MKC2610 Lecture Notes - Lecture 11: Mobile Payment, Consumer Behaviour, Operations Management
6 Jun 2018
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Week 11 Lecture: Strategic retail operations management in the global market (Distribution)
Agenda
• Supply chain management
• Challenges for retailers
• Role of internet in retailing
• Omni-channel retailing
The Supply Chain – who will ship the product to you?
• Channel – different types of institutions, manufacturers, agents, firms
• Channel members form the channels
• Distribution channel vs. supply chain
Broadened view incorporates:
• The materials that go into manufacturing the goods
• The process consumers use to dispose of or recycle the product
Supply Chain five external factors
1. Consumer behaviour – how will they dispose the products?
2. Competitor behaviour
3. Socioeconomic environment
4. Technological environment
5. Legal and ethical environment
Decisions about Supply Chains
Strategic decisions for efficient and competitive supply chain require deciding:
• Supply-chain length
• Supply-chain width
• Control of the supply chain
Supply-Chain Length
Direct supply chain: Manufacturer sells its goods directly to the final consumer
• Desired length is determined by:
o The size of the customer base
o Geographical dispersion
o Behaviour patterns like purchase frequency
o Average purchase size
o The particular needs of customers
o The nature of the product
o Size of the manufacturer, its financial capacity and its desire for control
Supply-Chain Width
Intensive distribution: All possible retailers are used in a trade area
Selective distribution: Moderate number of retailers are used in a trade area
Exclusive distribution: Only one retailer is used to cover a trading area
Document Summary
Week 11 lecture: strategic retail operations management in the global market (distribution) Supply chain management: challenges for retailers, role of internet in retailing, omni-channel retailing. The supply chain who will ship the product to you: channel different types of institutions, manufacturers, agents, firms, channel members form the channels, distribution channel vs. supply chain. The materials that go into manufacturing the goods. The process consumers use to dispose of or recycle the product. Supply chain five external factors: consumer behaviour how will they dispose the products, competitor behaviour, socioeconomic environment, technological environment, legal and ethical environment. Strategic decisions for efficient and competitive supply chain require deciding: Supply-chain width: control of the supply chain. Intensive distribution: all possible retailers are used in a trade area. Selective distribution: moderate number of retailers are used in a trade area. Exclusive distribution: only one retailer is used to cover a trading area.
