designed to increase demand by motivating sellers- wholesalers, distributors, or salespeople- to highlights the product, rather than the products of competitors, and thereby push the product onto customers Pull marketing strategy: designed to get consumers to pull the product into the supply chain by demanding it; more costly, retailers don’t have flexibility to adjust inventory levels, efficient for merchandise that has steady, predictable demand Advantages for using distribution center: more accurate sales forecasts are possible when retailers combine forecasts for many store serviced by 1 distribution center, enable retailer to carry less merchandise in individual stores, easier to avoid running out of stock or having too much, retail space is more expensive than distribution center & centers are better equipped than stores to prepare merchandise for sale Distribution center perform: coordinating inbound trans, receiving, checking & storing & cross-docking getting merch floor ready & coord outbound transportation Planners: employees who are responsible for the financial planning & analysis of merchandise, & its allocation to stores Receiving: process of recording the receipt of merchandise as it arrives at a distribution center, use EDI now Radio frequency identification tags (RFID): tiny computer chips that automatically transmit to a special scanner all info about containers contents/products Cross docking: merchandise placed on conveyor system that routes it from unloading dock to loading dock for truck going to specific store Ticketing & marking: creating price & ID labels & placing them on merchandise; more efficient at distribution center Pick ticket: document or display on screen in a forklift truck indicating how much of each item to get from specific storage areas JIT inventory: inv management system deigned to deliver less merchandise on a more frequent basis than traditional inventory systems; firm gets merchandise just in time for it to be used in manufacture of another product, in case of parts or components, or for sale when customer wants it, in case of consumer goods (quick response) Retailing: set of business activities that add value to products & service sold to consumers for their personal or family use 4 factors manufacturers consider to establish their strategy for working w/ retailers: 1. Choosing retailing partners (look @ channel structure, where to find, channel member characteristics) 2. Identifying types of retailers, 3. Developing a retail strategy, 4. Managing multichannel strategy (selling in more than 1 channel) Distribution intensity: # of supply chain members to use at each level of the supply chain/ intensive distribution: get products into as many outlets as possible Exclusive distribution: only selected retailers can sell a manufacturer’s brand/ selective dist: lies btwn intensive & exclusive; uses few selected customers in territory Conventional supermarket:
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