Launch your PollEV session: UWMBUSINESS to 37607

1. Launch your PollEV session: Text: UWMBUSINESS to 37607 *Text LEAVE at the end of class* Alternate #: (747) 444-3548

2. FINISH STRONG End of term.. • What happens after test 3? How will I know whether to do the final or not? • What happens to my Extra credit: • Polleverywhere points • Homework - +5 for doing all homework • Discussion – last presentation • When is the final? • Can I do missed homework??

4. P P The Third ‘P’: Supply Chain and Channel Management P P Ref: Text, chapter 16

7. “FEWER RESOURCES” • Getting products to customers efficiently – quickly and at low cost

9. Retail Data Warehouse

10. *Helpful hint* • Focus on the NAME; it will help you remember the function

11. Electronic Data Interchange (EDI) • The retailer and manufacturer exchange business documents through EDI in information flows 3, 4, and 6 • EDI is the computer-to-computer exchange of business documents from a retailer to a vendor and back: sales data, purchase orders, invoices, and data about returned merchandise are exchanged

12. asn

13. Electronic Data Interchange (EDI) • Main benefits of EDIs: • Quicker communication • Fewer errors  Improves overall quality of communications • Therefore, goods from vendors can move more quickly

14. Vendor-Managed Inventory (VMI) • This is an approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailer’s inventory levels in each of the stores • VMI can reduce the vendor’s and the retailer’s costs and make time more productive

16. Wal-Mart & customer service! • If Walmart comes up with a new way of SERVING CUSTOMERS BETTER,

19. In this topic, we will: • Define supply chain management • Recognize the value added by the supply chain • Describe the flow of merchandise and the flow of information in the supply chain • Describe how supply chains are managed

20. Merchandise flows

21. 2. Making merchandise flow • Advantages to using a distribution center: • Lower inventory costs for retailer • Easier to manage stock • Less expensive

22. Merchandise flows

23. 2. Making merchandise flow • Advantages to using direct store delivery: • If retailer has only a few outlets • If outlets are concentrated in metropolitan areas • Faster delivery. Used for perishable goods

24. The distribution center • Coordinates inbound transportation • Receives and checks merchandise using UPC and RFID • Stores and cross-docks merchandise • Gets merchandise floor ready • Prepares to ship merchandise to a store • Ships merchandise to stores

25. A Wal-mart distribution center Typically over 1M sq.ft! {has about 40 in the country (“RDCs”), serving about 75-100 stores}

28. Walmart’s distribution center network

29. Just-In-Time (JIT) Systems • Many firms use just-in-time (JIT) inventory systems. • Also known as quick response (QR) systems in retailing

30. Just-In-Time (JIT) Systems • They are inventory management systems designed to deliver less merchandise on a more frequent basis than more traditional inventory systems. Firm gets the merchandise “just in time”

31. Just-In-Time (JIT) Systems • Benefits: reduced lead time, increased product availability, and lower inventory investment • Costs: logistics function becomes much more complicated; more expensive to transport, more difficult to coordinate

33. Supply Chain Management • Integrate EVERYONE involved • Into a seamless VALUE CHAIN  • Flow of INFORMATION and GOODS • Is optimized to satisfy customers

34. Managing the marketing channel and supply chain • Vertical channel conflict or horizontal channel conflict can occur • There are two ways to manage a supply chain

35. horizontal vertical

36. 1. Vertical Marketing Systems

37. Conventional marketing channel Manu-facturer Whole-saler Retailer

38. 1. Vertical Marketing Systems • Administered vertical marketing system - the dominant channel member holds the balance of power • Contractual vertical marketing system– join together through contracts to reduce conflict • Corporate vertical marketing system –the parent company owns the manufacturing plants, warehouse facilities, retail outlets, and any other entities. Conflict is lessened

39. Tesla’s innovative supply chain: own everything

40. 2. Strategic relationships • This is the second way of managing marketing channels • Firms often seek a strategic relationship (partnering relationship), in which the supply chain members are committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial

41. Conventional marketing channel Profit Pie $$ Manu-facturer Whole-saler Retailer

42. 2. Strategic relationships • Firms often seek a strategic relationship (partnering relationship), in which the supply chain members are committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial

43. Bigger pie!

44. Key concepts/ terms to know Place: delivering value Wholesalers, retailers Supply chain management Marketing channel Logistics management Data warehouse EDI (Electronic Data Interchange) VMI (Vendor Managed Inventory) Pull and Push Supply Chains Roles of the distribution center Just-In-Time (JIT) systems • Vertical marketing systems: Administered, Contractual, Corporate • Managing a marketing channel through: • Vertical marketing systems • Strategic relationships

46. The Third ‘P’: Retailing and Omnichannel Marketing Ref: Text, chapter 17

47. Delivering Value: Location, Availability, Delivery, Look & Feel “PRODUCT” (Value) Seller Buyer VALUE

49. The Third ‘P’: Retailing and Omnichannel Marketing “All” Ref: Text, chapter 17

50. In this topic, we will: • Discuss 4 factors manufacturers should consider as they develop a strategy for working with retailers • Describe considerations associated with choosing retail partners • List the 3 levels of “distribution intensity” • Describe the various types of retailers • Describe the components of a retail strategy • Identify the benefits and challenges of omnichannelretailing