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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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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.
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15-3
Zara
Zara Website
Royalty-Free/CORBIS Royalty-Free/CORBIS
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15-4
Supply Chain Management
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15-5
Supply Chain, Marketing Channels, and Logistics are Related
Chad Baker/Getty Images
Ryan McVay/Getty Images
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15-6
Behind the Scenes at Costco
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15-7
Supply Chains Add Value
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15-8
Supply Chains Streamline Distribution
FedEx Commercial
©Brand X Pictures/PunchStock
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15-9
Supply Chain Management Affects Marketing
Courtesy Zara International, Inc. Courtesy Zara International, Inc.
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15-10
1. How does supply chain management add value?
Check Yourself
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15-11
Making Information Flow
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15-12
Data Warehouse
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15-13
Electronic Data Interchange
Ph
oto
by C
ab
ela
’s
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15-14
Vendor-Managed Inventory
DH Kong/Plush Studios/Getty Images
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15-15
Collaborative Planning, Forecasting, and Replenishment
Digital Vision/Getty Images
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15-16
Pull and Push Supply Chain
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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
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15-18
Making Merchandise Flow
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15-19
Bakery with Conscience
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15-20
How does Dell’s Merchandise Flow
Courtesy Dell, Inc.
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15-21
Distribution Center versus Direct Store Delivery
Mario Tama/Getty Images
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15-22
The Distribution Center
ABC News Segment on a Walgreens Warehouse
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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
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15-24
Receiving and Checking
David Buffinton/Getty Images
Photo by Scott Olson/Getty Images
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15-25
Storing and Cross-Docking
Walter Hodges/Digital Vision/Getty Images
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15-26
Getting Merchandise Floor-Ready
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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
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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.
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15-29
Benefits of JIT Systems
James Leynse/Corbis
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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
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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
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15-32
Managing the Marketing Channel and Supply Chain through Vertical Marketing
Systems
Independent or conventional supply chain
Independent or conventional supply chain
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Types of Vertical Marketing Systems
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Managing Marketing Channels and Supply Chains Through Strategic Relationships
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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
on
Board
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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