replenishment

Digital Vision/Getty Images

Page 16: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-16

Pull and Push Supply Chain

Page 17: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-17

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

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

Check Yourself

Page 18: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-18

Making Merchandise Flow

Page 19: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-19

Bakery with Conscience

Page 20: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-20

How does Dell’s Merchandise Flow

Courtesy Dell, Inc.

Page 21: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-21

Distribution Center versus Direct Store Delivery

Mario Tama/Getty Images

Page 22: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-22

The Distribution Center

ABC News Segment on a Walgreens Warehouse

Page 23: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-23

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

Page 24: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-24

Receiving and Checking

David Buffinton/Getty Images

Photo by Scott Olson/Getty Images

Page 25: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-25

Storing and Cross-Docking

Walter Hodges/Digital Vision/Getty Images

Page 26: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-26

Getting Merchandise Floor-Ready

Page 27: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-27

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

Page 28: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-28

Inventory Management Through Just-In-Time Systems

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

Quick response (QR)

Zappos Website

Cou

rtesy

Tu

bu

lar

Ste

el, In

c.

Page 29: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-29

Benefits of JIT Systems

James Leynse/Corbis

Page 30: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-30

1. How does merchandise flow through a typical supply chain?

2. Why have just-in-time supply chain systems become so popular?

Check Yourself

Page 31: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-31

Managing the Marketing Channel and Supply Chain

Supply chain or channel conflict

Supply chain or channel conflict

Cou

rtesy

Th

e S

tan

ley W

ork

s

Page 32: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-32

Managing the Marketing Channel and Supply Chain through Vertical Marketing

Systems

Independent or conventional supply chain

Independent or conventional supply chain

Page 33: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-33

Types of Vertical Marketing Systems

Page 34: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-34

Managing Marketing Channels and Supply Chains Through Strategic Relationships

Page 35: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-35

Relationship of supply chain members

Use

d b

y P

erm

issi

on

of

Deu

tsch

In

c as

Ag

en

t fo

r N

ati

on

al Fl

uid

Milk

Pro

cess

or

Pro

moti

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Board

Page 36: CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 15 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

15-36

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?

Check Yourself


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