Marketing: Chapter 14 Objectives
LQ1 Define the supply chain management.
Supply chain management refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize system wide costs while satisfying the service levels their customers require.
LQ2 Recognize the value added by the supply chain
The value added by the supply chain is ore than moving materials. It focuses to deliver superior total value to the customer in terms of speed, cost, quality, and flexibility. The manufacturer helps by supplying parts and materials to the maker, then the maker turns the components into the product. The transportation company gets the product to the retailer. The retailer stores the product until the customer wants it, educates the customer about the product, delivers, and transports it.
LQ3 Describe the flow of merchandise and the flow of information in the supply chain.
The flow of information in the supply chain flows from the customers to the stores, to and from distribution centers, possibly to and from wholesalers, to and from product manufacturers and then on to the producers of any components and the suppliers of the raw materials. Some examples include; the UPC tag which indicates the manufacturer of the item, description of the item, information about special packaging, and special promotions. The store to the buyer POS terminal records the personal information and electronically sends it to the buyer. The sales information is incorporated into an inventory management system and used to monitor and analyze sales and decides to reorder more of the product, change the price or plan a promotion.
The merchandise flow involves first deciding if the merchandise...
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