Management and Organizational Studies 2320A/B Chapter Notes - Chapter 12: Franchising, Strategic Alliance, Radio-Frequency Identification
Document Summary
Distribution channels, supply chain, and logistics are related. Distribution channel the institutions that transfer the ownership of and move goods from the point of production to the point of consumption: all the institutions and marketing activities in the marketing process, interchangeable with supply chain . Differences between the management types: distribution channel management: responsible for marketing departments, logistics management: responsibility of operations. The distribution system can take the form of direct, indirect, and multichannel distribution, or some combination of them . Indirect distribution: one or more intermediaries work with manufacturers to provide goods and services to consumers. In some cases, there is only one intermediary involved. The bay (or other large retailers) typically use only one intermediary: wholesalers are used when a company doesn"t buy in sufficient quantity to make it cost- effective for a manufacturer to deal directly with a retailer. The use of wholesalers is common for low-cost or low-unit value items (i. e. candy, chips)