BU352 Chapter Notes - Chapter 12: Logistics, Competitive Intelligence, Liquid Oxygen
Document Summary
No matter how good your research and insights are, if aren"t in right places customers won"t purchase: big fight for shelf space. Distribution channel: people who get goods to consumers (wholesalers/retailers), part of overall supply chain. Wholesalers: buy fro, manufacturers and resell to retailers: who sell to consumers. Logistics management: integration of two or more activities to plan, implement and control efficient flow of raw materials, in process inventory and finished goods from point of origin to consumption. Wholesalers help add value, don"t have to talk to all manufacturers and learn benefits of each, all in one place. Factory -> consumer complicates buying process (limits # of transactions) Functions performed by intermediaries (reduce marketplace contacts, promoting efficiency): Buying purchase goods for resale to other intermediaries or consumers. Risk taking ownership of inventory that can become outdated. Promotion promote products to attract consumers. Physical distribution transport goods to point of purchase. Storing maintain inventory and protect goods.
