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การจัดการช่องทางการจัดจำหน่าย Distribution Channel Management. Chapter 3. Supply Side Channel Analysis: Channel Flows and Efficiency Analysis. Chapter 3 Outlines. Learning Objectives.
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การจัดการช่องทางการจัดจำหน่ายDistribution Channel Management Chapter 3 Supply Side Channel Analysis:Channel Flows and Efficiency Analysis
Chapter 3 Outlines Learning Objectives • Be able to define the eight generic channel flows that characterized costly and value-added channel activities. • Understand how the efficiency template helps codify channel flow performance by channel and channel participant. • Understand the role of channel flow allocation in designing a zero-based channel. • Understand how channel flow performance leads to appropriate allocation of channel profits among channel members using the equity principle. • Be able to place the channel flow analysis in the overall channel audit process. • Know how to use the efficiency template with little available information.
Channel Flows The meaning of Channel Flows “The activities or functions that produce the service outputs demanded by end-users”
FIGURE 3-1: MARKETING FLOWS IN CHANNELS Eight Generic Channel Flows The arrows above show flows of activity in the channel (e.g. physical possession flows from producers to wholesalers to retailers to consumers).
Channel Flows Every flow not only contributes to the production of valued service outputs but also carries an associated costs.
Channel Flows Inventories are stocks of goods or the components used to make final goods. Inventories exist for several reasons: • Demand surges outstrip production capacity • Economies of scale exist in production or in transportation • Transportation between points of production and points of consumption takes time • Supply and demand are uncertain
TABLE 3-3: PRODUCT RETURNS: PERCENTAGE RANGES Returns are very significant in many industries. In a survey of over 300 reverse logistics managers in 1998, researchers found the following ranges for return percentages:
FIGURE 3-2: POSSIBLE PATHWAYS FOR RETURNED PRODUCT Key: solid lines denote product to be salvaged for subsequent revenue. Dotted lines denote non-revenue-producing product flows.
TABLE 3-4: DIFFERENCES BETWEEN FORWARD AND REVERSE LOGISTICS
The Efficiency Template The efficiency template is a tool to measure the costs borne and the value added by each channel member in its performance of channel flows. The efficiency template is used to describe: • The types and amount of work done by each channel member • The importance of each channel flow • The resulting share of to channel profits
FIGURE 3-3: THE EFFICIENCY TEMPLATE * Entries in column must add up to 100 points. ** Entries across row (sum of proportional flow performance of channel members 1 through 4) for each channel member must add up to 100 points. *** Normative profit share of channel member i is calculated as: (final weight, physical possession)*(channel member i's proportional flow performance of physical possession) + … + (final weight, payment)*(channel member i's proportional flow performance of payment). Entries across row (sum of normative profit shares for channel members 1 through 4) must add up to 100 points.
Using Channel Flow Concepts to design A Zero-Based Channel A zero-base channel is an optimal channel being designed from scratch. A zero-base channel design is one that a) meets the target market segment’s demand for service outputs, b) At minimum cost of performing the necessary channel flows that produce those service outputs.
Retailers Customer Consumption Wholesalers Manufacturers Suppliers FIGURE 3-4: THE BULLWHIP EFFECT Source: Based on the lecture notes of Enver Yücesan at INSEAD.
The Efficiency Template The efficiency template is a tool to measure the costs borne and the value added by each channel member in its performance of channel flows. The efficiency template is used to describe: • The types and amount of work done by each channel member • The importance of each channel flow • The resulting share of to channel profits
TABLE 3.APP3A-1BUILDING MATERIALS COMPANY EFFICIENCY TEMPLATE FOR CHANNEL SERVING END-USERS THROUGH RETAILIERS: UNDISGUISED DATA
TABLE 3.APP3A-2 BUILDING MATERIALS COMPANY EFFICIENCY TEMPLATE FOR CHANNEL SERVING END-USERS THROUGH RETAILERS: RANK-ORDER DATA
TABLE 3.APP3A-3 BUILDING MATERIALS COMPANY EFFICIENCY TEMPLATE FOR CHANNEL SERVING END-USERS THROUGH RETAILERS : TRANSFORMED RANK-ORDER DATA