Banach Marketing Mix Place

1. Making Information Flow

2. Making Merchandise Flow

3. Managing Inventory

4. Designing Supply Chains

5. Managing Relationships

Information flows from and to: Customers, Stores, distribution centers, wholesalers, product manufacturers, and then to the producers, and the suppliers of raw materials.

Electronic Data Interchange (EDI)

The computer-to-computer exchange of business documents from a retailer to a vendor and back

Advanced Shipping Notice

An electronic document that the supplier sends the retailer in advance of a shipment 

Collaboration, Planning, Forecasting, Replenishment (CPFR)

An inventory management system that uses an EDI through which a retailer sends sales information to a manufacturer. The manufacturer then can create a computer generated sales forecast and delivery schedule

Receiving and Checking 

Storing and Cross-Docking

Getting Merchandise Floor-Ready 

Shipping Merchandise to Stores

Also known as quick-response (QR) systems in retailing, are inventory management systems designed to deliver less merchandise on a more frequent basis than traditional inventory systems.

Benefits

- Reduced Lead Time (allows better forecasting)

- Increased Product Availability 

- Lower Inventory Investment

Costs

JIT systems require not only financial support from top management but also a psychological support by members

Supply Chain Struckture

Customer Expectations: Manufacturers, need to know where their target market customers expect to find their products and those of their competitors 

Supply Chain Member Characteristics: The larger and more sophisticated the channel member, the less likely that it will use supply chain intermediaries. Larger firms often perform the supply chain functions themselves, to gain more control, be more efficient, and save money.

Distribution Intensity

Intensive Distribution: Designed to get products into as many outlets as possible (Consumer packaged goods)

Exclusive Distribution: exclusive geographic territories to few retailers, no other retailers in the territory can sell a particular brand (selected customers represent their products)

Selective Distribution: few selected retailers in a territory, elps maintain a particular image, controls the flow of merchandise into an area

Through Vertical Marketing Systems (VMS)

Is a supply chain in which the members act as a unified system.

- Administered VMS

- Contractual VMS

- Corporate VMS

Through Strategic Relationships

- Mutual Trust

- Open Communication

- Common Goals

- Credible Commitments

The dominant channel member controls the channel relationship.

- no common ownership

- no contractual relationships

Independent firms at different levels of the supply chain join together through contracts 

- economies of scale 

- better coordination

- reduces conflict.

Nearly all aspects of the supply chain is controlled by the corporate company.