Chapter 14 MKT120 Supply Chain Mgmt.

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?

14-2

Supply Chain Management

14-3

Supply Chain, Marketing Channels, and Logistics are Related

14-4

Supply Chains Add Value

14-5

Supply Chains Streamline Distribution

FedEx Commercial

14-6

Supply Chain Management Affects Marketing

14-7

Information Flows

14-8

Data Warehouse

14-9

Electronic Data Interchange

14-10

Pull and Push Supply Chain

14-11

The Distribution Center

ABC News Segment on a Walgreens Warehouse

14-12

Inventory Management Through Just-In-Time Systems

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

Quick response (QR)

Zappos Website

14-13

Benefits of JIT Systems

14-14

Managing Supply Chains Through Strategic Relationships

14-15

Nicole Miller

Nicole Miller Website

14-16

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.

14-17

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

14-18

1. How does supply chain management add value?

Check Yourself

14-19

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

14-20

Making Merchandise Flow

14-21

How does Dell’s Merchandise Flow

14-22

Distribution Center vs. Direct Store Delivery

14-23

Inbound Transportation

Dispatcher coordinates deliveries

Manufacturer may pay transportation expenses or retailers may negotiate directly with trucking companies and pay expenses

14-24

Receiving and Checking

14-25

Storing and Cross-Docking

14-26

Getting Merchandise Floor-Ready

14-27

Shipping Merchandise to Stores

Shipping merchandise to stores is complex for multi-store chains

Distribution centers use sophisticated routing and scheduling systems

14-28

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.

14-29

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.

14-30

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

14-31

Managing the Supply Chain

Supply chain or channel conflict

Supply chain or channel conflict

14-32

Managing Supply Chains Through Vertical Integration

Independent or conventional supply chain

Independent or conventional supply chain

14-33

Types of Vertical Marketing Systems

14-34

Relationship of supply chain members

14-35

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

14-36