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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-1 ChapterFifteen Distributing Products Efficiently and Competitively: Supply Chain Management
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-2 Channel of Distribution Marketing Intermediaries Wholesaler Retailer Brokers Role of Intermediaries Create Efficiency Value vs. Cost
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-3 The Supply Chain (Figure 15.6)
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-4 Utility Form Time Place Possession Information Service OPEN 24 HRS
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-5 Wholesale Intermediaries Merchant Wholesalers Rack Jobbers Cash-and-Carry Drop Shippers Business to Business (B2B) XYZ Warehouse
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-6 Percent of B2B Commerce from Internet *Excludes Service Industries Source: Source: Forrester Research Inc.
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-7 Retail Competition Price Service Location Selection Entertainment
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-8 Is it Becoming a Wal-Mart World? *There are 2,985 stores in the U.S. Source: Source: Wal-Mart Annual Report 2000
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-9 Retail Store Distribution Intensive Selective Exclusive
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-10 Identify a Retailer in Your Area Supermarket Convenience Store Discount Store Department Store Category Killer Specialty Store Factory Outlet Superstores Catalog Showroom
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-11 The Wheel of Retailing PassageofTime 2. Retail Outlet 1. Retail Outlet Starts 3. Retail Outlet 4. New Outlet Enters Adds Service Raises Prices Better Location Adds Service Raises Prices Better Location Low Price Limited Service Out-of-way Location Low Price Limited Service Out-of-way Location Higher Prices Higher Status Higher Prices Higher Status Low Price Limited Service Low Price Limited Service
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-12 Non-Store Distribution E-tailing Telemarketing Vending Machines, Kiosks, Carts Internet Direct Selling Multilevel Marketing Direct Marketing
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-13 E-Business Expectations Share of company revenues CEOs say come from e-business Now vs. In 5 years Source: Source: USA Today
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-14 Has The Internet Changed Your Shopping Habits? Survey of Americans who have high* Internet use vs. those with low use * high use = 15+ hours per week Source: Source: USA Today
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-15 What Online Shoppers Bought* Per Month in 2000 *In thousands of dollars Source: Source: Forrester Research
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-16 What does it take to persuade consumers to buy online? * Survey of 1,944 Web users that had not made an online purchase Source: Source: CIO Web Business, 10/1/1999
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-17 Channel Cooperation Corporate Distribution Contractual Distribution Administered Distribution Supply Chain Management
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-18 Contractual Distribution Franchise Systems Wholesaler-Sponsored Chains Retail Cooperatives
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 15-19 Distribution/Storage Mode Railroad Motor Vehicles Water Pipeline Air Intermodal Storage Materials Handling
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