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13 - Distribution Strategy - CHAPTER 13 DISTRIBUTION...

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    CHAPTER 13 DISTRIBUTION STRATEGY
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    DISTRIBUTION STRATEGY Transaction Functions Physical Distribution Functions Supply Chains Distribution Strategy Channels of Distribution Wholesalers Retailers Vertical Marketing Systems
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    TWO MAJOR DISTRIBUTION FUNCTIONS Transaction Function    Bringing buyers and sellers      together  for the sale. Physical Distribution Function        Bringing product from original  seller to final buyer.
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    TRANSACTION FUNCTIONS Buying Intermediary business and consumer buyers Selling Manufactures, assemblers,  and intermediary  selling to business  and consumer buyers
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    PHYSICAL DISTRIBUTION FUNCTIONS Transportation  – moving products Assorting  – buying in bulk Sorting  – breaking bulk Storage  – stores products Inventory  – physical count of products
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    TRANSPORTATION SELECTION + (STRONG) – (WEAK) Mode                 Speed          Cost        Access Rail      Trucking                                                     +                    +              - Air                                  Water                     -                 +                -    
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    ASSORTING AND SORTING BY WHOLESALER Assorting                                            Buys in Stage                                                     Bulk Sorting                                               Breaks  Stage                                                   Bulk Manufacturer Wholesaler Retailer
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    STORAGE MANAGEMENT Warehouses Shipping containers Port of Houston
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    INVENTORY MANAGEMENT Just-in-time Safety stock Inventory theft
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