written report ch6 montilla.docx - INTRODUCTION Information technology has made a big difference to channel operations and management Information

written report ch6 montilla.docx - INTRODUCTION Information...

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INTRODUCTION Information technology has made a big difference to channel operations and management. Information systems have revolutionized the way information is collected, stored and transmitted between channel members. They add value to the distribution function and enable channel members to integrate different channel functions, which was not possible in conventional distribution systems. Channel information systems have also influenced the structure of distribution channels. Lengthy channels have given way to shorter and highly efficient. Channel information systems comprise an information database and the hardware and networks that help in the collection, processing and transmission of information. The hardware, software and networks vary depending on the application requirements of channel members. They vary for business-to- business applications, retailing applications, business to consumer applications and interactive applications for consumers. Transaction-Based Information System (TBIS), Continuous Replenishment Program (CRP), Efficient Consumer Response System (ECR), Point-of-Sale Systems (POS), Quick Response System (QR), Electronic Data Interchange (EDI) etc., are some commonly used information systems. CHANNEL INFORMATION SYSTEM LEARNING OBJECTIVES After reading this chapter, you will able to Understand the concept of channel information system Know the benefits of a channel information system
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Discuss different levels of channel of information system Understand the implications of integration of the channel information system CONTENT STAGES OF CIS Collection of Data - What type of data? Processing - Arranging - Modifying - Interpreting Storage Use Three Different forms of a CIS ZERO-LEVEL SYSTEM This is a situation where there is basically no channel information system and channel members operate independently, without any idea about the level of sales achieved by other channel members, or the costs incurred. ONE-LEVEL SYSTEM This system is a bit more sophisticated from zero-level system, because at the channel principals level there is a recognition of the different channel partners at the immediate level and there is an effort to organize, record and process transactions on a ‘channel member basis’.
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  • Spring '17
  • Julius Bambico

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