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CHANNEL STRUCTURE

Explore the key elements of supply chain management, the management of upstream and downstream relationships with suppliers and customers, and the importance of channel structure in delivering superior customer value at minimum cost.

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CHANNEL STRUCTURE

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  1. CHANNEL STRUCTURE Andary A Munita Hanafiah

  2. Supply Chain Management The Management Of Upstream And Downstream Relationship With Supplier And Customers To Deliver Superior Customer Value At Least Cost Linkage Coordination Channel Relationship Structure Management

  3. Channel Structure Structure Of Intra company Organizational Units And Extra company Agents And Dealers, Wholesale And Retail, Through Which A Commodity, Product, Or Services Is Marketed

  4. Intermediary Any channel member other than the manufacturer or end-user Wholesale Retail

  5. Why ? Demand Side Supply Side Facilitation of Search Routinization of Transaction Adjustment of Assortment Reduction in number of Discrepancy contracts

  6. Function MengatasiKesenjangan (Gap ). Waktu (Time). Tempat (Place ). Kepemilikan (Ownership) Perantara(Intermediary)

  7. Function of Intermediary • Informasi2. Promosi3. Kontak4. Penyesuaian5. Negosiasi6. Transaksi . DistribusiFisik. DukunganKeuangan. Resiko

  8. What is Happen? A. ALIRAN ( Flow ) 1. Flow of Goods 2. Flow of Information 3. Flow of Money 4. Transfer of Ownership 5. Promotion B. KONFLIK ( Conflict ) 1. Horizontal 2. Vertical

  9. Generic Distribution Channel FARM AND RAW MATERIAL MANUFACTURER WHOLESALERS RETAILER CONSUMERS

  10. Manufacturer Based Channel Format • Manufacturer Direct • Manufacturer Owned Full Service Wholesale-Distributor • Company Store-Manufacturer Outlet • License • Consignment-Locker Stock • Broker

  11. RetailerBased Channel Format • Franchise • Dealer Direct • Buying Club • Warehouse Club-Wholesale Club • Mail Order catalog • Food Retailer • Department Store • Mass-Merchandiser • Specialty Store • Specialty Discount - Category killer • Convenience Store • Hyper market

  12. Service Provider Based Channel Format • Contract Warehousing • Sub processor • Cross Docking • Integration of Truck and Rail ( Inter modal ) • Roller Freight • Stack train and Road Railer • Schedule Train • Outsourcing • Direct mailer • Bartering • Value Added Retailer • Influencer - specifier • Financial Service Provider

  13. Retailer Retailing consists of the activities involved in selling goods and services to ultimate consumers for personal consumption Demand Side Positioning Financial and Cost Side Bulk-Breaking Margin Spatial Convenience Inventory Turn Over Waiting & Delivery Time GMROI Product Variety GMROS Customer Service Possibility GMROL

  14. Taxonomy of Retailer Types Type Main Bulk Spatial Waiting & Variety Assortment Focus Breaking Convenience Delivery Breadth Depth Dept Store Margin Yes Moderate Low Broad Moderate Spec Store Margin Yes Moderate Low Narrow Deep Mail Margin Yes Extremely Moderate- Narrow Moderate Order High High Convenience Both Yes Very High Low Broad Shallow Store Category Turn Yes Low Low Narrow Deep Killer Over Mass Turn Yes Low Moderate Broad Shallow Merchand. Over Hyper- Turn Yes Low Moderate Broad Moderate Market Over Warehouse Turn No Low Moderate Broad hallow Club Over

  15. Objectives of Trade Deals for Non Durable Goods Tactics Objectives 1 2 3 4 5 6 Off Invoice X X X X X Bill-Back X X X X X Free Goods X X Cooperative Adv. X X X Display Allowance X X Sales Drives X X Slotting Allowance X X Street Money X X 1. Retailer Merchandising Activities 2. Loading The Retailer 3.Gaining or Maintaining Distribution 4. Obtain Price Reduction 5. Competitive Tool 6. Retailer”Goodwill”

  16. Non Retailing Remove the need to travel Distributor comes to consumer Catalog Retailing Direct Selling

  17. Direct Selling The sales of a consumer product or service in a face to face manner away from a fixed retail location

  18. Electronic Channels Any Channel that involves using the internet as means of reaching the end user or any channel for which the consumer literally buys on-line B2C B2B

  19. Wholesaling Business establishment that do not sell products to a significant degree to ultimate household consumers, but sell products primarily to to other businesses

  20. Distribution Channel Based on Delivery Method1. Direct DistributionTidak Ada Perantara,Barang Dikirim Langsung Dari Produsen Ke Konsumen2. Indirect Distribution Barang Dikirim Dari Produsen Melalui Perantara

  21. Distribution Cannel For Consumer Good Manufacture Consumer Retailer Consumer Manufacture Manufacture Wholesaler Retailer Consumer Jobber Manufacture Wholesaler Retailer Consumer

