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How do Channel Firms Interact and Organize to do the Work of the Channel?
In th is vid eo clip, a Dupont executive speaks about managing the supply chain and the logistics p rocess f or two well-known brand s: Nomex and Kevlar.
These Functions Should be Assigned to the Channel Member Who Can Perform Them Most Efficiently and Effectively to Provide Satisfactory Assortments of Goods and Services to Target Customers.
Contact
Channel 2
M
Channel 3
M W R C
Channel 4
M W J R C
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each member is assigned tasks it can do best. all members cooperate to attain overall channel goals and satisfy the target market. Horizontal Conflict occurs among firms at the same level of the channel, i.e retailer to retailer. Vertical Conflict occurs between different levels of the same channel, i.e. wholesaler to retailer.
For the channel to perform well, each channel members role must be specified and conflict must be managed.
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Retailer
Consumer
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Corporate
Contractual
Administered
Retailer Cooperatives
Franchise Organizations
Discussion Connections
Describe the kinds of horizontal and vertical channel conflict that might occur in one of the following:
How would you remedy the problems you have just described?
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FEEDBACK
customer service and satisfaction have become the cornerstone of marketing strategy. logistics is a major cost element for most companies. the explosion in product variety has created a need for improved logistics management. Improvements in information technology has created opportunities for major gains in distribution efficiency.
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Goal:
To Provide a Targeted Level of Customer Service at the Least Cost.
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Costs
Order Processing
Received Processed Shipped
Logistics
Rail, Truck, Water, Pipeline, Air, Intermodal
Transportation
Functions
Inventory
Warehousing
Storage Distribution Automated
Transportation Modes
Nations largest carrier, cost-effective for shipping bulk products, piggyback
Rail
Flexible in routing & time schedules, efficient for short-hauls of high value goods
Low cost for shipping bulky, low-value, non perishable goods, slowest form Ship petroleum, natural gas, and chemicals from sources to markets High cost, ideal when speed is needed or distance markets have to be reached
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Truck
Water
Pipeline
Air
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Many companies are now outsourcing logistics tasks to companies like Ryder Integrated Logistics.
Concept Recognizes that Providing Better Customer Service and Trimming Distribution Costs Requires Teamwork, Both Inside the Company and Among All the Marketing Channel Organizations.
Cross-Functional Teamwork inside the Company Building Channel Partnerships Third-Party Logistics
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