Chapter 13

1. Chapter 13 Distribution Management Sterling Brown Javier Landivar Terry Lovett

2. Outline • Channel of Distribution • 11 C’s • Selection of Intermediaries • The Distributor Agreement • Channel Management • Gray Markets • Termination of Channel Relationship • E Commerce

3. Channel of Distribution • Direct • Intermediaries • Outside Distribution

5. Physical • Transactional • Informational

6. Question? What are some of the 11 C s???

7. Channel Design • External • Customer Characteristics • Culture • Competition • Internal • Company Objectives • Character • Capital • Cost • Coverage • Control • Continuity • Communication

9. Competition • Partners capable of developing markets • Chose companies based on the market • Distribute through a “required” outlet

10. Company Objectives

11. Character

12. Capital • Costs • Coverage • Intensive – largest number of intermediaries • Selective- small number of intermediaries • Exclusive- single intermediary

13. Control • Continuity • Communication • Social distance • Cultural distance • Technological distance • Time distance • Geographical distance

14. Question? What are the types of intermediaries???

15. Selection of Intermediaries • Types of Intermediaries • Distributor • Agents • Indirect exporting • Direct exporting • Integrated exporting • Commissionario • Del credere agent

16. Sources for finding Intermediaries • Governmental Agencies • Private Sources Screening Intermediaries Goals and strategies Size of firm Financial strength After sales service capabilities Performance Professionalism

17. Distributor Agreement • What is it? • Aspects of the Distributor Agreement • Facilitating payments

18. Channel Management • Two independent entities with a common goal. • Clear expectations • Open communication • Need for advisory councils

19. Managing Channel Relationships

20. Grey Markets • Parallel Importation • Conditions that promote grey markets • Price segmentation • Exchange rate changes • Decrease of trade barriers • Examples

21. Terminating the Channel Relationship Reasons Distribution Life Cycle

22. E - Commerce • Trillions of dollars by 2012 • Benefits • Buyer information • Mass Markets • Examples • Ebay, Priceline, Shoplet • Challenges • Shipping • Privacy • Fraud • Lack of internet access • Taxes • Government Regulations

23. Chapter 13: Distribution Management Questions?

24. Chapter 16 Global Logistics and Material Management Sterling Brown Javier Landivar Terry Lovett

25. Outline • Supply Chain Management • Transportation Issues • International shipment • International Inventory • International Storage • International Packaging • International Logistics

26. What is International Logistics? • Movement of materials in the international market • Two phases • Materials management • Physical distribution • Three concepts • System • Total Cost • Trade off

27. Supply Chain Management

28. Transportation Issues • Infrastructure • Modes of Transportation • Ocean • Air • Choosing the Mode of Transport • Transit time • Predictability • Cost • Noneconomic Factors

29. International Shipment • International shipment involves multiple types of carriers: Truck, rail, or vessels. • Documentation for international shipment is complicated and it can be a trade barrier.

30. Documentation • Most exports fit under the general license but certain goods and data required a especial validated license to export. • In the most simple form of exporting, the only documents needed are a bill of landing and an export declaration. • For example an export declaration can be obtained in the United States from the Census Bureau.

31. Documentation

32. Assistance with International Shipment • International Freight Forwarder • Customs Brokers

33. International Inventory • Inventories tie up major portions of corporate funds. Inventory carrying cost can easily comprise 25 percent or more of the value of the inventory. • Just-in-time inventory policies minimizes the volume of inventory by making it available only when it is needed for production processes. • Three Factors: the order cycle time, desire customer service levels, and the use of inventory as a strategic tool.

34. International Inventory Issues • Order cycle time. • Desire customer service levels. • Inventory as a strategic tool.

35. International Storage • A stationary period is involved when merchandise becomes inventory stored in warehouses. • Customer expect quick response to orders and rapid delivery. • Companies may be required to locate distributors around the world to satisfies the customers needs.

36. International Storage Issues • Storage Facilities • Outsourcing • Foreign trade zones

37. International Packaging • Packaging is instrumental in getting the merchandise to the ultimate destination in a safe, maintainable, and presentable condition.

38. International Logistics: Management • Centralized Logistics Management • Decentralized Logistics Management • Contract Logistics

39. International Logistics • The Supply Chain and the Internet • Logistics and Security • Recycling and Reverse Logistics

40. Chapter 16: Global Logistics and Material Management • 1. What is international logistics? How can it increase the efficiency of the company? • 2. What is supply change management? How an international marketer can benefit from its proper management? • 3. What are the common export/import documentation we are aware of? Explain their usefulness in exporting.

41. Chapter 16: Global Logistics and Material Management Questions?