Exam 2 Study Guide 5-8 - SCM 300 MODULE 05 Study Packet...

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SCM 300 – MODULE 05Study PacketModule 05: Sell it and Service It4 Retailing OptionsBrick and Mortar – All products and services are sold to customers from physical stores. Example: McDonald’sOnline or E-tailing– All products and services are sold to customers through an online website. Example: Amazon.comBricks and clicks – Products can be bought from a physical store or from an online system. Example: Barnes and Noble and BN.comClicks and calls – In addition to taking orders via the company website, some companies will also offer sales via the phone. Examples: Lands’ End and L.L. BeanOmni-channel RetailingRetailers that are fully committed to engagingcustomers via catalogs, phone calls, websites, email, internet chatrooms, social media sites or mobile apps, and of course also in stores. Ex. Nordstorm3 Retail sources of supplyManufacturers – These are the companies that actually create the finished goods. Retailers then buy the goods and that retaileris responsible for distribution and storage.Wholesalers – These organizations purchasegoods from manufacturers. Typically they purchase an assortment of goods from many manufacturers, thus a retail company could purchase all of their electronics from a single wholesaler versus having to purchase from each individual manufacturer.Drop shippers – This one is not really a source of supply, but rather an organization that ties manufacturers and/or wholesalers directly to consumers.ChargebacksThese are effectively penalties charged by retail organizations to their suppliers/vendors for any number of minor and major supply chain offenses.CPFR (Collaborative, Planning, Forecasting, Rescheduling) A formalized effort by supply chain partners to share data and collectively develop forecasts in an effort to reduce supply chain costs through better planning.VMI (Vendor Managed Inventory)An arrangement where retailers allow vendors to monitor in-store inventories, initiate orders/shipments to the store when inventories are low, and also bring the items into the store and onto the shelf.Last MileIn supply chain the last mile typically refers tothe portion of the supply chain between the final inventory holding facility and the end consumer.Target (Best Practices)4 Types of Retail ownershipIndependents – One store, one owner. Usually they are trying to satisfy a very specialized market or locale. Example: Family owned corner stores, Boutique store that is run by the ownerChains – Multiple stores/facilities, one owner/company. Example: Home Depot, Wal-Mart, Costco, Gap, Macy’s, Safeway (Amazon.com probably best fits this category)Franchises – A franchisor owns the rights to a company and the name. A franchisee is allowed to open an outlet under that name.

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