  22. Distribution Channel for Industrial Good Manufacture Consumer Manufacture DISTRIBUTOR Consumer Manufacture Representative Branch Consumer Representative Branch Manufacture DISTRIBUTOR Consumer

  23. Distribution Channel Based on Organizational Arrangement1. Conventional 2. Vertical3. Horizontal4. Mix

  24. 1. Conventional Terdiri Atas Satu Atau Beberapa Perantara Yang Bersifat Independen Dan Merupakan Bisnis Tersendiri Manufacture Consumer GROSIR Retailer

  25. 2. Vertical Marketing System Terdiri Atas Satu Atau Beberapa Perantara Yang Bersifat Dependen Dan Merupakan Bisnis Terpadu Manufacture Wholesaler Retailer Consumer

  26. Type of VMS VMS Corporation Didasarkan Atas Kepemilikan 2. VMS Contract Didasarkan Atas Kontrak/perjanjian 3. VMS Coordinative Didasarkan Atas Kerjasama

  27. 4. Mix Bila Perusahaan Menggunakan Dua Atau Lebih Sitem Saluran Distribusi Sesuai Dengan Segmentasi Konsumennya CONSUMER 1 KATALOG, EMAIIL, DSB Retailer CONSUMER 2 Manufacturer DISTRIBUTOR AGENCY CONSUMER 3 CONSUMER 4 ARMADA PENJUAL

  28. C. Distribution Cannel Based on number of Participants 1. Intensive DistributionMenyediakan Produk Disebanyak Mungkin Outlet 2. Exclusive DistributionMenyediakan Produk Hanya Pada Beberapa Outlet Eksklusif 3. Selective Distribution Menyediakan Produk Hanya Pada Beberapa Outlet Selektif

  29. D. Distribution Channel Based onFunction 1. Primary Channel Participant Berpartisipasi Dalam Kepemilikan Inventory Atau Resiko Finansial • Manufacture • Wholesaler • Retailer 2. Specialized Channel Participant Berpartisipasi Hanya Dalam Suatu Pelayanan Tertentu Karena Fee • Functional Specialist: Transportation, Warehousing,etc • Support Specialist: Advertising, Insurance, Etc

  30. Primary Channel Participant A Business That Is Willing To Participate In The Inventory Ownership Responsibility Or Other Significant Aspects Of Financial Risk • Manufacturer •   Wholesalers (Merchant,agent)   •  Retailers

  31. Specialized Channel Participant A Business That Participates In Channel Relationships By Performing Essential Services For Primary Participant Or A Fee Functional Support - Transportation - Financial - Warehousing - Informational - Assembly - Advertising - Fulfillment - Insurance - Sequencing - Advisory - Merchandizing - Arranger

  32. Economics Of Distribution Foundation For Developing A Successful Channel Arrangement Specialization Assortment

  33. Specialization • The Ability To Superiority Perform A Specific Function • Specialization Is Based On Economics Of Scale, Scope And Expertise

  34. Assortment • Process Of Creating And Positioning A Mix Of Products Desired By Customer Through: • Concentration • Customization • Dispersion • Consists Of Sorting And Configuring A Variety Of Products And Commodities To Satisfy Exact Buyer Requirements

  35. 1. Concentration • Collection Of Large Quantities Of A Single Product Or Several Different Products So That They Can Ultimate Be Sold As A Group • Basic Principle Of Concentration Is Referred To As Minimum Total Transaction

  36. 2. Customization • Process Of Sorting And Grouping Of Product Into Unique Combinations To Satisfy A Specific Customer’s Requirements • Capability Of A Firm To Achieve Effective Customization Is The Heart Of Developing A Supply Chain Arrangement

  37. 3. Dispersion Shipping Unique Assortment To Customer When And Where Specified

  38. RancanganSaluranDistribusi • Analisis Kebutuhan Pelayanan • Menetapkan Sasaran • Mengembangkan Alternatif Saluran • Evaluasi Alternatif Saluran • Rancangan Implementasi

  39. AnalisisKebutuhanPelayanan • Identify The Key Component Of Customer Service • Establish The Relative Importance Service Components • Identify Cluster Of Customer

  40. 1. MenetapkanPrioritasCUSTOMER A B C A B C KEY PRODUCT

  41. 2. MenetapkanSasaran • Order Cycle Time • Stock Availability • Order Size Constraint • Ordering Convenience • Frequency Of Delivery • Delivery Reliability • Documentation Quality • Claims Procedure • Order Completeness • Technical Support • Order Status Information

  42. 3. MengembangkanAlternatifSaluran • TipePerantara • JumlahPerantara • Peran Dan FungsiPerantara

  43. 4. Evaluasi Alternative • KriteriaEkonomi • KriteriaPelayanan • KriteriaPengendalian

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