CHAPTER 8. D is t ribution Channels and Logistics Management Objective : examining the nature and role of the channels in attracting and satisfying customers . The Nature of Distribution Channels.
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Distribution Channels and Logistics Management
Objective: examining the nature and role of the channels in attracting and satisfying customers
A. Number of contacts B. Number of contacts
without a distributor with a distributor
Designing a channel system include;
handle, how many channels it can use, which transportation can be used…
After the channel objective have been determined, the company should identify its major channel alternatives in terms of (1) types of intermediaries, (2) number of intermediaries, and (3) the responsibilities of each channel member.
A firm should identify the types of channel members that are available to carry out its channel work.
Companies must also determine the number of channel members to use. There are three strategies;
The producer and intermediaries must agree on price policies, discounts, territories, and services
to be performed by each party. E.g. McDonald’s provides franchisees with promotional support, training, management assistance, in turn, franchisees must meet company standards for physical facilities, buy specific food products...
In order to select the channel that satisfy the company objectives in the best way, each alternative should be evaluated by using;
The major logistics functions include;
On the other hand, public warehouses;
the need to transfer goods from truck to rail and back again. They are efficient for short hauls of high-value products. They can offer faster service.