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brokerage
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the business of a broker.
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logistics
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The process of designing, managing, and improving the movement of products through the supply chain. Logistics include purchasing manufacturing, storage, and transport.
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Knowledge Management
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A comprehensive approach to collecting, organizing, storing, and retrieving a firm’s information assets.
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Facilitating Functions
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Functions of channel intermediaries that make the purchase process easier for customers and manufacturers (i.e. breaking bulk, creating assortments, transport product, facilitate info flow, handle movement of product through customs, consolidate orders, extend credit).
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insourcing
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A practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations.
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warehousing
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Storing goods in anticipation of sale or transfer to another member of the channel of distribution.
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channel intermediaries
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Firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user.
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Selective Distribution
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Distribution using fewer outlets than intensive distribution but more than exclusive distribution.
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Physical Distribution
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The activities that move finished goods from manufacturers to final customers, including order processing, warehousing, materials handling, transportation, and inventory control.
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auctioneer
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a person who conducts sales by auction.
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intensive distribution
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Selling a product through all suitable wholesalers or retailers that are willing to stock and sell the product.
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inventory control
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Activities to ensure that goods are always available to meet customers’ demands.
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materials handling
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The moving of products into, within, and out of warehouses.
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order processing
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The series of activities that occurs between the time an order comes into the organization and the time a product goes out the door.
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channel levels
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The number of distinct categories of intermediaries that populate a channel of distribution.
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Merchandise Agents or Brokers
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Channel intermediaries that provide services in exchange for commissions but never take title to the product.
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Exclusive Distribution
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Selling a product only through a single outlet in a particular region.
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channel leader
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A firm at one level of distribution that takes a leadership role, establishing operating norms and processes based on its power relative to other channel members.
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radio frequency identification (RFID)
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Product tags with tiny chips containing information about the item’s content, origin, and destination.
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horizontal marketing system
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An arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose.
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wholesaling intermediaries
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Firms that handle the flow of products from the manufacturer to the retailer or business user.
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Take Title
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To accept legal ownership of a product and assume the accompanying rights and responsibilities of ownership.
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Channel of Distribution
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The series of firms or individuals that facilitates the movement of a product from the producer to the final customer.
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brand name
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a word, name, symbol, etc., esp. one legally registered as a trademark, used by a manufacturer or merchant to identify its products distinctively from others of the same type and usually prominently displayed on its goods, in advertising, etc.
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hybrid marketing system
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A marketing system that uses a number of different channels and communications methods to serve as target market.
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slotting allowance
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A fee pain in exchange for agreeing to place a manufacturer’s products on a retailer’s valuable shelf space.
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supply chain management
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The management of flows among firms in the supply chain to maximize total profitability.
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Enterprise Resource Planning (ERP Systems)
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A software system that integrates information from across the entire company, including finance, order fulfillment, manufacturing and transportation and then facilitates sharing of the data throughout the firm.
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disintermediation (of channel of distribution)
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The elimination of some layers of the channel of distribution in order to cut costs and improve the efficiency of the channel.
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